Dubai Aerospace Enterprise (DAE) has announced that an affiliate had signed a definitive agreement to acquire the rights, interests, and obligations of a portfolio of 64 Boeing 737 MAX aircraft from a wholly-owned subsidiary of China Aircraft Leasing Group Holdings Limited (CALC).
The portfolio includes 737-8, 737-9 and 737-10 variants. Delivery of the aircraft is scheduled to occur between 2023 and 2026. Terms of the transaction were not disclosed.
The 737 MAX airplane family delivers enhanced efficiency, improved environmental performance and increased passenger comfort to the single-aisle market. Powered by CFM International LEAP-1B engines and advanced technology winglets, the 737 MAX reduces fuel use and emissions by 20% compared to airplanes it replaces, a statement said.
The 737-10 is the largest model in the 737 MAX family and can seat up to 230 passengers in a single-class configuration, flying up to 3,300 miles. The fuel-efficient jet can cover 99 per cent of single-aisle routes.
DAE’s Chief Executive Officer, Firoz Tarapore, commented: “We are delighted to be able to conclude this transaction with CALC to acquire a unique portfolio of 100 per cent 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 DAE owned fleet to approximately 66 per cent from 50 per cent,” he said.
This transaction will add certainty to its growth trajectory. On a pro forma basis, this transaction will increase its fleet of owned, managed, committed, and mandated-to-manage aircraft to approximately 550 aircraft, valued at approximately $20 billion, said Tarapore.
“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 per cent 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,” he said.
The transaction 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.
