The Abu Dhabi Developmental Holding Company (ADQ) and the Abu Dhabi-based Etihad Airways have announced a proposed transaction that will benefit a new aviation firm, local reports have said.
The move is expected to support the ongoing transformation of Etihad Airways and the future growth of the civil aviation sector in Abu Dhabi.
As part of the proposed transaction, a number of Etihad’s businesses providing airline support services will become part of a new ADQ aviation firm, said the local reports.
Once the transaction is complete, the airline support services businesses will apparently benefit from being part of ADQ’s broad mobility and logistics portfolio, which includes Abu Dhabi Airports and AD Ports Group.
The businesses included in the proposed transaction are Etihad Engineering, Etihad Airport Services Cargo, Etihad Airport Services Ground, Etihad Aviation Training, Etihad Secure Logistics and Etihad Technical Training.
The proposed transaction will also reportedly see two Etihad businesses join Abu Dhabi National Exhibition Company (Adnec).
Etihad Airport Services Catering will combine with Adnec’s catering business Capital Hospitality, and Etihad Holidays will join Adnec’s tourism promotion business, Tourism 365.
The proposed agreement apparently helps Etihad sharpen its focus on its core business and respond with greater agility to market opportunities as global travel demand rebounds from Covid-19.
The transaction is subject to customary closing conditions, including regulatory approvals.
The terms of the transaction were not disclosed.
