Dubai Aerospace Enterprise sells 75 aircraft, focuses on modern, fuel-efficient fleet
Dubai Aerospace Enterprise (DAE) Ltd, a leading global aviation services company, has finalised agreements to sell approximately 75 aircraft to two counterparties, marking a significant step in optimising its fleet.
The deals, announced on May 28, 2025, involve a mix of aircraft types and are expected to enhance the efficiency and youth of DAE's portfolio, though financial terms remain undisclosed.
The first transaction involves the sale of around 50 Embraer E-JETS to a specialist aircraft lessor. The second deal includes approximately 25 out-of-production aircraft sold to a financial investor, with DAE providing lease, asset, and technical management services.
These transactions align with DAE's strategy to streamline its fleet by focusing on newer, more fuel-efficient aircraft, reducing the weighted average age of its passenger fleet while extending the average remaining lease term.
Upon completion, DAE's pro forma fleet will consist of 45 per cent Boeing aircraft, 42 per cent Airbus aircraft, and 13 per cent ATR aircraft. This shift reflects DAE's commitment to modernising its portfolio, prioritising aircraft types that meet current market demands for efficiency and sustainability.
Addressing rising fuel costs and environmental concerns
The aviation industry has increasingly emphasised fuel-efficient fleets to address rising fuel costs and environmental concerns, with global aircraft leasing markets projected to grow by 4.5 per cent annually through 2030, according to recent industry reports.
Firoz Tarapore, DAE's CEO, emphasized the strategic importance of the deals, "These transactions align our portfolio with our target aircraft types, improving fuel efficiency, reducing fleet age, and extending lease terms. They reflect our commitment to delivering value to stakeholders while adapting to evolving market needs."
The transactions are subject to regulatory approvals and customary closing conditions, with completion expected before the end of 2025. DAE was advised by Allen Overy Shearman Sterling LLP and KPMG, ensuring robust legal and financial oversight.
This move comes as the aviation leasing sector navigates post-pandemic recovery and geopolitical challenges. Demand for newer aircraft models remains strong, driven by airlines' need to replace aging fleets amid stricter emissions regulations.
Aviation industry expert Manoj K. John, founder and CEO of Aero Connections, said DAE's proactive portfolio management positions it to capitalise on these trends, reinforcing its role as a key player in the global aviation market.
"With a fleet valued at over $14 billion, DAE continues to strengthen its position through strategic divestitures and investments in next-generation aircraft," he said.
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