Dubai Aerospace Enterprise (DAE) and third party aircraft leasing company have signed an agreement to acquire Irish leasing company Nordic Aviation Capital (NAC). This transaction, aimed at integrating NAC into DAE’s structures, marks a significant step in the company’s expansion and could have far-reaching implications for the international aircraft leasing market. While the deal is still subject to regulatory and shareholder approval, it is expected to close within the next six months.
On January 7, 2025, DAE officially announced that it has a definitive agreement to acquire 100 percent of Nordic Aviation Capital’s shares. DAE is based in Dubai and will benefit from the acquired fleet and expanded market resources from NAC. As part of the transaction, DAE’s fleet will grow from the current approximately 500 aircraft to approximately 750 aircraft. This includes both owned and leased aircraft. The total value of this fleet is approximately $22 billion and the company will work with around 170 airlines in 70 countries in the future. This expansion significantly strengthens DAE’s market position and opens up additional opportunities for the company on a global scale.
Firoz Tarapore, CEO of DAE, commented on the acquisition and emphasized the strategic importance of the acquisition: “We are excited about the opportunity to bring NAC’s capabilities, complementary market presence and people to our platform.” This transaction should enable us to offer more cost-effective solutions to a larger group of customers.” The acquisition could therefore not only expand DAE’s fleet, but also lead to a better market presence and a stronger competitive advantage.
Nordic Aviation Capital’s market position
Irish-based Nordic Aviation Capital is a major player in aircraft leasing and has been providing leasing solutions for over 30 years. The company specializes in regional aircraft and is considered a leader in this segment. NAC owns and manages a fleet of 252 aircraft, including both owned and leased aircraft. This fleet is rented by 60 airlines in approximately 40 countries. The acquisition by DAE therefore represents a valuable expansion of the portfolio and could play an important role in the future direction of the company.
A DAE spokesperson said the transaction was adequately capitalized and would be funded through internal resources and committed debt financing. This means that DAE is able to finance the deal without significant risks to the company’s financial structure. DAE’s debt ratio will remain within the usual limits for the company and compatible with the credit ratings. This careful financial planning is intended to ensure that the company remains on a solid financial foundation and that the takeover can be implemented smoothly.
The strategic importance of the takeover
DAE’s acquisition of NAC could have a far-reaching impact on global aircraft leasing markets. By acquiring NAC, DAE, which is owned by the Investment Corporation of Dubai, could further expand its presence in the aircraft leasing industry and strengthen its market position in regions where NAC has previously been well positioned. The Irish provider Nordic Aviation Capital has attracted attention in recent years, particularly through the leasing of regional aircraft and narrowbody aircraft. This specialization could be of great benefit to DAE as the company looks to expand its operations to both regional and larger aircraft types.
In addition, the acquisition is interpreted as a response to changing market conditions and increasing demand for aircraft leasing solutions. Global air traffic has grown steadily in recent years, and airlines are increasingly looking for flexible solutions to expand their fleets without having to bear the high acquisition costs of new aircraft. In this context, DAE’s expansion during the acquisition of NAC could be a response to this market demand.
Financial details and market forecasts
The financial details of the transaction were only described in general terms in the DAE’s official announcement. However, it was emphasized that the funding will come through a combination of internal funds and debt financing already secured by DAE. This structure is intended to ensure that the company continues to be able to pursue its long-term financial objectives and fully exploit the synergies from the acquisition.
Analysts also believe the transaction could help stabilize the aircraft leasing market globally. Particularly noteworthy is the expansion of DAE’s portfolio, which will now also be more strongly represented in the regional aircraft segment with the takeover of NAC. This type of aircraft is increasingly in demand by airlines in different parts of the world, which could significantly increase DAE’s market opportunities in the next few years.
With the acquisition of Nordic Aviation Capital, Dubai Aerospace Enterprise takes another important step in its expansion into the global aircraft leasing market. The company has a significant expansion of its fleet and the integration of an established player in the regional aircraft sector. In the long term, this transaction could help DAE to build its market position and offer its customers an even wider range of leasing solutions. The takeover remains subject to regulatory and shareholder approval, but is expected to be completed within the next six months.
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