ISSUER - JAKARTA. PT Garuda Maintenance Facility Aero Asia Tbk (GMFI) sees a better business prospect for aircraft engine repair this year. The company stated that the Repair and Overhaul (MRO) engine market is expected to reach US$ 40.15 billion in 2024, and is estimated to reach US$ 54.68 billion in 2029, with a CAGR of 6.37% during the period 2024-2029.
Therefore, the company is optimistic about targeting a business growth of up to 15% in 2024 compared to the achievement in 2023.
Rian Fajar Isnaeni, VP Corporate Secretary & Legal GMFI said the impact of the COVID-19 pandemic on the engine MRO market was quite significant. This is due to the large number of aircraft storage and low utilization, the demand for engine maintenance globally dropped significantly in 2020.
However, in 2021, the aviation world began to recover gradually, which led to an increase in passenger traffic and aircraft movements.
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"Along with that, there will be an increase in the demand for MRO services in line with the development of the global aviation industry," Rian told KONTAN on Wednesday (31/1).
He further said, Asia Pacific is the fastest growing market in the world, with a very potential market. Therefore, the company hopes to absorb some customers who are focused on maintaining CFM5-5B or CFM56-7B engines in line with GMF's capability.
So far, GMF remains the market leader in the domestic area and is one of the largest MROs in the regional area.
For international customers, GMF has established long-term cooperation mainly with customers in the Asia Pacific region, such as Vietnam, North Korea, the Philippines, India, Australia, and the surrounding areas; as well as customers from Europe, the Middle East, and America.
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"Exploration is also being carried out for new customers, mainly for aircraft engine maintenance work, aircraft components, and other aircraft maintenance and repair services," Rian continued.
In line with the business growth target, in 2024 GMF is also preparing capital expenditure or capex with a larger amount compared to 2023.
According to KONTAN's records, the company's capex allocation last year was US$ 3.9 million. Meanwhile, in 2024, the capex allocation will be used to support operational activities and also business expansion. Unfortunately, he refused to mention the exact value.
For the future, Rian said GMFI plans to increase business expansion in all product segments, both airframe, component, engine, and from the power services and defense industry segments.
"The development of capabilities and capacities as well as cooperation with other parties are being prepared to support these plans," he concluded.
