Etihad enters $125m spares deal with Sanad
Abu Dhabi, March 25, 2013
Etihad Airways, the national airline of the UAE, has extended its relationship with Sanad Aero Solutions with a 10-year agreement for the sale and lease back of some of the airline’s key component spares.
The deal, valued at over $125 million, will see Sanad, Mubadala Aerospace’s spare engine and components financing and leasing solutions company, purchasing and leasing back to Etihad Airways key rotable component spares.
The deal involves aircraft spare parts for Etihad Airways’ entire fleet of passenger and cargo aircraft. The transaction expands upon a similar sale and lease back deal between the two companies in late 2011 for the financing of 11 spare aircraft engines: 5 General Electric GE 90 and six Rolls Royce Trent 500.
James Hogan, Etihad Airways president and chief executive officer, said: “This new sale and leaseback transaction provides the airline with a long-term financing solution for many of its key component spares while mitigating residual value risk and providing competitive cost of ownership over the long term.
“The deal also drives value for both Sanad and Etihad Airways, and will ensure that the UAE’s reputation as an aerospace and aviation centre of excellence continues to grow.”
Troy Lambeth, chief executive officer of Sanad, said: “This agreement marks another milestone in the growth of Sanad, as we continue to offer innovative and competitive financing solutions to an increasing number of world class aviation operators. We are delighted to expand our relationship with Etihad Airways through this important transaction.”
Sanad’s financing activities with Etihad Airways are a key feature of the expanding relationship between the airline and Mubadala Aerospace’s MRO network, including Abu Dhabi Aircraft Technologies (ADAT) and SR Technics who are delivering a broad scope of component and airframe MRO services across the airline’s Airbus and Boeing fleets.
Since its launch in 2010, Sanad has grown its portfolio to over $650 million in assets under management supporting a growing number of industry leading airlines including Etihad Airways, Virgin Australia, Finnair, airberlin and others. – TradeArabia News Service