$27 billion leasing deal involves 200 Boeing and Airbus aircraft
Dubai went from aircraft leasing “wannabe” to a leading global player yesterday when it signed deals worth a total of $27 billion to buy 200 aircraft. Earlier reports that the country’s commercial aerospace arm, DAE Capital, planned a gradual build-up to a fleet of 120 aircraft were buried as the firm placed 100-aircraft orders each with Boeing and Airbus.
The huge orders mean that by yesterday evening the total number of orders announced at the Dubai show was well above $80bn and likely to smash through the $100bn mark by the end of the week.
DAE was launched 18 months ago with a war chest of $15bn to get six major businesses off the ground. Yesterday’s $26bn worth of deals for just one of the businesses suggests that the capital available is substantially higher. DAE group managing director HE Omar bin Suleiman says: “We started with $15bn. Now the sky is the limit!” He added that the strategy was to turn DAE Capital into “one of the largest leasing firms in the world”.
For Boeing, the 100-aircraft deal involves 70 737 Next Generation Aircraft and 30 widebodies. The widebody fleet will be split between Boeing 787s, 777s and 747s. The aim is for first delivery in 2010 and continuing through to 2018. GE engines will power 85 of the Boeings – the value of this deal alone is $1.9bn.
For Airbus, the similar 100-aircraft deal – worth $13.5 billion – was for 70 A320 family aircraft and 30 A350 XWBs. Deliveries are scheduled to begin in 2013 and run through to 2022.
Bob Johnson, DAE Group chief executive, says: “DAE Capital will quickly rise to become a world-class aircraft leasing business.” DAE Capital is aiming to acquire interim aircraft to bridge the gap before the first of its own aircraft are delivered.
Source: Flight Daily News
