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GMF and Gallant Venture Ltd. Approved the Basic Term Agreement

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President Director of GMF AeroAsia, Richard Budihadianto and Executive Director & CEO of Gallant Venture Ltd, Eugene Cho Park signed a Basic Term Agreement (BTA) at the GMF Hangar 1 on  December 8th, 2014. The agreement includes construction of infrastructure and hangar that will be managed by a joint venture company established by GMF and Bintan Aviation Investments (BAI), the subsidiary of Gallant Venture. “The BTA is a legal umbrella for a Joint Venture Agreement between GMF and BAI,” said Jemsly Hutabarat as Executive Project Leader of Bintan MRO.

Not only ensuring the business will run by Joint Venture Corporation (JVC), the BTA also regulates agreements comprising land provision and leasing, hangar construction, electricity and water utilization, as well as port access for the benefit of inflows and outflows of aircraft components undergoing maintenance. BTA also sets the time period of land utilization and its leasing price.

According to Jemsy Hutabarat, Gallant Venture or its affiliates will lease land for the hangar in the Bintan Industrial Zone to the joint venture company established by GMF and BAI. “Gallant also guarantees competitive price for supply of electricity and water,” he said. By having a legal umbrella in the form of BTA, GMF and BAI approved the Joint Venture Agreement (JVA). “After the JVA is settled, GMF and BAI immediately stepped into a more concrete phase concerning the business to be run,” he said.