Dubai Aerospace Enterprise acquires Nordic Aviation Capital amid industry consolidation

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Dubai Aerospace Enterprise acquires Nordic Aviation Capital amid industry consolidation

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By Sky Industry News

Jan 8, 2025

Dubai Aerospace Enterprise (DAE) has announced the acquisition of Nordic Aviation Capital (NAC), marking a significant move in the aircraft leasing market. This transaction, while undisclosed in financial terms, is set to enhance DAE's fleet size and global reach.

As of September 2024, NAC managed 252 assets leased to approximately 60 airlines across 40 countries. The acquisition will expand DAE Capital’s fleet to about 750 owned, managed, and committed aircraft valued at roughly $22 billion. These aircraft are leased to around 170 airline customers in about 70 countries.

Firoz Tarapore, CEO of DAE, expressed enthusiasm for integrating NAC's capabilities into their operations. "This transaction will allow us to provide more cost-effective solutions to a larger group of customers," he stated.

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The acquisition will be funded through DAE's internal resources and committed debt financing. The company assures that its financial metrics will remain stable post-transaction. Completion of the deal is anticipated within the first half of the year pending regulatory and shareholder approvals from NAC.

Simultaneously, NAC has signed a lease agreement with Rise Air in Saskatoon, Canada for two ATR 72-600 aircraft.

Throughout 2024, DAE made several strategic acquisitions totaling at least 33 aircraft from various sources. In August, they purchased 23 aircraft for approximately $1.1 billion. The portfolio consists predominantly of narrowbody next-generation models like the Airbus A320neo or Boeing 737 Max.

DAE continued expanding by acquiring ten more aircraft in October for around $500 million and trading equity interests in managed aircraft portfolios between investors.

Over recent years, consolidation among aircraft lessors has been prevalent. Notable transactions include AviLease acquiring Standard Chartered’s leasing business for $3.6 billion and SMBC Aviation Capital merging with Goshawk Management to become a leading global player.

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