UAE: Dubai Aerospace Enterprise Acquires 23 Aircraft For $1.1 Billion In A Move To Expand Fleet

Dubai Aerospace Enterprise (DAE), UAE aircraft leasing company, announced on Wednesday that it has signed agreements to acquire 23 aircraft from various counterparties for around $1.1 billion. This acquisition will enhance their fleet with a young portfolio of aircraft assets.

Firoz Tarapore, Chief Executive Officer of DAE, stated, "We are delighted to add this young portfolio of aircraft assets with a long remaining lease term to our fleet, and as part of these transactions, we welcome six new airline customers to our globally diverse customer base. Following the induction of these aircraft, our next generation fuel efficient fleet composition is expected to improve by nominally four percentage points on a pro-forma basis."

Image Courtesy: Dubai Aerospace Enterprise

The consolidated aircraft portfolio has an average age of 3.4 years and an average remaining lease term of 8.8 years. It is leased to 13 airlines across nine countries. By value, 91% of the portfolio consists of narrow-body aircraft, and 86% are next-generation technology aircraft.

All the aircraft acquisitions are expected to be completed by the end of 2024. This move aligns with DAE's strategy to enhance its fleet with more fuel-efficient models.

In July, DAE resumed its bond repurchase program and is now offering indicative bids directly through Bloomberg across its bond maturity ladder. As of June 30, 2024, DAE had authorization to repurchase up to $274 million in outstanding bonds.

DAE Engineering has reported significant growth in revenue and profitability for the first half of 2024. Revenue increased by 33% to $92 million, while profitability surged by 103% to $20.5 million.

The company is also expanding its hangar capacity at its Amman facility in Jordan. The goal is to have five additional hangar lines operational before the end of 2024.

This acquisition and expansion reflect DAE's commitment to strengthening its market position and enhancing operational efficiency through strategic investments.