AirWorks plans to invest Rs 180 cr

Bangalore: AirWorks, a Mumbai-based MRO (maintenance, repair & overhaul) company, plans to invest up to Rs 180 crore to expand and will look at raising funds through equity or debt in the near future. The company is raising resources for building an additional hangar, a dedicated paint operation and for future engine/component MRO activities.
AirWorks, which is hoping to report revenues of Rs 100 crore by the end of this fiscal, has a commercial MRO in Hosur with one hangar capable of housing two ATR 72-size aircraft or one narrow-body aircraft (Boeing 737). It has eight service centres in India and plans to build one more wide-body hangar by the end of 2010.
AirWorks, owned by the Menon family in Mumbai, had raised Rs 100 crore from Punj Lloyd and US-PE fund Global Technology Investment in late 2007.
The 58-year-old independent aviation MRO firm recently secured the European Aviation Safety Agency (EASA) certification for its Hosur unit, based on which it hopes to draw more global customers. It has been marketing its services abroad, focussing in a big way on West Asia and neighbouring Asia countries. Till now, AirWorks was constrained by lack of certification from abroad and so was unable to attract business from outside, said Chief Executive Fredrik Groth.
AirWorks, along with four-five other MROs in the country, are in a market that is estimated to be around $250 million and services mostly business jets and helicopters. Many of these are being routed to South East Asia or West Asia. The market that AirWorks is looking to tap is airlines, said to be worth over $350 million. Most of this business goes abroad to facilities that have EASA or FAA certification.
22/11/09 Praveen Bose/Business Standard

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Categories: Indian Aviation- In General Nov 2009