Etihad Airways, the national airline of the UAE, has signed a deal which could be worth up to $200 million with International Aero Engines (IAE) to provide a comprehensive engine overhaul and repair service for 14 Airbus aircraft in its narrow-body fleet.

The Aftermarket Services agreement covers the Abu Dhabi-based airline’s existing fleet of V2500-powered aircraft, said a statement.

The contract covers a total of 30 V2500 SelectOne engines (including two spares) that power 12 A320 and two A319 aircraft, currently in service. All of these engines will be upgraded to the latest V2500 SelectOne build standard during their scheduled overhauls.

Etihad Airways’ chief executive, James Hogan, said: “The decision to incorporate the V2500 SelectOne upgrade is a natural progression in our relationship with IAE. Transferring engine maintenance responsibility to IAE allows us to focus upon our core strengths. The engine deal will deliver significant cost benefits for Etihad, especially in terms of lower fuel consumption, reliability and increased flying time between maintenance overhauls.”

Chris Bewley, regional director - Asia and Middle East, added: “As the only engine manufacturer to offer a complete engine management service on the A320 family, we give our customers the option to transfer maintenance risk so they can concentrate on their core business. Etihad’s decision to extend its aftermarket coverage to its existing fleet demonstrates that customers recognise the value this brings to their operation.” – TradeArabia News Service