Air Works Announces Acquisition of Air Livery, Europe’s Leading Aircraft Refinishing Company

NEW DELHI, India, February 18, 2010: Air Works Engineering Pvt Ltd, India’s leading provider of Aviation Services, today announced that it has acquired 85% stake in Air Livery UK Plc.

With an annual turnover of Rs 135 crores, Air Livery is Europe’s leading aircraft refinishing company.

The acquisition adds significantly to both the revenue and profitability of Air Works. Air Works has constantly been focusing on adding accreditations and services to make the company a one- stop shop for all aircraft maintenance work. Air Works recently became the first Indian independent airframe MRO Company to be awarded the EASA repairs station approval. By adding a whole new section of painting and refurbishment services through this acquisition, Air Works marks another significant milestone for the Indian MRO industry.

There are over 500 Business Aircraft (Fixed & Rotary) and 350 planes owned by airlines in India. In the absence of a dedicated professional Paint Hangar in India, SE Asia or Middle East, Air Works will have a unique position after this acquisition. Air Works expects that through this acquisition, it can save airlines approximately 25% of their current costs for painting of wide and narrow bodied aircraft in India. More importantly, this will result in very significant savings to the airlines in ferry costs (average of $ 80,000) and reduction in down time (minimum of 2 days of operations which average $ 60,000).

“This acquisition is a very significant step for Air Works in its strategy to become a complete solution provider for MRO services in India and its surrounding region. We are proud of the fact that Air Works has been extremely focused and had delivered what it promised.” said Mr. Suresh Soni Executive Director at Air Works.

Air Livery will function as an independent business unit of Air Works. Air Works will retain the key management of Air Livery with Mr. Julian Duffen assuming the duties of Managing Director, Air Livery. Air Livery has a history of providing service excellence in aircraft repainting, interior repair and refurbishment and after this acquisition; Air Works will offer the same levels of service to Indian customers. The company maintains an excellent track record of having serviced the most prestigious airlines across the globe.

Speaking on the occasion, Mr. Julian Duffen, Managing Director, Air Livery said; “India is strategically placed to become the centre for Asia’s expanding requirements for aviation services. Air Works provides the track record, facilities, trained personnel and local knowledge that we were seeking in our international partner.”

Air Works is in the process of constructing a wide body hangar at its Hosur Airport facility which will be dedicated to aircraft painting. This hangar will be able to undertake painting of 2 narrow body aircraft at a time as well as wide body aircraft like the Boeing 777 or the Airbus 340.

Mr. Ravi Menon, Director Air Works said, “The Hosur Paint Hangar would provide world class paint services for aircraft in India as well as the region. It would be economical for all aircraft within 5 hours of flying distance to use this facility.”

Air Livery, headquartered in Norwich UK, is a strategic acquisition for Air Works. According to Mr. Atul Punj, Member, Board of Directors Air Works the acquisition of Air Livery will not only provide Air Works new capabilities, but also provide access to marquee international customers for cross selling of MRO services in India.