Garuda Indonesia’s GMF AeroAsia Finalises $332m Land Injection

GMF AeroAsia, the maintenance, repair and overhaul (MRO) arm of Garuda Indonesia, has completed a major land capital injection valued at IDR5.66 trillion (USD332.4 million), strengthening its balance sheet and reshaping its long-term cost structure.

The transaction was finalised on December 29, 2025, through a land capital injection deed signed between GMF AeroAsia and PT Angkasa Pura Indonesia, which operates under the brand InJourney Airports. Under the agreement, ownership of 972,123 square metres of land at Soekarno-Hatta International Airport has been formally transferred to GMF AeroAsia.

The land, which hosts key hangars and technical facilities supporting both Garuda Indonesia and third-party airline customers, was independently valued at IDR5.66 trillion. The transfer follows shareholder approval granted in October 2025 as part of GMF AeroAsia’s broader recapitalisation and restructuring plan.

With the transaction completed, InJourney Airports is now formally recognised as a shareholder in GMF AeroAsia. The move converts what was previously a long-term landlord–tenant relationship into an equity partnership, aligning the interests of Indonesia’s main airport operator with one of Southeast Asia’s largest independent MRO providers.

GMF AeroAsia said the land injection will have an immediate and material impact on its financial position. Most notably, the asset transfer restores the company to positive equity, a critical milestone after years of financial strain exacerbated by the pandemic-driven collapse in global air travel. The transaction also eliminates future land rental expenses previously payable to InJourney Airports, reducing fixed costs and improving cash flow visibility.

The strengthened balance sheet is expected to enhance GMF AeroAsia’s access to financing and support its efforts to expand third-party maintenance work. The company has been positioning itself as a regional MRO hub, serving airlines across Asia-Pacific, the Middle East, and beyond with capabilities spanning airframe maintenance, engine services, components, and line support.

For InJourney Airports, the deal represents a strategic investment in aviation infrastructure and services that complement its core airport operations. By holding an equity stake in GMF AeroAsia, the airport group gains exposure to the growing MRO market while supporting the long-term sustainability of a key aviation tenant at Soekarno-Hatta.

Industry analysts note that land injections and asset-based recapitalisations have become increasingly common among aviation companies seeking to repair balance sheets without relying solely on cash infusions. In GMF AeroAsia’s case, the transaction also secures long-term control over strategically critical land adjacent to Indonesia’s busiest airport.

The completion of the land capital injection marks a significant step in GMF AeroAsia’s turnaround strategy. With positive equity restored and rental liabilities removed, the company is now better positioned to focus on operational performance, capacity expansion, and capturing maintenance demand as airline fleets continue to grow across the region.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com