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Publish Date : 26-Mar-2013

The Abu Dhabi-based Etihad Airways has announced that it has expanded its affiliation with Sanad Aero Solutions GmbH (Sanad) with an agreement worth more than $125m for the sale and lease back of a few of the key component spares of the airline.

Sanad is the spare engine and components financing and leasing solutions arm of Mubadala Aerospace.

Under the latest agreement between Sanad and the UAE\'s national airline, the Mubadala arm will buy and lease back to Etihad Airways key rotable component spares.

The major component spares include aircraft spare parts for the carrier\'s complete fleet of passenger as well as cargo aircraft.

The latest deal is an expansion of an analogous sale and lease back arrangement involving the two entities in later part of 2011 for financially supporting 11 spare aircraft engines, which include 5 General Electric GE 90 and 6 Rolls Royce Trent 500.

Etihad Airways President and CEO - James Hogan stated, \"This new sale and leaseback 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.\"

He added, \"The deal also 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,\" he said.

The CEO of Sanad - Troy Lambeth stated, \"This agreement marks another milestone in the growth of Sanad, as we continue to offer innovative and competitive financing solutions to an increasing number of world class aviation operators. We are delighted to expand our relationship with Etihad Airways through this important transaction.\"

The financing operations of Sanad with the Abu Dhabi carrier form a vital part of the growing partnership amid Etihad Airways and the MRO network of Mubadala Aerospace, together with Abu Dhabi Aircraft Technologies (ADAT) and SR Technics, which are offering a wide-range of component and airframe MRO services throughout the Airbus and Boeing fleets of Etihad Airways.

Sanad, which was established in 2010, has increased its profile hugely during this short span of operations and now it manages more than $650m in assets, providing assistance to an increasing number of top airlines in the industry, together with Etihad Airways, Virgin Australia, Finnair, airberlin and so on.

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