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Dubai Aerospace Enterprise buys 10 aircraft for $500m

Dubai seen from a passenger jet. DAE's latest purchases will go to four airlines in four countries Alamy via Reuters
Dubai seen from a passenger jet. DAE's latest purchases will go to four airlines in four countries
  • Aircraft to be leased to four airlines
  • Revenue and profits up in 2024
  • Fleet of 500 planes worth $18bn

Dubai Aerospace Enterprise (DAE), a global aviation services company, has acquired ten narrowbody aircraft for around $500 million.

DAE will lease the next-generation aircraft to four airlines across four countries, the company said on Tuesday. 

“These young aircraft with long remaining lease terms are expected to be favourable to our portfolio’s metrics, once delivered,” said Firoz Tarapore, CEO of DAE.

The aircraft lessor said it has also initiated and managed the purchase and sale of equity interests in 36 managed aircraft from existing to new investors. 

The 36 aircraft are managed for institutional investors by its aircraft investor services division, which manages more than 100 aircraft across different investment strategies.

DAE, which is wholly owned by the Investment Corporation of Dubai, reported a 6 percent year-on-year increase in net profit to $149 million in July. 

Revenue stood at $679 million, up 1.3 percent from $670 million a year ago.

DAE returned to profit in the first quarter of this year after it received a settlement of $118.3 million for seven aircraft leased to Russia’s Aeroflot airline.

Earlier this month, Reuters reported that DAE secured an undisclosed settlement with the insurance company AXA over 19 jets retained in Russia since the 2022 invasion of Ukraine. 

DAE has a fleet of approximately 500 Airbus, ATR and Boeing aircraft with a value of $18 billion.

In August, it acquired 23 aircraft from multiple companies for around $1.1 billion, most of which were narrowbody.

The company’s aircraft portfolio will have an average age of 3.4 years and an average lease term remaining of 8.8 years on completion of the new deal by the end of the year.