Dubai Aerospace Enterprise (DAE) has released that an affiliate has signed a definitive agreement to acquire the rights, interests, and obligations of a portfolio of 64 Boeing 737 MAX aircraft from a wholly-owned subsidiary of China Aircraft Leasing Group Holdings Limited (CALC). The portfolio includes 737-8, 737-9 and 737-10 variants. Delivery of the aircraft is scheduled to occur between 2023 and 2026.
The 737 MAX airplane family delivers enhanced efficiency, improved environmental performance and increased passenger comfort to the single-aisle market. Powered by CFM International LEAP-1B engines and advanced technology winglets, the 737 MAX reduces fuel use and emissions by 20% compared to airplanes it replaces. The 737-10 is the largest model in the 737 MAX 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% of single-aisle routes.
DAE’s Chief Executive Officer, Firoz Tarapore commented, “We are delighted to be able to conclude this transaction with CALC to acquire a unique portfolio of 100% new-technology, fuel-efficient single-aisle aircraft”.
On a pro forma basis, this transaction will increase the percentage of new technology, fuel efficient aircraft in DAE’s owned fleet to approximately 66% from 50%. The transaction will increase the fleet of owned, managed, committed and mandated-to-manage aircraft to approximately 550 aircraft, valued at approximately US$20 billion (£15.75 billion).
Furthermore, this transaction will allow the company to further deepen its existing relationship with Boeing and CFM International. Since inception and including this transaction, DAE has acquired and is committed to acquire approximately 500 Boeing aircraft.
Approximately 20% of the acquired portfolio is on lease to airline clients who are also existing clients of DAE, with the remainder of the acquired portfolio of assets to be placed directly by DAE in the coming quarters.
The transaction is expected to be completed in the third quarter of 2023.