Sanad And Etihad Airways Sign A Colossal AED 1.5 Billion Agreement, Soaring Abu Dhabi’s Aviation Industry To Global Dominance

Wednesday, October 23, 2024

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Etihad Airways partners with Sanad in a groundbreaking AED 1.5 billion engine deal, boosting Abu Dhabi’s aviation growth and driving global innovation.

Sanad has finalized a significant deal with Etihad Airways, selling 16 aircraft engines in a transaction valued at AED 1.5 billion. This marks a notable partnership between two of Abu Dhabi’s prominent aviation entities, strengthening the emirate’s reputation as a global leader in the aviation sector.

Sanad, a global aerospace engineering and leasing solutions provider, and a subsidiary of Mubadala Investment Company PJSC, confirmed the sale to Etihad Airways, the UAE’s national carrier. This agreement highlights the strategic alignment of both organizations and reinforces the growing prominence of Abu Dhabi’s aviation ecosystem. The deal is set to enhance Etihad’s operations while furthering the emirate’s status as an aviation hub.

The transaction includes a diverse selection of engines for Etihad’s modern fleet, such as nine GEnx engines for the Boeing 787, five GP7200 engines for the Airbus A380, a Trent XWB engine designed for the Airbus A350, along with a V2500 engine specifically for the Airbus A320. This sale underscores the strong, long-standing relationship between Sanad and Etihad Airways, contributing to the growth of Abu Dhabi’s aviation sector and aligning with broader economic objectives. The aviation industry is pivotal in driving non-oil trade and promoting economic expansion in the region.

Enhancing Abu Dhabi’s Aviation Ecosystem

Mansoor Janahi, Managing Director and group CEO of Sanad highlighted the significance of the deal: “This transaction reaffirms Sanad’s long-term commitment to proactive portfolio management and optimizing our assets while strategically investing in future growth initiatives. It highlights the strength of Abu Dhabi’s aviation sector and our dedication to driving its continued growth. Our collaboration with Etihad Airways reflects the remarkable growth the airline is experiencing, and we are proud to be supporting the airline’s ambitious 2030 journey. Together, we are strengthening the synergies within Abu Dhabi’s thriving aviation ecosystem.”

Antonoaldo Neves, CEO of Etihad Airways, commented: “The acquisition of these engines marks a key milestone for Etihad as we continue maintaining a world-class fleet that drives our growth, honouring Abu Dhabi’s rich aviation heritage. This transaction is also a reminder of the strong synergy between Sanad and Etihad Airways spanning two decades.”

A Longstanding Partnership

Sanad’s partnership with Etihad Airways began in 2003, with Sanad taking on a crucial role in maintaining the airline’s aircraft engines. Over the years, Sanad has conducted maintenance, repair, and overhaul (MRO) services on over 400 engines, including V2500 and Trent 700 engines for Airbus aircraft and GEnx engines for Boeing planes.

Since introducing its V2500 and Trent 700 engine maintenance services in 2012, Sanad has continually supported Etihad Airways, solidifying a strong partnership between the two Abu Dhabi-based aviation leaders. This collaboration has positioned Sanad as the largest independent engine maintenance provider in the MENA region, serving over 30 international airline clients and all major engine manufacturers.

What started as a local partnership has now evolved into a global relationship. To date, Sanad’s MRO dealings with Etihad Airways have surpassed AED 6 billion, highlighting a bond founded on trust, operational excellence, and a shared commitment to long-term growth.

The partnership took a significant step forward in 2011 when Sanad Capital began offering financing services to Etihad Airways. This collaboration expanded further in 2013 with additional spare-part leasing. The total value of financing agreements between the two now exceeds AED 3 billion.

Boosting Global and Local Growth

With over 37 years of operational experience and partnerships with more than 30 leading airlines globally, Sanad remains a key player in providing integrated maintenance solutions to top airlines and original equipment manufacturers (OEMs). The company is committed to supporting both the UAE and the global aviation industries as they continue to evolve.

This latest engine sale, worth AED 1.5 billion, highlights Sanad’s competitiveness in the global market while delivering strategic value to its partners, further cementing its role as a key contributor to the aviation industry’s growth.