DAE Capital, the aircraft leasing and financial business arm of Dubai Aerospace Enterprise, yesterday said it has signed an operating lease agreement with Garuda Indonesia, the country's flag carrier, to dry lease eight Boeing 737-800 aircraft.
The deal involves the sales and leaseback of eight new 737-800 aircraft, which are due to be delivered by Boeing from June this year.
DAE said the short-haul aircraft will join DAE Capital's fast growing fleet portfolio and will be dry leased for an extended term. The eight aircraft are part of a plan by Garuda to acquire 50 Boeing 737NG planes.
"The DAE business model provides us with an opportunity to help airlines manage their operations, even during a market downturn," said Omar bin Sulaiman, DAE Group's Managing Director, adding that this agreement would also add to Dubai's growing aircraft leasing market and fleet.
Garuda's CEO Emirsyah Satar said:"In addition to these 50 B737NG aircraft, Garuda Indonesia has also ordered 10 B777-300ER which will be delivered in 2010 to back up the airline's network expansions to cope with business development in 2009 and beyond."
He was quoted by an international news agency saying that the lease for each plane costs $45 million (Dh165m).
A dry lease, typically, is a leasing arrangement whereby an aircraft financing entity provides an aircraft without insurance, crew, ground staff, supporting equipment and maintenance.
DAE Capital's current fleet comprises 33 single-aisle and wide-body aircraft.
It also has 28 aircraft contracted on a purchase and leaseback basis.
DAE Capital said it has committed to invest in a fleet portfolio with an estimated market value of $27 billion that will gradually encompass 100 Airbus A320 family and A350 XWB aircraft, besides 100 Boeing 737 Next Generation and wide-bodies aircraft, which will commence delivery in 2010.
DAE Capital has ambitious plans of becoming an integral part of the global aerospace industry by the way of international alliances.