Dubai Aerospace Enterprise (DAE) has signed agreements with two counterparties for the sale of approximately 75 aircraft in a move aimed at optimising its fleet composition and performance. While the financial terms of the transactions remain undisclosed, the strategic divestitures are part of the company's ongoing efforts to streamline operations and align with targeted aircraft types.
The planned sale involves two distinct portfolios. The first consists of around 50 Embraer E-JETS, which will be sold to a specialist lessor. The second comprises about 25 older, out-of-production aircraft. This latter portfolio is being sold to a financial investor, with DAE retaining responsibility for lease, asset and technical management services, ensuring continuity and oversight in operational support.
Upon completion, these transactions are expected to significantly enhance the quality of DAE's passenger aircraft fleet. Specifically, the company anticipates a reduction in the weighted average age of its aircraft, alongside an increase in the average remaining lease term. This shift is set to benefit the firm's efficiency and sustainability credentials. The pro forma fleet composition following the transactions is projected to consist of 45% Boeing aircraft, 42% Airbus aircraft, and 13% ATR aircraft.
The deals are still subject to regulatory approvals and standard closing conditions, but DAE expects all transactions to be finalised before the end of 2025.
Chief Executive Officer Firoz Tarapore stated, “Consistent with ongoing commitments to our stakeholders, these transactions will achieve multiple objectives by aligning our portfolio composition with our stated target aircraft types, and enhancing the overall fuel efficiency, age profile and remaining lease term characteristics of the portfolio.”
