Sanad signs agreement with Indonesia’s GMF to set up new MRO centre for aircraft engines

The two companies will also work together to improve maintenance, repair and overhaul capabilities of GMF’s Jakarta centre

Trade between the UAE and Indonesia has been on the rise. Non-oil trade between the two reached $900 million by the end of the first quarter of 2022, Dr Thani Al Zeyoudi, Minister of State for ForeignShow more

Mubadala Investment Company's Sanad Group has signed a preliminary agreement with Indonesia's GMF to set up a new maintenance, repair, and overhaul (MRO) centre for aircraft engines in the South-East Asian country.

Before setting up the centre, the two companies will collaborate to build MRO capabilities dedicated to CFM engines at GMF’s existing facility in Jakarta.

CFM engines are one of the world’s most widely used aircraft engines, including the LEAP engine that powers next generation aircraft such as Airbus A320neo, the Boeing 737 Max and the Comac C919 families.

“This milestone partnership accelerates our geographic expansion and our strategy to facilitate premium engine maintenance services in major growth markets through a robust global network of world-class engine MRO centres,” said Mansoor Janahi, chief executive of Sanad Group, in a statement on Sunday.

The new MRO centre will leverage the region’s growing demand for aircraft engine MRO services, driven by strong air traffic and cargo volumes.

In July, the UAE and Indonesia signed a Comprehensive Economic Partnership Agreement to boost mutual trade between the two nations.

The two countries expect their bilateral non-oil trade to jump from about $3 billion currently to $10bn in the next five years.

The volume and value of trade between the two countries has already been on the rise. Non-oil trade between the two reached $900 million by the end of the first quarter of 2022 — up 44 per cent compared to the same period last year, Dr Thani Al Zeyoudi, Minister of State for Foreign Trade, said in July.

“This landmark partnership significantly enhances co-operation between two of the largest engine MRO companies in the Middle East and Indonesia,” said Andi Fahrurrozi, chief executive of GMF.

Global passenger demand for air travel remained strong in September, with both domestic and international traffic increasing, despite macroeconomic headwinds and geopolitical instability, the International Air Transport Association said.

Total traffic in September, measured in revenue passenger kilometres, grew 57 per cent compared to the same month in 2021, Iata's monthly report showed.

Globally, traffic is now at 73.8 per cent of September 2019 levels, before the Covid-19 pandemic.

The aviation industry needs to prepare for the future to address the expected higher levels of travel demand, climate change challenges and operational safety, Emirates airline president Tim Clark said last month.

Industry investment in air navigation systems, new technology, skilled aviation workers and infrastructure are inadequate, he said at the time.