Dubai: Dubai Aerospace Enterprise (DAE) ordered 40 new aircraft in a deal worth more than $980 million (Dh3.6 billion) from European manufacturer ATR on Wednesday, a senior DAE executive said.
DAE, an aircraft leasing and maintenance, repair and overhaul (MRO) company, announced the order for 40 ATR 72-600 aircraft at the Singapore Airshow with a firm order for 20 aircraft and purchasing rights for 20 more.
It is the first major announcement from majority Dubai government owned DAE since the global financial crisis crippled its operations.
“After the challenges we had in 2007, 2008 and 2009 we had to really focus on restarting the company. [Now] we need to grow our company and our portfolio,” Khalifa Al Daboos, Managing Director at DAE, said in a phone interview.
DAE is in discussions to lease the ordered aircraft to a number of regional and global airlines that are looking to expand their fleet. Al Daboos would not disclose who DAE is speaking to.
The order represents another example of the global shift of the aviation industry to the Gulf and follows huge aircraft orders by regional airlines, led by Emirates, Etihad Airways and Qatar Airways, at last year’s Dubai Airshow.
Fresh talks
“Aircraft leasing has traditionally been found in North America and Europe. With the new wealth in the Middle East and Asia, these regions are increasingly capitalising on keeping money within the region and being centres for leasing,” Will Horton, senior analyst at CAPA — Centre for Aviation, said in an email.
Al Daboos said the total deal is worth between $980 million and $1 billion. But Horton said that a recent similar order by Air Algerie was valued at $987 million at list prices.
In 2007, DAE placed orders for 100 Boeing and 100 Airbus aircraft in a deal valued at more than $27 billion. It began cancelling orders in 2010.
Asked if there is any intention to recommit to the cancelled orders, Al Daboos said the company will start fresh talks with manufacturers.
“We haven’t finalised our strategy. We have to talk to our customers and we have to understand their needs and requirements,” he said.
