Dubai Aerospace Enterprise joins big league of airplane lessors
21 November 2007
Dubai Aerospace Enterprise (DAE), a holding company owned by the Dubai government, is all set to become a big player in the global aerospace business, after purchasing 228 Airbus and Boeing commercial planes at the Dubai Air Show last week. The purchases will make DAE one of the world''s largest lessors of airplanes.
These record purchases put DAE in direct competition with the big boys in the business, such as International Lease Finance Corp (ILFC), and GE Commercial Aviation Services.
But market analysts predict that DAE will take up to a decade to establish itself as a major competitor, especially as they are entering the market by paying much higher rates for the same aircraft that its competitors booked for much cheaper prices.
Dubai Aerospace Enterprise was established in 2006, with $15 billion in seed money from the country''s ruling Maktoum family.