Sanad Aero Solutions’s asset portfolio has grown to more than $1.2 billion in 2017 and will rise to $1.3 billion with the inclusion of near term-firm commitments, said CEO Troy Lambeth on the eve of this year's Dubai Airshow.
“We are focused on market opportunities that could generate 50 to 100 percent growth in our asset base over the next five to seven years,” he said. “Liquidity continues to be a critical need for the industry as it looks to fund record order books, and we are seeing significant opportunities in the spares leasing market for entry-into-service aircraft.”
Examples of aircraft served by the Sanad portfolio include the Airbus A320Neo and A350 and Boeing 737Max and 787. As these fleets ramp up deliveries over the next five years, airlines will be looking for efficient financing solutions, and Sanad aims to expand its leadership role in providing attractive products to support market needs.
“We continue to see an uptick in demand for third-party engine and spares leasing solutions," Lambeth said. "With competition in the airline industry at an all-time high, we see many airlines actively reviewing fleet-planning strategies driving order books and renewals and the need for attractive financing and leasing solutions. Pricing remains very competitive within the industry."
Sanad’s owner, Abu Dhabi's Mubadala Investment, has prospered through the advancement of the emirate’s aerospace and other interests. Other companies that have sought a global customer base include wing and empennage maker Strata, Turbine Services and Solutions and Nibras Al Ain Aerospace Park.
Mubadala's aerospace portfolio, one of four in the group, has constantly changed its remit to keep up with, and force, technological change, and is now referred to as a platform with interests in aerospace, renewables, informaton and communication technologies, utilities and defense services.
“New technologies such as AI and robotics are playing a disruptive role in every industry, and we aim to leverage these to ensure our aerospace [portfolio] is innovative and dynamic,” said Badr Al-Olama, director of Mubadala’s aerospace division.
Mubadala Investment reported assets of AED466 billion ($127 billion) for the first half of the financial year and announced profits of AED4.2 billion ($1.14 billion).