UAE aircraft-leasing company Dubai Aerospace Enterprise (DAE) is reportedly mulling the sale of its Jordan-based maintenance, repair and overhaul (MRO) unit Joramco, Bloomberg reports, citing sources with knowledge of the matter. DAE has reportedly tapped Morgan Stanley for the possible sale, which could see it divest its entire holding — about an 80% stake — in the company. Royal Jordanian airline currently holds the remaining 20%.

DAE could be trying to take advantage of the hot demand for jet maintenance providers, as delays in new jet deliveries by Boeing and Airbus and global aircraft shortage push airlines to extend the life of older planes. Last summer, the company said that its services were fully booked for 18 months in advance, citing a surging demand for MRO services amid aircraft delivery delays. The company also plans to open a new hangar by this month to accommodate this growth, Bloomberg reports.

About Joramco: The company serves more than 130 customers across over 60 countries through 5 hangars and 10 workshops, according to DAE’s investors presentation (pdf). Most of its business is concentrated in Europe (58%), followed by the Middle East (34%) and South Asia (4%). This MRO provider reported a 35% rise in sales in 9M 2024.

Tags: