DAE's new aircraft leasing business takes limelight at the Dubai Air Show 2007

The aircraft leasing and financing arm of Dubai Aerospace Enterprise (DAE), the global aerospace, manufacturing and services corporation, DAE Capital has taken centre stage at the airshow with a quick-fire series of announcements over the last 24 hours. These involved:

•The $500m purchase of eight Airbus wide-body Airbus A330-200s from Emirates Airline in a split purchase and leaseback deal that marked DAE Capital's entry into the aircraft leasing market.
•Signing of a $1bn acquisition of 20 narrow and wide-body aircraft from GE Commercial Aviation Services (GECAS) in a deal comprising Boeing 737 next generation series and Airbus A320 series aircraft.

•And completed new aircraft and engine deals through:
-signing a letter of intent with Airbus worth $13.5bn for up to 100 aircraft comprising 70 from A320 family and 30 A350 XWBs - with deliveries to start in 2013 and conclude in 2022. The price incorporates an associated deal with Rolls-Royce for its Trent XWB engines to power the A350 XWBs, worth some $1.2bn at list prices;
-completing a letter of intent (LOI) for 100 aircraft valued at approximately $13.7bn with Boeing Commercial Airplane Company - comprising 70 Boeing 737 Next Generation aircraft and 30 wide-body planes (covering Boeing 787s, 777s and 747s) for delivery between 2010 and 2018. 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 $1.9bn.

The total value of the DAE Capital announcements was $28.7bn.

Speaking at the Dubai Airshow today, HH Sheikh Ahmed bin Saeed Al-Maktoum, DAE Chairman, said: "We have begun to lay down a bold vision for DAE across all of its business units and today's announcements by DAE Capital will make it a global leader in the aircraft leasing market."

DAE Group Managing Director, H.E. Dr. Omar bin Suleiman, said: "DAE Capital has made history today by signing major agreements with aerospace industry-leading companies. The DAE Capital team has only been together for six months but has demonstrated its quality by making today possible and is now making its mark on this industry."

Bob Johnson, DAE Group CEO, said:

"In 24 hours DAE Capital has become an aircraft leasing and finance provider that has made the world sit up and take note. We are fulfilling our aim of rapidly building a world-class global aerospace, manufacturing and services business. DAE Capital will quickly rise to become a world-class aircraft leasing business - providing customers with a combination of one of the world's most experienced aircraft leasing teams that is managing a fleet of modern single aisle and wide-body aircraft."

Bob Genise, CEO of DAE Capital, said: "In placing one of the largest ever commitments for new aircraft and engines we have made a bold statement of our intent. These deals, together with DAE's access to efficiently priced capital, will help DAE Capital offer attractively priced operating lease terms to airlines and generate significant returns for our investors. We have taken bold steps toward becoming a major force in this industry."

In the last six months DAE Capital has recruited an experienced team and is now intent on driving a rapid growth strategy for offering aircraft leasing, financing and insurance services. It is also uniquely able to provide advanced value-added services in conjunction with other DAE business units.

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