Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Dubai firm in $1bn turboprop deal  Join our daily free Newsletter

MENAFN - The Peninsula - 13/02/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - The Peninsula) Dubai Aerospace Enterprise (DAE) is to spend up to 1bn on new turboprop planes, the aircraft leasing company said yesterday, betting on growth in Asia's crowded regional and domestic markets



Having had to cancel big orders for commercial jetliners during Dubai's debt crisis, government-owned DAE has turned to turboprops used for short-haul trips for fewer than 100 passengers. Such aircraft can be operated more efficiently than many jets, particularly in an era of high oil prices



DAE, the largest aircraft leasing company in the Middle East, said it had ordered 20 turboprop commercial aircraft from French-Italian manufacturer ATR, with an option for a further 20 taking the deal's total potential value to 988m



"We aim to diversify our portfolio and expand into regional aircraft, to meet an increasing demand from airlines that are developing regional air connectivity," DAE Managing Director Khalifa Al Daboos said at the Singapore Airshow



After ordering more than 200 aircraft during an industry boom in 2007, DAE was forced to cancel orders as funds dried up in Dubai's debt crisis.



In 2011, it canceled outstanding Airbus orders worth 5.8bn, as well as orders for 35 Boeing 737s



DAE, which specialises in aircraft maintenance and leasing, ended talks with British aircraft services company BBA Aviation last year to merge parts of its business.



The company has been trying to sell US-based engine repair and maintenance firm StandardAero since 2010, Reuters has reported.



ATR, jointly owned by Airbus Group and Italy's Finmeccanica, is working on proposals for an all-new 90-seat aircraft rather than its best-selling 72-seat model. But so far it has failed to win shareholder approval as Airbus preserves engineering resources for other projects



Yesterday's order by DAE is for ATR 72-600s, with delivery expected between 2015 and 2018



The Dubai company has lined up customers for the first 20 aircraft and will decide on the options this year, Khalifa said



"ATRs are today operated by some 190 carriers all over the world, clearly providing us with potential opportunities to place this new fleet," he added



Also at the air show, Bangkok Airways said it is spending 200m to buy six ATR 72-600s, with an option for two more. The planes will replace the company's eight existing turboprops over the next three years. It has a total fleet of 25 aircraft



Bangkok Airways President Puttipong Prasarttong-Osoth said the company has yet to finalise its long-term fleet expansion plan.



Meanwhile, Airbus yesterday received its first order of the year for its flagship A380 when leasing firm Amedeo signed an 8.3bn deal for 20 of the superjumbos



The purchase agreement, signed at the Singapore Airshow, put the European manufacturer on track to meet its target of 30 orders for the world's largest passenger plane in 2014



Airbus had suffered some setbacks last year with the discovery of cracks on some of the giant jetliners' wings



But John Leahy, its chief operating officer for customers, said: "This firm order from Amedeo is a clear recognition of the A380's long-term market appeal.



"The A380 is the best tool for airlines to capture growth and increase profits.



Amedeo, formerly Doric Lease Corp, is the world's biggest manager of leased A380s



"As world air traffic continues to double every 15 years and airport infrastructure and slots do not, the A380 is the best solution for airlines to capture that growth," said Amedeo chief executive Mark Lapidus



The orders will be delivered from 2016 to 2020. Amedeo will announce its engine selection later. "Put it in the right routes at peak traffic times and it is an unbeatable profit-generating machine for airlines," Lapidus said



Airbus said more than 120 A380s are now in operation worldwide following its launch in 2007. Leahy said the company wants about 30 orders for the A380 this year



Despite the lift for Airbus from the Amedeo deal, one analyst said it should look beyond the A380



"It's more an exception than the rule because we don't see a huge demand for this aircraft," said Shukor Yusof, with Standard and Poor's Equity Research



"This is a niche aircraft meant for a small market. Airbus would do much better to focus on the A350," he said, referring to a new generation of long-range aircraft


 


The Peninsula




  MENA News Headlines
 Jul 4 2015 - Russian cargo ship heads to ISSThe Peninsula
(MENAFN - The Peninsula) A Russian Soyuz rocket blasted off yesterday to deliver a cargo ship loaded with food, water and equipment to the International Space Station, breaking a string of launch ...

 Jul 4 2015 - Doha Bank raises QR2bn Tier 1 capital-boosting bondThe Peninsula
(MENAFN - The Peninsula) In March, the bank said that it would issue capital-enhancing bonds with a perpetual tenor and an option for the bank to redeem them after six years, to boost the bank's Tier ...

 Jul 4 2015 - Qatar stock index edges lower this weekThe Peninsula
(MENAFN - The Peninsula) Qatar Stock Exchange (QSE) index edged lower this week when the bourse closed Thursday at 12,121.08 points, down 12.15 points, or 0.10 percent.The traded value of QR 1.32bn ...

 Jul 4 2015 - Mideast passenger demand growth soars 14pc: IATAThe Peninsula
(MENAFN - The Peninsula) The International Air Transport Association (IATA) announced global passenger traffic results for May showing strong demand growth compared to May 2014 for both domestic and ...

 Jul 4 2015 - Qatar- Milaha acquires 100pc controls in two liquefied gas carriersThe Peninsula
(MENAFN - The Peninsula) Milaha announced that its wholly owned subsidiary, Qatar Shipping Company, acquired the remaining 60 percent interest in each of the two entities that own the liquefied ...

 Jul 4 2015 - Tunisia arrests eight with 'direct links' to beach massacreThe Peninsula
(MENAFN - The Peninsula) Tunisia has arrested eight people in connection with last week's jihadist massacre at a seaside resort, as the remains of more British victims were set to be flown home ...

 Jul 4 2015 - Egyptian air strikes kill 23 militants in North Sinai: sourcesThe Peninsula
(MENAFN - The Peninsula) Egypt launched air strikes on Islamist militant targets in the Sinai peninsula on Thursday, killing 23 fighters a day after the deadliest clashes in the region in years, ...

 Jul 4 2015 - Saudi opens privatised airport for pilgrimsThe Peninsula
(MENAFN - The Peninsula) Saudi Arabia yesterday officially opened a billion-dollar aviation gateway aimed at pilgrims, in its first airport privatisation. Local media said Custodian of the Two Holy ...

 Jul 4 2015 - Kuwaiti Sunni and Shi'ite worshippers, pray together with Emir showing unityThe Peninsula
(MENAFN - The Peninsula) Kuwait deployed unprecedented security measures around Shiite mosques for Friday prayers following last week's deadly bombing, as the emir attended a rare Shiite-Sunni joint ...

 Jul 4 2015 - Top jihadist from Tunisia killed by US strike in LibyaThe Peninsula
(MENAFN - The Peninsula) A top Tunisian jihadist was killed by a US airstrike in Libya last month, The New York Times reported Friday.The jihadist, Seifallah Ben Hassine, also known as Abu Ayadh, was ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help