DAE to close an aircraft sale valued at $900 million

Dubai Aerospace Enterprise (DAE) announced on May 30, 2018 that its leasing division DAE Capital has recently signed three agreements to sell 16 aircraft with a total market value of approximately $900 million.

The aircraft covered by these agreements include Boeing 737 and Airbus A320, A330, and A350 family aircraft, have an average age of two years and are currently on lease to 11 airlines in 11 countries.

“This divestment activity will help us optimize our portfolio composition and monetize some of our recent larger-scale investments,” commented Firoz Tarapore, Chief Executive Officer of DAE  according to a statement “This transaction does not impact our total number of customers. Proceeds will be used to pay down debt and reinvested to support our ambitious growth plans.” These agreements are expected to close in the second half of 2018.

The Emirati lessor has an ambitious growth strategy. On August 20, 2017, DAE bought its Dublin-based rival AWAS Group. Thanks to the acquisition, the company expanded its fleet to over 400 aircraft, valued at over $14 billion, lifting up to one of the top 10 global aircraft lessors. On May 17, 2018, Tarapore revealed that his company was interested in 400 of Airbus A320s and Boeing 737 MAXs. Discussions are still going on between the public company and the manufacturers, as prices “do no satisfy” Tarapore yet.

Source – AeroTime News Hub