DAE to Acquire Nordic Aviation Capital in $22B Fleet Expansion
Dubai Aerospace Enterprise (DAE) has announced a definitive agreement to acquire 100% of Nordic Aviation Capital (NAC), a leading Irish aircraft lessor. This strategic acquisition, confirmed on January 7, 2025, is pending regulatory and shareholder approvals and is expected to be finalized within the next six months.
Nordic Aviation Capital, with a 30-year legacy in the aviation leasing industry, operates from its headquarters in Ireland. NAC boasts a robust fleet of 252 owned and committed aircraft, which are leased to approximately 60 airline customers across 40 countries. This acquisition will significantly enhance DAE’s global footprint, positioning the company as a dominant player in the aircraft leasing market.
Upon completion of the deal, DAE’s fleet will expand to around 750 owned, managed, and committed aircraft, valued at $22 billion. This expanded fleet will be serviced by 170 airline customers in 70 countries, underscoring DAE’s commitment to providing comprehensive and flexible leasing solutions to a broader range of airlines worldwide.
Firoz Tarapore, CEO of DAE, expressed his enthusiasm about the acquisition: “We are delighted at this opportunity to add NAC’s capabilities, complementary market presence, and people to our platform. This transaction will allow us to provide more cost-effective solutions to a larger group of customers.” Tarapore highlighted that the acquisition aligns with DAE’s strategic goals of expanding its market reach and enhancing its service offerings.
A spokesperson for DAE confirmed that the transaction will be appropriately capitalized and funded through internal resources and committed debt financing. They assured that DAE’s leverage and funding metrics will remain comfortably within levels consistent with the company’s credit ratings, ensuring financial stability and continued growth.
DAE is a subsidiary of the Investment Corporation of Dubai, the investment arm of the Government of Dubai. Prior to this acquisition, DAE maintained a fleet of approximately 500 Airbus, ATR, and Boeing aircraft, valued at $18 billion. The addition of NAC’s fleet will significantly bolster DAE’s assets and operational capacity, reinforcing its position as a global leader in aircraft leasing.
In related news, on December 7, 2024, Nordic Aviation Capital executed a lease agreement for two ATR 72-600 aircraft with Canada-based Rise Air. This deal exemplifies NAC’s ongoing efforts to expand its portfolio into larger narrowbody aircraft, catering to the evolving needs of regional airlines.
Nordic Aviation Capital has long been recognized as a global leader in regional aircraft leasing. The company’s strategic expansion into larger narrowbody aircraft underscores its commitment to meeting the diverse demands of the aviation market. This move not only enhances NAC’s service offerings but also complements DAE’s comprehensive leasing solutions, providing greater value to their extensive customer base.
The acquisition of NAC by DAE represents a significant milestone in the aviation leasing industry. By integrating NAC’s extensive fleet and customer network, DAE is poised to offer unparalleled leasing options and support to airlines around the world. This merger is expected to drive innovation, efficiency, and growth within both companies, benefiting stakeholders and customers alike.
As the aviation industry continues to recover and grow post-pandemic, DAE’s strategic acquisition of Nordic Aviation Capital positions the company for sustained success. The expanded fleet and enhanced global presence will enable DAE to better serve its customers, providing flexible and cost-effective leasing solutions tailored to the unique needs of each airline.
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