Mubadala and GE bring world first MRO offer to the Middle East

Homaid Al Shemmari, flanked by GE's John Rice (left) and ADAT's John Byers

The head of Mubadala's aerospace businesses. Homaid Al Shemmari, said the agreement finalises one of the remaining components of the broader strategic partnership forged last year between Mubadala and GE, These include commercial finance, clean energy research and development, industry, corporate learning and aerospace.

GE Aviation and its affiliates will provide technical support and services to Mubadala’s affiliate MRO companies SR Technics and ADAT, including technical and corporate training support, comprehensive material support, and the granting of licenses to service certain GE engines.

“A year ago we forged a strategic agreement that would leverage Mubadala’s deep experience and exciting vision for growth with GE’s unique financial and industrial capabilities," said GE Vice Chairman John Rice. "Today’s announcement realises an important part of that vision, allowing both companies to capitalize on what we believe are significant, long-term opportunities in the Middle Eastern aviation market.”

According to Al Shemmari this is just the beginning. “Part of our ambition is to build a global MRO network and, the partnership with GE significantly advances Mubadala’s MRO capabilities in this area. At the same time it provides an essential expansion to GE’s network in the region.”

The partnership opens the door for increased numbers of Emiratis who ae looking for career opportunities in the high-end technical engineering business.

According to ADAT's John Byers, the first of the new engines will pass through the shop by 2013. New facilities will be required
Key components of the industrial cooperation include:

•    Abu Dhabi Aircraft Technologies (ADAT) to become world’s first MRO Network provider  for GEnx engines.

ADAT is focused on growing the business around next generation products and technologies, and the GEnx engine represents a giant leap forward in propulsion technology.  GE will designate ADAT as a network provider in the Middle East and North Africa (MENA) for its next generation GEnx-1B and -2B engines. The shop will become fully operational in 2013 and support the growing fleet of GE engines in the MENA region.  That includes Etihad Airways, a key customer of ADAT which yesterday confirmed it has selected the GEnx to power its new fleet of 35 B787 aircraft.
•    ADAT to acquire GE90 modular and on-wing support capability.
The Middle East has the highest global concentration of GE90 Engines, and this presents a mutual opportunity for GE and ADAT to service the region’s GE Engine operators.  GE will support ADAT in obtaining capability to perform modular assembly/disassembly for Etihad Airways’ fleet of 36 GE90-115B engines (current and on order). In addition, GE will designate ADAT as a member of its global network of On-Wing Support (OWS) providers for GE90-115B engines.

•    GE to provide Mubadala’s affiliate MRO companies engine overhaul and material support for CFM56 & CF6 engines.
GE and CFM International, a 50/50 joint company between GE and Snecma (SAFRAN Group), will provide ADAT (CFM56-5A/B/C, CF6-50/80C) and SR Technics (CFM56-5B/C) with engine overhaul and technical support. This will include sharing of best practices through Six Sigma to further improve ADAT’s and SR Technics’ shop productivity and reduce costs. In addition, GE and Mubadala confirmed a 10-year OnPoint Solutions agreement to provide its respective MRO companies with new and used serviceable parts, component and accessory repair for the above mentioned engines.

•    GE to provide ADAT enhanced F110 overhaul capability beyond the United Arab Emirates fleet of F16s.
ADAT already has overhaul capability for the UAE Air Force’s F110-GE-132 engines for F-16 aircraft.  As part of this agreement, GE will work with ADAT to enhance its F110 overhaul capabilities to service the F110-GE-129 engine, making ADAT a recognized F110 overhaul provider throughout the Middle East region. 

•    Corporate and technical training for ADAT and SR Technics
Mubadala aerospace companies will utilize the Abu Dhabi Leadership Development Center, the Mubadala GE project which will form part of GE’s Global Learning Network.  Through this centre and other GE venues, GE will offer Mubadala aerospace companies its world-renowned courses in executive leadership and management level training. GE will provide technical training for employees of ADAT and SRT. 

GE and Mubadala signed agreements three weeks ago to create a joint venture in Abu Dhabi to establish a USD 8 billion commercial finance company, and to establish the Abu Dhabi Leadership and Development Centre, In addition, as of March 31, 2009, Mubadala had accumulated 65.8 million shares in GE (approximately 0.62%), in line with its commitment to become a top-ten shareholder in GE as conditions allow.