BALI: Capital A Bhd
’s subsidiary, Asia Digital Engineering Sdn Bhd (ADE), and PT Garuda Maintenance Facility Aero Asia Tbk (GMF) have entered a strategic partnership for a new landing gear maintenance, repair, and overhaul (MRO) business with a combined investment of US$12 million (US$1 = RM4.25).
GMF is a subsidiary of PT Garuda Indonesia (Persero) Tbk.
Under the agreement, ADE will hold a 49 per cent stake in the joint venture (JV), marking a significant milestone for both companies as they combine their strengths to set new benchmarks in landing gear services across Southeast Asia.
"The JV will enable both companies to increase volume and become one of the world’s leading landing gear shops, not only servicing Garuda and AirAsia but other airlines as well,” said Capital A Bhd chief executive officer (CEO) Tan Sri Tony Fernandes during the partnership’s signing ceremony held at the inaugural Bali International Airshow 2024 (BIAS) here today.
This investment allows ADE and GMF to broaden their service offerings and tap into the growing landing gear market in Southeast Asia, leveraging ADE’s engineering capabilities and GMF’s established expertise.
The collaboration, which builds on a wider partnership between Capital A and Garuda that was first announced in September 2023, aims to provide world-class landing gear solutions to airlines across the region.
"Both companies are leaders in aircraft maintenance, and now we’re expanding into component services. By keeping the investment within ASEAN, we can grow faster and, most importantly, create more jobs. This is just the first step of many collaborations,” Fernandes added.
Meanwhile, GMF’s CEO, Andi Fahrurrozi, stated that the investment would be used to develop new capabilities, with operations expected to commence early next year.
"The landing gear shop, which currently services Airbus A320 and Boeing 737 platforms, is ready to go,” he said.
GMF provides comprehensive landing gear overhaul and maintenance services, including full disassembly, inspection, repair, and reassembly of components.
Meanwhile, ADE’s 14-line MRO hangar is now fully operational, and its digital products are gaining international recognition.
"This investment in GMF’s landing gear business is a strategic move to accelerate growth and cement ADE’s position as a leader in the aviation MRO sector,” said ADE CEO Mahesh Kumar. - Bernama
