Etihad signs $367m spare engine deal

Etihad Airways said on Wednesday that it 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. The Abu Dhabi carrier said that Sanad will purchase and lease back to Etihad Airways five GE90 and six Rolls Royce Trent 500 engines, while 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, Etihad stated, adding that the spare engines are for Etihad Airways' entire fleet of passenger and cargo aircraft. "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," James Hogan, Etihad Airways' President and Chief Executive Officer, said in a statement.