RIYADH: Aviation services firm Dubai Aerospace Enterprise announced on Monday that an affiliate had signed an agreement to acquire a portfolio of 64 Boeing 737 MAX aircraft from a wholly owned subsidiary of China Aircraft Leasing Group Holdings Ltd.
According to a press release, DAE said that the portfolio includes 737-8, 737-9 and 737-10 variants, and the delivery of the airplanes is scheduled between 2023 and 2026.
The Dubai-headquartered company did not disclose the transaction terms.
However, it said the 737 MAX airplane family delivers better efficiency, environmental performance and passenger comfort to the single-aisle market.
DAE expects the transaction to be completed in the third quarter of 2023, with no impact on any of its capital adequacy, liquidity, and funding ratios. The company will directly place the rest of the acquired portfolio of assets in the coming quarters, it added.
According to the press release, Boeing 737 MAX, having CFM International LEAP-1B-engine, reduces fuel use and emissions by 20 percent compared to the airplanes it will replaces. While the 737-10 is the largest model in its family and can seat up to 230 passengers in a single-class configuration, flying up to 3,300 miles.
“The fuel-efficient jet can cover 99 percent of single-aisle routes,” it added.
DAE’s CEO Firoz Tarapore said that they are delighted to be able to conclude this transaction with CALC to acquire a unique portfolio of 100 percent new technology, fuel-efficient, single-aisle aircraft.
DAE, which serves over 170 airline customers in over 65 countries from its seven office locations in Dubai, Dublin, Amman, Singapore, Miami, New York, and Seattle, added that this transaction will further strengthen its relationship with Boeing and CFM International.
The firm added that it’s committed to acquiring some 500 Boeing aircraft. “We look forward to growing this relationship even further in the coming years.”
The transaction will help DAE increase the percentage of fuel-efficient aircraft in its owned fleet from 50 percent to nearly 66 percent, adding that this transaction would add to its growth trajectory.
“On a pro forma basis, this transaction will increase our owned, managed, committed, and mandated-to-manage aircraft fleet to approximately 550 aircraft, valued at approximately US$20 billion. Approximately 20 percent of the acquired portfolio is on lease to our existing clients,” DAE said in the statement.