Abu Dhabi could host aircraft repair facility

Dubai: Mubadala Development, Abu Dhabi government's investment arm, Boeing and Lockheed Martin are in advanced negotiations to develop a maintenance, repair and overhaul (MRO) facility in Abu Dhabi, a statement said.

"Mubadala has invited Lockheed Martin, Boeing and Thales to jointly discuss participation in a joint venture company to deliver world-class technical services and aircraft sustainment solutions to the UAE Armed Forces, and other air forces in the region that are potentially seeking to outsource their maintenance, repair and overhaul needs to a world-class provider," the statement said.

The news comes a week after Mubadala launched Abu Dhabi Aircraft Technologies, rebranding the erstwhile Gulf Aircraft Maintenance Co (Gamco), which now cease to exist.

"The proposed joint venture company will commence by taking over the military MRO operations of Abu Dhabi Technologies - with the aim of transforming them into a world-class operation under the joint management of the consortium," Waleed Al Mokarrab Al Muhairi, COO of Mubadala, said in a statement.

Mubadala had earlier signed a memorandum of understanding (MoU) with both Boeing and Lockheed Martin on the project.

The ownership has not been finalised, but it is understood that Mubadala will invest in heavily in the project.

"We are in advanced negotiations with Mubadala on the project which could be finalised soon," Jim Albaugh, president and chief executive of the Integrated Defense System (IDS) of the Boeing Company, told Gulf News on Sunday.

He however, could not give details, saying, "I'd rather Mubadala make the announcement."

Al Muhairi said, "Mubadala sees a tremendous opportunity in the military aircraft sustainment business, specifically when joining forces with the Primes to establish a center of excellence of a global stature.

"This will be achieved by re-structuring and consolidating the existing capabilities currently scattered between the UAE Air Force, Abu Dhabi Aircraft Technologies and elsewhere in the Emirate of Abu Dhabi, and by adhering to the best industry practices while maintaining innovative sustainment solutions.