Dubai Aerospace Enterprise (DAE), one of the largest aircraft leasing companies in the world has bought back outstanding common shares of about $100 million.
The transaction is not expected to bring any changes in the company’s capital adequacy ratios either at the end of 2020 or 2021, chief executive of DAE, Firoz Tarapore stated.
“The strength of our franchise, capital position and liquidity profile provides us the flexibility to accurately calibrate the capital we need to support the current and future needs of our growing business with maintaining appropriate margins and returns.”
The COVID-19 outbreak and restrictions related to it have severely affected the global air travel demand, the aviation industry across the world is facing the worst crisis in its history and its ripples can be seen in DAE’s earnings also.
The Dubai-based aerospace corporation owned by the Investment Corporation of Dubai has recorded a $167.3 million net profit from the first three quarters of 2020 which falls from $260.5 million in the same period last year. The nine-month period of this year saw a drop in the revenue earned to $984.1 million, from $1.09 billion a year earlier.
Earlier this month, the state-backed plane lessor said it delivered the first of 18 Boeing 737 Max 8 aircraft to American Airlines as part of a purchase and leaseback agreement signed in the third quarter of 2020. Delivery of the remaining aircraft is projected to be completed in the coming months. Boeing’s 737 Max returned to US skies for the first time, earlier this week since regulators relaxed a 20-month safety ban on the jet.
Dubai Aerospace Enterprise
Dubai Aerospace Enterprise (DAE), the aerospace corporation is globally known for its Aircraft Leasing and Engineering services. Headquartered in Dubai, DAE serves over 125 airline customers in over 60 countries. The award-winning Aircraft Leasing division has owned, managed, committed and mandated to manage a fleet of approximately 425 Airbus, ATR and Boeing aircraft with a fleet value exceeding $16 billion.