Dubai’s DAE inked agreements to acquire 36 aircraft for $1.6b in 2024

Dubai: Dubai Aerospace Enterprise (DAE), one of the world’s biggest plane lessors, signed definitive purchase agreements to acquire 36 aircraft from multiple counterparties for an aggregate consideration of $1.6 billion.

The aviation services company reported its business transactions update for the full year 2024 on Thursday. DAE’s aircraft leasing division, DAE Capital, acquired 83 aircraft last year, of which 30 are owned, and 53 are managed. The company said it sold 68 aircraft, of which 19 are owned and 49 are managed.

DAE also signed 233 lease agreements, extensions and amendments (owned: 190; managed: 43) and placed 17 Boeing 737 MAX aircraft on long-term lease to Turkish Airlines, Eastar Jet, and Hainan Airlines. It also priced a $497.2 million two-tranche aircraft ABS for a DAE-managed asset client.

DAE Engineering, the company’s MRO division, booked over 1.5 million man-hours and performed more than 300 aircraft checks.

Expanding the number of bays to 22, including one A380-capable bay, allowed it to increase its hangar capacity by 30 per cent. In 2024, it also deepened the Joramco and Spirit AeroSystems relationship by adding further new shop capabilities.

The group signed a Dh2.75 billion 5-year unsecured term loan with a GCC lender. Firoz Tarapore, CEO of DAE, said, “2024 was another year of exemplary execution of our strategy to enhance our global franchise continually.” He said, “The metrics we announced today reaffirm DAE’s status as a leading aviation services corporation, supported by two market-leading divisions: DAE Capital, a global top ten aircraft lessor, and DAE Engineering, the region’s independent airframe MRO of choice.”

“This was recognized during the year by both Fitch Ratings and Moody’s Investors Service, who both upgraded our unsecured credit ratings because of exemplary financial prudence including rock-solid commitments to capital adequacy and maintenance of exceptional liquidity.”

A fortnight ago, DAE today announced that in the last three months of the year, it had received cash proceeds totalling approximately $201 million from settlements with selected insurance companies regarding aircraft previously on lease to airline carriers in the Russian Federation. DAE and its relevant affiliated entities have released their claims against these insurance and reinsurance companies.

DAE has now received cumulative cash proceeds of $319 million, including the settlement in 2023 with certain parties regarding seven aircraft.