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Mon 25 Mar 2013 11:53 AM

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UAE’s Etihad signs $125m, ten-year parts deal

Abu Dhabi airline in sale and lease back agreement with Mubadala subsidiary

UAE’s Etihad signs $125m, ten-year parts deal

Abu Dhabi-based airline Etihad Airways has signed a US$125m, ten-year agreement for the sale and lease back of some of its key component spares.

In a statement, the UAE’s flag carrier said Sanad Aero Solutions (SANAD), a part of Mubadala Aerospace, would purchase the unspecified spares, which consists of parts for Etihad’s entire fleet of passenger and cargo aircraft.

The deal expands on a similar sale and lease back deal signed between the two firms in 2011 for the financing of five General Electric GE90 and six Rolls Royce Trent 500 aircraft engines.

"This new sale and leaseback transaction provides the airline with a long-term financing solution for many of its key component spares while mitigating residual value risk and providing competitive cost of ownership over the long term,” said Etihad CEO James Hogan.

"The deal also drives value for both SANAD and Etihad Airways, and will ensure that the UAE's reputation as an aerospace and aviation centre of excellence continues to grow," added Troy Lambeth, CEO of SANAD.

UAE government-owned Etihad in January this year reported that full-year net profits for 2012 increased 200 percent to US$42m, as it carried more passengers and pushed ahead with strategic alliances with other international carriers.

The UAE flag carrier, which has expanded globally through stake purchases in the likes of airberlin and Virgin Australia, said revenue increased 17 percent to US$4.8bn, while passengers rose 23 percent to 10.3m.

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