Dubai Aerospace Enterprise to Acquire Nordic Aviation Capital

Dubai Aerospace Enterprise (DAE), a leading aircraft lessor, revealed on Tuesday that it has signed a definitive agreement to acquire Nordic Aviation Capital (NAC), a prominent aircraft leasing company established over 30 years ago. While the financial details of the transaction remain undisclosed, the deal marks a significant milestone in the aviation leasing sector.

Funding and Completion Timeline

DAE disclosed that the acquisition would be financed through internal resources and committed debt facilities. The transaction is expected to conclude in the first half of 2025, pending necessary regulatory and shareholder approvals.

“This transaction will allow us to provide more cost-effective solutions to a larger group of customers,” said Firoz Tarapore, CEO of DAE.

Expansion of DAE’s Fleet

Upon finalizing the deal, DAE Capital’s fleet will grow to approximately 750 aircraft, including owned, managed, and committed assets, with a combined value of around $22 billion. These aircraft will be leased to about 170 airlines across 70 countries, reinforcing DAE’s global presence in the aviation leasing market.

NAC’s Contribution to the Deal

As of September 2024, NAC’s portfolio included 252 owned and committed aircraft, leased to around 60 airline customers in 40 countries. This acquisition will further diversify DAE’s customer base and geographic reach, solidifying its position as a global leader in the sector.

Insurance Settlements and Cash Proceeds

Between October and December 2024, DAE secured approximately $201 million in cash proceeds from insurance claims related to aircraft previously leased to Russian airlines. To date, the company has collected $319 million in settlements, including $118 million from a 2023 agreement covering seven aircraft.

Recent Aircraft Purchases

In August 2024, DAE acquired 33 aircraft from multiple sellers in a deal worth approximately $1.6 billion. These aircraft have a weighted average age of 4.4 years and an average remaining lease term of 8 years. They are leased to 17 airlines operating in 13 countries, showcasing DAE’s strategic focus on acquiring modern and long-term assets.

Order Book and Delivery Challenges

DAE’s order book is secured through the second quarter of 2026. However, delays in near-term deliveries persist due to ongoing uncertainties from Boeing, impacting the company’s delivery schedule.

Financial Performance

DAE reported a 57% surge in its nine-month profit before tax, reaching $326.6 million. The company’s revenue also hit a record $1.02 billion, up from $989.2 million during the same period in 2023.

DAE’s Legacy and Fleet Overview

Founded in 1985, DAE serves over 170 airline customers in more than 65 countries. Its leasing division manages a fleet of approximately 425 aircraft, including Airbus, ATR, and Boeing models, with a combined value exceeding $18 billion. This acquisition of NAC further cements DAE’s position as a leader in the aviation leasing industry.