Etihad Airways awards us $200 million engine overhaul contract to IAE
Tuesday, 17 November 2009

Etihad Airways, the national airline of the United Arab Emirates, has signed a deal which could be worth up to US $200m with International Aero Engines (IAE) to provide a comprehensive engine overhaul and repair service for 14 Airbus aircraft in its narrow-body fleet.

The Aftermarket Services agreement covers the Abu Dhabi-based airline’s existing fleet of V2500-powered aircraft. The contract covers a total of 30 V2500 SelectOne™ engines (including two spares) that power 12 A320 and two A319 aircraft, currently in service. All of these engines will be upgraded to the latest V2500 SelectOne™ build standard during their scheduled overhauls.

Etihad Airways’ chief executive, James Hogan, said: “The decision to incorporate the V2500 SelectOne™ upgrade is a natural progression in our relationship with IAE. Transferring engine maintenance responsibility to IAE allows us to focus upon our core strengths. The engine deal will deliver significant cost benefits for Etihad, especially in terms of lower fuel consumption, reliability and increased flying time between maintenance overhauls.”
Chris Bewley, Regional Director - Asia and Middle East, added: “As the only engine manufacturer to offer a complete engine management service on the A320 family, we give our customers the option to transfer maintenance risk so they can concentrate on their core business. Etihad’s decision to extend its aftermarket coverage to its existing fleet demonstrates that customers recognize the value this brings to their operation.”

The engine overhaul deal follows the announcement in June at the Paris Air Show that IAE would provide 44 V2500 engines to power Etihad’s 20 new narrow-body Airbus A320 aircraft, due for delivery between 2011 and 2015. The US$ 575 million deal also includes a long term aftermarket services agreement.
A key selection criterion in choosing V2500 engines and aftermarket deals has been environmental performance. The lower emissions of the V2500 engines will assist Etihad in achieving its environmental targets. The V2500 engines are also particularly suitable for Middle East operations and are able to perform consistently well in high temperatures.

Etihad Airways already operates a fleet of 13 V2500-powered aircraft with one more to be delivered in December, and was the launch customer for V2500 SelectOne™ in the Gulf Region.
IAE is a multinational aero engine consortium whose shareholders comprise of Pratt & Whitney, Rolls-Royce, Japanese Aero Engines Corporation and MTU Aero Engines.

Source: Press Release (Etihad, IAE)