GAL, CATIC establish first regional distribution hub for aircraft logistics

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DUBAI – Global Aerospace Logistics, GAL, a leading regional provider of integrated aircraft sustainment solutions for military and civilian customers, today signed a contract with Chinese state-backed defence contractor, China National Aero-Technology Import & Export Corporation, CATIC, to establish a bonded warehouse in Abu Dhabi.

The facility will significantly improve the availability of aircraft spare parts in the UAE and MENA Region.

Sheikh Mohammed bin Hamad bin Tahnoun Al Nahyan, Vice Chairman of GAL, and Liu Yu, Chairman of CATIC, made the announcement during the Dubai Airshow 2019 that is underway at Dubai World Central until 21st November.

This agreement formalises the memorandum of understanding, MoU, signed by the two companies during the visit of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, to China in July this year.

Speaking at the event, Sheikh Mohammad bin Hamad said, "Since its establishment, GAL has been a regional leader in aircraft sustainment solutions. Our collaboration with CATIC is certain to solidify that position, as aviation customers continue to challenge the industry service providers to deliver innovative solutions to complex MRO and supply chain requirements. The bonded warehouse facility will significantly boost domestic MRO capabilities, and minimise the logistics associated with sourcing critical components from international vendors, resulting in substantial time savings and enhancing our customers fleet availability." Wu said, "This is an exciting proclamation for CATIC, as we have now established ourselves within the UAE. We look forward to working closely with GAL in the future, and seeing the bonded warehouse facilitate operations across the MENA region." The deal is now in its execution phase, with the two parties working towards commissioning the 1,440-square-foot facility, located near Abu Dhabi International Airport, during Q1 of 2020.

Once operational, the warehouse is estimated to improve availability of spares in the region and drastically reduce repair times from months to weeks.