Growth largely driven by the strength of mutual partnership in aircraft maintenance.
AFI KLM E&M signed its first sections of the Strategic Partnership Agreement (SPA) with Indonesian MRO Garuda Maintenance Facility (GMF) AeroAsia in October 2018 in Bali. On 17 June 2019, the two parties signed multiple contracts involving a range of maintenance operations, some of which will be handled by AFI KLM E&M in Paris and Amsterdam, and others by GMF in Jakarta. In doing so, the two companies aim to maximize each other's unique technical capabilities.
GMF is collaborating with AFI KLM E&M with their GE90-115 engines under a contract that includes on-wing support, repair, overhaul and access to a spares pool. Budget carrier Citilink, a Garuda Indonesia subsidiary, will benefit from a long-term contract covering component support for its A320 fleet. The existing component support contract for its Boeing 777 fleet has been renewed with Garuda. The SPA also includes component support for the Garuda Group Boeing 737 and Airbus A330 fleets. These agreements cover repair, pool access and Main Base Kits. The two companies will continue to cooperate on CFM56-7B and CFM56-5B maintenance.
In return, AFI KLM E&M has awarded several contracts to GMF AeroAsia. Heavy maintenance on several of KLM's Boeing 747-400s and KLM and Air France A330s will now be carried out in Jakarta. AFI KLM E&M will continue to support GMF airframe maintenance capability development. The Indonesian MRO will also develop and handle repairs for multiple components equipping a variety of aircraft types under a training program offered by AFI KLM E&M in addition to ongoing developments on CFM56-7B and CFM56-5B platforms. Lastly, AFI KLM E&M will be sending several component, engine and airframe experts to work at the Jakarta premises for the duration of the partnership.
Fabrice Defrance, Senior Vice President Commercial AFI KLM E&M, said: "We are proud to be able to share a proportion of our commercial growth with such a strong partner as GMF AeroAsia. Outsourcing certain operations to GMF will increase our efficiency."
GMF Acting Chief Executive, Tazar Marta Kurniawan confirmed: "Airframes are one of the core segment in our business. On this product, but also on the others entrusted to us, it is an honor to be awarded a part of the AFI KLM E&M portfolio, especially that from the two parent airlines, Air France and KLM."
Benefits of an international partnership
Through the shared development and use of their capabilities and resources, AFI KLM E&M and GMF will maximize the effectiveness of their respective geographic locations. But the benefits go further than this, for both parties. This was a natural partnership after so many years spent working together at various levels.
"In Jakarta, GMF has set up an impressive MRO facility strategically located in the fast-growing Asia Pacific market area," says Anne Brachet, Executive Vice President AFI KLM E&M. "For us, it is the partner of choice in this region. With its years of experience and continually expanding skillset, we have no doubt that GMF AeroAsia will achieve its ambition of being among the top ten MRO providers in the world. We want to be standing alongside it as it reaches that target."
Tazar Marta Kurniawan, added: "This is a formidable opportunity to link our development to the strength of the AFI KLM E&M brand, which is acknowledged worldwide as one on the leaders in the field of aircraft maintenance, repair, and overhaul. Thanks to this partnership, we have access to knowledge, training and know-how acquired over many years' experience."
Far from having explored all the opportunities provided by the Strategic Partnership Agreement uniting them, the two companies will continue to look into other areas of shared synergy.