Dubai Aerospace orders 15 Boeing 737 MAX aircraft worth Dh6.6 billio

Dubai Aerospace Enterprise (DAE) Ltd. on Tuesday said it would buy 15 Boeing 737 MAX 8 aircraft from Boeing or approximately $1.8 billion (Dh6.6 billion).

Firoz Tarapore, CEO of DAE, said, the aircraft leasing firm now owns and manage 162 Boeing aircraft, including this order.

“An increasing number of global aviation regulators are returning the MAX to the skies. We are confident in the success of these aircraft as domestic and regional air travel is seeing strong signs of recovery,” said Tarapore.

The 737 MAX jets were grounded globally following fatal crashes in 2018 and 2019. The aircraft has been brought back into operation following approvals from many global aviation regulatory bodies. Dubai’s budget carrier flydubai also brought its 737 MAX aircraft back in operations after the approval from the UAE’s aviation regulatory body.

DAE recently announced an agreement to deliver 18 737 MAX 8 aircraft to American Airlines.

“DAE has been instrumental in helping its customers realise the operating economics and environmental performance of the 737-8. We are delighted that they have come back to add more 737 aircraft to its growth plan as it positions itself for the recovery in commercial passenger traffic,” said Ihssane Mounir, Boeing senior vice-president of commercial sales and marketing.

The 737-8 is highly fuel efficient, using 16 per cent less fuel and significantly reduces emissions.

The jet can accommodate up to 178 passengers in a two-class configuration and fly 3,550 nautical miles (6,570 km).

Saj Ahmad, chief analyst at London-based StrategicAero Research, said DAE’s order for 15 Boeing 737 MAX 8s not only signifies its confidence in the jet as it gradually returns to service, the lessor is acutely aware that as the wider airline industry tries to recover from the effects of the global pandemic, the most significant way to cut operating costs is by utilising more fuel-efficient airplanes.

“And in this case, the 737 MAX family, powered by the fuel-efficient LEAP-1B engines provides a unique platform for airlines going forward by slashing fuel burn by 16 per cent, making the type arguably one of the most efficient narrow-body jets available today,” he said.

“With the recent GCAA lifting of 737 MAX restrictions and a smooth re-entry into service by flydubai, the 737 MAX will form the backbone for many airlines — and its no surprise that DAE wants to be one of the key leasing players that has the airplane in its inventory to supply to customers and their future needs — and we’ve already seen this happen with their recent sale and leaseback agreement with American Airlines. DAE’s investment and confidence in the 737 MAX will almost certainly give other competitors food for thought going forward,” he said.

— waheedabbas@khaleejtimes.com