Dubai Aerospace Enterprise will fully own Nordic Aviation Capital

BY THE ARAB TODAY Jan 08, 2025

Dubai Aerospace Enterprise will fully own Nordic Aviation Capital
Dubai Aerospace Enterprise will fully own Nordic Aviation Capital

Dubai Aerospace Enterprise will fully own Nordic Aviation Capital

Dubai Aerospace Enterprise (DAE) announced on Tuesday that it has officially agreed to buy all of Nordic Aviation Capital (NAC), increasing its presence in the aircraft leasing business.

Nordic Aviation Capital Acquisition

The details of the deal were not shared publicly. DAE said they will pay for the purchase using a mix of their own money and pre-arranged loans. This will help the company keep its strong financial health and good credit ratings.

The deal is expected to be finalized in the first half of the year. It is planned in a way that won’t affect DAE’s cash reserves or daily operations. By using both internal funds and loans, the company is taking a balanced approach to financing.

Adding NAC’s assets and expertise to DAE is expected to bring new opportunities for growth, innovation, and better customer service.

“This deal will help us offer more affordable solutions to more customers,” said DAE CEO Firoz Tarapore.

The agreement still needs approval from regulators and NAC Holdings’ shareholders before it can be completed.

NAC’s Fleet

As of September 2024, NAC, a 30-year-old company, owned 252 aircraft that were leased to around 60 airlines in 40 countries.

After combining with DAE Capital, the new fleet will include about 750 aircraft, worth $22 billion, leased to around 170 airlines in nearly 70 countries.

In 2024, DAE acquired 83 aircraft and completed 233 leasing deals due to high demand. These acquisitions included both new and used planes, strengthening DAE’s global business. Of the 83 planes, 30 were owned, and 53 were managed.

DAE also signed agreements to buy 36 more planes for $1.6 billion. The 233 lease deals included new leases, extensions, and changes to existing agreements.

Published: 8th January 2025

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