DAE Acquires 10 Next-Gen Narrow-Body Aircraft
Dubai Aerospace Enterprise (DAE) has solidified its position in the aviation sector by agreeing to acquire 10 narrow-body, next-generation aircraft for approximately $500 million. This strategic move was confirmed on October 28, 2024, as DAE aims to enhance its portfolio of fuel-efficient aircraft leased to four airlines across four different countries.
Firoz Tarapore, CEO of DAE, expressed enthusiasm about this acquisition, stating, “We are delighted to continue adding further fuel-efficient, next-generation technology assets to our portfolio. We look forward to welcoming a new airline customer to our lessee base while deepening our relationships with three existing airline customers.” This acquisition not only expands DAE’s fleet but also underscores the increasing demand for environmentally friendly aircraft solutions within the industry.
The newly acquired aircraft are characterized by their fuel efficiency and advanced technology, aligning with global trends toward sustainability and cost-effectiveness in aviation. These aircraft, with long remaining lease terms, are anticipated to positively impact DAE’s portfolio metrics once they are delivered.
In addition to the aircraft acquisition, DAE has announced that it has initiated and managed the purchase and sale of equity interests in 36 managed aircraft. This initiative involves transferring interests from existing investors to new investors, showcasing DAE’s proactive approach in the aircraft investment market.
The management of these aircraft is handled by DAE’s Aircraft Investor Services (AIS) team, which oversees a diverse fleet of over 100 aircraft across various investment strategies. Tarapore noted, “The capabilities of our AIS team have earned a strong reputation among investors who are increasingly willing to deploy their capital into aircraft assets. They seek an experienced lessor partner, and DAE continues to expand its footprint, managing a diverse pool of assets for multiple investors.”
DAE Capital, the financial arm of DAE, manages a substantial fleet of approximately 500 aircraft, including Airbus, ATR, and Boeing models, with a total valuation of $18 billion. This impressive fleet management reinforces DAE’s standing as a significant player in the global aircraft leasing market.
DAE is wholly owned by the Investment Corporation of Dubai, the investment arm of the Government of Dubai. This ownership structure enhances DAE’s credibility and stability in the aerospace industry, allowing it to pursue strategic acquisitions and partnerships with confidence.
As the demand for next-generation aircraft continues to grow, DAE’s recent acquisition marks a pivotal step in strengthening its operational capabilities and expanding its customer base. By focusing on modern, fuel-efficient aircraft, DAE positions itself at the forefront of the evolving aviation landscape, catering to the increasing preference for sustainability among airlines and travelers alike.
In conclusion, Dubai Aerospace Enterprise’s acquisition of 10 next-generation narrow-body aircraft highlights its commitment to expanding its fleet with advanced technology while enhancing relationships with airline customers. With the backing of the Investment Corporation of Dubai, DAE is well-equipped to navigate the competitive aircraft leasing market, ensuring continued growth and success in the aviation sector.
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