Air Works, an independent MRO and aviation services provider, on Thursday, announced that the rating agency - CRISIL - has upgraded both its long-term as well as short-term ratings to BBB/Stable and Crisil A3+.
The upgrade reflects CRISIL’s "expectation of a significant improvement in the credit risk profile of the Company over the medium term".
These improvements are the result of a change in the company’s strategy that is now increasing among centers around India and South Asia. It is in line with the Government of India’s focus to foster the development of MRO in the country.
Over the past 18 months, Air Works has been steadily increasing its capacity utilisation and has signed several long-term maintenance contracts with leading airlines and global OEMs such as Boeing & Embraer, leading to a substantial improvement in its operating performance. As part of the ongoing transformation, the Company has also successfully sold certain non-core parts of its portfolio – including Air-Livery, Argus, and parts of ATE France, utilising the proceeds to not just achieve a massive reduction in debt (by more than 60 percent), but to also expand Air Works’ maintenance footprint to the port city of Kochi - which is expected to be operational by the end of the fiscal.
With the Kochi facility being operational, Air Works will have an enviable and widest pan-India presence amongst Indian MRO operators to 27 Indian cities with world-class Base maintenance facilities at Hosur (Tamil Nadu), Mumbai, and Kochi (Kerala), serving a portfolio of clients across business n commercial aviation as well as the Indian defense services.
Commenting on the development, D Anand Bhaskar, MD & CEO, Air Works said, “The rating upgrade is an important milestone and it reaffirms our business strategy, including the restructuring of our balance sheet. It is also especially commendable since it recognizes Air Works’ operating efficiency, market position and growth trajectory over the course of the past 18 months, in a scenario where a lot of companies are undergoing stress”.
Air Works’ engages closely with global aviation OEMs and is an approved or preferred maintenance partner for many of them. Its Hosur facility is both DGCA and EASA-certified since the past 10 years and undertakes high-quality world class maintenance work for its clients that include both domestic and international airlines, aircraft lessors, business or private jets, as well as the Indian defence services.