Abu Dhabi’s Etihad Airways buys 16 aircraft engines for Dhs1.5bn

Image credit: Michael Nagle/ Getty Images

Abu Dhabi’s Etihad Airways said on Tuesday that it had signed a $408.4m (Dhs1.5bn) agreement with Mubadala’s Sanad for the acquisition of 16 aircraft engines, a deal that is expected to support the carrier’s continued expansion while strengthening the emirate’s aviation ecosystem.

The sale includes nine GEnx engines for the Boeing 787 aircraft, five GP7200 engines for the Airbus A380, one Trent XWB engine for the Airbus A350, and one V2500 engine for the Airbus A320.

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

Sanad’s two-decade collaboration with Etihad continues to drive innovation and growth in the aviation industry, contributing about Dhs3bn to Abu Dhabi’s GDP. To date, Sanad’s maintenance, repair, and overhaul (MRO) services for Etihad have surpassed Dhs6bn in value.

Meanwhile, Etihad reported a record profit in the first half of the year, driven by robust demand for travel and cargo revenue as the UAE national carrier prepares for a possible initial public offering.

The carrier posted net profit after tax of $232m (Dhs851m) in the six months ended June, up 48 per cent compared to $157m a year earlier.

Etihad carried 8.7 million passengers in the January-June period, a 38 per cent increase compared to the same period a year ago. Its passenger traffic in H1 is approximately three times higher than IATA’s average growth rate of 13 per cent for Middle Eastern carriers.

The ADQ-owned airline is exploring the possibility of listing on the Abu Dhabi Securities Exchange as early as 2025 in what is potentially the first privatisation of a major legacy airline in the GCC region.

Read: Abu Dhabi’s Etihad Airways plans IPO no earlier than 2025, report says