Dubai Aerospace Enterprise mulls more rent deferrals amid pandemic impact

The Dubai-based aircraft leasing company has granted 29 rent deferral requests and is considering 28 more, collectively worth 18% of annual revenue

Dubai Aerospace Enterprise said that it ended H1 with total available liquidity of $2.8 billion.

Aircraft leasing company Dubai Aerospace Enterprise (DAE) said it has granted 29 rent deferral requests totalling aggregate rent of approximately 12 percent of annual reported revenue amid the Covid-19 pandemic.

In a statement outlining its current position, DAE said that it is mulling another 28 rent deferral requests, totalling aggregate rent of 6 percent of annual reported revenue.

According to DAE, its owned, managed and mandated-to-manage fleet has remained stable at over 400 aircraft.

In the first half of the year, DAE sold or novated 17 aircraft, acquired five, transitioned or extended leases on 23, and negotiated 41 lease extensions subject to documentation. Since the Covid-19 pandemic began, the company has transitioned 11 aircraft with 18 ferry flights to and from 9 countries. DAE’s managed aircraft portfolio now stands at 73 aircraft.

Additionally, the company said that it ended H1 with total available liquidity of $2.8 billion, comprised of approximately $600 million of unrestricted cash and $2.2 billion of long-term committed available lines of credit.

The company purchased $187 million of its own bonds throughout the first six months of the year. It has one bond maturity of $430 million coming up in August.

“The first half of 2020 has proven to be the most challenging year ever for the global aviation industry,” said Firoz Tarapore, DAE’s CEO.

“As we continue to navigate through uncertain times, DAE has focused on executing well on the fundamentals.

“During the last 6 months, we have transitioned aircraft to new airline customers, we have actively taken back aircraft from airlines that did not need capacity and placed them with other existing clients, and we have grown our managed asset portfolio,” he added.

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