UAE’s national airline Etihad Airways and Abu Dhabi-based largest holding company ADQ have proposed transaction that will support the ongoing transformation of the airline and the future growth of the civil aviation sector in the emirate.
As part of the proposed transaction, several of Etihad’s businesses providing airline support services will become part of a new ADQ aviation company.
Once the transaction is complete, the airline support services businesses will benefit from being part of ADQ’s broad mobility and logistics portfolio, which includes Abu Dhabi Airports and AD Ports Group.
According to the company, the businesses included in the proposed transaction are Etihad Engineering, Etihad Airport Services Cargo, Etihad Airport Services Ground, Etihad Aviation Training, Etihad Secure Logistics, and Etihad Technical Training.
Further, two Etihad enterprises will join Abu Dhabi National Exhibition Company (ADNEC) as part of the proposed transaction. Etihad Airport Services Catering will combine with ADNEC’s catering business Capital Hospitality, and Etihad Holidays will join ADNEC’s tourism promotion business, Tourism 365, as per the statement.
“With the proposed addition of Etihad’s experienced aviation support businesses to our new dedicated aviation company, ADQ is primed to develop an integrated aviation platform that is driven by performance and a robust financial foundation through its new company. With an integrated mobility and logistics portfolio that plays a leading role in the development of Abu Dhabi’s global connectivity, we are well-positioned to unlock the growth potential of these aviation services businesses. We see potential to capitalize on growth opportunities, attract a wider client base of airlines and drive the future expansion of Abu Dhabi’s aviation sector.”
Mr. Tony Douglas, Group CEO of Etihad Aviation Group said, “This agreement will allow us to place 100 percent of our focus on Etihad Airways to capitalize on recovering travel demand and will benefit our staff, the millions of guests who fly with Etihad Airways every year, and Abu Dhabi’s wider aviation sector. We are working closely with ADQ to ensure the transition is as smooth as possible.”
“The inclusion of Etihad Airport Services Catering and Etihad Holidays supports Abu Dhabi’s strategy which aims to achieve integration between various business units across exciting economic sectors. This move will enable us to go above and beyond the customers’ expectations by building on what has been done already,” commented Mr. Humaid Matar Al Dhaheri, Managing Director and Group CEO of Abu Dhabi National Exhibitions Company (ADNEC).
The businesses joining ADQ’s new aviation company and ADNEC will remain key long-term strategic partners to Etihad Airways. The transaction is subject to customary closing conditions, including regulatory approvals. The terms of the transaction were not disclosed, the company said.