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

AED 400 million transaction delivers 6,000+ aircraft components, strengthening global supply chains and advancing UAE’s aerospace leadership.

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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.

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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.

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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

Photo Credit: AirPro News Montage

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GA Telesis Expands Asia-Pacific Reach with South Korean Approval

GA Telesis Engine Services secures South Korean MOLIT certification to offer engine overhaul services and signs new deal with MIAT Mongolian Airlines.

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This article is based on an official press release from GA Telesis.

GA Telesis Engine Services Secures South Korean Regulatory Approval, Expands APAC Footprint

GA Telesis Engine Services (GATES), the Helsinki-based engine maintenance subsidiary of GA Telesis, has announced a major expansion of its operational capabilities in the Asia-Pacific region. According to an official company press release, GATES has received Approved Maintenance Organization (AMO) certification from South Korea’s Ministry of Land, Infrastructure, and Transport (MOLIT). This certification authorizes the facility to perform full overhaul services on specific engine models for South Korean airlines.

In a simultaneous development, the company confirmed a new engine maintenance agreement with MIAT Mongolian Airlines. These announcements mark a strategic push by GATES to establish itself as a primary independent alternative to Original Equipment Manufacturer (OEM) facilities in a region heavily reliant on narrowbody aircraft.

Breaking Barriers in the South Korean Market

The newly acquired MOLIT approval is a critical regulatory milestone for GATES. Under South Korea’s Aviation Safety Act, foreign repair stations must undergo a rigorous audit of their quality control systems and technical procedures before they are permitted to release South Korean-registered aircraft to service. By securing this certification, GATES can now bid directly for heavy maintenance contracts with South Korean carriers without requiring third-party approvals.

Authorized Engine Types

According to the press release, the MOLIT approval covers full overhaul authority for three major engine types:

  • CFM56-5B: Powering the Airbus A320ceo family.
  • CFM56-7B: Powering the Boeing 737NG family.
  • CF6-80C2: Powering widebody aircraft such as the Boeing 747, 767, and Airbus A330.

This scope is particularly significant given the composition of the South Korean commercial fleet. Market data indicates that the CFM56-7B is the primary engine for the country’s low-cost carriers (LCCs), including Jeju Air, T’way Air, and Jin Air, which operate substantial fleets of Boeing 737-800 aircraft. Additionally, the CF6-80C2 remains in service with major carriers like Asiana Airlines and Korean Air for their widebody operations.

“This approval allows us to bring our world-class engine maintenance solutions directly to South Korean airlines, offering them a competitive alternative for their fleet requirements.”

, Statement from GA Telesis Press Release

Strategic Partnership with MIAT Mongolian Airlines

Alongside the regulatory news, GATES announced a definitive agreement with MIAT Mongolian Airlines for the maintenance of its CFM56-7B engines. MIAT, the national flag carrier of Mongolia, operates a fleet centered around the Boeing 737-800. This contract underscores the technical capabilities of the Helsinki facility and provides MIAT with a maintenance partner located strategically between its Asian and European route networks.

The agreement validates GATES’ strategy of targeting operators who require flexible, cost-effective maintenance solutions outside of the traditional OEM network. By utilizing the Helsinki facility, MIAT gains access to a European Aviation Safety Agency (EASA) environment while maintaining logistical efficiency for its fleet.

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AirPro News Analysis

The Rise of Independent MROs in Asia

The entry of GATES into the South Korean market represents a shift in the regional Maintenance, Repair, and Overhaul (MRO) landscape. Historically, South Korean airlines have relied heavily on OEM-affiliated shops, such as the Korean Air Tech Center, or major regional players like ST Engineering. These relationships often come with rigid pricing structures and capacity constraints.

As an independent provider, GATES is positioned to compete on turnaround time (TAT) and workscope flexibility. For LCCs operating on tight margins, the ability to perform targeted repairs, rather than mandatory full overhauls, can result in significant cost savings. The “hospital shop” concept, which focuses on surgical repairs to return engines to service quickly, is likely to appeal to carriers like T’way Air and Jeju Air as their fleets age and maintenance events become more frequent.

Furthermore, the timing of the MOLIT approval coincides with a high demand for CFM56 shop visits globally. As supply chain issues continue to plague the new engine market (LEAP and GTF), airlines are holding onto older aircraft longer, increasing the need for reliable maintenance capacity for legacy engines like the CFM56 and CF6.

Facility Capabilities and Global Reach

The GATES facility is located at Helsinki-Vantaa Airport in Finland. According to company data, the site spans 180,000 square feet and features an integrated test cell capable of handling engines with up to 100,000 lbs of thrust. The facility has an annual capacity of approximately 200 engines.

With the addition of the South Korean MOLIT certification, GATES now holds approvals from major global regulators, including:

  • FAA (United States)
  • EASA (European Union)
  • CAAC (China)
  • TCCA (Canada)
  • GACA (Saudi Arabia)

This broad regulatory portfolio allows the company to serve a diverse customer base across Europe, Asia, and the Americas, reinforcing its status as a premier independent engine maintenance provider.

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Photo Credit: GA Telesis

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ITP Aero to Acquire Aero Norway, Expanding CFM56 MRO Services

ITP Aero signs agreement to acquire Aero Norway, enhancing aftermarket capabilities for CFM56 engines and expanding its European MRO presence.

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This article is based on an official press release from ITP Aero.

ITP Aero to Acquire Aero Norway, Strengthening Position in CFM56 Aftermarket

ITP Aero, a global leader in aerospace propulsion, has signed a binding agreement to acquire Aero Norway, a specialized maintenance, repair, and overhaul (MRO) provider focused on CFM56 engines. According to the company’s official announcement, the transaction is expected to close during the first half of 2026, subject to customary regulatory approvals.

The acquisition represents a significant expansion of ITP Aero’s aftermarket capabilities. By integrating Aero Norway’s facility in Stavanger, Norway, ITP Aero aims to reinforce its status as a leading independent player in the aerospace services sector. The move follows a trajectory of aggressive growth for the Spanish propulsion company since its acquisition by Bain Capital in 22.

Strategic Expansion in the MRO Sector

Aero Norway operates out of a facility at Sola Airport in Stavanger, employing a workforce of over 200 skilled technicians. The company has established a reputation for high-quality engine maintenance, specifically for the CFM56 engine family, serving a global client base of airlines, lessors, and asset managers.

In its press statement, ITP Aero highlighted that the two companies possess “highly complementary strengths.” The deal combines Aero Norway’s deep expertise in engine overhaul with ITP Aero’s existing engineering capabilities and component repair infrastructure. This synergy is designed to offer a more comprehensive suite of services to the aftermarket sector.

This agreement is the latest in a series of strategic moves by ITP Aero. In 2023, the company acquired BP Aero in the United States and was recently selected to join Pratt & Whitney’s GTF MRO network. These steps are part of a broader “2030 Strategic Plan” which aims to double the size of the business and increase the global workforce by 50% by the end of the decade.

AirPro News Analysis: The “Golden Tail” of the CFM56

While the press release focuses on corporate synergies, the acquisition underscores a critical trend in the current aviation landscape: the extended dominance of the CFM56 engine. As new-generation engines like the LEAP and GTF face supply chain delays and durability challenges, airlines are keeping older aircraft powered by CFM56 engines in service longer than originally planned.

Industry data suggests that approximately 20,000 CFM56 engines will remain in service through 2025. Consequently, the demand for maintenance shop visits is projected to peak between 2025 and 2027. By acquiring a specialist shop like Aero Norway, ITP Aero is effectively positioning itself to capture high-value work during this period of “structural undersupply” in the narrowbody market.

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This “Golden Tail”, the long, profitable tail end of an engine program’s lifecycle, provides a stable revenue runway for MRO providers capable of handling heavy overhauls. The crossover point where new-generation engine shop visits outnumber CFM56 visits is not expected until later in the decade, making capacity for legacy engines a premium asset today.

Executive Commentary

Leadership from both organizations emphasized the value of combining their respective technical strengths. Eva Azoulay, CEO of ITP Aero Group, described the agreement as a key component of the company’s roadmap.

“The signing of this binding acquisition agreement marks a significant milestone in our strategic roadmap. This acquisition reinforces our ambition to become a leading independent player in the aerospace aftermarket.”

, Eva Azoulay, CEO of ITP Aero Group

Neil Russell, CEO of Aero Norway, noted that the merger would unlock synergies beneficial to their customer base.

“By combining the complementary strengths of ITP Aero and Aero Norway, we will unlock significant synergies that enhance our competitiveness and deliver even greater value to our customers.”

, Neil Russell, CEO of Aero Norway

Future Outlook

ITP Aero reports that it has tripled its earnings since 2022 and is currently implementing a long-term business plan that spans civil, defense, and MRO segments. The company was advised on legal M&A matters regarding this transaction by Baker McKenzie.

Pending regulatory clearance, the integration of Aero Norway into the ITP Aero Group will finalize in 2026, solidifying the company’s footprint in the European MRO market.

Sources:

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Photo Credit: ITP Aero

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AkzoNobel Invests €50 Million to Upgrade US Aerospace Coatings Facilities

AkzoNobel invests €50 million to expand and modernize aerospace coatings production in Illinois and Wisconsin, enhancing capacity and supply chain resilience.

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This article is based on an official press release from AkzoNobel.

AkzoNobel Announces €50 Million Upgrade to US Aerospace Coatings Operations

AkzoNobel has officially announced a significant investments of €50 million (approximately $52–55 million) to modernize and expand its aerospace coatings capabilities in North America. According to the company’s announcement on December 18, 2025, the project will focus on upgrading its flagship manufacturing facility in Waukegan, Illinois, and establishing a new distribution center in Pleasant Prairie, Wisconsin.

This strategic move aims to increase production capacity and shorten lead times for airline and Maintenance, Repair, and Operations (MRO) customers. By enhancing its supply chain infrastructure, AkzoNobel intends to address the growing demand for air travel and the subsequent need for advanced aerospace coatings.

Strategic Expansion in Illinois and Wisconsin

The investment centers on the Waukegan facility, which currently serves as AkzoNobel’s largest aerospace coatings production site globally. The site employs approximately 200 people and houses a dedicated color center. According to the press release, the capital injection will fund the installation of new machinery and automated processes designed to handle larger batch sizes.

To further optimize operations, the company is relocating its warehousing and distribution activities to a new facility in Pleasant Prairie, Wisconsin. This relocation is intended to free up floor space at the Waukegan plant, allowing for a focus on complex, customized chemical manufacturing.

Patrick Bourguignon, Director of AkzoNobel’s Automotive and Specialty Coatings, emphasized the forward-looking nature of the investment:

“This investment will increase our comprehensive North American supply capability and solidify our position as a frontrunner in the aerospace coatings industry. Demand for air travel is expected to grow significantly… and we want to make sure our customers are able to meet that demand.”

Operational Efficiency and the “Rapid Service Unit”

A key component of the upgrade is the introduction of a “Rapid Service Unit” dedicated to faster turnaround times for the MRO market. The company states that the new infrastructure will include a “liquid pre-batch area” and “high-speed dissolvers” to accelerate production.

Martijn Arkesteijn, Global Operations Director for AkzoNobel Aerospace Coatings, noted that these improvements are designed to enhance flexibility for customers:

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“We’ll be able to provide current and future customers with even more flexibility through the delivery of large batch sizes, better responsiveness to market needs and shorter lead time for color development.”

AirPro News Analysis: The Competitive Landscape

While AkzoNobel’s announcement focuses on internal efficiency, this investment arrives during a period of intensified competition within the North American aerospace sector. Earlier in 2025, rival manufacturer PPG announced a massive $380 million investment to construct a new aerospace coatings plant in Shelby, North Carolina.

In our view, AkzoNobel’s strategy differs significantly from its competitor’s greenfield approach. Rather than building new capacity from scratch, AkzoNobel is executing a targeted upgrade of existing assets. This “efficiency war” suggests that the company is betting on agility and technology upgrades, specifically the ability to deliver custom colors and small batches quickly via its new Rapid Service Unit, rather than simply expanding raw volume output.

Sustainability and Technology Integration

The upgraded facilities are also aligned with the aviation industry’s push for decarbonization. AkzoNobel highlighted that the investment supports the production of its “Basecoat/Clearcoat” systems, which are lighter than traditional coatings. Reducing paint weight is a critical factor for airlines seeking to lower fuel consumption and carbon emissions.

Furthermore, the new automated processes are expected to reduce chemical waste and solvent use. The facility upgrades will likely support the increased production of chromate-free primers, meeting stricter regulatory requirements in both the United States and the European Union.

By localizing more storage and production capacity in North America, AkzoNobel also aims to bolster supply chain resilience, addressing vulnerabilities exposed during the post-pandemic aviation recovery.

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Photo Credit: AkzoNobel

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