Sanad Signs New V2500 Services Agreement
Sanad Aerotech has agreed new terms with Pratt & Whitney and International Aero Engines (IAE) to provide expanded MRO services for the V2500 engine from its facility in the United Arab Emirates.
The agreement, worth approximately 1 billion AED ($272.2 million), was announced at the Global Aerospace Summit taking place in Abu Dhabi this week. As it stands, the company provides operations support, engine and module services, parts repair and quick turn operations on the V2500.
As part of the terms of the new partnership, IAE, the manufacturer of the V2500 that powers Airbus A320 family aircraft, will send more engines to Sanad’s Abu Dhabi facility. The company has provided maintenance services for the engine since 2012, and estimates to date, it has worked on more than 300 V2500 engines.
The company has targeted capacity increases to meet pre-COVID demand for engine maintenance services following the signing of other largescale agreements.
These include a 20-year contract with Rolls-Royce to provide overhaul services for its Trent 700 engine worth $6.5 billion signed in summer 2019. Later that year, it signed an agreement with GE Aviation to oversee the maintenance of maintaining 237 LEAP engines and 315 GEnx engines from this year.
Sanad has also continued expanding beyond the Middle East. In February of this year, it confirmed plans to establish an auxiliary power unit repair center in Africa. The partnership, which will be based in Ethiopia’s capital Addis Ababa, will be in conjunction with Ethiopian Airlines for a period of 15 years.
Initially focusing on Airbus A320 and Boeing 737 APUs, the alliance could potentially move into a joint venture that could include expanding capabilities such as components or engine MRO.