Dubai Aerospace Enterprise (DAE) Ltd. has entered an agreement to acquire ten narrow-body, next-generation aircraft in a deal valued at approximately $500 million. This acquisition forms part of DAE’s ongoing expansion strategy and bolsters its fleet with highly sought-after, fuel-efficient models that cater to current market demand.
The newly acquired aircraft are exclusively narrow-body models, a category known for operational efficiency on high-demand, short to medium-haul routes. Each plane in the portfolio is leased to airlines across four different countries, reflecting DAE’s commitment to broadening its global footprint within the competitive airline leasing sector. DAE Chief Executive Officer Firoz Tarapore noted that this acquisition underscores the company’s focus on investing in “assets with strong returns,” reflecting both DAE’s growth strategy and the high demand for narrow-body aircraft amid an airline industry recovery.
DAE, one of the largest aircraft leasing companies in the world, has over 400 owned, managed, and committed aircraft. Its Aircraft Investor Services (AIS) division also announced the completion of sales and transfers of equity interests for 36 aircraft from existing investors to new ones. This transaction aligns with DAE’s strategy of providing managed services and investment options to a growing pool of institutional investors interested in aviation assets. The managed aircraft portfolio, which now encompasses over 100 aircraft, includes diverse investment strategies to meet evolving investor demand. Tarapore emphasized that DAE’s AIS platform is “well-positioned to support growth opportunities for global institutional investors seeking diversified returns from aviation.”
As part of its broader strategy, DAE has been active in sourcing innovative financing solutions. The company has signed new unsecured term loans and expanded its leasing portfolio, particularly with airlines seeking reliable access to modern aircraft. Earlier, DAE signed a substantial five-year term loan of $420 million and a similar arrangement worth AED 2.75 billion, underscoring its commitment to strengthening its financing capabilities to support large-scale acquisitions. This strategic approach allows DAE to maintain financial flexibility, a crucial factor in a volatile aviation market that is seeing renewed growth alongside airline demand for new, fuel-efficient fleets.
