Dubai Aerospace Enterprise Acquires 64 Boeing 737 Max Orders from Chinese Lessor

Dubai Aerospace Enterprise (DAE), a global aviation services and leasing solutions provider, has recently sealed a deal for the acquisition of 64 Boeing 737 MAX aircraft. The agreement, announced on August 14, 2023, involves multiple models from the 737 MAX family and is set to contribute significantly to the enhancement of DAE’s aircraft fleet.

DAE’s affiliated entity finalized a binding arrangement to secure the rights, stakes, and responsibilities linked to a selection of 64 Boeing 737 MAX airplanes previously owned by a wholly-owned subsidiary of China Aircraft Leasing Group Holdings Limited (CALC).

The aircraft portfolio obtained includes various models such as the 737-8s, 737-9s, and 737-10 MAXs (pending certification). The delivery of these aircraft is scheduled between 2023 and 2026, with specific transaction terms not disclosed.

Despite facing challenges, including write-downs of leased jets, DAE remains focused on fleet development. This acquisition propels DAE’s aircraft ownership, management, and commitment to approximately 500 Boeing aircraft, fostering a strong leasing-ready fleet valued at over $16 billion.

DAE’s CEO, Firoz Tarapore, expressed optimism about expanding the relationship with existing clients through this acquisition. He highlighted that around 20% of the acquired portfolio is leased to airline clients who are already working with DAE, while the rest of the portfolio will be placed directly by DAE.

CALC also confirmed the deal in its statement, emphasizing the “Novation Agreement” signed with DAE. The acquisition will contribute to CALC’s mission of expanding its modern aircraft fleet, enhancing fuel efficiency and growth predictability.

In a pro forma analysis, the transaction is anticipated to raise the proportion of modern, fuel-efficient aircraft in DAE’s owned fleet to about 66%, bolstering its growth trajectory. This move will elevate the collective fleet, including owned, managed, committed, and those under management mandate, to approximately 550 aircraft, with an estimated valuation of $20 billion, as detailed by Tarapore.

Sources: AirGuide Business airguide.info, msn.com, DAE, CALC