Dubai’s DAE secures $1.6B deal to acquire 36 aircraft in 2024

Photo: Dubai Government Media Office

Dubai Aerospace Enterprise (DAE), one of the largest aircraft leasing companies in the world, has announced significant milestones for 2024. The company revealed that it had signed agreements to purchase 36 aircraft from various sellers for a total price of $1.6 billion.

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This update was part of DAE’s business performance report released on Thursday. The company’s aircraft leasing division, DAE Capital, played a major role in these accomplishments. Last year, DAE Capital acquired 83 planes, 30 of which are owned by the company while 53 are managed on behalf of clients. In addition to the acquisitions, DAE sold 68 aircraft, with 19 owned and 49 managed.

The leasing division was also busy with contracts, signing 233 agreements that included leases, extensions, and amendments. These deals covered 190 owned planes and 43 managed ones. Among its major transactions, DAE placed 17 Boeing 737 MAX jets on long-term leases with Turkish Airlines, Eastar Jet, and Hainan Airlines. Additionally, DAE successfully priced a $497.2 million two-part aircraft asset-backed security (ABS) for one of its managed clients.

Engineering Milestones

DAE’s engineering arm, known as DAE Engineering or Joramco, also had a productive year. It completed over 1.5 million man-hours of work, performing more than 300 aircraft maintenance checks. To enhance its capacity, Joramco expanded its facilities, adding a new A380-capable bay, increasing its total number of bays to 22. This expansion boosted its hangar capacity by 30%.

The company also deepened its collaboration with Spirit AeroSystems, adding new repair and maintenance capabilities to their partnership.

Financial Strength and Recognition

DAE's financial achievements were equally notable. The company secured a Dh2.75 billion (approximately $748 million) five-year unsecured loan from a GCC lender. CEO Firoz Tarapore highlighted that 2024 was another successful year of strategic execution, strengthening DAE’s global position.

“Our performance metrics reaffirm DAE’s role as a leading aviation services company,” Tarapore said. “We continue to excel with our two divisions: DAE Capital, a top-ten global aircraft lessor, and DAE Engineering, the go-to airframe maintenance and repair organization (MRO) in the region.”

The company’s efforts were recognized by leading credit rating agencies. Both Fitch Ratings and Moody’s upgraded DAE’s unsecured credit ratings, citing its sound financial management and robust liquidity.

Settlements and Insurance Proceeds

In the final quarter of 2024, DAE received $201 million from insurance settlements related to aircraft that had been leased to airlines in Russia. This brought the total cash received from insurance claims to $319 million, including a previous settlement in 2023 involving seven aircraft.