Etihad Airways and ADQ Holding, one of the largest holding companies in the region, announced yesterday a proposed deal that will support Etihad Airways’ transformation plans as well as future growth projects for the civil aviation sector in Abu Dhabi.
As part of the proposed deal, a number of Etihad-affiliated aviation support services will become part of a newly established Holding-affiliated company specializing in aviation services.
Once the transaction is completed, carrier subsidiaries will benefit from merging with a comprehensive logistics portfolio that includes: Abu Dhabi Airports and the Abu Dhabi Ports Group.
The agreement will include the following companies: Etihad Engineering, Etihad Airport Services – Cargo, Etihad Airport Services – Ground Handling, Etihad Aviation Training, Etihad Secure Logistics and Etihad Technical Training.
In addition, the proposed agreement will include the merger of two companies from Etihad Airways to the Abu Dhabi National Exhibition Company (ADNEC), respectively, Etihad Airport Services – Catering, which will merge Capital Hospitality and Etihad Holidays , which will join “Tourism 365”, the tourism promotion company, a subsidiary of ADNEC.
The proposed deal will be the start of a new chapter for Etihad Airways, as it will allow the company more room to focus on its core business and respond more quickly to opportunities. market, with global travel demand recovering from the aftermath of the “covid pandemic19.
Resources and expertise
Through its network, resources and extensive expertise, Holding will support the future growth of these companies, which will benefit Etihad Airways and other airlines at Abu Dhabi International Airport, as well as strengthen aviation ecosystem in Abu Dhabi.
In this regard, the CEO of Holding “ADQ”, Mohammed Hassan Al-Suwaidi, spoke: “With the proposed addition of highly experienced aviation support services (Etihad) to our new company specializing in the aviation sector, (ADQ Holding) will be fully prepared. Develop an integrated platform for air services, based on performance and a strong financial foundation. “
He added, “Thanks to the transportation and logistics portfolio that plays a leading role in the development of Abu Dhabi’s global connectivity network and in the growth of its strategic position, we are ready to take advantage of the new opportunities available in the services business. aviation. “
He continued, “There are many potential opportunities for growth and to attract a wider segment of customers from airlines, seeking further expansion in the aviation sector in Abu Dhabi.”
the process of transformation
Tony Douglas, CEO of Etihad Aviation Group, said: “We are pleased to enter into this partnership with (Holding) the next phase of our business transformation. The last two years have had a significant impact on the sector and the proposed deal will play an important role in how Etihad Airways is reorganized and prioritized along with its subsidiaries to ensure long-term success.
He added: “This agreement will allow us to focus more on Etihad Airways and benefit from the recovery in demand for air travel, which will also benefit our employees and the millions of guests who fly with us each year. as well as the benefit that will increase in the wider air sector in Abu Dhabi.
He continued, “Today, we are working closely with (Holding) to ensure that the transfer process is completed as smoothly as possible. Focusing on the airline business today will allow us to continue to provide consistent and differentiated travel experiences. throughout the industry, as our customers (Etihad Airways) have expected from us. ”
Humaid Matar Al Dhaheri, Managing Director and CEO of the Abu Dhabi National Exhibition Company (ADNEC) and its group companies, said: “The involvement of Etihad Airport Services – Catering Division and Etihad Holidays supports Abu Dhabi’s strategy for achieving of integration between different business units. across sectors.economically important.
He said: “This step will allow us to exceed our customers’ expectations and develop what has been achieved so far. “It remains for us to focus on achievements and continue to work tirelessly to increase competitiveness at the regional and international levels, as well as to increase our contribution to the Abu Dhabi economy and to support sustainable development.”
The transferred companies will remain a long-term strategic partner of Etihad Airways. The transaction is subject to normal closing conditions, including regulatory approvals. It is worth noting that the terms of the agreement have not yet been made known.
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