Abu Dhabi Aircraft Technologies (ADAT), wholly-owned by Mubadala Development Company, has entered into a $500 million five-year accord with Etihad Airways.

Under the contract, ADAT will provide an extensive range of maintenance, repair and overhaul (MRO) services to the award-winning carrier.

This agreement is the first to be signed with Abu Dhabi Aircraft Technologies since its recent launch.  Under the terms of this agreement, the company will provide the Abu Dhabi-based airline with integrated MRO solutions, covering airframe services (including 'A' and 'C' checks), technical services, procurement and logistics services and engine srvices through its innovative Total Care Auxiliary Power Unit (APU) Support product - one of the first-of-its-kind in the sector.

'This agreement between two Abu Dhabi-based aviation businesses is another indication that the Emirate's transport policy is being successfully achieved,' said chairman of Etihad Airways Dr Shaikh Ahmed bin Saif Al Nahyan. 'Expanding the aviation industry is crucial to achieving the Government's tourism objectives and developing Abu Dhabi as a destination.'

The agreement covers all Etihad's current fleet of three A320s, nine A340s, 14 A330s, and five Boeing 777-300ERs.

'Etihad has one of the youngest fleets in the business and by the end of this year will operate 34 aircraft with an average age of just 2.4 years,' said CEO, Etihad Airways, James Hogan. 'Our present five-year fleet plan also makes provision for up to 52 aircraft by the end of 2011. This will be followed by the delivery of four A380 superjumbos in 2013.'

Abu Dhabi Aircraft Technologies was recently repositioned from the former Gulf Aircraft Maintenance Company (Gamco). The company is targeting a $800 million revenue stream by 2012 and plans to invest over $500 million over the next five years.- TradeArabia News Service