Batam: Lion Group is cooperating with Garuda Indonesia in revamping the national aviation industry, including developing a joint hangar, preparing human resources and establishing an aircraft tire manufacturing plant.
"The two airlines are uniting to make Indonesia more progressive," Lion Air founder Rusdy Kirana said in Batam, Riau Islads Province, Wednesday.
One of the main points of the cooperation is developing a joint hangar for aircraft maintenance and repair, he said.
Maintenance is the second largest cost elements after fuel for any airline company, he noted. "Therefore, we have tried to get the maintenance and repair done in the country," he added.
Lion Air realized that it could not work alone to develop aircraft maintenance service and that it had to cooperate with Garuda Indonesia.
The development of domestic aircraft maintenance and repair services saves foreign exchange, opens job opportunities and allows the transfer of technology, he said.
"We hope we can reduce the use of foreign exchange. (The presence of) MRO (maintenance, repair and overhaul) facility will increase our foreign exchange coffers because it will serve foreign aircraft," he said.
The national flag carrier will send its 100 skilled workers to strengthen the hangar in Batam, Garuda Indonesia Group President Director I Gusti Ngurah Askhara Danadiputra said.
"It will create three thousand jobs most of whom will come from Batam and Riau Islands," he said.
Both Lion Air Group and Garuda Group also agreed to build an aircraft tire manufacturing plant in cooperation with Michelin to meet domestic needs. (Antara)