Image credit: Dubai Aerospace Enterprise
Aircraft lessor Dubai Aerospace Enterprise (DAE) said on Tuesday that it had signed a definitive agreement to acquire Nordic Aviation Capital (NAC), an aircraft leasing company formed over 30 years ago, without disclosing the value of the transaction.
DAE said that the acquisition will be capitalised and funded by internal resources along with committed debt financing. It is projected to be completed in the first half of 2025, subject to regulatory and shareholder approvals.
“This transaction will allow us to provide more cost-effective solutions to a larger group of customers,” said Firoz Tarapore, CEO of DAE.
DAE Capital’s fleet will expand to approximately 750 aircraft – owned, managed, and committed – worth around $22bn upon deal closure. The aircraft will be leased to roughly 170 airlines in approximately 70 countries.
NAC’s fleet comprised 252 owned and committed assets on lease to approximately 60 airline customers in approximately 40 countries as of September 2024.
Meanwhile, between October and December 2024, DAE settled claims with select insurance companies, receiving approximately $201m in cash proceeds. The claims related to aircraft previously leased to airlines in Russia.
To date, the aircraft leasing company has received $319m in cash proceeds, including a 2023 settlement for seven aircraft.
DEA acquired 33 aircraft from multiple sellers in a deal valued at approximately $1.6bn last August. The acquired aircraft portfolios have a weighted average age of 4.4 years, a weighted average remaining lease term of 8 years and are on lease to 17 airlines in 13 countries.
The company’s order book positions extend until Q2 2026. However, continued delivery uncertainty from Boeing is causing delays in near-term deliveries.
DEA’s nine-month profit before tax jumped by 57 per cent to $326.6m, while its revenue reached a record $1.02bn from $989.2m for the same period in 2023.
Founded in 1985, DEA serves more than 170 airline customers in over 65 countries. The group’s leasing division manages a fleet of about 425 Airbus, ATR, and Boeing aircraft with a value exceeding $18bn.
Read: UAE’s DAE, AXA clinch deal as battle over jets ‘lost’ in Russia kicks off
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