Dubai Aerospace Enterprise Acquires Macquarie AirFinance
Dubai Aerospace Enterprise (DAE) Ltd has made significant strides in the aircraft leasing sector by finalizing an agreement to purchase 100% of Macquarie AirFinance Limited (MAF). This all-cash transaction comes with an estimated enterprise value of around $7 billion, marking a pivotal moment for DAE as it expands its operations and customer base in the aviation industry.
A New Era for DAE
With this acquisition, DAE is poised to manage a combined fleet of 1,029 aircraft that it owns, manages, or has committed to, servicing 191 airline customers across 79 countries. Notably, narrowbody aircraft will constitute about 70% of this enlarged fleet. Following the completion of this deal, DAE anticipates adding 37 new airline customers, broadening its reach into seven new markets.
Financing the Transaction
The financial structure of this acquisition will involve a mix of debt and equity, designed to sustain DAE’s current investment-grade credit ratings. The company aims to secure an upgrade following what it describes as a significant expansion of its franchise over the last 18 months. Such a strategic acquisition not only enhances its market presence but also ensures the firm’s financial stability.
Approval and Anticipated Timeline
DAE’s Board of Directors has approved the transaction, which is now pending customary closing conditions, including necessary regulatory approvals. The deal is expected to be finalized in the latter half of 2026. DAE has engaged Allen Overy Shearman Sterling LLP and KPMG for advisory support throughout this process.
DAE’s Global Operations
Headquartered in Dubai, DAE operates through two primary divisions: DAE Capital and DAE Engineering. The company boasts a diverse clientele, serving over 200 airline customers from more than 80 countries in its offices located in Dubai, Dublin, Amman, Singapore, Miami, and Seattle.
DAE Capital oversees a fleet comprised of approximately 700 aircraft, including models from Airbus, ATR, and Boeing, with a fleet value estimated at $25 billion. Meanwhile, DAE Engineering specializes in maintenance, repair, and overhaul (MRO) services across Europe, the Middle East, Africa, and South Asia. Its facility in Amman is authorized to service 16 types of aircraft, while holding regulatory approvals from over 30 global aviation authorities.
Key Insights from DAE Leadership
Khalifa AlDaboos, DAE’s Managing Director, emphasized the implications of this transaction for the company’s vision, stating, “This transaction underscores the shareholder’s unwavering commitment to establishing DAE as a leading aircraft leasing company. It continues our tradition of acquiring reputable platforms and fleets that substantially increase shareholder value.”
Firoz Tarapore, the Chief Executive Officer of DAE, shared his excitement regarding the acquisition, highlighting its potential to bolster the company’s capabilities. “We are eager to integrate the fleet and personnel of MAF into our operations, which will enhance our scale, diversification, and capital strength. This expanded order book positions us to serve new clients with competitive offerings that leverage the synergies gained from this merger. Our robust infrastructure is well-equipped to manage the onboarding process, which will more than double DAE’s fleet size by the end of 2024.”
Looking Ahead
As DAE prepares to embark on this new chapter, the acquisition of Macquarie AirFinance stands as a testament to the company’s ambition and strategic vision. The growth trajectory indicated by this deal will likely position DAE favorably within the global aviation market, reaffirming its status as a dynamic player in aircraft leasing.
