Etihad Airways, the national airline of the United Arab Emirates, has mandated sale and lease back transactions to the value of $367 million to Sanad Aero Solutions (Sanad) and Engine Lease Finance Corporation (ELF), for the financing of its 16 in-service spare engines and seven future spare engine deliveries.
Sanad will purchase and lease back to Etihad Airways five GE90 and six Rolls Royce Trent 500 engines and ELF will purchase and lease back to Etihad Airways six Rolls Royce Trent 700 and six IAE V2500 engines. Both transactions are for a 10-year operating lease term.
The spare engines are for Etihad Airways' entire fleet of passenger and cargo aircraft.
James Hogan, Etihad Airways President and Chief Executive Officer, said: "These spare engine sales and lease back transactions provide the airline with a long-term financing solution for its entire spare engine fleet while mitigating residual value risk and providing competitive cost of ownership over the long term.
"We are delighted with the support that we were shown by the market in a very competitive bidding process, and we are pleased to mandate such strong partners as
Sanad and ELF."
Troy Lambeth, Sanad Chief Executive Officer, said: "We are excited to expand our relationship with Etihad Airways through this transaction. It is another significant milestone in our shared mandate to establish Abu Dhabi as a global aerospace hub and expands the foundation for further cooperation and partnership between our companies."
Jon Sharp, President and Chief Executive Officer of ELF, said: "We are particularly pleased to extend our already strong relationship with Etihad Airways, which continues to set the pace for airline performance. This transaction is a perfect illustration of how two innovative companies can work together to mutual advantage."