Maintenance and Modifications
Etihad Expands Into Maintenance and Flight Training
Etihad Airways is buying the airline maintenance and flight training businesses of Abu Dhabi's Mubadala group.
Mubadala's Abu Dhabi Aircraft Technologies is to form the new maintenance, repair and overhaul division of Etihad Airways. [Photo: Mubadala]
Mubadala's Abu Dhabi Aircraft Technologies is to form the new maintenance, repair and overhaul division of Etihad Airways. [Photo: Mubadala]

At face value, the recent acquisition of Abu Dhabi Aircraft Technologies (ADAT) from Mubadala Development Co. by Etihad Airways is straightforward portfolio realignment between two state-owned entities in the United Arab Emirates. But Etihad’s reputation as an aggressive empire-builder with deep pockets to fund a string of airline buyouts suggests that the move is part of a wider master plan that will underpin the flag carrier’s prolific fleet growth and its ambitions to compete in the market for third-party maintenance, repair and overhaul (MRO) services.

In a deal agreed on May 8, Etihad will pay an undisclosed amount to secure ADAT’s airframer maintenance business from Mubadala, which will retain the company’s engine overhaul division. The acquisition gives Etihad an established maintenance and engineering team, hangars, component workshops and aircraft painting facilities—all of it developed with significant launch capital from Abu Dhabi’s sovereign wealth fund.

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