Garuda, Gallant Venture to build hub in Bintan

Garuda, Gallant Venture to build hub in Bintan 

Nadya Natahadibrata, The Jakarta Post, Singapore | Business | Wed, February 12 2014, 10:20 AM

National flag carrier PT Garuda Indonesia signed a memorandum of understanding (MoU) with Singapore-based investment company Gallant Venture on Tuesday to develop an airport and maintenance facility in Bintan, Riau Islands.
Garuda president director Emirsyah Satar and Gallant Venture CEO Eugene Park inked the deal during the 2014 Singapore Airshow in Singapore.
“This new operation will help strengthen Garuda’s network development, with potential to connect the eastern and western part of Indonesia as well as becoming the meeting point for international flights to Europe and the Far East,” Emirsyah said.
Park said that the first phase of development would include the development of one runway and one terminal to accommodate initial traffic, which is targeted to start operations in 2016.
He said that the investment value for the first phase of development had reached S$300 million (US$236.6 million)
The airport terminal will be connected to a ferry terminal that will serve routes from Singapore and Batam to Bintan Airport.
Gallant Venture, through its subsidiary company, currently operates ferry services between Bintan and Singapore’s Tanah Merah Ferry Terminal.
“A couple of years ago we dreamed of building a small airport to cater to the growing traffic to Bintan resorts,” Park said.
“Our airport plan, however, has grown into integrated facilities for hub airline operations, a logistics center, aerospace, industrial park and other aviation facilities,” he continued.
He said that the company’s ferry connections to neighboring islands, including Singapore, would be enhanced to ensure speedy services and quicker turnaround.
“At the same time, Garuda Indonesia’s operations and the aerospace industrial park in Bintan will boost the economy here and create substantial job opportunities as well as upgrade the skills and thestandard of living of people in the Riau Islands,” he continued.
Park said that the initial development would consist of 250 hectares for the airport and an additional 250 hectares for phase one of the aviation park.
He added that the firm had also earmarked 800 hectares for the expansion of both these aviation-related facilities.
The Bintan Aerospace Industry Park will include Maintenance, Repair, and Overhaul (MRO) of aircraft and components; manufacturing and assembly of aircraft engines and components; aviation training and academy and research and development.
Separately, Riau Islands Governor Muhammad Sani said that the average number of tourists that came to Bintan had reached 800,000 per year.
“All foreign tourists can only reach Bintan with ferries through Batam and Singapore. We hope that with the establishment of the new international airport, we will increase the number of tourists by up to 15 percent,” Sani told The Jakarta Post.
Bintan will become Garuda’s sixth hub in Indonesia after Jakarta, Denpasar in Bali, Makassar in South Sulawesi, Balikpapan in East Kalimantan and Medan in North Sumatra.
The airline had been looking to find a new maintenance center to overcome the overcrowding Soekarno-Hatta International Airport.
Garuda plans to bring in 27 new aircraft this year, comprising two Boeing 777-300s, four Airbus 330s, 12 Boeing 737-800s, three CRJ and six ATR 72-600s. They will take delivery of the aircraft in the second half of this year.
Emirsyah said that the airline was still finalizing plans to order up to 250 planes, to effectively double its fleet to 350-400 aircraft by 2025.

 

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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