Plane lessor DAE acquires 23 jets in $1.1 billion deal

The aircraft are on lease to 13 airlines in nine countries

Dubai Aerospace Enterprise's announced the acquisition of an aircraft portfolio. Photo: DAE Capital

Dubai Aerospace Enterprise, one of the world's biggest aircraft lessors, said it has signed an agreement to acquire 23 planes from several parties for a sum of about $1.1 billion.

The aircraft portfolio has a weighted average age of 3.4 years, an average lease term of 8.8 years and is on lease to 13 airlines in nine countries, DAE said in a statement on Wednesday.

"We are delighted to add this young portfolio of aircraft assets with a long remaining lease term to our fleet and as part of these transactions we welcome six new airline customers to our globally diverse customer base," said Firoz Tarapore, chief executive of DAE.

More than 90 per cent of the acquired planes are narrow-bodies and the deal will be financed through the company's internal liquidity, DAE said in an emailed response to questions.

The company declined to provide details on the models, the companies from which the jets were bought and the airline customers that will lease them.

As global air travel demand soared after the Covid-19 pandemic, airlines have rushed to order new planes. However, problems in the aerospace supply chain and aircraft maintenance industry, including labour shortages and engine issues, have resulted in delivery delays of new jets. This has complicated airlines' growth plans and increased their frustration with prolonged supply chain headaches.

DAE recorded profit of $148.8 million in the first six months of this year, up from $141.1 million in the same period last year.

Total revenue rose to $679.2 million for the six months ending June 30, compared to $670.1 million in the same period of 2023.

The company's available liquidity stood at $4.9 billion on June 30, compared to $4.1 billion at the end of last year. Its liquidity coverage ratio – the proportion of highly liquid assets companies keep to ensure they can meet short-term obligations – was 241 per cent at June 30, compared to 290 per cent at December 31.