ABU DHABI // Abu Dhabi Aircraft Technologies (Adat) has outlined plans to invest US$75 million (Dh275m) in a new aircraft hangar as part of the Government's drive to fashion the capital into a world-class aerospace hub. ADAT, an aircraft maintenance, repair and overhaul (MRO) firm that achieved 1.8 million man hours of work last year, said it was expanding its facilities in Abu Dhabi to cater to growing demand from Middle Eastern, Indian and European airlines. ADAT also plans to add up to 500 new employees this year as part of the expansion.
The new hangar will help solve an undercapacity that forces it to turn away maintenance work, as well as prepare it to service the growing fleet of Etihad Airways, its largest client. Etihad is expected to announce the largest aircraft order of the year tomorrow, at Farnborough Air Show in England, for up to 100 new aeroplanes. ADAT is among a portfolio of aviation companies run by Mubadala, an investment arm of the Abu Dhabi Government, which includes Horizon flight academy and stakes in Piaggio Aero, an Italian maker of turboprop aeroplanes, and SR Technics, a Swiss maintenance firm.
"There is more work out there than we can currently handle," said John Byers, the chief executive of ADAT. He estimated the company could increase its revenues by up to 30 per cent if it had more workshop space. "Etihad is looking at a fairly significant expansion over the next 10 years, so we are also looking to grow to match that," he said. The MRO provider has benefited from the Middle East's aviation boom, with clients that include some of the Gulf's largest long-haul carriers, such as Qatar Airways and Etihad. Etihad increased its passenger traffic by 67 per cent last year, while Qatar has been growing by 30 per cent annually and has 170 orders for new planes, including options.
But the company also credits its success to being located in the UAE, where the currency is pegged to the US dollar. "Compared with Europe, for the sake of argument, as the dollar has been going down we have been becoming cheaper," Mr Byers said. As a result, ADAT's roster of 70 customers is a diverse group that includes carriers from Western and Eastern Europe, as well as the region's air forces.
The new, air-conditioned hangar will be 235 metres wide and equipped with four bays, allowing ADAT to service four Boeing 777s at once under the same roof. It would effectively increase its capacity by 50 per cent, the company said. Tenders for the construction contract are expected to be sent out in the next few months. The new hangar follows a $13m investment earlier this year into a single-bay hangar to service the Etihad fleet as part of a five-year, $500m maintenance contract it holds with the airline.
ADAT began as the Gulf Aircraft Maintenance Company (GAMCO) in 1977, a joint venture between Abu Dhabi and Gulf Air. Last year it was wholly acquired by Mubadala, which quickly outlined plans to increase its revenues to $800m by 2012, up from $300m last year. Part of this growth is expected to come from an international expansion under study for the Indian market. @Email:igale@thenational.ae
