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, the CEO of parent airline Garuda Indonesia told Reuters on Wednesday.
“We will create new investor partnerships with them,” Ari Askhara told Reuters in a text message. 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 investor documents seen 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.