Quotes: US 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


 






  MENA News Headlines
 Jul 30 2014 - Safe haven status boosts investment scope in UAEspanKhaleej Times
(MENAFN - Khaleej Times) E political situation in the region has made Dubai into a magnet for families from across the region to set up home and establish regional or global offices for their ...

 Jul 30 2014 - Tech Mahindra eyes expansion in Saudi ArabiaspanKhaleej Times
(MENAFN - Khaleej Times) Ch Mahindra a specialist provider of connected solutions has announced that it has signed a joint venture agreement with Midad Holding which is a subsidiary of Al Fozan a ...

 Jul 30 2014 - Middle East earns 1 of global market research revenuesspanKhaleej Times
(MENAFN - Khaleej Times) E entire Middle East region earned only a meager one per cent of the global market research revenues which indicates the potential for market research that is prevalent in ...

 Jul 30 2014 - Dewa to show smart initiatives at Gitex 2014spanKhaleej Times
(MENAFN - Khaleej Times) Bai Electricity and Water Authority or Dewa has announced its participation in Gitex 2014 to be held from October 12-16 at the Dubai World Trade Centre.Dewa will showcase its ...

 Jul 30 2014 - Sico first-half net profit jumps 166spanKhaleej Times
(MENAFN - Khaleej Times) Curities & Investment Company or SICO licensed by the Central Bank of Bahrain as a conventional wholesale bank announced its financial results for the second quarter of 2014 ...

 Jul 30 2014 - Taqa Arabia eyes Egypt expansionspanKhaleej Times
(MENAFN - Khaleej Times) Laa Holdings announced that its energy sector subsidiary Taqa Arabia aims to expand its network of fuel stations in Egypt through Taqa oil marketing company.The company ...

 Jul 30 2014 - Real estate to pick up from next week: Industry expertspanKhaleej Times
(MENAFN - Khaleej Times) Bai Land Department transactions exceeded Dh113b for H1 The real estate market in Dubai is expected to pick-up again from next week after a slowdown during the last couple of ...

 Jul 30 2014 - Memon to hand over five projects in 2014spanKhaleej Times
(MENAFN - Khaleej Times) Mpany working on Dh1.Memon Investments has planned to hand over five projects worth more than Dh600 million in the next five months and is also planning to launch five new ...

 Jul 30 2014 - ADFD funding in underdeveloped countries hit Dh61bspanKhaleej Times
(MENAFN - Khaleej Times) E development finance institution articulates the UAEs continued commitment to support the development process of emerging countries.An exterior view of power plant in ...

 Jul 30 2014 - UK and US preferred by Arab travellers: MarriottspanKhaleej Times
(MENAFN - Khaleej Times) E US takes the lead when it comes to bookings with 20 per cent of all reservations closely followed by the UK which accounts for 16 per cent.Marriott International has ...

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

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

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
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

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


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help