DAE Expands with $1 Billion Aircraft Acquisition
Deal News | Mar 14, 2025 | Zawya
Dubai Aerospace Enterprise (DAE) Ltd., a global aviation services corporation, has announced the signing of definitive agreements to acquire 17 next-generation aircraft for approximately US$1.0 billion. These assets, primarily narrow-body aircraft, are under lease to airlines in 10 different countries. The aircraft predominantly include models manufactured by Airbus and Boeing, with 80% constituting Airbus products. This acquisition is expected to lower DAE's fleet age and improve its lease term metrics, as well as balance the composition of its fleet among aircraft manufacturers. DAE's CEO Firoz Tarapore stated that this move aligns with the company's strategy to modernize its assets and deepen relationships with global airline clients. The acquisition, designed to circumvent ongoing delivery delays, underscores DAE's approach to sourcing competitive assets in the secondary market to achieve growth and portfolio targets. Dubai Aerospace Enterprise operates through two divisions, covering capital and engineering services, serving over 170 airline customers globally.
Sectors
- Aviation
- Aircraft Leasing
- Aerospace Manufacturing
Geography
- United Arab Emirates – Dubai Aerospace Enterprise is headquartered in Dubai, U.A.E., underscoring the region’s importance as a central hub for the company.
- Global – The transaction affects airlines across 10 countries, illustrating DAE's global reach and impact in the international aviation market.
Industry
- Aviation – This article is focused on the aerospace services sector, specifically involving aircraft leasing activities by Dubai Aerospace Enterprise (DAE).
- Aircraft Leasing – DAE's core business involves acquiring and leasing aircraft to airlines around the world, highlighting the aircraft leasing industry.
- Aerospace Manufacturing – Involves major aerospace manufacturers Airbus and Boeing, which produce the types of aircraft acquired in DAE's transaction.
Financials
- US$1.0 billion – The aggregate consideration for the acquisition of 17 aircraft by Dubai Aerospace Enterprise.
- US$20 billion – The fleet value of DAE's owned, managed, and committed fleet of approximately 500 aircraft.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Dubai Aerospace Enterprise (DAE) Ltd. | Target | Company | A globally recognized aviation services corporation based in Dubai, providing aircraft leasing and MRO services. |
| Firoz Tarapore | Executive | Person | Chief Executive Officer of Dubai Aerospace Enterprise (DAE) Ltd. |
| Airbus | Manufacturing | Company | Manufacturer of 80% of the aircraft involved in the transaction. |
| Boeing | Manufacturing | Company | Manufacturer of 20% of the aircraft involved in the transaction. |