The DAE portfolio of 64 Boeing jets order from CACL comprises variants including the 737-8, 737-9, and 737-10, with aircraft deliveries scheduled between 2023 and 2026.
Dubai Aerospace Enterprise (DAE) Ltd has announced the signing of a definitive agreement by one of its affiliates to acquire a portfolio of 64 Boeing 737 MAX aircraft from a wholly-owned subsidiary of China Aircraft Leasing Group Holdings Limited (CALC). The portfolio comprises variants including the 737-8, 737-9, and 737-10, with aircraft deliveries scheduled between 2023 and 2026. While the terms of the transaction have not been disclosed, the move highlights DAE’s commitment to enhancing its aircraft fleet.
The Boeing 737 MAX family offers superior efficiency, improved environmental performance, and enhanced passenger comfort in the single-aisle market. Equipped with CFM International LEAP-1B engines and advanced technology winglets, the 737 MAX boasts a 20% reduction in fuel consumption and emissions compared to its predecessors. The largest model in the family, the 737-10, accommodates up to 230 passengers in a single-class configuration and can cover distances of up to 3,300 miles, making it suitable for a wide array of single-aisle routes.
Firoz Tarapore Chief Executive Officer, DAE said, “We are delighted to be able to conclude this transaction with CALC to acquire a unique portfolio of 100% new technology, fuel efficient single aisle aircraft.
·On a pro forma basis, this transaction will increase the percentage of new technology, fuel efficient aircraft in our owned fleet to approximately 66% from 50%.
·This transaction will add certainty to our growth trajectory. On a pro forma basis, this transaction will increase our fleet of owned, managed, committed, and mandated-to-manage aircraft to approximately 550 aircraft, valued at approximately US$20 billion.
·This transaction will also allow us to further deepen our existing relationship with Boeing and CFM International. Since inception and including this transaction, DAE has acquired and is committed to acquire approximately 500 Boeing aircraft. We look forward to growing this relationship even further in the coming years.
·Approximately 20% of the acquired portfolio is on lease to airline clients who are also existing clients of DAE and we look forward to expanding our relationship with them. The remainder of the acquired portfolio of assets will be placed directly by DAE in the coming quarters.”
The deal not only solidifies DAE’s growth trajectory but also deepens its existing relationship with Boeing and CFM International. DAE’s commitment to acquiring Boeing aircraft has been significant, with approximately 500 aircraft already acquired or planned, highlighting the company’s dedication to fostering this partnership further.
Around 20% of the acquired portfolio is leased to airline clients who are already in a business relationship with DAE. The remainder of the portfolio will be placed directly by DAE over the coming quarters, demonstrating the company’s strategic approach to portfolio management.
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The transaction is set to be completed in the third quarter of 2023, with no anticipated impact on DAE’s capital adequacy, liquidity, or funding ratios. DAE received advisory services from Milbank LLP and KPMG Ireland, further reinforcing the thoroughness and professionalism of the transaction. This move signifies DAE’s commitment to enhancing its aircraft fleet with cutting-edge technology and fuel-efficient solutions, positioning the company to remain at the forefront of the aviation industry.
