Dubai Aerospace in talks to place huge order for 400 jets

DUBAI: Dubai Aerospace Enterprise (DAE), one of the world’s largest aircraft lessors, is in talks to buy 400 jetliners from Airbus and Boeing and is prepared to expand its fleet through acquisition if talks fall through, its CEO told Reuters.

The move comes months after a leading US airline investor orchestrated a record deal last November for a group of airlines to buy more than 400 planes from Airbus as economists project strong growth for air travel.

Government-controlled DAE is interested in buying singleaisle Airbus A320neo-family and Boeing 737 MAX planes after its acquisition last year of Dublinbased lessor AWAS, DAE Chief Executive Firoz Tarapore said on Thursday.

Any deal would not necessarily be evenly split between the two planemakers, Tarapore said, adding that DAE was “nowhere near where we thought we would be” in finalising an order.

“We are not happy with the price,” he said in an interview at DAE’s offices in Dubai’s financial district.

An order for 400 single-aisle jets would be worth more than $40 billion at list prices, though discounts are common for large orders.

Boeing declined to comment and Airbus did not immediately respond to an emailed request for comment.

A huge deal would give DAE a long-term pipeline of directly ordered aircraft on par with its rivals, though it may have to wait several years for deliveries to start because manufactures are heavily sold out. Tarapore told Reuters last June that DAE was considering a “large order” for more than 23 new aircraft, with deliveries to start from 2019.