Sanad Aero Solutions, the spare engine and component financing and leasing solutions company of Abu Dhabi-based Mubadala Aerospace, has expanded its long-term engine leasing relationship with airberlin with the addition of three new CFM-56 engines under a sale and lease back agreement to its existing portfolio of eleven spare engines.
The new agreement will further increase airberlin’s operational efficiencies in conjunction with the Maintenance Repair and Overhaul (MRO) services provided by Mubadala Aerospace’s Global MRO Network.
This transaction will allow airberlin, the second largest airline in Germany, to enjoy access to the optimal level of spare engines to meet its own operational needs with any spare engine capacity being utilized within the Sanad and Mubadala MRO Network to support other cusomers.
Phil Carroll, the chief commercial officer at Sanad, said the addition of these engines to ensure airberlin’s operational requirements were fully met during peak maintenance periods, coupled with the creation of a lease pool arrangement utilizing spare capacity to support its MRO customer base, is a genuine example of Sanad's ability to create value for customers.
"It also demonstrates our network’s ability to provide innovative and flexible financing solutions to the global aerospace market," he added.
Under a ten-year contract, SR Technics provides comprehensive engine maintenance services for more than 300 of Air Berlin’s CF56-7B, CF56-5B and PW4168 engines for their entire Airbus and Boeing fleets, including these additional engines.
Ulf Hüttmeyer, the chief financial officer at airberlin, said, “The addition of three engines to our existing pool will ensure that we can optimize the operation of our Airbus and Boeing aircraft, and also allow us the flexibility to invest where needed."
"Our long-term agreement with Sanad, and the Mubadala Aerospace MRO Network, is part of our commitment to using innovative approaches to allow us to succeed in the competitive aviation market," he added.
Since its launch in 2010, Sanad has grown its portfolio to over $550 million in assets under management supporting a growing number of industry leading airlines including Etihad, airberlin, Virgin Australia, Garuda, Finnair and others.