Dubai lessor delivers last of 10 Boeing jets to United Airlines

Dubai: Dubai Aerospace Enterprise (DAE) has delivered the tenth and final Boeing 737-9 to United Airlines, the company announced on October 21. The handover completes a sale-and-leaseback agreement signed earlier this year. DAE now leases 26 Boeing 737 and Airbus A320 family aircraft to the US carrier.

The whole mandate took three months, from document execution to the last delivery. This is the second such deal between the two companies as DAE had completed a separate mandate with United Airlines last year. This latest transaction of the aircraft was executed in partnership with Equator and Mustang. DAE Capital will act as servicer and manage day-to-day dealings with the airline.

Firoz Tarapore, DAE’s Chief Executive Officer, credits the speed to both teams. He says United’s repeat business reflects trust in DAE’s ability to close quickly. “Through transactions such as this, we are able to expand our portfolio of next generation, fuel efficient aircraft while supporting the airline’s fleet growth,” he added.

DEA’s aircraft fleet 

The 737-9 belongs to the Boeing 737 MAX family. CFM International LEAP-1B engines power it, and it carries advanced technology winglets. DAE says the family cuts fuel use and emissions by 20 per cent compared with the jets it replaces. The aircraft serves the single-aisle market. 

DAE owns, manages or has committed to own or manage about 1,000 aircraft. Of those, 367 are Boeing models, including 206 from the 737 MAX family. The company plans to add more aircraft to meet growing market demand.

Sale-and-leaseback structure

In a sale-and-leaseback, the lessor buys aircraft and leases them to the airline. The airline keeps flying these jets without owning them. The financial terms of the 10-aircraft deal have not been disclosed yet.

Currently, DEA is authorized to work on 16 aircraft types and has regulatory approval from over 30 regulators globally.