GMFI Rolls Out Measures to Improve Cash Flow

PT Garuda Maintenance Facility AeroAsia Tbk, a publicly-listed company under the national carrier Garuda Indonesia, had rolled out various measures to improve its cash flow due to the pressure on the profits. According to its first-half financial report, the aircraft maintenance company’s net cash from operating activities was minus US$ 43.63 million in the first half of 2018 and US$ 14.05 million a year after.

Garuda Maintenance Facility Corporate Secretary Fidiarta Andika said the challenges in the aviation industry had weakened the purchasing power of the company's service users. Among measures carried out by the GMFI-coded company is a continued improvement in in-house capability to reduce sub-contractor costs. Therefore, the company expected the profitability from the engine repair segment would continue to grow within a year or two. Meanwhile, it also sought a business diversification by establishing a subsidiary to prop income and profits up.