Dubai Aerospace Enterprise announced on Thursday that it plans to acquire aircraft leasing company Macquarie AirFinance at an enterprise value of approximately $7 billion to form a consolidated fleet of 1,029 aircraft and one of the largest lessors globally.
The sale is the result of a competitive bidding process that highlights the high interest of investors in aircraft assets as Boeing and Airbus are struggling to increase their production to satisfy the airline demand.
The global aircraft leasing market is headed by AerCap Holdings N.V. and SMBC Aviation Capital, both based in Ireland. Analysts stated that the Macquarie AirFinance deal would propel DAE to the elite category.
Tim Waterer, chief market analyst at KCM Trade, said, “(It) … fast tracks Dubai Aerospace Enterprise to the forefront of global aircraft leasing.” He added that the deal also diversifies the customer base of the Dubai state-owned lessor, as well as exposes it to newer aircraft, even though the major manufacturers are still facing supply constraints.
DAE added that the merged fleet will support 191 airlines in 79 countries, of which approximately 70 percent of their portfolio will be narrowbody jets.
The acquisition, which will bring 37 airline customers, including carriers in seven countries in which DAE is not operational, will be financed by a combination of debt and equity.
DAE CEO Firoz Tarapore stated that the deal would create a “bigger, stronger, more diversified and well-capitalized” company, citing that the scale of the resulting combination would allow the company to provide more competitive pricing and larger customer offerings.
DAE is owned by the Investment Corporation of Dubai, the main investment arm for the government of the emirate. The company acquired Dublin-based AWAS, the world’s tenth largest aircraft lessor, in 2017.
The Macquarie AirFinance is the property of the Australian diversified investment services provider Macquarie Group. DAE said in a statement that the deal has received the board approval of DAE and is awaiting regulatory approvals. It is predicted to close during the second half of 2026.
