DAE Acquires 83 Aircraft And Signs 233 Lease Agreements In A Strong Year For Aviation Services

Dubai Aerospace Enterprise (DAE) has shared its 2024 business transactions update. The company acquired a total of 83 aircraft, with 30 being owned and 53 managed. Additionally, DAE sold 68 aircraft, comprising 19 owned and 49 managed. This activity highlights the company's dynamic role in the aviation sector.

In the past year, DAE finalised 233 lease agreements, extensions, and amendments. These included arrangements for 190 owned aircraft and 43 managed ones. Notably, DAE secured long-term leases for 17 Boeing 737 MAX aircraft with Turkish Airlines, Eastar Jet, and Hainan Airlines.

DAE entered into definitive purchase agreements to acquire 36 aircraft from various counterparties. The total consideration for these acquisitions amounted to US$1.6 billion. This strategic move underscores DAE's commitment to expanding its fleet and enhancing its market position.

The company also issued a two-tranche aircraft asset-backed securities (ABS) bond valued at $497.2 million. This financial instrument was designed to benefit one of DAE's managed asset clients, showcasing the company's innovative approach to financing.

DAE's engineering division achieved significant milestones in 2024. It recorded over 1.5 million man-hours and conducted more than 300 aircraft checks. The division also expanded its hangar capacity by 30%, increasing the number of bays to 22, including one capable of accommodating an A380.

The company further strengthened its partnerships with Joramco and Spirit AeroSystems by launching new services this year. These collaborations are expected to enhance DAE's service offerings in the engineering sector.

Financial Developments and Credit Ratings

On the financial front, DAE secured an AED2.75 billion five-year unsecured term loan from a GCC lender. This move reflects the company's solid financial standing and ability to secure substantial funding.

Both Fitch Ratings and Moody’s Investors Service upgraded DAE's credit ratings to BBB and Baa2, respectively. These upgrades indicate confidence in DAE's financial health and operational capabilities.

Firoz Tarapore, CEO of DAE, stated: "2024 was another year of exemplary execution of our strategy to continually enhance our global presence. The results we announced today confirm DAE’s position as a leader in aviation services, supported by two market-leading divisions: DAE Capital, one of the top ten global aircraft lessors, and DAE Engineering, the region’s preferred independent airframe MRO provider."

With inputs from WAM