Air Berlin and SR Technics enter extensive engine services partnership

06-Jan-2010 SR Technics and Air Berlin have signed a ten-year engine maintenance contract. The contract covers a significant part of the engines on Air Berlin’s fleet of about 55 Airbus A320 Family, 13 Airbus A330 and about 55 Boeing 737 Next-Generation aircraft.

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. Services will be carried out at SR Technics' engine maintenance center in Zurich.

As part of the newly established business relationship a financing agreement for up to twelve spare engines, worth approximately USD 100m, 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 their 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. We will be providing Air Berlin with the leading quality and reliability that are characteristic of the SR Technics brand. At the same time, this partnership is further proof of the successful repositioning of our company, enabling us to offer customers genuine added value through top-class services and attractive commercial arrangements."

"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 to SR Technics will ensure cost savings and cost control going forward and in addition also streamlines workflow processes", said Wolfgang Kurth, Chief Maintenance Officer of Air Berlin.
"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 USD savings can be generated", added Ulf Hüttmeyer, CFO of Air Berlin.