New Delhi, Feb 18 (IANS) Maintenance, repair and overhauling firm Air Works Thursday said it has acquired an 85 percent stake in Europe's leading aircraft refurbishing firm, Air Livery UK Plc.

'The acquisition will add significantly to both the revenue and profitability of Air Works. Air Works and the newly acquired company will work as separate entities,' said Suresh Soni, executive director at the Mumbai based Air Works.

'Air Works will retain the key management of Air Livery and will offer the same levels of service,' added Soni.

Currently Air Livery has 45 active customers including Virgin Atlantic, British Airways, Swiss Air and Britain's Royal Air Force, besides some Middle East carriers like Qatar Airways, Etihad and Emirates.

The company said it was keen on expanding its business in India and other South Asian countries and expects to generate around $8 million in revenues during next fiscal.

There are over 500 business aircraft (fixed and rotary), and over 350 planes owned by commercial carriers in India.

Air Works currently has a unit at Hosur near Bangalore where it has serviced seven narrow bodied aircrafts since the hangar commenced services in November 2008.

'We will have another hangar at Hosur by the end of this year, which will cater to wide-bodied aircraft and in the next two years, we will add three more hangars,' said director at Air Works Ravi Menon.