“Capital follows confidence” as defence courts private money
Outside investment and the direction in which venture money flows may reveal what defence will buy years before formal programmes begin.
Air Berlin signs with SR Technics for engine support
SR Technics and Air Berlin have signed a ten-year engine maintenance contract covering a significant part of the engines on Air Berlin’s fleet which includes 13 Airbus A330s, 55 A320 family aircraft and 55 Boeing 737NGs.
The new contract will see SR Technics provide comprehensive engine maintenance services for Air Berlin’s CF56-7B, CF56-5B and PW4168 engines. The contracted services will include scheduled overhaul support and field team assistance. The work will be carried out at SR Technics’ engine maintenance centre in Zurich.
As part of the newly established business relationship a financing agreement for up to twelve spare engines, worth approximately $100 million, was agreed between SR Technics’ parent company, Mubadala Development Company, and Air Berlin. SR Technics will maintain these engines under the ten-year contract with Air Berlin.
“We are delighted that Air Berlin has chosen SR Technics to be its main engine services partner”, said Bernd Kessler, CEO of SR Technics. “This contract is another milestone agreement with a leading European airline and significantly strengthens our market position in Europe. It also demonstrates we are able to provide true added value to our customers with new, industry-leading solution packages offered through close collaboration between SR Technics and Mubadala as our parent company.”
Wolfgang Kurth, chief maintenance officer of Air Berlin, commented, “After an intensive and in-depth market study we are sure to have found the right and highly reliable partner to award a major part of our engine maintenance to. The relationship with SR Technics will ensure cost savings and cost control going forward and in addition also streamlines workflow processes.”
“The attached off-balance financing agreement with Mubadala makes us one of the first airlines in Europe to directly access this source of funding and opens the opportunity to grow this relationship. With respect to this transaction it allows us to reduce net debt and capital employed on the engine pool so that over the contracted period double-digit million dollar savings can be generated”, added Ulf Hüttmeyer, CFO of Air Berlin.
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