Mumbai: Aircraft repair firm Air Works India Engineering Pvt. Ltd on Tuesday said it had bought a minority stake in Irish firm Acumen Aviation Europe Ltd, which provides services for airlines and aircraft leasing companies.

Air Works did not disclose financial details of the transaction.

“The aircraft leasing industry continues to expand as more and more airlines focus on their operations and move to an asset-light model of using leased aircraft. We are highly optimistic about Acumen’s long-term growth prospects," said Vivek Gour, managing director, Air Works.

“The synergy potential will be ultimately realized over the longer term when we can cross-sell Acumen’s services to some of the other businesses that Air Works is intending to build organically as well as inorganically," Gour added.

Acumen provides technical asset management and data management (records management enabled through software) services in Europe, Asia and the US. Based in Dublin, it has a corporate office in India offering technology-enabled solutions.

Acumen recently opened its regional office in China to better serve its existing customers and the burgeoning leasing industry in East and South East Asia. In this new arrangement, Bengaluru will continue to be a hub for delivery and software development while business development and technical management activities will be centered around Ireland, the US and China.

“The complementary nature of our individual business’s expertise will improve our service delivery model, thus enhancing the customer experience while achieving business objectives", said Alok Anand, chairman, Acumen Aviation.

The partnership fits Air Works’ strategy of entering technology-enabled services for the broader aviation industry and working more closely with aircraft owners, Air Works said.

“While Air Works has already been providing critical repossession and redelivery services to global leasing firms, the partnership with Acumen will enable a stronger foothold in asset management and provide significant cross-selling opportunities for both organizations," the statement added.

Acumen will continue to operate independently but will benefit from Air Works’ experience in scaling up through aggressive business development and acquisitions, Anand of Acumen said.

According to its website, Acumen Aviation offers services including aircraft remarketing, engine re-marketing, aircraft lease management, plane pre-purchase inspection, aircraft records digitization, aircraft maintenance audits, etc.

Established in 1951, Air Works is a leading MRO (aircraft maintenance, repair and overhaul) company with operations in 10 countries.

India’s current MRO market size is estimated to be around $700 million and by 2020, the total Indian fleet would double in number, making it critical to have a strong domestic MRO industry, according to a March 2014 report by global consultancy firm KPMG.

The report said merely 5-10% of the MRO work for domestic scheduled carriers is carried out in India, while most of the maintenance services are outsourced to companies outside the country.