Singapore Airshow: Sanad takes Mubadala into the parts business

 The company is called Sanad (which means ‘support’ in Arabic) and will be run by American Troy Lamberth. The Abu Dhabi investment arm is already heavily involved in the MRO industry through its operators SR  Technics and ADAT. The company is looking at buying a third MRO outfit either in the US or in India.

The creation of Sanad will benefit ADAT and SR Technics as they will be involved in maintaining the parts and components but Mubadala executive director Homaid Al Shemmari said it would be the carriers who get the greatest benefit.  “Airlines benefit because it is a way to improve the balance sheet and raise cash. Rather than have money tied up in spare parts inventory a carrier can put that money to better use elsewhere.” Homaid said Sanad would help finance and support OEMs customers in the regions they operate.

Homaid he is now working on deals with five airlines and said he expected to have a customer list of some size by the end of 2010.

The move had been signalled earlier this year when Mubadala was reported by Arabian Aerospace as having bought Air Berlin's inventory of   ten spare engines as part of a deal with the German low-cost carrier that saw SR Technics contracted for the MRO work on engines in the Air Berlin fleet.

Mubadala is also working closer to home and has agreed a contract with UAE national carrier Etihad to provide “of a total component solution” through SR Technics for the carrier’s Airbus fleet.   The deal is valued in excess of $30 million . over 10 years "as part contract" between SR Technics and Abu Dhabi's Etihad Airways.