Dubai: Dubai Aerospace Enterprise (DAE) Ltd said on Wednesday that its business activity remained stable in the first half of 2020 with the company managaing 400+ aircraft.
During 1H2020, DAE sold or novated 17 aircraft, acquired 5 aircraft, transitioned or extended leases on 23 aircraft, and negotiated 41 lease extensions subject to documentation.
“Since the onset of the pandemic, we have transitioned 11 aircraft with 18 ferry flights to and from 9 countries. Portfolio lease utilization remained high and is above 99 per cent. The managed aircraft portfolio grew to 73 aircraft,” the company said in a statement.
Liquidity
DAE ended the first half of 2020 with total available liquidity of $2.8 billion which comprised of approximately $600 million of unrestricted cash and $2.2 billion of long-term committed available lines of credit. The company repurchased $187 million of its own bonds in 1H2020. Over the next 12 months, it has only one bond maturity of $430 million in August 2020.
Customers
DAE continues to receive rent deferral requests. To date, its has granted 29 rent deferral requests totaling aggregate rent of approximately 12 per cent of annual reported revenue. The company currently evaluating an additional 28 rent deferral requests totaling aggregate rent of approximately 6 per cent of annual reported revenue.
“The first half of 2020 has proven to be the most challenging half year ever for the global aviation industry. As we continue to navigate through uncertain times, DAE has focused on executing well on the fundamentals. During the last 6 months, we have transitioned aircraft to new airline customers, we have actively taken back aircraft from airlines that did not need capacity and placed them with other existing clients, and we have grown our managed asset portfolio,” said Firoz Tarapore, DAE’s Chief Executive Officer.
