Dubai: Abu Dhabi's Sanad, which is into aerospace engineering and leasing, has struck a Dh1 billion deal with Pratt & Whitney and International Aero Engines (IAE). This will see Sanad Aerotech provide IAE with expanded MRO (maintenance, repair and overhaul) services for its V2500 engines, which powers the Airbus A320 aircraft.
"This agreement is another testament on Abu Dhabi’s established position as a reliable global centre for the aerospace industry and its state-of-the-art engineering services," said Mansoor Janahi, Deputy Group CEO, Sanad. "With many global companies reformulating their relationships with their partners in line with the lessons learned from the pandemic, it seems that flexibility, sustainability and the capacity to deal with crises qualifies aerospace sector in the UAE to re-enforce its position as a preferred partner for major international companies."
Sanad is a wholly-owned subsidiary of Mubadala Investment Company. The agreement expands the cooperation between Sanad and IAE in MRO services for aircraft engines. Under the agreement IAE, the manufacturer of V2500 engines, will offload V2500 engines for MRO services to Sanad’s facility in Abu Dhabi Airports Free Zone. More than 7,000 V2500 engines have been deployed on A320 aircraft.
"Sanad Aerotech has demonstrated the distinction of its engineering teams that were able to meet customer needs in addition to dealing efficiently with the disruptions that resulted from the pandemic,” said Janahi.
“I'm not talking [about] a blip - this is really something that has been devastating. And I can assume that the impact is not just on us."
More than 50 per cent of revenues at Strata – Mubadala’s aircraft parts maker – “dissipated”. Sanad Aerotech – Mubadala’s aircraft and maintenance business – has not been spared either. “When airlines are not flying, and they're grounded, there's not going to be any MRO (maintenance, repair and overhaul).”
Sanad Aerotech will continue being impacted going forward because some airlines “have their own business sustainability at risk,” he added.
Mubadala’s aircraft leasing business has also been hit, with one of the customers, Virgin Australia, declaring bankruptcy. “So when I look at what could go wrong - everything is,” said Al Olama.
- John Benny, Staff Reporter