Mubadala Aerospace has set up a new firm, Sanad Aero Solutions, to provide engine financing support to airlines and original equipment manufacturers (OEM).
With spend on aircraft maintenance to grow at $40bn a year, Mubadala plans to capture a larger share of the maintenance, repairs and overhaul (MRO) market, according to Channel NewsAsia.
Sanad Aero Solutions will be the first to provide component and engine financing in the Middle East.
The firm will provide $100m in engine financing to Air Berlin that covers 12 spare engines and maintenance work for the most of its fleet for ten years.
Sanad will also provide $30m to Etihad Airways for component maintenance, and technical and logistical support for the same time period.
The firm is working on four to five such financial deals that are expected to reduce costs for airlines.
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By GlobalData