Dubai Aerospace Enterprise (DAE), one of the world’s largest aircraft leasing companies, has secured agreements to acquire 17 new aircraft valued at approximately $1 billion as part of its ongoing fleet modernization strategy.
According to a statement released on Friday, 80% of the aircraft will be sourced from Airbus, with the remaining 20% coming from Boeing. These aircraft, which will be leased to 11 airlines across 10 countries, are all next-generation models. Of the total fleet, 89% consists of narrow-bodied aircraft, although the specific types of planes involved in the deal were not disclosed.
Once integrated into the fleet, these new acquisitions will reduce the average age of DAE’s passenger fleet to 6.9 years and extend the weighted average lease term of the fleet to 6.6 years. The company’s pro-forma fleet composition will be 46% Airbus, 49% Boeing, and 5% ATR aircraft.
Firoz Tarapore, CEO of DAE, expressed that the acquisition aligns with the company’s commitment to modernizing its fleet and reducing its average age. He also noted that the transaction would strengthen DAE’s relationships with its global airline customers.
The demand for new aircraft has surged as global air travel rebounded after the Covid-19 pandemic. However, supply chain disruptions, including labor shortages and engine issues, have delayed deliveries, complicating airlines’ growth plans. Despite these challenges, aviation companies continue to focus on operational efficiency.
In 2024, DAE signed 233 lease agreements, extensions, and amendments, including definitive deals for 33 aircraft valued at $1.6 billion. In its most recent earnings report, DAE revealed a 45% increase in profit before tax to $532.3 million, with revenue rising by 8.8% to nearly $1.43 billion.
The company also reported strong demand for aircraft, leading to a robust balance sheet. In January, DAE expanded its portfolio further by acquiring 100% of the Nordic Aviation Capital group.
