This group field project is aimed to analyze the feasibility of pT GMF AeroAsia to expand their MRO business to Middle East market. PT. GMF AeroAsia has an offer from Sheikh Althani to build the joint venture business in Sharjah. This close relationship was developed because of same country religion and culture. Sheikh Althani is a well-known and experienced player in aviation industry, especially in managing airline business. Although Sheikh Althani has his own airlines, he still want to expand his business into MRO business and ask PT. GMF AeroAsia as an opportunity to expand MRO business to Middle East. However, PT GMF AeroAsia need to do further study before accepting the offer.

Some of the analysis of the business, opportunity was done to obtain more relevant data. Market analysis, industry analysis, Internal analysis and financial analysis were done to make sure that the business feasible or not.

The result of the analysis can be seen on two sides, market opportunity and financial projection of the business. Market at Middle East is still attractive enough to be targeted even though there are several big players which already exist in Middle East. The existing players mostly focusing their business on maintaining wide body aircraft while PT. GMF AeroAsia can start to penetrate the market through maintenance of Narrow Body aircraft. There is also some future potential market can be targeted by PT. GMF AeroAsia such a Unknown" market which represent 19% of market share for year 2011 and will become 16% of market share in year 2019. Based on financial projection, the expansion of PT. GMF AeroAsia business in Middle East market seems feasible enough to be implemented with positive NPV at 8%, 13,5% of IRR and 11 years of pPlayback Period. On reasonable approach analysis existing hangar capacity could be reached until 27MUSD and will represent 16.7% of market share in 2019.



Research Location : PT. GMF AeroAsia

Supervisor : Warry Sumitro

Accepted Date : May 21, 2011





Confidential until 21 May 2016.