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Etihad Airways seals $367m spare-engine deal

by CW Staff on Jan 12, 2012

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Etihad Airways president and CEO James Hogan says this is a long-term financing solution for the airline's spare-engine fleet.

Etihad Airways has sealed a $367m spare-engine sale deal with Sanad and Engine Lease Finance (ELF) Corporation. The financing arrangement is for the airline'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. ELF will purchase and lease back to Etihad Airways six Rolls Royce Trent 700 and six IAE V2500 engines.

Both transactions are for a ten-year operating lease term. The spare engines are for Etihad Airways' entire fleet of passenger and cargo aircraft.

James Hogan, Etihad Airways president and CEO, 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.

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"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," he added.

Troy Lambeth, Sanad CEO, 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."

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