DUBAI: Abu Dhabi’s long-troubled Etihad Airways said Tuesday it would sell 38 aircraft to an investment firm and a leasing company in a deal valued at $1 billion, the latest cost-cutting measure by the United Arab Emirates’ national carrier.

Etihad said it would sell 38 aircraft 22 Airbus A330s and 16 Boeing 777-300ERs in the deal with investment firm KKR and leasing firm Altavair AirFinance. KKR said the Boeing 777-300ERs will be leased back to Etihad upon purchase in early 2020,” while the Airbus A330s will go to international clients.

Etihad described the move as being in line with the third year of its transformation programme.

The deal offers us flexibility while ensuring we stand by our sustainability targets and maintain a fleet of the most fuel-efficient, technologically advanced aircraft, the firm said in a statement.

Since 2016, Etihad has lost a total of $4.75bn as its strategy of aggressively buying stakes in airlines from Europe to Australia to compete against Emirates and fellow rival Qatar Airways exposed the company to major losses.

Published in Dawn, February 5th, 2020