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Sun 1 Jun 2008 01:24 PM

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DAE to splash $2.5bn on 50 aircraft

State-controlled aerospace holding firm in talks with Boeing and Airbus to expand leasing business.

State-controlled Dubai Aerospace Enterprise (DAE) said it was in talks to buy 50 aircraft worth a total of about $2.5 billion to expand its leasing business.

DAE, which last year ordered up to $13.5 billion of aircraft from Airbus, is looking to buy single- and twin-aisle planes over the next 18 months, including Boeing 777s and Airbus A330s, Bob Genise, chief executive of DAE Capital, told newswire Reuters on Sunday.

DAE Capital is DAE's aircraft leasing unit.

"Despite the rise in jet fuel prices, there are pockets of strong performance," Genise said by telephone. DAE Capital could buy some of the aircraft from airlines and lease them back, he said.

Last year, DAE bought $1.5 billion of aircraft from Dubai state-owned Emirates and GE Commercial Aviation Services (GECAS), a unit of GE. It paid $1 billion for 20 planes from GECAS and $500 million for eight A330s from Emirates.

Genise declined to be more specific about which companies with which he is in talks. (Reuters)

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