Dubai Aerospace Enterprise offloads 75 aircraft in strategic repositioning of its aviation assets.
Dubai Aerospace Enterprise (DAE), a preeminent global aviation services firm headquartered in Dubai, has embarked on a strategic initiative to optimize its asset portfolio. This realignment aims to streamline and modernize the company's fleet, as evidenced by recently announced agreements to sell approximately 75 aircraft.
Of these, approximately 50 Embraer E-JETS will be transferred to a specialist lessor, while around 25 out-of-production aircraft will be acquired by a financial investor. Although the financial specifics of these agreements have not been disclosed, they reinforce DAE's ongoing commitment to optimizing its asset portfolio.
As part of the arrangement, DAE will continue to provide lease, asset, and technical management services for the out-of-production aircraft purchased by the financial investor. The sales are projected to decrease the average age of DAE's passenger fleet and extend the remaining lease terms, ultimately contributing to a more efficient and stable aircraft portfolio.
Firoz Tarapore, CEO of DAE, commented on the strategic move, highlighting the alignment of the company's fleet with targeted, more efficient aircraft types and the enhancement of fuel efficiency. The planned acquisitions will also increase the average remaining lease term of the aircraft within the portfolio and achieve a more balanced fleet composition, comprising approximately 45% Boeing, 42% Airbus, and 13% ATR aircraft.
The completion of these transactions is contingent on regulatory approvals and customary closing conditions. By divesting older and out-of-production aircraft, DAE aims to create a more modern and attractive fleet, catering to the growing demand for fuel-efficient and sustainable aircraft in the market. This portfolio realignment supports operational efficiency and maximizes asset value over the long term.
[1] https://www.emiratesnewsagency.com/saveAsPDFFiles/ENA_973-Dubai-Aerospace-Enterprise-to-optimize-asset-portfolio-by-shedding-75-aircraft_29112022_962628340.pdf[2] https://www.msn.com/en-ae/money/topstories/dubai-aerospace-enterprise-to-sell-75-planes-in-bid-to-refocus-on-efficient-aircraft/ar-AA15loaJ[3] https://www.arabianbusiness.com/transport/779787-dubai-aerospace-enterprise-to-sell-75-aircraft-to-streamline-fleet[4] https://www.arabianbusiness.com/defence/780317-dubai-aerospace-enterprise-to-streamline-fleet-by-selling-half-its-out-of-production-aircraft
- The lessor firm, DAE, is acquiring financial resources from a financial investor to purchase out-of-production aircraft, signifying a strategic move in the finance sector that aligns with their industry focus on aviation.
- The sales of approximately 75 aircraft by DAE signify a significant shift in the transportation sector, with the newly acquired planes aiming to create a more efficient and sustainable fleet, catering to the growing demand for fuel-efficient aircraft.
