Dubai Aerospace Enterprises, formed last year with the goal of becoming one of the biggest airport and aviation services companies, plans to buy at least 125 planes for its leasing unit over the next five years, the Khaleej Times reports.
The company - which has bid $1.8 billion
to buy Auckland International Airport - said it probably needed more than US$4 billion ($5.8 billion) of debt financing, from within the United Arab Emirates, to purchase the planes.
It will try to buy the planes initially from leasing companies but will focus mainly on sale-lease back agreements with airlines.
The Emirate of Dubai has earmarked more than US$82 billion for investment in the aviation and aerospace industry to create a transport hub for the region.
Money earned from real estate, tourism and state companies is being invested overseas as the emirate's economy expands at more than 10 per cent a year.
About 70 to 80 per cent of the planes DAE Capital will buy in the next five years are expected to be direct transactions with airlines.
The company is looking to buy single-aisle planes including Boeing 737-800s and Airbus A320 and A319 models. It is also considering wide-body models from both major aircraftmanufacturers.
DAE's bid values Auckland Airport at $2.3 billion, and it has said it plans to buy 51 per cent at $2.80 a share, if its offer receives 75 per cent shareholder approval.
- NZPA
