Flag carrier Garuda Indonesia is seeking to enhance its control over maintenance operations by acquiring an additional stake in GMF Aeroasia, the Indonesian aircraft maintenance provider. The airline plans to buy 66% of GMF through a rights issue involving state holding company Danantara. This move aims to align ownership and operational interests and strengthen the strategic link between Garuda's flight services and GMF's maintenance activities.
Currently, Garuda exerts influence over GMF, although the majority of the company's shares are owned by airport operator Angkasa Pura Indonesia. The restructuring follows Garuda's efforts to recover financially from pandemic-induced losses and operational setbacks. Reports in 2025 indicated Danantara might extend a $405 million loan to Garuda to support fleet maintenance and operational readiness, particularly at GMF.
A key component of this initiative is to improve GMF's financial performance, which suffered during the pandemic when Garuda restructured. The new ownership is expected to bolster Garuda's economic interest in GMF, which is projected to achieve a net profit of $212 million from 2026 to 2030. Earlier this year, FTAI Aviation announced a maintenance partnership with GMF Aeroasia in Jakarta, highlighting regional expansion plans.
Industry experts like David Moreno of FTAI see the development as an important step toward building new facilities in Indonesia and Egypt to improve throughput and capacity. These investments are part of Garuda's broader efforts to modernize its fleet maintenance operations and strengthen its position in the regional aviation market.
