Indonesian MRO Wins Funding Boost From Garuda

MRO provider GMF AeroAsia is set to benefit from a new capital injection into flag carrier Garuda Indonesia, its controlling shareholder.

The $405 million loan which comes via Indonesia’s sovereign wealth fund will be used to finance urgent maintenance for the fleets of Garuda and Citilink, its LCC subsidiary.

Jakarta-based GMF AeroAsia says it is taking on a strategic role in implementing the Citilink and Garuda Indonesia aircraft reactivation project.

Out of a combined fleet of 135 aircraft, more than one in three—20 at Garuda and 31 at Citilink—were grounded due to heavy maintenance and parts supply delays as of June 30, 2025.

That was 18 more than a year earlier, contributing to a 2% decline in group capacity and 4.5% fall in revenue for the first half.

GMF AeroAsia, meanwhile, saw revenue fall 17% in the first half to $179 million, and net profit sink by a third to $9 million.

The MRO provider has faced significant challenges since the pandemic, linked to the operational struggles of its parent airline group which is now still only at roughly 60% of its capacity midway through 2019.

As a result, Garuda is prioritizing maintenance as the first step in a restructuring program that is likely to require further support from the Indonesian state.

The airline group said that its grounded aircraft should gradually return to service from the final quarter of this year.

At the end of September, GMF AeroAsia said it had completed maintenance on two Citilink aircraft, one Citilink APU, one Citilink landing gear, one Garuda Indonesia landing gear, and two Garuda Indonesia engines out of a total of 16 Garuda Indonesia projects and 37 Citilink projects.