Abu Dhabi's Sanad and Etihad Airways expand $900m spare engines deal

A new sale-and-leaseback agreement for two engines, with a second spare option, builds on an existing partnership

Sanad expands sale and leaseback support with Etihad Airways to include a Rolls Royce Trent XWB engine. Courtesy Sanad.

Abu Dhabi's aerospace leasing and engineering company Sanad and Etihad Airways closed a spare engine deal that builds on a $900 million partnership.

The new deal includes a sale-and-leaseback agreement for an additional GEnx engine by GE and a Rolls Royce Trent XWB engine, with a second XWB spare option, the companies said in a joint statement on Tuesday during the Global Aerospace Summit in Abu Dhabi.

This agreement expands on an existing partnership between Sanad and Etihad Airways for additional spare engines and rotable components that began in 2011.

"Despite the extraordinary challenges the industry is currently facing, this deal confirms Sanad’s long-term commitment to support our industry partners," Troy Lambeth, group chief executive of Sanad, said. "This agreement expands and deepens our portfolio with more entry-into-service asset types including our ninth GEnx and our first Rolls Royce XWB spare engine.”

Sanad will also provide the airline with access to more Boeing 787 rotable components and extended terms for existing GEnx spare engine agreements, according to the statement.

"This latest collaboration between Sanad and Etihad Airways underlines the effectiveness of two leading Abu Dhabi aviation companies working together to achieve a successful and long-term result for Abu Dhabi as we continue in our shared mandate to further establish our home base as a global aviation hub," Adam Boukadida, chief financial officer of Etihad Aviation Group, said.

During the two-day Global Aerospace Summit, which is being hosted online by Mubadala and Abu Dhabi defence company Edge, industry leaders convened to discuss the impact of Covid-19 on the aerospace, defence and space industries.

On Monday, Sanad Aerotech, a unit of Mubadala Investment Company, signed a Dh1 billion engine maintenance deal with Pratt & Whitney and International Aero Engines (IAE). Under the new agreement, Sanad Aerotech will provide IAE with expanded maintenance, repair and overhaul services for its V2500 engines, which power the Airbus A320 family of aircraft.