Dubai Aerospace Enterprise, one of the world's biggest aircraft lessors, said it signed a definitive agreement to acquire 64 Boeing 737 Max jets from a unit of China Aircraft Leasing Group Holdings amid rapid growth in the global airline industry.
The order book includes 737-8, 737-9 and 737-10 variants, with delivery of the narrow-body aircraft scheduled to begin in 2023 and through to 2026, DAE said in a statement on Monday.
The company did not disclose the value of the deal.
"This transaction will add certainty to our growth trajectory," Firoz Tarapore, chief executive of DAE, said.
"On a pro forma basis, this transaction will increase our fleet of owned, managed, committed and mandated-to-manage aircraft to approximately 550 aircraft, valued at approximately $20 billion."
The move comes as the global aviation industry sees no signs of air travel demand abating on one hand and as plane makers struggle to deal with aircraft delivery delays and ease capacity constraints on the other.
Airlines seeking to capitalise on a boom in global air travel have been struggling with a limited supply of jets and are increasingly turning to plane lessors to supplement their capacity.
Global passenger traffic continued to improve in June, reaching 94 per cent of pre-Covid levels, as the summer travel season in the Northern Hemisphere got off to a strong start, the International Air Transport Association said in its latest report.
Record global temperatures are adding further environmental pressure on airlines to replace older aircraft with more fuel-efficient models, potentially positioning plane lessors to capture the strong demand.
DAE's latest deal will boost the percentage of new, fuel efficient jets in its owned fleet to about 66 per cent, up from 50 per cent, the company said.
About 20 per cent of the acquired portfolio is on lease to airline customers who are also existing clients of DAE, the lessor said.
The remainder of the acquired portfolio of assets will be placed directly by DAE in the "coming quarters", it said.
The deal 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, according to the statement.
Since its establishment, and including this latest transaction, DAE has acquired and is committed to acquire about 500 Boeing aircraft, the Dubai-based company said.
DAE was advised on the deal by international law firm Milbank LLP and consultancy KPMG Ireland.
The company's profit for the first half of 2023 increased marginally amid robust demand from airlines for aircraft to meet the surge in air travel.
Profit before exceptional items in the six months to the end of June inched up to $141.1 million, compared to $140.1 million during the same period of 2022, the company said earlier this month.
Padmaavat
Director: Sanjay Leela Bhansali
Starring: Ranveer Singh, Deepika Padukone, Shahid Kapoor, Jim Sarbh
3.5/5
MATCH INFO
Serie A
Juventus v Fiorentina, Saturday, 8pm (UAE)
Match is on BeIN Sports
Race card:
6.30pm: Baniyas (PA) Group 2 Dh195,000 1,400m.
7.05pm: Maiden (TB) Dh165,000 1,400m.
7.40pm: Handicap (TB) Dh190,000 1,200m.
8.15pm: Maiden (TB) Dh165,000 1,200m.
8.50pm: Rated Conditions (TB) Dh240,000 1,600m.
9.20pm: Handicap (TB) Dh165,000 1,400m.
10pm: Handicap (TB) Dh175,000 2,000m.
The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
Hydrogen: Market potential
Hydrogen has an estimated $11 trillion market potential, according to Bank of America Securities and is expected to generate $2.5tn in direct revenues and $11tn of indirect infrastructure by 2050 as its production increases six-fold.
"We believe we are reaching the point of harnessing the element that comprises 90 per cent of the universe, effectively and economically,” the bank said in a recent report.
Falling costs of renewable energy and electrolysers used in green hydrogen production is one of the main catalysts for the increasingly bullish sentiment over the element.
The cost of electrolysers used in green hydrogen production has halved over the last five years and will fall to 60 to 90 per cent by the end of the decade, acceding to Haim Israel, equity strategist at Merrill Lynch. A global focus on decarbonisation and sustainability is also a big driver in its development.
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
UAE currency: the story behind the money in your pockets
The stats
Ship name: MSC Bellissima
Ship class: Meraviglia Class
Delivery date: February 27, 2019
Gross tonnage: 171,598 GT
Passenger capacity: 5,686
Crew members: 1,536
Number of cabins: 2,217
Length: 315.3 metres
Maximum speed: 22.7 knots (42kph)
Match info
What: Fifa Club World Cup play-off
Who: Al Ain v Team Wellington
Where: Hazza bin Zayed Stadium, Al Ain
When: Wednesday, kick off 7.30pm
TEST SQUADS
Bangladesh: Mushfiqur Rahim (captain), Tamim Iqbal, Soumya Sarkar, Imrul Kayes, Liton Das, Shakib Al Hasan, Mominul Haque, Nasir Hossain, Sabbir Rahman, Mehedi Hasan, Shafiul Islam, Taijul Islam, Mustafizur Rahman and Taskin Ahmed.
Australia: Steve Smith (captain), David Warner, Ashton Agar, Hilton Cartwright, Pat Cummins, Peter Handscomb, Matthew Wade, Josh Hazlewood, Usman Khawaja, Nathan Lyon, Glenn Maxwell, Matt Renshaw, Mitchell Swepson and Jackson Bird.
Liverpool's all-time goalscorers
Ian Rush 346
Roger Hunt 285
Mohamed Salah 250
Gordon Hodgson 241
Billy Liddell 228
Company profile
Company: Rent Your Wardrobe
Date started: May 2021
Founder: Mamta Arora
Based: Dubai
Sector: Clothes rental subscription
Stage: Bootstrapped, self-funded
Sreesanth's India bowling career
Tests 27, Wickets 87, Average 37.59, Best 5-40
ODIs 53, Wickets 75, Average 33.44, Best 6-55
T20Is 10, Wickets 7, Average 41.14, Best 2-12
