AIROD and Indonesian partner eye potential US$300m MRO business

AIROD Sdn Bhd, the Malaysian aircraft maintenance, repair and overhaul (MRO) group, is eyeing potential long-term MRO business worth US$300 million (US$1=RM4.26) following the recent signing of a commitment of cooperation agreement with its Indonesian partner, PT Dirgantara Indonesia (PTDI).

Over the short term, the agreement is expected to yield US$10 million from the refurbishment, training and technical assistance related to the Indonesian Armed Forces’ fleet of C-130 aircraft, it said in a statement.

The agreement was signed in Jakarta on Jan 8 between AIROD Senior Vice President Datuk Edron Hayata Ahmad and PTDI Chief Executive Officer Gita Amperiawan and witnessed by Prime Minister Datuk Seri Anwar Ibrahim during his official visit to Indonesia.

“The cooperation will witness the growth in MRO activities between AIROD and PTDI in areas of upgrades and modification, aero structure and composites for various types of heavy and also light aircraft in the future,” it said.

It said prior to the latest agreement, both parties had signed a memorandum of understanding on Aug 2 2021 to collaborate on a five-year maintenance programme to modernise the Indonesian Air Force fleet of 12 C-130 aircraft.

The modernisation will enable the Indonesian Air Force to extend the use of the aircraft for an additional 15 to 20 years.

On Feb 15 2022, they also signed a general operations agreement to start discussions on technical and financial aspects of the programme.

The Subang-based AIROD has to date undertaken MRO services for military and commercial aircraft from 33 countries. — Bernama / pic source Airod Facebook