Arabic Press Release
Dubai Airshow 2007 , 12 November, 2007
DAE SEALS BOEING AIRCRAFT PURCHASE AGREEMENT
DAE Capital signs agreement for 100 Boeing next generation aircraft
In one of the largest ever single aircraft deals, Dubai Aerospace Enterprise (DAE), the global aerospace, manufacturing and services corporation today signed a letter of intent (LOI) for the purchase of 100 aircraft valued at approximately US$13.7 billion with Boeing Commercial Airplane Company
Signing the agreement, HH Sheikh Ahmed bin Saeed Al-Maktoum, DAE Chairman, today said: “DAE Capital, by signing this purchase agreement, has begun executing a vision and strategy that will make it a leader in the aircraft leasing market segment, globally, in a very short span of time.”
DAE Capital, the group’s aircraft leasing and financing business, plans to expand its fleet of aircraft with this purchase comprising 70 Boeing 737 Next Generation aircraft and 30 wide-body planes. The wide-body fleet will be split between Boeing 787s, 777s and 747s.
The price incorporates an associated deal with General Electric (GE) for 70 CFM56-7B engines for the 737s, GEnx-engines to power five Boeing 747-8 Intercontinental and further GE90-115B engines to power 10 Boeing 777-300ER aircraft. The engines are together valued at more than US$1.9 billion of the $13.7billion.
The deal was concluded at a signing ceremony at the Dubai Airshow. Both organisations will work towards finalising a contract to have aircraft deliveries starting in 2010 and continuing into 2018.
DAE Group Managing Director, H.E. Dr. Omar bin Suleiman, said: “DAE Capital makes history today as it concludes the signing of major agreements with aerospace industry-leading companies. The DAE Capital team has worked very hard to make today possible.”
Bob Johnson, DAE Group CEO, said: “DAE Capital will quickly rise to become a world-class aircraft leasing business. When added to our new portfolio, the Boeing fleet of aircraft will give our customers further access to a fleet of modern standard and wide-body aircraft.”
Bob Genise, CEO of DAE Capital, added: “This deal, along with DAE’s access to efficiently priced capital, will help DAE generate significant returns for our investors. Moreover, it allows DAE Capital to offer all airlines attractively priced operating lease terms and will help us to become a major force in this industry.”
Scott Carson, CEO, Boeing Commercial Airplanes, commented: “DAE has developed a core team of experts who know the aircraft operating lease industry inside-out. We are delighted that our strategic partnership has reached a new phase with the signing of this agreement. It is one that will allow us to help DAE manage the delivery stream of advanced, new aircraft well into the next decade.”
DAE Capital provides its clients and investors a proposition few others can match. As one of six divisions under DAE, DAE Capital offers a synergised cluster of aerospace services, allowing customers to benefit from a world-class shared knowledge and service pool.