$15bn aviation hub for Dubai
DUBAI will invest $15 billion in an aviation services corporation that is eyeing the booming markets of Asia and the Middle East.
Dubai Aerospace Enterprise (DAE) includes an aircraft leasing and financing business as well as an airport development and operations unit.
The new conglomerate says it plans aircraft purchase and leaseback deals that could boost already explosive growth among regional airlines. According to tradearabia.com, Mohammed Al Zarouni, managing director of newly formed Dubai Aerospace Enterprise (DAE), says the $15 billion his company will invest in the next five years could include buying planes from Middle East Gulf airlines such as Emirates and then leasing them back in deals that would give such carriers even greater muscle to expand.
He pointed to the 50 Airbus A380 doubledeckers recently ordered by Middle East Gulf airlines as the sort of asset DAE could target in its leaseback plans. This fleet of planes alone is worth over $15 billion at list prices, indicating the kind of liquidity airlines could find at their disposal through such deals.