2nd March, 2009
DAE CAPITAL TO DRY LEASE AIRCRAFT TO GARUDA
Dubai-based aircraft leasing business signs a lease agreement
with Indonesia’s flag carrier
DUBAI, UAE - DAE Capital, the aircraft leasing and financial business arm of Dubai Aerospace Enterprise (DAE), has signed an operating leasing agreement with Garuda Indonesia for eight Boeing 737-800 aircraft. The signing ceremony, attended by Indonesian president Susilo Bambang YUDHOYONO, took place in Ritz Carlton Hotel, SCBD, Jakarta during the World Islamic Economic Forum (WIEF) today (02/03).
The deal with Indonesia’s flag carrier involves the sales and leaseback of eight new B737-800 aircraft which are due to be delivered by Boeing from June 2009. The short-haul aircraft will join DAE Capital’s fast growing fleet portfolio and will be dry leased for an extended term.
H.E. Dr. Omar Bin Sulaiman, DAE Group Managing Director said that: “The DAE business model provides us with an opportunity to help airlines manage their operations, even during a market downturn. As this is one of our key strengths, it’s gratifying to be given the opportunity to work with Indonesia’s largest carrier in completing this agreement, which also adds to Dubai’s growing aircraft leasing market and fleet “.
Bob Genise, CEO of DAE Capital, said: “Once delivered to Garuda, the airline’s passengers will immediately benefit from the modern design and comfort provided by these new aircraft. This operating lease also represents further evidence of how our flexible leasing proposition can benefit airlines, improving both cash-flow and fleet management.”
Emirsyah Satar, President & CEO Garuda Indonesia, said: “We are delighted with our agreement with DAE Capital, a company with proven credentials in aircraft leasing. We look forward to building a long-term relationship with this highly capable leasing and finance enterprise. DAE finances the first 8 of Garuda’s total order of 50 Boeing 737-800 Next Generation aircraft which will be delivered starting mid-2009. These new aircraft are specifically configured for Garuda Indonesia, with more advanced avionics, more fuel efficient, eco-friendly engines, and a “state of the art” Inflight Entertainment System in all classes”.
“In addition to these 50 B-737NG aircrafts, Garuda Indonesia has also ordered another 10 B777-300ER which will be delivered in 2010 to back up the airline’s network expansions to cope with business development in 2009 and beyond”, explain Emirsyah.
DAE Capital’s fleet currently comprises 33 single aisle and wide-body aircraft. Furthermore, it has 28 aircraft contracted on a purchase and leaseback basis. DAE Capital has committed to invest in a fleet portfolio with an estimated market value of $27 billion that will gradually encompass 100 Airbus A320 family and A350 XWB aircraft, and 100 Boeing 737 Next Generation aircraft and wide-body planes, which will commence delivery in 2010.