Thu 23-12-2021 14:54 PM
ABU DHABI, 23rd December, 2021 (WAM) -- Etihad Airways and ADQ announced Thursday a proposed transaction that will support the ongoing transformation of Etihad Airways and the future growth of the civil aviation sector in Abu Dhabi. As part of the proposed transaction, a number 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.
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.
Additionally, the proposed transaction will see two Etihad businesses join Abu Dhabi National Exhibition Company (ADNEC). 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.
The proposed agreement marks the start of a new chapter for Etihad Airways, allowing the airline to further sharpen its focus on its core business and respond with greater agility to market opportunities as global travel demand rebounds from COVID-19.
Mohamed Hassan Alsuwaidi, CEO of ADQ, said, "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 capitalise on growth opportunities, attract a wider client base of airlines and drive the future expansion of Abu Dhabi’s aviation sector."
Tony Douglas, Group CEO of Etihad Aviation Group, said, "We’re excited to partner with ADQ on the next stage of our transformation. The past two years have changed the face of aviation and the proposed agreement marks a significant milestone in how we are repositioning Etihad Airways and our subsidiaries for long-term success. This agreement will allow us to place 100% of our focus on Etihad Airways to capitalise 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."
Humaid Matar Al Dhaheri, Managing Director and Group CEO of ADNEC, said, "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. Our focus remains on achieving milestones and continuing to work to enhance competitiveness at the regional and international levels, as well as increase contributions to the economy of Abu Dhabi and support sustainable development."
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.