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DUBAI, Oct 18 (Reuters) – Abu Dhabi’s sovereign wealth fund ADQ said on Tuesday the government had transferred full ownership of Etihad Airways Group to the fund.
“EAG’s transfer complements ADQ’s efforts to transform Abu Dhabi into a global aviation hub based on end-to-end airport service excellence,” ADQ said in a statement.
As the smallest of Abu Dhabi’s three sovereign wealth funds, ADQ has become one of the most active in the region deal makerIt started in 2018 as a holding company for government assets and has been consolidating its portfolio, privatizing some assets and making strategic acquisitions to create a “national champion.”
On Monday, it said it had made a supply Holding a controlling stake in Abu Dhabi Airways (ADAVIATION.AD) And combine the helicopter operator with ADQ stakes in Etihad Engineering, AMMROC and GAL to create a “globally competitive aviation business”.
“The aviation industry is critical to Abu Dhabi’s economic growth plans and prosperity. With Etihad Airways joining ADQ’s transport and logistics cluster, we are well-positioned to develop a globally competitive and integrated aviation product portfolio,” said ADQ Chief Executive Officer Executive Officer Mohamed al-Suwaidi said in a statement.
ADQ said EAG’s ancillary business was transferred to ADQ earlier this year.
Etihad Airways has scaled back its ambitions after spending billions of dollars ultimately unsuccessfully building a major airport hub in the United Arab Emirates capital Abu Dhabi.
In 2017, the company embarked on a five-year transformation plan that cost it billions of dollars after a failed strategy to acquire stakes in other airlines.
The airline said in late July that it switched to core operating profit A loss of $296 million in the first half of 2022, compared with a loss of $390 million in the same period last year.
ADQ said EAG would “continue its aspiration to become the world’s leading airline”.
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Reporting by Youssef Saba; Editing by Angus MacSwan, Alexandra Hudson
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