Aircraft lessor Dubai Aerospace Enterprise has signed a definitive agreement to acquire 100 per cent of Sky Fund I Irish and its subsidiaries.
Sky Fund I, the Ireland-based jet lessor, owns and is committed to own 36 aircraft on lease to 14 airline customers in 11 countries. Next generation technology aircraft represent more than 90 per cent of the acquired portfolio, DAE said on Thursday.
“We are delighted to acquire this unique portfolio of new technology, fuel-efficient aircraft on lease to 14 airlines, including six new airline customers for DAE,” said Firoz Tarapore, DAE’s chief executive.
The companies did not disclose the terms of the transaction, which will be funded by internal resources and is expected to be completed in the fourth quarter of 2022, subject to regulatory approvals.
“This transaction will allow us to continue our growth trajectory and materially increase the proportion of new technology assets in our portfolio, said Mr Tarapore.
DAE serves more than 170 airline customers in about 65 countries from its seven offices in Dubai, Dublin, Amman, Singapore, Miami, New York and Seattle.
It plans to add $1.5 billion to $2bn in new-technology fuel-efficient aircraft through sale-and-lease back deals and trading channels as it pursues growth this year, Mr Tarapore told The National in February.
The company will also sell planes to maintain its fleet metrics, with volumes depending on market conditions.
It is bullish on 2022 for the air cargo market, which has been a rare bright spot for the global aviation industry that was hammered by the pandemic for two years.
“DAE has a successful track record of integrating acquisitions into our business, and we look forward to welcoming additional relationships with our current customers as well as new airline customer relationships,” Mr Tarapore said.
Freshfields Bruckhaus Deringer and KPMG acted as advisers to DAE for its acquisition of Sky Fund I Irish.
