Dubai Aerospace Enterprise, one of the world's biggest aircraft lessors, has signed multiple agreements to acquire 17 aeroplanes worth about $1 billion as part of its fleet modernisation strategy.
Eighty per cent of the aircraft will come from Airbus, with the remaining 20 per cent from its US rival Boeing, DAE said in a statement on Friday.
The fleet – on lease to 11 airlines in 10 countries – entirely consists of next-generation aircraft, 89 per cent of which are narrow-bodied, it added. DAE did not specify the type of aircraft involved in the deals.
The aeroplanes are expected to lower the weighted-average age of DAE’s passenger fleet to 6.9 years and increase its remaining weighted-average passenger fleet lease term to 6.6 years, the company said.
Eventually, DAE's pro-forma fleet will be 46 per cent Airbus aircraft, 49 per cent Boeing jets and 5 per cent ATR planes, it said.
The agreements are “consistent with our commitment to improve the next-generation content of our fleet and reduce the fleet average age", Firoz Tarapore, chief executive of DAE, said in the statement.
"This transaction also allows us to further deepen our relationship with our global base of airline customers."
As global air travel demand soared following the Covid-19 pandemic, airlines have rushed to order new planes. However, problems in the aerospace supply chain and aircraft maintenance industry, including labour shortages and engine issues, have delayed delivery of new jets. This has complicated airlines' growth plans and increased their frustration with prolonged supply chain issues.
Aviation companies, however, continue to implement operational efficiencies. In 2024, DAE signed 233 lease agreements, extensions and amendments. Notably, it signed definitive deals to acquire 33 aircraft at a total value of $1.6 billion, it said in January.
Last month, it reported that its annual profit before tax in 2024 jumped more than 45 per cent to $532.3 million, while revenue grew about 8.8 per cent to nearly $1.43 billion.
Demand for aircraft from airline customers remained strong, resulting in a balance sheet that is "stronger than ever before", Mr Tarapore said at the time of the earnings report.
In January, DAE signed an agreement to acquire 100 per cent of the Nordic Aviation Capital group of companies.
