UAE carrier Etihad Airways has signed a deal with state-owned investment fund Mubadala Development Company to acquire aircraft maintenance firm Abu Dhabi Aircraft Technologies.
The agreement includes engineering and maintenance teams, hangars, paint facilities and component workshops in Abu Dhabi to be used by the company for aircraft maintenance on its growing fleet, including the new Airbus A380 and Boeing B787 set to arrive in the last quarter of 2014.
The deal will see Mubadala retain ADAT’s engine focussed maintenance, repair and overhaul (MRO) business
“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,” said James Hogan, Etihad Airways’ president and CEO.
“This acquisition by Etihad Airways is a true testament to ADAT’s world-class MRO credentials and its exceptional workforce. 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,” said Homaid Al Shemmari, chief executive officer of Aerospace and Engineering Services at Mubadala.
In addition to the Etihad Airways fleet, ADAT’s maintenance services will also be made available to Etihad Airways’ equity alliance partners and third party customers.
Jeff Wilkinson, Etihad Airways’ SVP Technical will be responsible for the combined MRO of ADAT and the daily technical operations business. The facility in Abu Dhabi currently serves more than 70 commercial airline customers worldwide.
The acquisition follows Dhs43 billion ($11.8 billion) of deals secured by Mubadala during the Dubai Airshow through its Aerospace and Engineering services. Agreements include the Airbus, Boeing, GE, Rolls-Royce and the UAE Armed Forces.
The deals include Dhs22 billion from aerostructures and engine parts manufacturing and composite materials production.