July 3, 2018 / 8:23 AM / in 20 days

UPDATE 1-Indonesia's GMF AeroAsia eyes deals with 5 new airlines by end-2018 - CEO

* Revenue from foreign airlines could rise to 30 pct in 5 yrs

* Eyeing new deals with Russia, Indian carriers

* In talks with three potential strategic partners (Adds details of strategic partner search)

JAKARTA, July 3 (Reuters) - Indonesia’s PT Garuda Maintenance Facility AeroAsia (GMF AeroAsia) is eyeing partnerships with five new airline clients by the end of 2018, with a focus on Russian and Indian airlines, its chief executive said on Tuesday.

Iwan Joeniarto, CEO of the maintenance unit of flag carrier PT Garuda Indonesia Tbk, said he aimed to increase the portion of revenue from foreign airlines from 12 percent to 30 percent within 5 years.

GMF AeroAsia said it had already signed partnerships with Thailand’s Bangkok Airways and Bangladesh’s Novo Airlines in the second quarter of 2018 and was bidding for a tender from Russian airline Rossiya.

GMF AeroAsia is trying to broaden its revenue sources beyond Garuda, which has delayed jet deliveries as it struggles financially.

The maintenance company, which listed last year, wants to raise another $200 million by selling a 20 percent stake to a potential strategic partner to help expand existing operations and build a new maintenance facility on Indonesia’s Batam Island, just 31 km (19 miles) off Singapore’s coast.

GMF AeroAsia has budgeted $100 million for capital spending on the Batam project and has sought a tax break from the government, Joeniarto told Reuters. He declined to provide a construction timeline.

The company has a long-standing partnership with Air France Industries KLM Engineering & Maintenance, and said in January that it had short-listed the European group as a strategic partner.

However, Joeniarto said the final decision would depend on shareholders and approval from the government, with three candidates being currently considered for the partner role. (Reporting by Cindy Silviana, writing by Fanny Potkin & Jamie Freed; Editing by Sunil Nair)

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