New Delhi, June 18 (IANS) In a bid to expand its presence in the Middle East, aviation maintenance industry major Air Works Monday said that it has made a strategic investment in Dubai-based private aviation firm Empire Aviation Group (EAG).
"Through the partnership Air Works and EAG can build a strong franchise in the emerging aviation markets of India and the Middle East," said Vivek. N. Gour, managing director, Air Works.
The company acquired the stake through a mix of internal accruals and structured debt finance of Rs.120 crore US-headquartered private equity player KKR.
According to the company, the deal will allow it to enter aircraft management services space by which it can maintain and service private jets in the country.
While, the typical cost to maintain a private jet would be anywhere around Rs.5 crore per annum, Air Works hopes to provide these services at a much lower cost.
"There are 120 such aircraft in the country. In the first two years, we would be looking at having 20-24 of these on board," Gour said.
The new service will be launched in August 2012 and headquartered in Bangalore with liaison offices in Delhi and Mumbai for providing such aircraft maintenance services.
"We will also expand to other metro cities later," Gour added. Air Works already has 15 maintenance locations in India.
Empire Aviation Group, which manages 20 aircraft out of Dubai International Airport, said that the timing of the deal was perfect and will benefit both the companies as aviation scenario improves.
"The timing is absolutely right as the global aviation sector recovers and this move will help accelerate EAG's growth and development as a regional and international player in private aviation," said Steve Hartley, co-founder and executive director of EAG.