Dubai Aerospace Enterprise, one of the world's biggest aircraft lessors, said it signed a definitive agreement to acquire 64 Boeing 737 Max jets from a unit of China Aircraft Leasing Group Holdings amid rapid growth in the global airline industry.
The order book includes 737-8, 737-9 and 737-10 variants, with delivery of the narrow-body aircraft scheduled to begin in 2023 and through to 2026, DAE said in a statement on Monday.
The company did not disclose the value of the deal.
"This transaction will add certainty to our growth trajectory," Firoz Tarapore, chief executive of DAE, said.
"On a pro forma basis, this transaction will increase our fleet of owned, managed, committed and mandated-to-manage aircraft to approximately 550 aircraft, valued at approximately $20 billion."
The move comes as the global aviation industry sees no signs of air travel demand abating on one hand and as plane makers struggle to deal with aircraft delivery delays and ease capacity constraints on the other.
Airlines seeking to capitalise on a boom in global air travel have been struggling with a limited supply of jets and are increasingly turning to plane lessors to supplement their capacity.
Global passenger traffic continued to improve in June, reaching 94 per cent of pre-Covid levels, as the summer travel season in the Northern Hemisphere got off to a strong start, the International Air Transport Association said in its latest report.
Record global temperatures are adding further environmental pressure on airlines to replace older aircraft with more fuel-efficient models, potentially positioning plane lessors to capture the strong demand.
DAE's latest deal will boost the percentage of new, fuel efficient jets in its owned fleet to about 66 per cent, up from 50 per cent, the company said.
About 20 per cent of the acquired portfolio is on lease to airline customers who are also existing clients of DAE, the lessor said.
The remainder of the acquired portfolio of assets will be placed directly by DAE in the "coming quarters", it said.
The deal is expected to be completed in the third quarter of 2023 and is expected to have no impact on any of the company’s capital adequacy, liquidity, and funding ratios, according to the statement.
Since its establishment, and including this latest transaction, DAE has acquired and is committed to acquire about 500 Boeing aircraft, the Dubai-based company said.
DAE was advised on the deal by international law firm Milbank LLP and consultancy KPMG Ireland.
The company's profit for the first half of 2023 increased marginally amid robust demand from airlines for aircraft to meet the surge in air travel.
Profit before exceptional items in the six months to the end of June inched up to $141.1 million, compared to $140.1 million during the same period of 2022, the company said earlier this month.
Four reasons global stock markets are falling right now
There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:
1. Rising US interest rates
The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.
Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”
At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.
2. Stronger dollar
High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.”
3. Global trade war
Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”
4. Eurozone uncertainty
Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.
Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”
The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”
Temple numbers
Expected completion: 2022
Height: 24 meters
Ground floor banquet hall: 370 square metres to accommodate about 750 people
Ground floor multipurpose hall: 92 square metres for up to 200 people
First floor main Prayer Hall: 465 square metres to hold 1,500 people at a time
First floor terrace areas: 2,30 square metres
Temple will be spread over 6,900 square metres
Structure includes two basements, ground and first floor
Vidaamuyarchi
Director: Magizh Thirumeni
Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra
Rating: 4/5
Results
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Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
