Abu Dhabi: Etihad Airways said on Monday it has extended its relationship with Sanad Aero Solutions GmbH (Sanad) with a 10-year agreement for the sale and lease back of some of the airline’s key component spares.
The deal, valued at more than $125 million (Dh459 million), will see Sanad, Mubadala Aerospace’s spare engine and components financing and leasing solutions company, purchase and lease back to Etihad Airways key rotable component spares, the Abu Dhabi-based carrier said in a statement, adding that spares consist of aircraft spare parts for all of its passenger and cargo fleet.
The move comes after two companies struck a similar sales and lease back deal in late 2011 for financing of 11 spare aircraft engines including five General Electric GE 90 and six Rolls Royce Trent 500.
The new 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”, James Hogan, Etihad Airways’ president and chief executive officer, said in a statement.
He said the deal 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”.
Since its launch in 2010, Sanad has grown its portfolio to more than $650 million in assets. Troy Lambeth, CEO of Sanad, said in a statement that this deal marks another milestone in the growth of Switzerland-based Sanad, which supports a growing portfolio of airline customers in the MENA (Middle East and North Africa) region, Europe, Asia, and North America.
