Etihad Airways, the national airline of the UAE, and state-run Mubadala Development Company (Mubadala), have entered into an agreement in which Etihad will acquire Abu Dhabi Aircraft Technologies (Adat) from Mubadala.

The deal will see Mubadala retain Adat’s engine focussed maintenance, repair and overhaul (MRO) business, and establish a new company focused on growth of existing engine business.

The transaction includes maintenance and engineering teams, hangars, component workshops, and paint facilities in Abu Dhabi which will enhance Etihad Airways capability to undertake airframe and component maintenance on its growing fleet of modern aircraft, including the new Airbus A380 and Boeing B787, which will join the fleet in the last quarter of 2014.

James Hogan, Etihad Airways’ president and chief executive officer, said: “Adat has been a vital partner to the UAE national carrier over the past five years.  This acquisition will strengthen the maintenance capability of the Etihad Airways group by bringing together critically important functions that go to the heart of ensuring safety and optimal performance of the operations.”

Engine MRO is set to form a significant component of Mubadala’s aerospace strategy, and this new engine company will form the foundation for this growth under the leadership of Abdul Khaliq Saeed, Adat's current CEO.

At the 2013 Dubai Airshow, Mubadala signed deals with Rolls Royce and GE Aviation to establish next-generation Trent XWB and GEnx MRO centers of excellence in Al Ain. This was further supported with a combined commitment of USD1.0B in engine parts production from both manufacturers.

Homaid Al Shemmari, chief executive officer of Aerospace and Engineering Services at Mubadala said: “This acquisition by Etihad Airways is a true testament to Adat’s world-class MRO credentials and its exceptional workforce.  At the same time, we are establishing a new company to build on the growth in this strategic sector focussed on the engine business, following our announcements at the Dubai Air Show.  As part of our development mandate, Mubadala is proud to have cultivated a world-renowned MRO service provider and today’s announcement is a reflection of our mandate to deliver strong social and economic returns to Abu Dhabi and the UAE.”

As well as servicing the Etihad Airways fleet, Adat’s enhanced maintenance capability in Abu Dhabi will be made available to Etihad Airways’ equity alliance partners and third party customers, maximising the synergies available to the group.

Jeff Wilkinson, Etihad Airways’ senior vice president Technical will be responsible for the combined MRO of Adat and the daily technical operations business.

A transition plan is in place as Etihad Airways continues to work closely with its new and existing employees and customers, ensuring that there is no disruption to existing services during the integration period.

The award-winning facility in Abu Dhabi currently serves more than 70 commercial airline customers worldwide. – TradeArabia News Service