Abu Dhabi Aviation, a prominent Middle Eastern service provider, has recently completed the acquisition of Etihad Engineering and the Advanced Military MRO Centre, along with acquiring a 50% stake in Global Aerospace Logistics. This strategic move aims to consolidate operations and expand capabilities within the aviation sector.
By J Prakash
The acquisition process involved transferring ownership from Abu Dhabi investment holding ADQ, which will, in turn, gain shares in Abu Dhabi Aviation. This transaction has resulted in the establishment of a well-positioned aviation group, boasting vertical integration and robust capabilities in MRO (Maintenance, Repair, and Overhaul), logistics, supply chain, and advanced engineering.
Following regulatory approvals, these companies were transferred to Abu Dhabi Aviation in exchange for the issuance of a convertible instrument valued at around Dhs4 billion ($1.1 billion). Etihad Engineering specializes in providing MRO services not only to Etihad but also to various other carriers, while the other two entities offer MRO services across a diverse range of aircraft types.
With a fleet exceeding 60 aircraft, primarily helicopters, and active involvement in multiple aerospace sectors, Abu Dhabi Aviation foresees the creation of a new local champion with a workforce of over 9,500 personnel and a comprehensive service offering. Chairperson Nader Ahmed Mohamed Alhammadi emphasizes the strategic importance of extending their value chain into the MRO segment, facilitating greater scalability for future growth.
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