08 May 2014 06:00
Etihad Airways acquires Abu Dhabi Aircraft Technologies.
Mubadala establishes new company focused on growth of existing engine business
Abu Dhabi, UAE:
Etihad Airways, the national airline of the United Arab Emirates, and Mubadala
Development Company (Mubadala), today entered into an agreement in which Etihad
Airways will acquire Abu Dhabi Aircraft Technologies LLC (ADAT) from Mubadala.
The deal will see Mubadala retain ADAT’s
engine focussed maintenance, repair and overhaul (MRO) business, which will be
the catalyst for the
continuity and growth of its dynamic engine business through the
establishment of a new engine company.
The transaction includes
maintenance and engineering teams, hangars, component workshops, and paint
facilities in Abu Dhabi which will enhance Etihad Airways capability to
undertake airframe and component maintenance on its growing fleet of modern
aircraft, including the new Airbus A380 and Boeing B787, which will join the
fleet in the last quarter of 2014.
James Hogan, Etihad
Airways’ President and Chief Executive Officer, said: “ADAT has been a vital
partner to the UAE national carrier over the past five
years. This acquisition will strengthen
the maintenance capability of the Etihad Airways group by bringing together critically
important functions that go to the heart of ensuring safety and optimal
performance of the operations.”
Engine MRO is set to form a significant
component of Mubadala’s aerospace strategy, and this new engine company will
form the foundation for this growth under the leadership of Abdul Khaliq Saeed,
ADAT's current CEO. At the 2013 Dubai Air show, Mubadala signed deals with
Rolls Royce and GE Aviation to establish next-generation Trent XWB and GEnx MRO
centers of excellence in Al Ain. This was further supported with a combined
commitment of USD1.0B in engine parts production from both manufacturers.
Homaid Al Shemmari, Chief Executive Officer
of Aerospace and Engineering Services at Mubadala commented: “This
acquisition by Etihad Airways is a true testament to ADAT’s world-class MRO
credentials and its exceptional workforce.
At the same time, we are establishing a new company to build on the
growth in this strategic sector focussed on the engine business, following our
announcements at the Dubai Air Show. As
part of our development mandate, Mubadala is proud to have cultivated a
world-renowned MRO service provider and today’s announcement is a reflection of
our mandate to deliver strong social and economic returns to Abu Dhabi and the
As well as servicing
the Etihad Airways fleet, ADAT’s enhanced maintenance capability in Abu Dhabi
will be made available to Etihad Airways’ equity alliance partners and third
party customers, maximising the synergies available to the group.
Mr Hogan welcomed the ADAT team to the Etihad Airways group. “Our
continued success is driven by our people who are committed to ensuring Etihad
Airways is the best airline in the world.”
“I am delighted to welcome the highly skilled and
experienced maintenance and engineering teams from ADAT who will play an
important role in supporting the continued growth of the airline,” he said.
Etihad Airways’ Senior Vice President Technical will be responsible for the
combined MRO of ADAT and the daily technical operations business.
A transition plan is
in place and will ensure ‘business as usual’ as Etihad Airways continues to
work closely with its new and existing employees and customers, ensuring that
there is no disruption to existing services during the integration period,
while benefits are delivered immediately.
The award-winning facility in Abu Dhabi currently serves more than
70 commercial airline customers worldwide.