DAE Reports Record 83 Aircraft Acquisition
Deal News | Jan 02, 2025 | Zawya
Dubai Aerospace Enterprise (DAE) has announced an impressive performance for 2024, acquiring 83 aircraft, finalizing 233 lease agreements, and securing $1.6 billion in definitive purchase agreements. The company sold 68 aircraft and placed 17 Boeing 737 MAX on lease with several airlines, showcasing its strategic ingenuity. In its engineering division, DAE increased its hangar capacity by 30% and recorded significant man-hours, reflecting operational growth. The financial standing of DAE was strengthened through an AED2.75 billion loan and improved credit ratings from Fitch and Moody's. CEO Firoz Tarapore highlighted these as affirmations of DAE's robust global market leadership and operational excellence.
Sectors
- Aviation Services
- Engineering and Maintenance
- Financial Services
Geography
- United Arab Emirates – DAE is headquartered in Dubai, showcasing its base of operations and regional influence.
- Global – DAE's transactions involve international airlines and counterparties indicative of its global operational reach.
Industry
- Aviation Services – Involves aircraft leasing, purchasing, and related transactions as demonstrated by DAE's activities.
- Engineering and Maintenance – DAE's engineering division recorded significant man-hours and increased hangar capacity, playing a crucial role in the company's operations.
- Financial Services – DAE's financial transactions, credit rating upgrades, and securing loans highlight significant activity within financial services.
Financials
- $1.6 billion – Aggregate consideration for the purchase agreements to acquire 36 aircraft.
- $497.2 million – The value of the two-tranche aircraft asset-backed securities (ABS) bond issued by DAE.
- AED2.75 billion – The five-year unsecured term loan signed with a GCC lender.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Dubai Aerospace Enterprise (DAE) | Target Company | Company | A leading global aircraft leasing and engineering services provider based in Dubai. |
| Firoz Tarapore | CEO | Person | Chief Executive Officer of Dubai Aerospace Enterprise. |
| Turkish Airlines | Lessee | Company | One of the airlines leasing Boeing 737 MAX from DAE. |
| Eastar Jet | Lessee | Company | One of the airlines leasing Boeing 737 MAX from DAE. |
| Hainan Airlines | Lessee | Company | One of the airlines leasing Boeing 737 MAX from DAE. |
| Joramco | Collaborator | Company | Company DAE partnered with to launch new services. |
| Spirit AeroSystems | Collaborator | Company | Company DAE partnered with to launch new services. |
| Fitch Ratings | Credit Rating Agency | Company | Agency that upgraded DAE's credit rating to BBB. |
| Moody's Investors Service | Credit Rating Agency | Company | Agency that upgraded DAE's credit rating to Baa2. |