European MRO base being considered by Middle East collaboration

The Dubai Air Show which runs from the 8th – 12th November has been witness to the signing of a memorandum of understanding (MOU) between Etihad Airways and Abu Dhabi-based investment and development company Mubadala, to explore additional areas of cooperation, which could well include a possible European maintenance, repair and overhaul (MRO) facility. On the 8th May the two companies entered into an agreement in which Etihad Airways acquired Abu Dhabi Aircraft Technologies LLC (ADAT) from Mubadala. The acquisition saw Mubadala retain ADAT’s engine-focussed MRO business, which it intends to be the catalyst for continued growth of its dynamic engine business through the creation of a new engine company.
The MOU was signed by Mubadala’s CEO Aerospace and Engineering Services Homaid Al Shemmari, and Etihad’s President and CEO James Hogan, and will cover a number of new contracts over the next ten years and which are currently valued at up to US$1 billion. Under the MOU, Etihad intends to appoint a subsidiary of Mubadala, SR Technics, as its preferred service provider on what will be commercially competitive terms. In addition Etihad and Mubadala are considering establishing an MRO facility in Eastern Europe for narrow-body airliners.
Al Shemmari has stated that “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,” continuing “The strong partnership between Etihad Airways and Mubadala is a key strategic driver in the development of Abu Dhabi as a global aviation hub,” added Hogan. “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 organizations at the forefront of the global aviation and aerospace industries.”
In 2002, Mubadala – the Arabic word for ‘exchange’ – was established by the Government of Abu Dhabi as a principal agent in the diversification of Abu Dhabi’s economy. His Highness Sheikh Mohamed bin Zayed Al Nahyan, Abu Dhabi’s Crown Prince and Deputy Supreme Commander of the UAE Armed Forces, is Chairman of the Board of Directors.