After missing out on the SALE and Pegasus portfolios, Dubai Aerospace Enterprise (DAE) is finally due to make its entry into the market with the acquisition of narrowbody and widebody aircraft through sale and leaseback transactions.
CAO understands that DAE is to purchase a 21-used-narrowbody-aircraft portfolio, including A320-200 and Boeing 737 Next Generation aircraft, from ILFC with leases attached. Aircraft are said to be young with an average age of two years.
DAE is also understood to be in the final stages of closing a sale and leaseback transaction with Emirates for eight Airbus A330-200s. A source says the aircraft will be on short-term leases with Emirates.
DAE will finance the acquisitions by borrowing about $1.2bn, according to DAE Capital CEO Bob Genise, although no banks have been identified.
Genise plans to build a 100- to 125- aircraft portfolio during the next five years. Genise says DAE is in close contact with Boeing and Airbus regarding market trends and aircraft availability. “The Boeing aircraft which we find of interest include the 737-700, 737-800, 777-300ER, 787 series, and 747-8 freighter. The Airbus aircraft include the A319, A320, and A350XWB.”Genise indicates some aircraft could be ordered next year.
DAE says it may borrow $4bn to finance $5bn worth of aircraft acquisitions during the next five years.