Dubai Aerospace to acquire order book of 64 Boeing 737 MAX aircraft

An affiliate of Dubai Aerospace Enterprise revealed that it had signed a legal agreement to buy 64 Boeing 737 MAX aircraft from a fully owned subsidiary of China Aircraft Leasing Group Holdings Limited (“CALC”). Variants of the 737-10, 737-8, and 737-9 are part of the portfolio. The aircraft will be delivered between 2023 and 2026, according to plans. Terms of the transaction were not disclosed.

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The single-aisle market benefits from the 737 MAX airplane family’s higher efficiency, improved environmental performance, and increased passenger comfort. The CFM International LEAP-1B engines and cutting-edge winglets of the 737 MAX enable 20% fuel and emissions savings over the aircraft it replaces. The 737-10, the largest model in the 737 MAX lineup, has 230 seats in a single-class layout and has a range of up to 3,300 miles. 99% of single-aisle routes can be traveled with a fuel-efficient plane.

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Firoz Tarapore, the chief executive officer of DAE, said: “We are pleased to be able to execute this agreement with CALC to purchase a unique portfolio of fuel-efficient, single-aisle aircraft that are entirely new in technology.

• On a pro forma basis, this transaction will increase the percentage of new technology, fuel-efficient aircraft in the owned fleet to approximately 66% from 50%.
• This transaction will add certainty to our growth trajectory. On a pro forma basis, this transaction will increase the fleet of owned, managed, committed, and mandated-to-manage aircraft to approximately 550 aircraft, valued at approximately US$20 billion.
• This transaction will also allow us to further deepen existing relationship with Boeing and CFM International. Since its inception and including this transaction, DAE has acquired and is committed to acquiring approximately 500 Boeing aircraft. We look forward to growing this relationship even further in the coming years.
• Approximately 20% of the acquired portfolio is on lease to airline clients who are also existing clients of DAE and look forward to expanding relationship with them. The remainder of the acquired portfolio of assets will be placed directly by DAE in the coming quarters.”

The deal is anticipated to close in the third quarter of 2023 and is not anticipated to affect the company’s capital sufficiency, liquidity, or funding ratios in any way.