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Abu Dhabi's Etihad Airways, Mubadala extend partnership, see US$1b of contracts

[DUBAI] Abu Dhabi's Etihad Airways and state fund Mubadala have extended their partnership which could lead to US$1 billion of new contracts over a decade, the airline said on Monday.

Mubadala has interests and operations in various sectors including aerospace, real estate, oil and gas, communications and mining, while Etihad is the United Arab Emirates' national carrier. Both are owned by Abu Dhabi's government.

The new agreement will see Etihad appoint Mubadala unit SR Technics, which maintains and repairs aircraft, engines and components, as its preferred service provider on what the airline described as commercially competitive terms.

Mubadala and Etihad may also establish a narrow-body aircraft maintenance, repair and overhaul facility in Eastern Europe, the statement said, adding negotiations were already underway "with concerned parties". It did not provide further details.

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In May 2014, Etihad agreed to buy plane maintenance firm Abu Dhabi Aircraft Technologies from Mubadala, while the same month the fund also revealed it would sell the airline part of a pilot-training company.