An affiliate of Dubai Aerospace Enterprise (DAE) has signed a definitive agreement to acquire the rights, interests and obligations of a portfolio of 64 Boeing 737 MAX Family airplanes from a wholly-owned subsidiary of China Aircraft Leasing Group (CALC).
On Monday (August 14, 2023), Dubai Aerospace Enterprise (DAE) Ltd. announced that an affiliate has signed a definitive agreement to acquire a portfolio of 64 Boeing 737 MAX Family jets from a wholly-owned subsidiary of China Aircraft Leasing Group Holdings Limited (CALC). The portfolio includes 737-8, 737-9, and 737-10 MAX models, which are scheduled for delivery between 2023 and 2026. The specific terms of the transaction were not disclosed, but the deal is expected to be completed in the third quarter of 2023.
In Monday’s announcement, DAE’s Chief Executive Officer, Firoz Tarapore, said,
“We are delighted to be able to conclude this transaction with CALC to acquire a unique portfolio of 100% new technology, fuel efficient single aisle aircraft. On a pro forma basis, this transaction will increase the percentage of new technology, fuel efficient aircraft in our owned fleet to approximately 66% from 50%. This transaction will add certainty to our growth trajectory. 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 US$20 billion.
“This transaction will also allow us to further deepen our existing relationship with Boeing and CFM International. Since inception and including this transaction, DAE has acquired and is committed to acquire approximately 500 Boeing aircraft. We look forward to growing this relationship even further in the coming years. Approximately 20% of the acquired portfolio is on lease to airline clients who are also existing clients of DAE and we look forward to expanding our relationship with them. The remainder of the acquired portfolio of assets will be placed directly by DAE in the coming quarters.”
Powered by CFM International LEAP-1B engines and featuring advanced technology winglets, the Boeing 737 MAX Family delivers a 20 percent reduction in fuel use and emissions compared to the airplanes it replaces. The largest member of the MAX Family, the 737-10 can seat up to 230 passengers in a single-class configuration and offers a range of up to 3,300 nautical miles (6,112 km), sufficient to cover 99 percent of routes.
Dubai Aerospace Enterprise (DAE) Limited is a global aviation services company headquartered in Dubai. The company serves over 170 airlines in more than 65 countries from seven offices in Dubai, Dublin, Amman, Singapore, Miami, New York and Seattle. DAE’s award-winning Aircraft Leasing division has an owned, managed, committed and mandated to manage fleet of approximately 550 Airbus, ATR and Boeing aircraft valued at over US $20 billion. The company’s Engineering division serves customers in Europe, the Middle East, Africa and Asia from their state-of-the-art facility which can accommodate up to 17 widebody and single aisle aircraft. DAE is authorized to work on 15 aircraft types and has regulatory approval from over 25 global regulators.
Source: Dubai Aerospace Enterprise Ltd. (DAE)