Abu Dhabi state-owned investment company Mubadala has launched a new business to buy and maintain airlines' spare parts and components, as well as supply original equipment manufacturers (OEMs).

Airlines benefit because it is a way to improve the balance sheet and raise cash, says Mubadala executive director Homaid Al Shemmari.

He says rather than have money tied up in spare parts inventory, the carrier can put that money to use elsewhere.

Mubadala also benefits because its maintenance, repair and overhaul (MRO) firms - SR Technics and Abu Dhabi Aircraft Technologies - will maintain the parts and components, says Homaid.

Sanad, which stands for the verb "to support" in Arabic, is headed by Troy Lamberth, an American who has experience in leasing of engines and components, he adds.

Homaid says he is now working on deals with four to five airlines and hopes to conclude these this year.

In early January Mubadala announced it had bought Air Berlin's inventory of 10 spare engines and that as part of the deal SR Technics will do MRO work on engines in the Air Berlin fleet.

At the Singapore Airshow, Mubadala also disclosed that it will be spending more than $30 million over 10 years "as part of a total component solution contract" between SR Technics and Abu Dhabi's Etihad Airways. The deal covers the airline's fleet of Airbus aircraft, he adds.

Sanad will focus on parts and components for newer aircraft that Mubadala's MRO firms already have capability on, says Homaid.

As for helping OEMs, Sanad "can help finance and support the OEM's customers", he says.

Source: Air Transport Intelligence news