Lessor DAE Expands Boeing Portfolio

DALLAS - Dubai Aerospace Enterprise (DAE) has announced that it will acquire 64 Boeing 737 MAX airliners from a Chinese leasing company (CALC). The signed “definitive agreement” gives DAE the full rights, interests and obligations of the aircraft, which includes the 737-8, -9 and -10 variants.

The acquisition will bring the total number of Boeing airframes within the SAE portfolio to around 500, valued at approximately US$20bn. It also has Airbus and ATR airframes in the fleet, with an average age of 7.1 years.

Deliveries are scheduled to begin in 2023 and run until 2026. Terms of the deal, which is expected to be finalised by the third quarter of 2023, have yet to be disclosed.

"A Unique Portfolio"

Speaking of the order, DAE’s Chief Executive Officer, Firoz Tarapore, commented, “We are delighted to be able to conclude this transaction with CALC to acquire a unique portfolio of 100% new technology, fuel-efficient single-aisle aircraft.

“On a pro forma basis, this transaction will increase the percentage of new technology, fuel-efficient aircraft in our owned fleet to approximately 66% from 50%.”

Tarapore continued, “Approximately 20% of the acquired portfolio is on lease to airline clients who are also existing clients of DAE, and we look forward to expanding our relationship with them. The remainder of the acquired portfolio of assets will be placed directly by DAE in the coming quarters.”

Half-Year Profits

The Dubai-based aircraft lessor recently announced its profits for the first half of the 2023 financial year. Profits before exceptional items increased to US$141.1m, up from US$140m in the same period last year. Meanwhile, revenues increased by 15% to US$160.7m.

Regarding the results, Tarapore stated, “Our first half 2023 results continue to demonstrate the strong demand we are seeing in the market for aircraft from our airline customers. COVID-era deferral programs are being repaid ahead of schedule and secondary market aircraft valuations remain robust. This resulted in revenue growth of 15% compared to the first six months of 2022.

“Our profitability metrics continue to trend towards pre-pandemic levels. The resilience of our business model continues to be demonstrated by the strength of our credit quality and funding metrics in the quarter. In addition, during the quarter, Fitch Ratings revised its Outlook on DAE to Positive from Stable.”

https://airwaysmag.com/aircraft-leasing/

Featured Image: Dubai Aerospace Enterprise (DAE).