Sempati to use Garuda's service facilities

JAKARTA (JP): The privately-owned Sempati Air will utilize the maintenance facilities of state-owned Garuda Indonesia under a memorandum of understanding signed by the two companies here yesterday.

"Our maintenance facilities will provide various technical services for Sempati," the president of Garuda, Wage Mulyono, said after signing the agreement.

Wage said that the maintenance facilities handle the catering for international and domestic airlines, including World Airways, Air Liberte Latur, Air Lebanon, GPA, Kuwait Air, Pelita Air Service, Indonesia Air Transport and Bouraq Indonesia Airlines.

"The Garuda maintenance facilities generated about US$25 million last year," he said.

Hasan Sudjono, Sempati's president, said that the cooperation between the two airlines will likely be expanded to other areas.

He said the two airlines, for instance, can jointly develop an accounting method to anticipate plans to offer their shares on the stock market in the "distant future."

Hasan also said that Sempati, a subsidiary of the well-placed Humpuss business group, will launch its own maintenance facility on Batam Island in cooperation with Singapore Aerospace Corporation and IPTN, the state-owned aircraft manufacturer.

The Batam project is meant to provide more sophisticated aircraft maintenance services than the one owned by Garuda, he said.

"More information on the Batam project will be disclosed within about one week," said Hasan. (hdj)