October 10, 2018 / 10:58 AM / a month ago

Indonesia's GMF AeroAsia agrees $900 million deals with Air France KLM, China Communications Construction

(This Oct 10 story corrects sourcing in the first paragraph.)

FILE PHOTO - Garuda Maintenance Facility AeroAsia, the aircraft maintenance and repair unit of Indonesian flag carrier PT Garuda Indonesia Tbk, in Tangerang, Indonesia, September 20, 2017. Picture taken September 20, 2017. REUTERS/Beawiharta

(Reuters) - Indonesia’s PT Garuda Maintenance Facility AeroAsia (GMF AeroAsia) (GMFI.JK) has agreed to partnerships with Air France KLM group’s aircraft maintenance unit and China Communications Construction worth a combined $900 million, according to documents seen by Reuters.

“We will create new investor partnerships with them,” Ari Askhara, CEO of GMF AeroAsia’s parent airline Garuda Indonesia, told Reuters, but he did not comment on the deals’ value. GMF AeroAsia is the maintenance subsidiary of Garuda.

A second source told Reuters the deals would be announced at an official signing on Thursday.

According to two GMF AeroAsia documents obtained by Reuters, the strategic partnership between GMF Aero Asia and Air France KLM Engineering & Maintenance would be focused on GMF’s main facility in Jakarta and had a “potential business value of over $400 million in ten years”.

GMF AeroAsia said in January it had short-listed Air France Industries KLM E&M, with whom it has a longstanding relationship, as a strategic partner.

The joint venture between GMF and PT China Communications Construction Indonesia will have a deal value of $500 million, according to investor documents.

GMF AeroAsia shares rose 9 percent on the day, while Garuda was up 3 percent.

A spokeswoman for GMF AeroAsia confirmed the partnerships, but declined to offer details.

Air France KLM did not immediately respond to requests from for comment.

PT China Communications Construction Indonesia could not be reached for comment by Reuters.

Reporting by Cindy Silviana, Writing by Fanny Potkin, Editing by Sunil Nair

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