DAE posts 283pc surge in 2015 net income

Dubai - The net book value of the portfolio at year end 2015 grew to approximately Dh14.5 billion.

Aircraft leasing and maintenance company, Dubai Aerospace Enterprise Ltd. reported on Monday that its 2015 net income, including gain on sales of a subsidiary, surged 283 per cent to Dh2.243 billion.
Revenue for full year 2015 increased to Dh1.499 billion from Dh1.431 billion in 2014. "Revenues for 2014 are restated to exclude the results of StandardAero, which was sold in July 2015," DAE said in a statement.
DAE Managing Director Khalifa H. Al Daboos said 2015 was an important year for the leasing company.
"The sale of StandardAero in July 2015 marked the first step in reallocating our capital towards building a world-class aerospace footprint anchored in Dubai. The DAE Capital division continued its growth trajectory in 2015. The net book value of the portfolio at year end 2015 grew to approximately Dh14.5 billion," Al Daboos said.
DAE Capital has firm commitments to acquire 23 additional aircraft. "The team was further augmented in 2015 to support the anticipated future growth of the business," he said.
For 2014, DAE posted a 43 per cent profit increase of Dh586 million.  DAE has two divisions: engineering, which maintains, repairs and overhauls aircraft; and capital, which is the region's leaser of aircraft.
In 2015, DAE sold its subsidiary StandardAero, an engine maintenance, repair and overhaul (MRO) company, to an affiliate of private equity firm Veritas. DAE acquired StandardAero in 2007 from the global asset management Carlyle Group. Soon after it was set up with the ambition to become one of the world's largest aircraft lessor but was forced to cancel plane orders during the global credit crunch and the debt crisisDubai's DAE did not disclose the value for the deal but said it will use the proceeds from the sale to expand the rest of its operations, including to 'aggressively acquire' more aircraft to expand it leasing business. Sources quoted by Reuters said the deal would be valued at over $1.8 billion.
In 2014, DAE, the largest aviation leasing firm in the Middle East with an aircraft portfolio of approximately $3.3 billion comprising B737s, B777s, A320s and A330s, ordered 40 aircraft from the French-Italian manufacturer ATR in a deal worth $988 million.  The deal represents DAE's first order for regional aircraft.
DAE, which came into being in 2006, was created to support Dubai's growth as an aerospace hub and boost the emirate in the aircraft leasing business. The company's shareholders include Investment Corp of Dubai, Dubai International Capital, Dubai Silicon Oasis Authority, Istithmar World and Emaar Properties.
issacjohn@khaleejtimes.com