Etihad inks component sale and leaseback with Sanad

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Etihad Airways has arranged the sale and leaseback of spare parts with Mubadala Aerospace's engine and component financing arm Sanad Aero Solutions.

The 10-year deal - valued at around €125 million ($160 million) - covers rotable components for the carrier's entire fleet of passenger and cargo aircraft, says Sanad.

The agreement follows a previous contract from late 2011, which covered five General Electric GE90 and six Rolls-Royce Trent 500 for the airline's respective Boeing 777s and Airbus A340s.

The sale and leaseback arrangement "mitigates residual value risk and provides competitive cost of ownership over the long term", says James Hogan, Etihad's president and chief executive.