May 8, 2014
Etihad Airways signs agreement to acquire Abu Dhabi Aircraft Technologies (ADAT)
Etihad Airways, the national airline of the United Arab Emirates, and Mubadala Development Company (Mubadala), 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. 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 Airshow, 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 US$1.0bn in engine parts production from both manufacturers.