Etihad ties up $500m maintenance deal

Dubai: Abu Dhabi Aircraft Technologies (ADAT), wholly owned by Mubadala Development Co., said it has entered into a $500 million five-year accord with Etihad Airways, the national airline of the United Arab Emirates.

Under the contract, Abu Dhabi Aircraft Technologies will provide an extensive range of maintenance, repair and overhaul (MRO) services to the award-winning carrier.

This agreement is the first to be signed by ADAT since its recent launch.

Under the terms of this agreement, the company will provide the Abu Dhabi-based airline with integrated MRO solutions, covering Airframe Services (including ‘A' and ‘C' checks), Technical Services, Procurement & Logistics Services and Engine Services through its innovative Total Care Auxiliary Power Unit (APU) Support product – one of the first-of-its-kind in the sector.

“This agreement between two Abu Dhabi-based aviation businesses is another indication that the Emirate's transport policy is being successfully achieved,'' said His Highness Dr. Sheikh Ahmed Bin Saif Al Nahyan, the chairman of Etihad Airways.

“Expanding the aviation industry is crucial to achieving the Government's tourism objectives and developing Abu Dhabi as a destination.''

The agreement covers all Etihad's current fleet of three A320s, nine A340s, 14 A330s, and five Boeing 777-300ERs.

“This agreement is a major step forward in Abu Dhabi Aircraft Technologies' aim of becoming the Middle East's foremost independent MRO provider,'' said John Byers, CEO of ADAT.

“Etihad is the first key cornerstone client to sign on with us and we hope quickly to add to this portfolio with negotiations currently under way with an additional three potential customers.

“The airline has demonstrated considerable faith in the new company's capabilities and this relationship also strengthens the UAE capital's status as a rapidly emerging aviation center of excellence.''

Abu Dhabi Aircraft Technologies was recently repositioned from the former Gulf Aircraft Maintenance Company (GAMCO). The company is targeting a $800 million revenue stream by 2012 and plans to invest over $500 million over the next 5 years.

“Etihad has one of the youngest fleets in the business and by the end of this year will operate 34 aircraft with an average age of just 2.4 years,'' said James Hogan, Chief Executive, Etihad Airways.

“Our present five-year fleet plan also makes provision for up to 52 aircraft by the end of 2011. This will be followed by the delivery of four A380 super jumbos in 2013.