Dubai Aerospace Enterprise (DAE) 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. Terms of the transaction were not disclosed.
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 percent compared to airplanes it replaces, a statement said.
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 percent of single-aisle routes.
Firoz Tarapore CEO – DAE
“We 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. On a pro forma basis, this transaction will increase the percentage of new technology, fuel efficient aircraft in DAE owned fleet to approximately 66 percent from 50 percent.”
This transaction will add certainty to its growth trajectory. On a pro forma basis, this transaction will increase its fleet of owned, managed, committed, and mandated-to-manage aircraft to approximately 550 aircraft, valued at approximately $20 billion, said Mr. Tarapore.
The transaction is expected to be completed in the third quarter of 2023 and is expected to have no impact on any of the company’s capital adequacy, liquidity, and funding ratios.
Thank you very much for choosing GCC Business News to be an important part of your professional life. You will receive a confirmation e-mail. Please check SPAM or UPDATES folder
