Garuda Indonesia Group and Lion Air Group are considering setting up a maintenance, repair, and overhaul (MRO) joint venture, Reuters has reported citing internal communication seen by the newswire.
The joint venture would include the two group's MRO businesses, namely Garuda's GMF AeroAsia and Lion Air's Batam Aero Technic. The companies currently focus on providing in-house services to the respective group's airlines but are also looking to expand their share of third-party business.
Garuda Indonesia Group currently controls the flag carrier Garuda Indonesia (GA, Jakarta Soekarno-Hatta) and its low-cost carrier subsidiary Citilink (QG, Jakarta Soekarno-Hatta), and is also in the process of assuming control of Sriwijaya Air Group pending due diligence and the required regulatory approvals. Sriwijaya Group owns Sriwijaya Air (SJ, Jakarta Soekarno-Hatta) and NAM Air (IN, Jakarta Soekarno-Hatta).
In turn, Lion Air Group controls Lion Air (JT, Jakarta Soekarno-Hatta), Batik Air (ID, Jakarta Soekarno-Hatta), Wings Air (Indonesia) (IW, Jakarta Soekarno-Hatta), and Lion Bizjet (Jakarta Halim) in Indonesia, as well as Malindo Air (Kuala Lumpur International) and Thai Lion Air (SL, Bangkok Don Mueang).
According to the ch-aviation capacity module, the two groups combined, including Sriwijaya Air Group, have an 85.2% market share by capacity in Indonesia.
