DAE signs letter of intent with Airbus for 100 aircraft

Dubai: Dubai Aerospace Enterprises (DAE), the Dh55 billion investment vehicle launched by the Dubai Government last year, has signed a letter of intent with Airbus to buy up to 100 aircraft worth $13.5 billion at list prices.

The price incorporates an associated deal with Rolls-Royce for its Trent XWB engines to power the A350 XWBs, worth some $1.2 billion at list prices.

DAE Capital, the group's aircraft leasing and financing business, is expanding its fleet with the purchase of 70 aircraft in the A320 family and 30 A350 XWBs. Deliveries will start in 2013 and conclude in 2022.

Shaikh Ahmad Bin Saeed Al Maktoum, Chairman of Dubai City of Aviation Establishment and Emirates Group, said: "We are confident that DAE Capital will quickly become a leader in the aircraft leasing business, and this deal underlines that confidence.

"In choosing a portfolio of A320s and A350 XWBs, we are investing in the most modern fleet available and one that will offer our customers unmatched competitiveness to help meet their own business demands."

These aircraft will play a crucial role in helping airlines meet demand for additional capacities in the GCC and the Middle East, as the regional growth is more than double the global average.

Bob Genise, DAE Capital CEO, said: "This agreement will help us meet the demand for new aircraft, particularly in the Middle East and Asia, over the next decade and more. We are perfectly placed to secure our position by taking advantage of the significant growth of the aviation industry within this region and other emerging global markets."

DAE was launched in February 2006 with an objective to bring in finance, aviation technology, know-how and develop human resources for the growing aviation industry in the region. The DAE has already set up a university and will soon start flight training programmes in the UAE.

"In six months, DAE Capital has built a business from scratch through its management team and clear vision of becoming one of the top leasing companies globally. The letter of intent signed today confirms our seriousness about accomplishing this in the near future," stated DAE group managing director Dr Omar Bin Suleiman.

Rolls-Royce to power 30 A350 XWBs

Rolls-Royce Trent XWB engines will power a new fleet of 30 Airbus A350 XWBs. The contract is worth $1.2 billion at list prices with deliveries of the A350-900s due to start in 2018. This is the first order Rolls-Royce has received from DAE, following the company's formation in 2006.

Robert Genise, Head of Aircraft Leasing at DAE, said: "The Trent XWB will generate significant benefits for our customers in terms of operational experience and lifecycle costs by simplifying management of the engine assets."

Mick Forey, Senior Vice President - Airlines at Rolls-Royce, said: "We're excited to be partnering with this new and innovative leasing company. The order further builds on our success in this region."