The Dubai Aerospace Enterprise (DAE) recently announced that it had signed an agreement to acquire 10 aircraft for an aggregate consideration of approximately $0.5 billion. The aircraft portfolio consists of 100 percent of narrow-body, next-generation aircraft on lease to four airlines in four countries.
Portfolio expansion
In addition, the DAE has initiated and managed the purchase and sale of equity interests in 36 managed aircraft from existing investors to new investors. The DAE manages these aircraft for institutional investors through the Aircraft Investor Services (AIS) division. This division supports a global investor base in managing over 100 aircraft across various investment strategies.
Headquartered in Dubai, the company also serves over 170 airline customers in over 65 countries from its seven office locations in Dubai, Dublin, Amman, Singapore, Miami, New York, and Seattle.
“We are delighted to continue adding further fuel-efficient, next-generation technology assets to our portfolio, and look forward to welcoming a new airline customer to our lessee base, as well as further deepening our relationship with another three airline customers,” stated Firoz Tarapore, CEO of DAE.
Read: Emirates, GE Aerospace ink 10-year agreement for B777 electrical system services
Aircraft to close by the end of 2024
Tarapore said that the young aircraft with long remaining lease terms will be favorable for the company’s portfolio metrics. The Dubai Aerospace Enterprise expects all aircraft to close by the end of 2024.
“The capabilities of our AIS team have earned a strong reputation among investors who are increasingly willing to deploy their capital into aircraft assets and are looking for an experienced lessor partner. We are continuing to expand our footprint, managing a diverse pool of assets for multiple investors,” added Tarapore.
In August, the Dubai Aerospace Enterprise also announced that it signed agreements to acquire 23 aircraft from multiple counterparties for an aggregate consideration of approximately $1.1 billion. During the first half of 2024, the group achieved total revenues of $679.2 million and total profits of $154.3 million. In addition, it acquired 10 aircraft and sold 11.
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