FTAI Aviation and GMF Sign Five-Year Engine MRO Agreement

FTAI Aviation Ltd. and PT Garuda Maintenance Facility Aero Asia Tbk (GMF) formalized a five-year strategic agreement on September 23, 2026, securing guaranteed engine and auxiliary power unit maintenance capacity for FTAI at GMF’s Jakarta facility. The partnership, signed during the MRO Asia-Pacific 2026 event in Singapore, marks a targeted expansion of FTAI’s maintenance network into the Asia-Pacific region.

According to a joint press release, the collaboration focuses on CFM International CFM56-5B and CFM56-7B engines, CFM LEAP engines, and Honeywell GTCP131-9 series auxiliary power units (APUs). The agreement provides GMF with committed engine volumes while granting the Indonesian maintenance, repair, and overhaul (MRO) provider access to FTAI’s technical expertise and training resources.

Expanding Asia-Pacific maintenance capacity

The formalized agreement addresses a growing industry need for localized maintenance options amid global supply chain constraints. By securing dedicated slots in Jakarta, FTAI aims to reduce turnaround times for operators based in the Asia-Pacific region.

FTAI Aviation President David Moreno stated in the press release that bringing committed engine volumes to GMF places maintenance capacity closer to regional customers, directly enabling faster turnaround times.

GMF Chief Executive Officer Andi Fahrurrozi noted that the partnership responds to increasing engine maintenance demand from FTAI and the broader regional aviation market.

“This collaboration is designed to address customer needs for maintenance slot availability, improved turnaround times, consistent quality, and flexibility,” Fahrurrozi said. “We aim to deliver more competitive MRO solutions for customers across the region. Together with FTAI, we also look forward to exploring broader strategic collaboration opportunities beyond our existing business.”

FTAI Aviation’s global network strategy

The GMF partnership is a core component of FTAI’s broader strategy to transition toward an asset-light model while rapidly scaling its module restoration capacity. During its second-quarter 2026 earnings presentation in July, FTAI management outlined that the Jakarta partnership integrates a 250,000-square-foot facility and 200 dedicated technicians into its global network.

This capacity is required to support FTAI’s stated production targets. The company plans to increase its annual engine module production to 1,700 by 2027, a significant scale-up from the 757 modules produced in 2025.

The Jakarta agreement parallels a similar partnership FTAI recently established with EgyptAir in Cairo. Together, these agreements represent FTAI’s first major maintenance facility investments east of Rome, establishing a decentralized MRO network capable of serving airlines outside of the traditional North American and European maintenance hubs.

Financial positioning and shareholder returns

The formalization of the GMF agreement follows a period of aggressive expansion in FTAI’s Aerospace Products sector. With its primary regional MRO partnerships now secured, the company has begun signaling a shift toward shareholder returns.

On September 15, 2026, FTAI Aviation announced a $500 million share repurchase program. The authorization suggests the company has reached a stabilization point in its capital expenditure requirements for facility expansion, allowing it to allocate capital back to investors while executing on its newly secured maintenance capacity.

AirPro News analysis

We view FTAI’s strategy of locking in guaranteed capacity at regional facilities as a highly effective bypass of the ongoing global engine maintenance bottleneck. Traditional original equipment manufacturer (OEMs) and major independent MRO facilities remain heavily backlogged, particularly for CFM56 and LEAP engine platforms. By partnering with established regional players like GMF and EgyptAir, FTAI secures dedicated slots without the capital burden of building greenfield facilities.

This asset-light approach allows FTAI to scale its module production rapidly to meet its 1,700-unit target for 2027. For GMF, the guarantee of baseline volume from a major lessor and asset manager provides revenue stability and justifies workforce retention and technical training investments. If FTAI can maintain quality control and consistent turnaround times across these decentralized nodes, this model could force other major lessors to rethink their reliance on centralized, heavily congested MRO hubs.

Sources: FTAI Aviation Ltd. Press Release