A Boeing 737 Max. DAE's orderbook includes 737-8, 737-9 and 737-10 variants. Photo: DAE
A Boeing 737 Max. DAE's orderbook includes 737-8, 737-9 and 737-10 variants. Photo: DAE

Plane lessor DAE to acquire 64 Boeing 737 Max jets from China Aircraft Leasing



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.

COMPANY PROFILE

Name: Xpanceo

Started: 2018

Founders: Roman Axelrod, Valentyn Volkov

Based: Dubai, UAE

Industry: Smart contact lenses, augmented/virtual reality

Funding: $40 million

Investor: Opportunity Venture (Asia)

Godzilla x Kong: The New Empire

Director: Adam Wingard

Starring: Brian Tyree Henry, Rebecca Hall, Dan Stevens

Rating: 4/5

SPECS: Polestar 3

Engine: Long-range dual motor with 400V battery
Power: 360kW / 483bhp
Torque: 840Nm
Transmission: Single-speed automatic
Max touring range: 628km
0-100km/h: 4.7sec
Top speed: 210kph
Price: From Dh360,000
On sale: September

Ziina users can donate to relief efforts in Beirut

Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”

The team

Videographer: Jear Velasquez 

Photography: Romeo Perez 

Fashion director: Sarah Maisey 

Make-up: Gulum Erzincan at Art Factory 

Models: Meti and Clinton at MMG 

Video assistant: Zanong Maget 

Social media: Fatima Al Mahmoud  

ROUTE TO TITLE

Round 1: Beat Leolia Jeanjean 6-1, 6-2
Round 2: Beat Naomi Osaka 7-6, 1-6, 7-5
Round 3: Beat Marie Bouzkova 6-4, 6-2
Round 4: Beat Anastasia Potapova 6-0, 6-0
Quarter-final: Beat Marketa Vondrousova 6-0, 6-2
Semi-final: Beat Coco Gauff 6-2, 6-4
Final: Beat Jasmine Paolini 6-2, 6-2

Petrarch: Everywhere a Wanderer
Christopher Celenza,
Reaktion Books

Company profile

Company name: Leap
Started: March 2021
Founders: Ziad Toqan and Jamil Khammu
Based: Dubai
Sector: FinTech
Investment stage: Pre-seed
Funds raised: Undisclosed
Current number of staff: Seven

Company profile

Date started: January 2022
Founders: Omar Abu Innab, Silvia Eldawi, Walid Shihabi
Based: Dubai
Sector: PropTech / investment
Employees: 40
Stage: Seed
Investors: Multiple

COMPANY PROFILE

Name: Rain Management

Year started: 2017

Based: Bahrain

Employees: 100-120

Amount raised: $2.5m from BitMex Ventures and Blockwater. Another $6m raised from MEVP, Coinbase, Vision Ventures, CMT, Jimco and DIFC Fintech Fund

Updated: August 14, 2023, 12:00 PM

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