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 31 2014 - Air Algerie's plane crashesMENAFN
(MENAFN) A senior official said that the Air Algerie flight that crashed in Mali last week appears to have plummeted to the ground from an altitude of 10,000 meters in just a few minutes after flying ...

 Jul 31 2014 - Dubai's Damac eyes listing shares in Dubai bourseMENAFN
(MENAFN) Dubai luxury property developer Damac is trying to attract investors to invest in converting its Global Depositary Receipts (GDRs), listed on the London bourse, into ordinary shares that ...

 Jul 31 2014 - 'Nearly 100 casualties' in Xinjiang violenceArab News
(MENAFN - Arab News) IJING: A clash in Xinjiang home to China's mostly Muslim Uighur minority left nearly 100 people dead or wounded an exile group said Wednesday after what authorities called a ...

 Jul 31 2014 - Aquino seeks to quash rumors of military coupArab News
(MENAFN - Arab News) NILA: Philippine President Benigno Aquino sought Wednesday to quash rumors that a coup is being plotted against him with his spokesman insisting he had the military's full ...

 Jul 31 2014 - Kerry in New Delhi to reboot ties with ModiArab News
(MENAFN - Arab News) W DELHI: US Secretary of State John Kerry flew into India on Wednesday for ice-breaking talks with new Prime Minister Narendra Modi forecasting a transformation in Washington's ...

 Jul 31 2014 - UK bankers' bonus: Tough rules on wayArab News
(MENAFN - Arab News) NDON: British banks will be able to claw back employee bonuses up to seven years later if the recipient is found guilty of serious recklessness the Bank of England ...

 Jul 31 2014 - Amazon to invest 2bn to expand in IndiaArab News
(MENAFN - Arab News) MBAI: The world's largest online retailer is facing off in India against a new name in e-commerce that was founded by former Amazon employees.Amazon.com Inc. said it will invest ...

 Jul 31 2014 - Mobily Wajid offers free lines to family membersArab News
(MENAFN - Arab News) Bily continues to provide its extraordinary offer to the new subscribers of Wajid that provides discounts and privileges to all family members.The new Wajid Extra and Plus ...

 Jul 31 2014 - Wife of BIS official dies in road crashArab News
(MENAFN - Arab News) E wife of a member of the governing board at the Bangladesh International School (BIS) in Jeddah was killed in a road accident on Tuesday the second day of Eid Al-Fitr.Nasima ...

 Jul 31 2014 - Indian Eid program toned down in solidarity with GazansArab News
(MENAFN - Arab News) Extensive yearly Indian community Eid program was reduced to a simple get-together ceremony on Monday night in solidarity with the victims of Gaza.Indian expatriates condemned ...

more...


 






Google

Taqs

 
 

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