DAE to buy 100 planes from Boeing for $13.7b

Dubai: Dubai Aerospace Enterprise (DAE) on Monday signed a purchase agreement for 100 aircraft worth $13.7 billion from US plane manufacturer Boeing.

The deal came just hours after DAE, the aero-space, manufacturing and services corporation, signed an initial agreement to buy as many as 100 aircraft from European plane-maker Airbus for $13.5 billion.

DAE capital, DAE Group's aircraft leasing and financing business, aims to be one of the largest aircraft leasing businesses in the Middle East within the next decade.

The deal with Boeing includes 70 737 Next-Generation aircraft and 30 wide-body planes split between 787s, 777s and 747s.

Delivery of the aircraft will start in 2010 and continue into 2018, with roughly a quarter of the planes set to be used in the Middle East market, DAE said.

Associated contract

The price tag incorporates an associated deal with General Electric for engines valued at more than $1.9 billion of the $13.7 billion.

"DAE capital will quickly rise to become a world-class aircraft leasing business. We're making our mark on the industry," said Bob Johnson, DAE Group CEO.

Bob Genise, CEO of DAE Capital, added: "The deal allows the company to offer all airlines attractively priced operating lease terms and will help us to become a major force in the industry."

The deal took DAE's spending on the day to more than $27 billion. The company said it is working with a number of large regional and international banks to finance its expansion plans.

DAE's shareholders include Emaar, Istithmar, Dubai Airport Free Zone Authority, Dubai International Capital, DIFC Investments, the Government of Dubai and Amlak Finance.

The company aims to produce an integrated aerospace cluster based at Dubai World Central - the new 140 square kilometre airport and logistics city being built at Jebel Ali.