UAE’s aircraft-leasing company Dubai Aerospace Enterprise (DAE) has acquired 17 used aircraft for USD 1 bn, according to a statement published on Friday. The new aircraft are currently on lease to 11 airlines across 10 countries.

In numbers: The new uptakes are all next-generation aircraft — 80% of which are manufactured by Airbus and the remaining 20% by Boeing. The new uptakes are forecasted to cut down DAE’s weighted average fleet age to 6.9 years, and boost its fleet lease term remaining to 6.6 years.

The context: The firm continues to source assets in the secondary market, in an effort to meet its growth targets amid ongoing orderbook delivery delays from both Airbus and Boeing.

On the flip side: DAE is also trying to take advantage of the hot demand for jet maintenance providers as delays in new jet deliveries and global aircraft shortage push airlines to extend the life of older planes. Last summer, DAE indicated that its MRO services arm Joramco were fully booked for 18 months in advance — citing a surging demand for MRO services amid aircraft delivery delays.

REMEMBER- Retrofits and leases are on the rise: Regional players are increasingly resorting to leases and retrofits amid delivery delays in the plane-making industry. UAE’s Emirates Airways is investing nearly USD 5 bn in cash to upgrade its existing aircraft — including Airbus A380 jumbo and Boeing’s 777 — in a bid to hedge against deliveries of backlogged orders. Etihad Airways also plans on retrofitting the older Boeing wide-bodies starting 2026.

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