STRATEGIC AGREEMENT TO EXPAND MUBADALA AND ETIHAD AIRWAYS PARTNERSHIP
Deepens partnership in the field of MRO with US$1 bn of additional new contracts over 10 years SR Technics to be appointed as preferred MRO service provider
09 November 2015, Dubai Airshow, UAE: Mubadala, the Abu Dhabi-based investment and development company, and Etihad Airways, the national airline of the United Arab Emirates, has signed a Memorandum of Understanding that will allow the companies to build on their long-term strategic partnership by further exploring areas of cooperation.
Photo caption (left to right): James Hogan, Etihad Airways’ President and Chief Executive Officer, with Homaid Al Shemmari, Chief Executive Officer, Aerospace and Engineering Services, Mubadala, after signing an MoU to expand their companies' strategic partnership.
The agreement was signed at the Dubai Airshow by Homaid Al Shemmari, Chief Executive Officer, Aerospace and Engineering Services, Mubadala and James Hogan, President and Chief Executive Officer, Etihad Airways, and covers a range of new contracts with a potential value of US$1 billion over a 10-year period.
Under the terms of the Memorandum of Understanding, Etihad Airways will appoint Mubadala’s SR Technics, one of the world's leading providers of aircraft, component, engine and technical services, as its preferred service provider on commercially competitive terms.
In addition, Mubadala and Etihad Airways are exploring the feasibility of the establishment of a best-in-class narrow body Maintenance, Repair, and Overhaul (MRO) Facility in Eastern Europe, with discussions already progressing with concerned parties.
James Hogan, Etihad Airways’ President and Chief Executive Officer, said: “The strong partnership between Etihad Airways and Mubadala is a key strategic driver in the development of Abu Dhabi as a global aviation hub. Building on the success of our collaboration to date will give us the scale to expand the range of services we jointly offer, and help keep our respective organisations at the forefront of the global aviation and aerospace industries.”
Homaid Al Shemmari, Chief Executive Officer, Aerospace and Engineering Services, Mubadala, added: “We are delighted to sign this mutually beneficial strategic agreement that will deepen our partnership with Etihad and continue our mission to support Abu Dhabi, and Abu Dhabi companies, to become global aerospace leaders.”
About Mubadala Development Company
Established and owned by the Government of Abu Dhabi, the company’s strategy is built on the creation of partnerships and on long-term, capital-intensive investments that deliver strong financial returns, contribute to the growth and diversification of Abu Dhabi’s economy, and create opportunities for current and future generations in the United Arab Emirates.
Mubadala brings together and manages a multi-billion dollar portfolio of local, regional and international investments and partners with leading global organizations to operate businesses across a wide range of industry sectors. These include aerospace, semiconductors, metals & mining, oil & gas, renewables, information & communications technology, healthcare, real estate & infrastructure, utilities, and defense services.
About Etihad Airways
Etihad Airways began operations in 2003, and in 2014 carried 14.8 million passengers. From its Abu Dhabi base, Etihad Airways flies to, or has announced plans to, serve 113 passenger and cargo destinations in the Middle East, Africa, Europe, Asia, Australia and the Americas. The airline has a fleet of 119 Airbus and Boeing aircraft, and more than 200 aircraft on firm order, including 66 Boeing 787s, 25 Boeing 777X, 62 Airbus A350s and five Airbus A380s.
Etihad Airways holds equity investments in airberlin, Air Serbia, Air Seychelles, Alitalia, Jet Airways, Virgin Australia, and Swiss-based Darwin Airline, trading as Etihad Regional. Etihad Airways, along with airberlin, Air Serbia, Air Seychelles, Alitalia, Etihad Regional, Jet Airways and NIKI, also participate in Etihad Airways Partners, a new brand that brings together like-minded airlines to offer customers more choice through improved networks and schedules and enhanced frequent flyer benefits.