Sanad and AerCap Seal $110M Aviation Component Deal in Abu Dhabi

Sanad and AerCap Materials Finalize Landmark AED 400 Million Component Sale

In an era where global aviation supply chains strain under the weight of surging demand and persistent disruptions, strategic partnerships have become indispensable. A recent transaction between Sanad, a Mubadala-owned aerospace engineering and leasing leader, and AerCap Materials, the materials division of the world’s largest aircraft lessor, exemplifies this shift. Valued at over AED 400 million (USD $110 million), the deal is among the largest engine and airframe component sales in aviation leasing history.

Signed during the IATA Annual General Meeting in Delhi in June 2025, the agreement facilitates the transfer of over 6,000 high-demand components across Airbus, Boeing, and Embraer platforms. The transaction reflects a broader trend in aviation: monetizing idle assets, optimizing operational resilience, and adapting to an increasingly complex aftermarket landscape. For Sanad and AerCap, it’s not just a sale, it’s a strategic realignment to meet evolving industry dynamics.

Strategic Context and Transaction Architecture

Deepening Supply Chain Resilience

The aviation aftermarket is currently experiencing significant growth. With MRO (Maintenance, Repair, and Overhaul) revenues projected to reach over $114 billion in 2024, an increase of 7.2% above the 2019 pre-COVID peak, the demand for components has never been greater. Yet, supply chain fragmentation and production delays have left operators scrambling for parts. This transaction directly addresses these vulnerabilities by ensuring immediate access to crucial components.

The portfolio includes parts for Airbus A220, A320, A330, A340, A380; Boeing 737, 777, 787; and Embraer E-Jet series aircraft. Approximately 60% of the components are on lease, actively supporting global airline and MRO operations, while the remaining 40% are off-lease, strategically positioned to buffer against supply shocks. This hybrid deployment model ensures both immediate utility and long-term strategic flexibility.

According to Oliver Wyman’s 2025 MRO Survey, material shortages are cited as the top disruptor for the industry over the next five years. By integrating Sanad’s inventory into AerCap Materials’ global network, the deal alleviates these pressures while enhancing fleet reliability for operators in over 20 countries.

“Partnering with Sanad enables us to scale faster and deliver innovative, tailored solutions globally.” , Aengus Kelly, CEO of AerCap

Financial and Operational Dimensions

Beyond operational impact, the transaction serves as a financial lever for both parties. For Sanad, the AED 400 million capital injection fuels growth initiatives, including the expansion of its LEAP MRO Center. This aligns with its broader strategy of monetizing assets while scaling technical capabilities. In 2024 alone, Sanad executed five major leasing transactions exceeding AED 1.8 billion.

AerCap Materials, in turn, gains immediate inventory breadth across high-demand platforms. This supports CEO Aengus Kelly’s strategic vision of enhancing responsiveness amid ongoing disruptions. With engine spare parts markets expected to grow significantly, the acquisition positions AerCap to capitalize on long-term demand.

Component types include engine modules (CFM56, LEAP, Trent 700), airframe systems (hydraulics, landing gear), and avionics (navigation, communication). Each category is curated to support active MRO operations, fleet modernization, and buffer inventories, demonstrating a comprehensive approach to aftermarket strategy.

Industry Implications and Strategic Alignment

Abu Dhabi’s Aerospace Vision in Action

This transaction is more than a bilateral deal, it’s a manifestation of Abu Dhabi’s broader economic diversification strategy. Sanad, as part of Mubadala’s $229 billion portfolio, plays a pivotal role in advancing the emirate’s aerospace ambitions under the “Abu Dhabi 2030” vision. Alongside entities like Strata Manufacturing and Yahsat, Sanad contributes to a vertically integrated industrial ecosystem.

Since its 2019 restructuring, Sanad has evolved from a regional MRO provider into a global asset manager. Its 2024 H1 revenue of AED 2.3 billion positions it to exceed AED 4.5 billion annually, a 95% increase since restructuring. The company’s growth trajectory includes technology transfer, supply chain localization, and global market integration, with recent expansions into Asia-Pacific via a new Singapore sales office.

The AerCap deal underscores this evolution. By converting inventory into liquidity, Sanad can reinvest in next-gen capabilities while reinforcing Abu Dhabi’s role as a global aerospace hub. It also marks one of the largest foreign investments in the UAE’s aerospace sector in 2025, validating the emirate’s industrial strategy on the world stage.

Emerging Trends in Aviation Aftermarkets

The transaction highlights three emerging paradigms in the aviation aftermarket. First, digital asset monetization. Sanad’s use of blockchain to track the 6,000-component portfolio ensures transparency and dynamic pricing, enhancing the value proposition for both lessors and operators.

Second, hybrid leasing models. The coexistence of on-lease and off-lease components in this deal signals a shift toward “inventory-as-a-service.” This allows airlines to access parts without significant capital expenditure, increasing operational agility while reducing financial risk.

Third, sustainable fleet optimization. With 42% of airlines prioritizing environmental efficiency in component selection, the portfolio’s inclusion of next-gen LEAP and GEnx engine parts supports decarbonization goals. This aligns with IATA’s 2050 net-zero targets and reflects growing demand for fuel-efficient technologies.

“This complex and transformative transaction reflects Sanad’s commitment to building a more resilient aviation supply chain.” , Mansoor Janahi, CEO of Sanad

Conclusion: A Blueprint for Resilient Aviation

The Sanad-AerCap Materials transaction represents a significant milestone in aviation asset management. It addresses immediate supply chain challenges, monetizes underutilized assets, and sets a precedent for future collaborations between lessors and MRO providers. By transferring over 6,000 components to a global distribution network, the partnership enhances operational efficiency for airlines while enabling strategic growth for both companies.

As the aviation industry navigates a complex recovery marked by aging fleets, production delays, and evolving sustainability mandates, transactions of this nature offer a roadmap for resilience. For Abu Dhabi, it’s a validation of its industrial strategy; for the global aviation ecosystem, it’s a case study in how strategic alignment can convert systemic vulnerabilities into competitive advantage.

FAQ

What is the value of the Sanad-AerCap transaction?
The transaction is valued at over AED 400 million (approximately USD $110 million), making it one of the largest component sales in aviation leasing history.

Which aircraft platforms are covered in the component portfolio?
The portfolio includes components for Airbus (A220, A320, A330, A340, A380), Boeing (737, 777, 787), and Embraer E-Jet series aircraft.

How does this deal impact the aviation supply chain?
It enhances component availability, reduces maintenance delays, and strengthens global fleet reliability at a time of widespread supply chain disruptions.

What are the strategic benefits for Sanad?
Sanad monetizes its inventory, injects capital into growth initiatives like its LEAP MRO Center, and reinforces its role as a global asset manager.

How does this align with Abu Dhabi’s economic strategy?
The deal supports the emirate’s diversification goals by attracting foreign investment, promoting industrial expertise, and scaling global aerospace capabilities.

Sources

Sanad Press Release, AerCap Official Website, Oliver Wyman MRO Survey 2025