Air Works is charting plans to expand its aircraft maintenance repair and overhaul (MRO) facilities following its ₹400 crore acquisition by the Adani group last week.

Air Works is the second oldest private MRO in the country and has hangars at Mumbai, Hosur and Kochi. While Air Works has the necessary regulatory approvals and expertise, the Adani deal will give it financial muscle and easier access to more airports in the country.

Adani’s foray

Effectively, this also marks Adani group’s foray into civil aviation MRO business and brings it into competition with government owned-AIESL, GMR Aero Technic and Indamer Aviation.

“We are exploring opportunities to further strengthen our capacity across the country to be close to our customers and give them greater choice,” Air Works MD & CEO D Anand Bhaskar said in an e-mailed response.

Last Monday, Adani Defence and Aerospace signed a share purchase agreement to acquire 85.8 per cent in Air Works. The transaction will see the exit of existing investors (private equity funds and company founders – Menon family) and will be completed in a month. No change is expected in the MRO’s senior management.

“Adani group has ambitions to be a relevant player in the MRO business. We will collaborate with Adani Defence and Aerospace to facilitate expansion of MROs at different airports,” said Arun Bansal, CEO of Adani Airport Holdings Limited

Aircraft maintenance involves repair and overhaul of airframe, engines and components. While Indian companies have experience in airframe repairs, most of engine and component overhaul is done overseas.

Bhaskar said the company will focus on growing components overhaul and defence MRO business. 

The company recently entered into a strategic partnership with Ingeniería Semasa of Spain to bring its component maintenance expertise. Specifically, the collaboration will allow the creation of components repair capabilities for Airbus planes such as C295 and multi role tanker transport aircraft.

Air Works is focused on maximisation of hangar utilisation and is targeting 18-25 per cent increase in revenue.

Attrition has been an issue of concern for MROs in India with engineers and technicians taking up jobs overseas. Bhaskar said attrition will eventually slow down with the expansion of aircraft fleet and growing opportunities in India. The company is also investing in training programmes, he added.