Dubai Aerospace Enterprise (DAE) Ltd has officially announced the signing of lease agreements with Hainan Airlines for four new Boeing 737-8 aircraft, which are set to be delivered in the fourth quarter of 2025 and the first quarter of 2026.
Firoz Tarapore, chief executive officer of DAE, expressed enthusiasm about the strengthened partnership, noting that the agreement is a testament to the robust relationship cultivated over the years and that DAE greatly appreciates Hainan Airlines’ ongoing trust. He emphasized DAE’s commitment to addressing their evolving fleet requirements.
Supporting growth and operations
According to a statement, the inclusion of these cutting-edge Boeing 737-8 aircraft will aid Hainan Airlines in achieving its growth and operational goals. Tarapore conveyed wishes for their continued success and expressed eagerness to see the positive influence these aircraft will have on their expanding fleet, as well as anticipation for many more years of fruitful cooperation.
Investment in fleet modernization
Yu Chaojie, CEO of Hainan Airlines, expressed gratitude for DAE’s unwavering trust and support. He mentioned that the strategic integration of these new Boeing aircraft into their fleet represents a significant investment in their growth and underscores the strong partnership developed over time. He highlighted that by lowering the average age of their aircraft, the addition of these planes will play a crucial role in modernizing their fleet.
Enhancing efficiency and cost structure
Chaojie also noted that this move not only enhances operational efficiency but also optimizes the cost structure, boosts fuel efficiency, and reduces maintenance expenses, which are key factors in today’s competitive aviation landscape.
Recent acquisitions and agreements
Currently, DAE owns, manages, and is set to own a total of 500 aircraft, including 215 from Boeing, with intentions to further expand its fleet to meet the increasing market demand.
In October 2024, DAE announced it had signed an agreement to acquire 10 aircraft for an estimated total of around $0.5 billion. This aircraft portfolio comprises entirely narrow-body, next-generation aircraft leased to four airlines across four different countries.
Additionally, DAE has started and managed the acquisition and sale of equity interests in 36 managed aircraft from existing investors to new ones. Through its Aircraft Investor Services (AIS) division, DAE manages these aircraft for institutional investors, supporting a global investor base in overseeing over 100 aircraft through various investment strategies.
Global reach and operations
With its headquarters in Dubai, the company serves over 170 airline customers in more than 65 countries from its seven office locations in Dubai, Dublin, Amman, Singapore, Miami, New York, and Seattle.
Significant financial developments
In August 2024, DAE also revealed that it had signed agreements to acquire 23 aircraft from various counterparties for a total of approximately $1.1 billion. In the first half of 2024, the company reported total revenues of $679.2 million and total profits of $154.3 million, alongside the acquisition of 10 aircraft and the sale of 11.
Securing financing for growth
In March 2024, DAE further secured a $420 million five-year unsecured term loan agreement with China Construction Bank (DIFC Branch) and China Construction Bank (Asia) Corporation Limited (CCB), aimed at supporting DAE’s future financing needs.
Read more: Dubai Aerospace Enterprise acquires 23 aircraft for $1.1 billion
Record-breaking credit facility
In September 2023, DAE achieved a remarkable milestone by securing a $1.6 billion credit facility from a consortium of 26 financiers. This financing arrangement featured a mix of revolving credit and term financing options, incorporating both conventional and Islamic financing elements. The deal exceeded initial expectations, reaching over 100 percent in syndication with 26 financiers. These facilities not only allowed DAE to access the liquidity of Islamic banking but also reinforced its relationships across the Middle East, Asia, North America, and Europe.
Future growth with new aircraft
Moreover, in August 2023, DAE further solidified its growth path by signing a definitive agreement to acquire 64 Boeing 737 Max aircraft from a subsidiary of China Aircraft Leasing Group Holdings Ltd.
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