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GMFI is Optimistic, the Company’s Performance Grows Positively until the end of 2019 Performance Year

Tangerang, November 4, 2019 PT Garuda Maintenance Facility Aero Asia Tbk (“GMF”, “issuer code: “GMFI”), Maintenance Repair & Overhaul (MRO) company posted total revenue of US$ 369.67 million. This figure has increased by 10.4%, compared to last year’s revenue in the same period of US$ 334.7 million. GMFI predicts that potential growth of the aircraft MRO business is still wide open. Based on the company being on track in operational and financial performance and displaying stable growth in performance, GMFI is optimistic that in the future, the company’s performance will continue to progress in sustainable manner. However in the meantime, domestic market or domestic airlines potential tends to slow down, considering airlines in Indonesia are currently more focused on seat occupancy level. However, GMFI remains positive that domestic market share is still promising.

Constant business expansion is in line with capacity and capability development in aligning market trends and demand. To boost market scope, GMFI now continues to open extensive opportunities for aircraft maintenance industry support sector to partner up both in business development and strategic cooperation which currently being optimized collectively with international partners. Through this strategic collaboration, it aims to further support acceleration of GMFI’s business growth in realizing the company’s vision to become the Top Ten MRO in the world.

Furthermore, GMFI is spurring the share of MRO services to foreign airlines. Presently, GMFI’s revenue from foreign airlines has reached 21% of total revenue. In 2019, GMFI has served four airlines from South Korea and also two airlines from Vietnam. Moreover, IndiGo, a low-cost airline giant from India, has also signed contract for maintenance and repair of 34 aircraft.

In September 2019, Oman Air also increased the contract for the number of aircraft served by GMFI: from the previous 12 units of the Boeing B737NG to 22 units, plus 10 units of wide body aircraft, the Airbus A330. Presently, GMFI is also exploring expansion of line maintenance services or aircraft light maintenance in Bangladesh and opening service branch office in Australia.

To maximize market potential from foreign airlines, GMFI has also strengthened diversification of its business lines by forming two new subsidiaries, which is predicted to drive business acceleration. The first one is Garuda Daya Pratama Sejahtera (GDPS)officially established on January 25, 2019 a subsidiary of GMFI dealing in provision of human resources for aviation industry. The second one, Garuda Energy Commercial Logistics (GELKo), is a subsidiary of GMFI dealing in spare parts and aircraft engines trade. In addition, GELKo will also provide leasing for aircraft parts and engine business, general trade, electricity supply, and other business potentials.