Dubai Aerospace Enterprise Signs $300M Loan Deal to Focus on Modern, Fuel-Efficient Fleet

Firoz Tarapore

Dubai Aerospace Enterprise (DAE) Ltd,  a global aviation services company, has signed a $300 million three-year unsecured term loan with Bank of China (Dubai) Branch, Bank of China Limited, London Branch and Bank of China (Hong Kong) Limited. The loan will be used for general corporate purposes and will support the future financing needs of the business.

Firoz Tarapore, chief executive officer of DAE, said the transaction with BOC provides the company with additional liquidity to support its ongoing commitment to meeting the needs of airline customers while maintaining a modern and efficient fleet.

“We are pleased to deepen our relationship with Bank of China and look forward to continuing our collaboration with the entire Bank of China group in the years ahead.”

Pan Xinyuan, general manager of Bank of China (Dubai) branch, said the bank values its growing relationship with DAE and is pleased to support this strategic financing. “The successful execution of this transaction reflects the strength of our global network and our ability to deliver tailored solutions that meet the evolving needs of our clients across the aviation sector. In the future, Bank of China will continue to contribute to deepening China-UAE relations and support the development of UAE enterprises.”

Last week, DAE finalised agreements to sell approximately 75 aircraft to two counterparties, marking a significant step in optimising its fleet.

Involving a mix of aircraft types, the deals are expected to enhance the efficiency and age of DAE’s portfolio, though financial terms remain undisclosed. The first transaction involves the sale of around 50 Embraer E-JETS to a specialist aircraft lessor. The second deal includes approximately 25 out-of-production aircraft sold to a financial investor, with DAE providing lease, asset, and technical management services.

According to DAE, these transactions align with its strategy to streamline its fleet by focusing on newer, more fuel-efficient aircraft, reducing the weighted average age of its passenger fleet while extending the average remaining lease term.

DAE’s pro forma fleet will now consist of 45 per cent Boeing aircraft, 42 per cent Airbus aircraft, and 13 per cent ATR aircraft. This shift reflects DAE’s commitment to modernising its portfolio, prioritising aircraft types that meet current market demands for efficiency and sustainability. With a fleet valued at over $14 billion, DAE continues to strengthen its position through strategic divestitures and investments in next-generation aircraft, according to aviation experts.

Source: Khaleej Times