Navigating Growth and Sustainability: An Interview with Baha Salama, General Manager MRO at SANAD

• You play a pivotal role in charting the strategic direction for SANAD. Could you elaborate further on this responsibility?

“I joined the company in 2001 after working for Rolls-Royce in Canada. At that time, the company was known as GAMCO. My initial task was to establish an industrial engine division, specializing in MROs for gas turbines used in the oil and gas or electric generation sectors.

Over the years, I remained with the company as it went through numerous changes. In 2019, we transitioned to Sanad and became a group. SANAD now focuses on aero engines, while our industrial division concentrates on maintenance of aircraft engines.

My current role is to oversee the day-to-day operations of the MRO. Previously, I served as the Senior Vice President of Commercial and Business Development. In that role, my focus was on selling Sanad’s services and expanding the company.

Business development involved forming partnerships, pursuing acquisitions, and managing various projects aligned with the company’s overall strategy, as approved by the shareholders. Over the past few years, our strategy has evolved, and we’ve adapted accordingly.

Our current strategy is centred around growth. I am currently advising the group and the CEO, positioning Sanad for expansion in aviation MRO.”

• What strategies have you implemented in response to the opportunities and challenges you currently face?

“It is indeed an exciting time to be in this industry, with numerous opportunities . However, along with opportunities come unavoidable challenges.To capture these opportunities, we must be flexible, adaptable, and open to change. Growing the company is essential to seize these opportunities, but it also poses challenges, particularly in terms of talent. As the industry grows, so does the demand for skilled personnel.

Airlines in the area are experiencing exponential growth, with aircraft orders increasing daily both within and outside the UAE and GCC. This growth demands a robust workforce. However, skilled personnel have become a scarce commodity, presenting a challenge that we, as a part of this dynamic industry, must address.

Another challenge was the COVID-19 pandemic.The industry faced unprecedented difficulties, with grounded aircraft and halted operations. To survive, companies had to react swiftly by reducing their workforce and cutting costs. Similarly, we adjusted our company to navigate this period of uncertainty.

After countries reopened and air travel resumed, there was a surge in demand for capacity to maintain grounded aircraft. This rush for maintenance presented a significant challenge in terms of capacity.

Despite efforts to create capacity and acquire talent, we encountered challenges with the supply chain of engine manufacturers, which faced difficulties in keeping up with the demand. This supply chain disruption, exacerbated by the pandemic, continues to be an element we pay close attention to within  our operations.

To address these challenges, we’ve implemented several strategies. Firstly, we’re increasing our repair capabilities to reduce dependency on the supply chain and expedite engine maintenance. Secondly, we plan to expand our footprint outside the UAE and establish partnerships to address capacity constraints. Thirdly, we’re optimizing our existing space to maximize capacity utilization.

While a global shortage of engineers and technicians has proved challenging, we continue to observe a strong demand for these skilled professionals in Abu Dhabi. At Sanad, we have proactively addressed these challenges and continue attracting skilled professionals to join our workforce. We continue to focus our efforts on attracting world-class talent and cultivating leadership capabilities to drive sustainable growth and innovation within the aviation sector and the broader aerospace industry.

We also recognize the importance of nurturing local talent, so we have intensified our efforts to develop the local workforce by partnering with educational institutions like Khalifa University. Through these partnerships, we provide students with hands-on experience and equip them with the necessary skills that encourage them to pursue careers in the aviation sector. By investing in local talent, we not only contribute to the economic development of Abu Dhabi but also ensure a sustainable pipeline of skilled technicians and engineers for our operations.

We also focus on developing workforce and local talent through our partnerships with OEMs and initiatives as part of our commitment to being an employer of choice that fosters a knowledge-based economy. As a global independent aviation MRO company, Sanad’s highly skilled workforce of over 600 engineers and professionals in Abu Dhabi is increasingly sought after by an expanding customer base. This exposure, coupled with the advanced level of engineering expertise, job security, and competitive salaries offered by a job in MRO, provides technicians with long-term employability assurance in the UAE and abroad. In effect, this approach benefits our customers. It enables us to build local capabilities and export the UAE’s expertise globally, contributing to the global talent pool of technical specialists who can carry the industry forward.

With this foresight, we are well-positioned to expand our world-class capabilities and perform tasks effectively to the highest industry standards for our customers.”

• How do you attribute the significant growth you’ve experienced, particularly considering the dynamic change brought about by the impact of COVID-19 on the aviation industry? Could you provide insights into the performance of 2023 and your outlook for 2024, highlighting any drastic changes you’ve observed post-COVID?

This is a very opportune time to be in the industry. We anticipate this trend continuing for the next two years, until the supply chain catches up with the demand. This trend is evident in the airline orders, where airlines are bullish on fleet size growth. You might have heard that last year, many airlines expanded their fleets. The expansion of fleets means even more work for us.

We believe that the growth will continue. Therefore, we recognize the need to have the necessary capacity here in the UAE and in different parts of the world. We aim to be closer to our customers. Currently, engines are shipped from all over the world to reach us. This has an effect on sustainability because these aircraft are flown in and contribute to carbon emissions.

As a responsible organization, we also aim to reduce our carbon footprint. If we can be closer to our customers and transport engines by truck instead of by aircraft, it will significantly reduce fuel consumption. Aircraft use tons of fuel to transport engines from one place to another.

We expect this trend to continue, and as an organization, we anticipate growth and expansion into new products. We aim to continue the success story that we have established.”

• Could you discuss the recent partnership on Sanad’s Leap Engine ?

“Yes, it was a significant milestone, where we signed agreements GE Aerospace and Safran Aircraft Engines.

The agreement enables us to extend our MRO services to two new-generation engine types. As part of the agreement, Sanad will provide MRO services to the LEAP-1A and LEAP-1B engines that power the Airbus A320neo family and Boeing 737 MAX family aircraft, with engine maintenance visits from both GE Aerospace and Safran Aircraft Engines. This agreement brings the latest engine technology to Sanad, enabling us to service a broader range of engines and contribute to Abu Dhabi’s position as a leading global aviation hub.

As such, we inaugurated the first LEAP Engine MRO Center in the SAMENA region, enabling us to extend our MRO services to LEAP engines, marking a significant milestone for our operations.

This center gives us a competitive edge, making us the first certified LEAP MRO service provider in the SAMENA region to support the global LEAP MRO supply chain.

LEAP engines have gained global recognition for exceptional performance and enhanced fuel efficiency. Therefore, we need to be a part of it, and we’re very excited about that. We underwent a fast-track industrial process after signing the contract in June 2023. We received our first engine in August, which was a rapid industrialization process. Our Center is already operational, and Sanad has completed the MRO process on the first LEAP engine from flydubai just four months after signing the agreement.”

• Would you like to discuss where you’re looking to expand outside the UAE and which areas you’re considering?”

“We are contributing to building local capacity and reinforcing Abu Dhabi’s position as a leading aviation hub by expanding our partnerships, capabilities, and geographic footprint.

Our diverse portfolio boasts more than 30 global customers, all seeking a strategic partner to meet their MRO requirements. These customers span Asia, Europe, The Americas, and the GCC region. 

We are looking at global expansion opportunities through partnerships in Africa, Eastern Europe, and South Asia.

Additionally, we’re looking at Europe, particularly from an ESG perspective. We receive numerous inquiries from Europe, so having a presence there would enable us to better serve those clients. We’re also exploring opportunities in North Africa because we believe the African market is underserved. North Africa appears to have strategies in place to attract investment, particularly in regions where resources are abundant.

As we look ahead, we aim to be a one-stop-shop for engine maintenance by extending our capabilities into more engine components and APUs, enhancing our technical capability and improving operational efficiency.

Our priority is ensuring an efficient ramp-up to fulfill our obligations to our partners; nevertheless, we are continuously evaluating new opportunities and cultivating valuable partnerships, with a primary focus on expanding our presence in the Asian and African markets.

As we mentioned before, talent shortage is a challenge we are continuously addressing, and so we’re also considering regions with large populations, such as India. India presents a vast market, evident from orders we’ve received from airlines like Indigo and others. Moreover, India is witnessing the development of new airports, indicating rapid expansion in the aviation sector.

Finding a reliable partner in India is crucial for us. India boasts a significant pool of skilled labor, similar to North Africa and the APAC region. Countries in the APAC region such as Indonesia, Singapore, Malaysia, and the Philippines have abundant manpower as well.