KEY POINTS:
Who and what is Dubai Aerospace Enterprise?
The organisation identified today as bidding to buy Auckland International Airport is like many things from the United Arab Emirates: new, largely untested but already with global ambitions.
The Middle East business headquartered on the shores of the Persian Gulf is chaired by Sheikh Ahmed bin Saeed Al Maktoum, part of the billionaire Maktoum family who run the tiny emirate of Dubai, which derives its money as a global service centre for neighbouring oil-rich emirates like Abu Dhabi.
Where once the oil-rich Arabs frittered their money on Rolls Royces and designer gear, now these investors buy prized global assets with long-haul returns. And as DAE chief and American Bob Johnson said in Auckland yesterday, the business regards Auckland Airport as part of his plans to "build up an airport portfolio for the next 100 years".
According to website dubaiaerospace.com, DAE is only 15 months old.
But it is already so global in its outlook that it has turned its gaze to the other side of the world and Auckland Airport.
The Dubai-headquartered multi-national aerospace manufacturing and services corporation is partly owned by the Dubai Government and is seeking to become a major player in the international aerospace industry.
DAE is just one of Dubai's long list of mega-projects.
Its focus is on aircraft spare parts manufacturers, aircraft leasing and maintenance, airport management and an aerospace university.
Only formed in February last year, DAE is headed by Bob Johnson who took over last August. The former chairman and chief executive of Honeywell Aerospace was in Auckland to announce the deal yesterday with AIAL.
DAE's divisions are:
* DAE Airports: Run by Kjeld Binger from Copenhagen, also in Auckland yesterday, charged with acquiring and developing airport assets worldwide.
* DAE Capital: aircraft leasing and financing services business.
* DAE Manufacturing & Engineering: Aircraft research, development, manufacturing and assembly business.
* DAE Services: aviation industry technology-based products and services business.
* DAE University, headed by Dr George Ebbs. The academic aerospace institution opened last October. Ebbs was previously president of the Embry-Riddle Aeronautical University in Florida, one of the world's biggest aviation universities offering courses in engineering, aviation sciences and aviation business administration.
DAE's shareholders include the Government of Dubai, Dubai Airport Free Zone Authority, Dubai International Capital and Dubai International Financial Centre.
John Maasland, an Auckland Airport director, said the board believed DAE would bring additional aviation and tourism development experience to the airport company.
Last month, DAE and Boeing announced they had agreed to work together in developing Dubai's aerospace industry.
The two companies were reported as signing a memorandum of understanding at the Paris Air Show to collaborate in aircraft services, customer education, financing and maintenance, repair and overhaul operations. A joint steering committee will be set up to oversee projects.
DAE has also bought Swiss-based SR Technics, an aircraft maintenance, repair and overhaul business with contracts at Heathrow, Luton, Zurich and Hong Kong. DAE also wants to buy two United States businesses - Standard Aero and Landmark Aviation - from the Carlyle Group.
Auckland Airport has the city's largest land bank: 1500ha of freehold land within just 21km of the central business district. Of that, the airport has just 80ha ear-marked for development in the near future.
WHAT'S IN IT FOR US?
What could DAE do for Auckland?
Representatives from Auckland Airport and Dubai Aerospace were reluctant to talk about specifics, but opportunities could be:
* Transform the airport into a global hub for aircraft servicing and maintenance;
* Use DAE's new contract with Boeing to develop and expand airport services;
* Build at least one international airport hotel in vast undeveloped tracts of land; and
* Tap into tourism potential and market New Zealand globally as a destination.
