Abu Dhabi's long-troubled Etihad sells 38 planes for $1B

FILE- In this Thursday, Dec. 18, 2014 file photo, an Emirati man takes a selfie in front of a new Etihad Airways A380 in Abu Dhabi, United Arab Emirates. Abu Dhabi's long-troubled Etihad Airways said Tuesday, Feb. 4 2020, 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. (AP Photo/Kamran Jebreili, File) (Copyright 2020 The Associated Press. All rights reserved.)

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 program.”

“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 airline said in a statement.

Etihad's website lists itself as having a fleet of 102 aircraft. It no longer lists its A330s among its fleet, having said it would begin phasing those aircraft out. The 16 Boeing 777s it will sell and lease back represent 15% of its current fleet.

Since 2016, Etihad has lost a total of $4.75 billion 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.

Etihad lost $1.28 billion in 2018. It has yet to release results for 2019.

In the time since 2016, it has embarked on a cost-cutting initiative and recently announced it would restructure planned aircraft purchases from Airbus and Boeing.