Dubai Aerospace in talks on $2.5bn aircraft order

State-controlled Dubai Aerospace Enterprise (DAE) said it was in talks to buy 50 aircraft worth a total of about $2.5 billion (Dh9.2 billion) to expand its leasing business.

DAE, which last year ordered up to $13.5 billion (Dh49.68 billion) of aircraft from Airbus is looking to buy single- and twin-aisle planes over the next 18 months, including Boeing Co 777s and Airbus A330s, Bob Genise, Chief Executive Officer of DAE Capital, told 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 (Dh5.52 billion) of aircraft from Dubai state-owned Emirates and GE Commercial Aviation Services (Gecas), a unit of GE. It paid $1 billion (Dh.3.68 billion) for 20 planes from Gecas and $500 million (Dh1.84 billion) for eight A330s from Emirates.

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