Dubai Aerospace shopping around for 400 new jets

Dubai Aerospace Enterprise, one of the biggest aircraft lessors worldwide, is in discussions with Airbus and Boeing for an order of 400 jets.

State-owned DAE is looking to acquire single-aisle aircraft, including A320-family neos and 737 Maxs, a source familiar with the matter said yesterday.

The order would be worth at least $40 billion at listed prices, assuming an even split between both plane makers, though customers often get discounts.

If securing the order becomes difficult because of backlogs at the manufacturers, the “logical alternative” would be for DAE to expand its fleet by acquiring another lessor and gain access to its orderbook, the source said.

“As a leading aircraft manufacturer we are always in discussions on fleet requirements, and as is normal we do not disclose details of these,” an Airbus spokesman said.

The Dubai government-controlled company has a fleet worth $14bn after acquiring Dublin’s Awas in August, a purchase that propelled DAE into the top ranks of global aircraft lessors and raised its fleet to nearly 400 planes.

The company is mulling an issuance of a $500 million sukuk and may tap the market either later this year or in 2019.

In 2017, DAE raised $2.3bn in senior bonds split across three tranches in the United States to fund its acquisition of Awas.

DAE Capital, the leasing arm of DAE, formed an asset management unit that will seek to build a $5bn portfolio of assets in the coming years, the company said in January.

Reuters reported on the talks earlier yesterday, citing DAE chief executive Firoz Tarapore.

Mr Tarapore was not immediately available for comment when contacted.