DAE ups narrowbody exposure with AWAS: Fleet Tracker
Dubai Aerospace Entreprise (DAE) will further diversify its portfolio in terms of aircraft assets and customers through the acquisition of Terra Firma’s AWAS portfolio.
The Dubai-based operating lessor, which has exposure to narrowbody and widebody passenger and freighter aircraft, expanded its scope by entering the turboprop market in 2014. It committed to 20 ATR72-60s as well as 20 options.
Since then, DAE has acquired ATR72-600s from airlines through sale and leaseback deals.
It also acquired 14 aircraft of the type with leases attached in March of this year from GECAS.
“DAE firmly believes in the potential of the ATR72-600 in regional networks, both in terms of its technical capabilities as well as the superior customer experience it provides. Especially in emerging markets, the ATR72-600 has proven to be an invaluable asset that we will continue to invest in,” says DAE’s managing director Khalifa AlDaboos.
The acquisition falls in line with DAE’s long term strategic interest in ATR aircraft, of which DAE ultimately expects to own up to 100 units.
DAE’s current portfolio includes 111 aircraft in service, of which 48 are ATR72-600s, 35 narrowbody aircraft and 28 widebodies, according to Airfinance Journal’s Fleet Tracker.
Almost half the lessor’s footprint is in Asia (40 aircraft) while Middle East and Latin America follow with 23 and 20 aircraft, respectively.
Fleet Tracker shows DAE has 10 aircraft in Europe and five in North America. The remaining two are with African operators.
The acquisition of the AWAS portfolio will diversify the lessor’s business on products types and consolidate its regions presence.
AWAS' portfolio includes 224 commercial aircraft with customers along with a pipeline of 23 aircraft deliveries through the end of 2018.
The majority of the portfolio is focused on current narrowbody aircraft with the Airbus A320 model accounting for 37.1%. The Boeing 737-800 model represents 31.7% of the portfolio.
AWAS also has 12 A319s and 10 A321s in operation, six 737-700s and a pair of 757s.
More Asian presence
The widebodies account for 36 units, with most of the exposure around the A330 models.
The Irish-based lessor has 13 A330-300s and seven A330-200s in its portfolio with the majority of leases being with Asian operators.
Fleet Tracker lists Asiana Airlines, AirAsia X, China Eastern Airlines, Garuda Indonesia, Hong Kong Airlines, Qantas, Philippine Airlines and Singapore Airlines as operators along with Brussels Airlines, BH Air and Ukraine International.
AWAS’ portfolio also includes eight 767-300ERs, three 787-8s, a single 777-300ER as well as four 747 freighter aircraft.
About 40% of the portfolio is with Asian airlines, with 17 aircraft in China, Fleet Tracker shows.
By acquiring AWAS, DAE also consolidates its presence in Europe and North America with 50 and 24 more aircraft, respectively.
The move also opens new markets in the CIS region with a number of Russian lessees that include Aeroflot Russian Airlines, Pobeda Airlines, VIM Airlines and Azur Air.
Orders
The Dublin-based lessors placed an order for 15 A320 family aircraft in June 2016, comprising 12 A320s and three A321s. So far it has announced placements of 11 units.
AWAS has agreed to lease five A320s to All Nippon Airways low-cost subsidiary Vanilla Air. The lessor has also announced a three-aircraft lease agreement with China’s Spring Airlines and another three with India’s IndiGo Airlines.
It has also contracted a purchase-leaseback agreement with Brazil’s GOL Linhas Aereas for a total of five 737 Max 8 aircraft. Delivery of the aircraft are scheduled between between June 2018 and November 2018. The lease terms are 12 years.