Dubai Aerospace Enterprise Finalizes $2 Billion Purchase of Nordic Aviation Capital Assets
Dubai Aerospace Enterprise (DAE) Limited, a prominent global aviation leasing company, has finalized the acquisition of Nordic Aviation Capital Designated Activity Company and its subsidiaries. The deal, valued at approximately $2 billion, significantly bolsters DAE's fleet and asset base.
With this acquisition, DAE now manages a fleet of approximately 750 aircraft. The fleet comprises over 650 owned and managed aircraft, which are leased to 161 airlines across 74 countries. Furthermore, DAE has commitments to acquire around 100 aircraft from major manufacturers such as Boeing, Airbus, ATR, and trading partners.
Firoz Tarapore, CEO of DAE, commented on the acquisition, stating, "This acquisition underscores our commitment to growth and strengthens our position as a leading global aviation lessor."
DAE's strategic move is part of a broader plan to optimize and streamline its fleet composition. The company aims to focus on mainstream, in-demand aircraft manufacturers, reduce the weighted average age of its passenger fleet, and increase the weighted average remaining lease term to enhance fuel efficiency, operational reliability, and sustainability.
The company is also prioritizing the sale of certain aircraft that do not align with its long-term strategic goals. It has signed agreements to sell approximately 75 aircraft, including about 50 Embraer E-JETS and 25 out-of-production aircraft to a financial investor, while continuing to provide lease, asset, and technical management services for the latter.
By pursuing growth opportunities while maintaining a disciplined approach to portfolio management, DAE aims to create a modern, efficient, and profitable fleet that meets the needs of its customers and stakeholders. The company is also focusing on aircraft that offer improved fuel efficiency and lower emissions, aligning with the industry's increasing emphasis on sustainable aviation solutions.
This strategic move not only expands DAE's global reach but also positions the company for continued success in the competitive aviation leasing industry.
Firoz Tarapore, the CEO of DAE, aims to focus on mainstream aircraft manufacturers in the aerospace industry, as part of a broader plan to enhance the fuel efficiency, operational reliability, and sustainability of DAE's fleet. By pursuing this strategy in finance, DAE is not only expanding its global reach but also positioning itself for continued success in the competitive aviation leasing industry.
