Mubadala’s Sanad, Lion Air sign a new key MRO agreement

Sanad, the global aerospace engineering and leasing solutions leader wholly owned by Abu Dhabi’s Mubadala Investment Company, has entered into a five-year partnership with Indonesia’s Lion Air to provide maintenance, repair, and overhaul (MRO) services for V2500 engines powering its Airbus A320 fleet.

The deal reinforces UAE-Indonesia economic cooperation, aligning with the UAE-Indonesia comprehensive economic partnership agreement (CEPA), which targets $10bn in annual trade by 2026.

The V2500 engine, produced by International Aero Engine, has powered commercial aircraft since 1989, with more than 2,600 in operation across 170 airlines worldwide, accumulating over 275 million flight hours.

As of 2023, more than 5,280 V2500 engines remain in active service.

Sanad will leverage its Abu Dhabi-based facilities to service Lion Air’s V2500 fleet. Having overhauled more than 250 V2500 engines in the past five years, Sanad has been the sole V2500 full overhaul provider in the Middle East since 2012.

This partnership strengthens its position as a key independent MRO provider serving leading global airlines.

Lion Air, Southeast Asia’s largest privately owned airline, operates a fleet of over 310 aircraft.

The agreement extends to include Batik Air and Super Air Jet, subsidiaries of Lion Air, which collectively operate more than 65 V2500-powered aircraft.

Sanad-Lion Air: Strategic industry collaboration

Mansoor Janahi, MD and group CEO at Sanad, stated: “This agreement with Lion Air, Indonesia’s largest airline by fleet size, reinforces our market presence and further establishes Abu Dhabi as a hub for advanced aviation solutions. It also strengthens our ties with Southeast Asia, the fastest-growing aviation market globally, and highlights the UAE’s commitment to expanding economic and industrial collaboration with Indonesia.”

Dennis Kirana, vice CEO of Batam Aero Technics, added: “Sanad’s expertise in maintaining our V2500 fleet makes them the ideal partner. This collaboration ensures the continued efficiency, safety, and reliability of our operations, while also reinforcing the deepening aviation ties between Indonesia and the UAE.”

With over 38 years of experience in aircraft engine MRO, Sanad has serviced more than 600 V2500 engines since 2012, supporting more than 30 airlines and 10 strategic partners across the Middle East, Europe, Africa, the Americas, and Asia.

The partnership strengthens Sanad’s role as a leading independent MRO provider while contributing to Abu Dhabi’s growing reputation as a global aviation hub and aligning with the UAE’s vision for international industrial expansion.