DAE seals US$9 billion Macquarie AirFinance takeover

Dubai Aerospace Enterprise has completed its acquisition of Macquarie AirFinance, lifting the value of the transaction to about US$9 billion and creating the world’s third-largest aircraft lessor by fleet value and the number of owned and managed aircraft.

The Dubai-based aviation services group acquired 100% of Macquarie AirFinance’s outstanding share capital and its consolidated subsidiaries. The final enterprise value includes changes in the acquired company’s fleet between the announcement of the transaction in February and its completion on Wednesday.

DAE now has about 1,000 owned, managed and committed aircraft. Its owned and managed fleet is leased to more than 175 airlines across over 75 countries, substantially expanding the company’s customer base and geographic reach.

The enlarged business also has commitments to acquire roughly 150 aircraft from Airbus, Boeing, ATR and aircraft trading counterparties. Delivery positions now stretch into the 2030s, giving DAE greater capacity to supply airlines facing lengthy waits for factory-built aircraft.

“The closing of MAF marks another milestone on our journey,” DAE chief executive Firoz Tarapore said, describing the deal as part of the company’s record of transformational acquisitions.

He said the combined scale positioned DAE as a global provider of fleet solutions and strengthened its ability to offer competitively priced aircraft across different stages of their operating lives.

The completion follows regulatory clearances secured after the transaction was announced on February 26. At that stage, DAE valued the deal at approximately US$7 billion and expected the combined portfolio to comprise 1,029 owned, managed and committed aircraft.

The increase to US$9 billion reflects aircraft purchases, deliveries, sales and other fleet movements at Macquarie AirFinance during the five months before closing rather than a straightforward revision of the agreed acquisition price.

The transaction was funded through a combination of debt and equity designed to preserve DAE’s investment-grade credit profile. The company had said the financing structure would support its aim of securing stronger credit ratings following the rapid expansion of its leasing franchise.

DAE’s aircraft portfolio is now valued at about US$35 billion and includes Airbus, Boeing and ATR models. Narrow-body aircraft form the bulk of the combined platform, giving the lessor extensive exposure to the single-aisle jets used by low-cost, regional and network airlines.

Demand for leased aircraft has remained firm as Airbus and Boeing struggle to restore production rates disrupted by supply-chain shortages, labour constraints and quality-control problems. Delayed deliveries have encouraged airlines to retain aircraft for longer and seek additional leased capacity to support network growth.

Those pressures have strengthened lease rates and aircraft values, particularly for fuel-efficient narrow-body models such as the Airbus A320neo family and Boeing 737 MAX. Lessors with large order books and early delivery slots have gained greater negotiating power as airlines compete for limited aircraft availability.

Macquarie AirFinance brings a substantial portfolio of newer-generation jets and an order book that includes 70 Boeing 737 MAX aircraft scheduled for delivery through 2032. The company placed its second direct Boeing order in 2025, adding 30 737-8 aircraft as part of a strategy to lower the emissions intensity and operating costs of its fleet.

The acquisition also deepens DAE’s relationships with Airbus and Boeing at a time when access to production slots has become a major competitive advantage. Tarapore said the expanded order book would allow the company to respond more flexibly to airline fleet requirements.

Macquarie AirFinance was established in 2006 and developed into a major leasing platform with operations centred in Dublin. Its shareholders before the sale included Macquarie Asset Management, PGGM Infrastructure Fund and Australian Retirement Trust.

The deal adds staff, aircraft-management expertise and airline relationships to DAE Capital, the group’s aircraft leasing and finance division. DAE also operates an engineering business through Amman-based Joramco, which provides maintenance, repair and overhaul services for wide-body and narrow-body aircraft.