Dubai Aerospace delivers first Boeing 737 Max as jet cleared to fly again

Aircraft lessor's delivery is part of leaseback deal with American Airlines

  
Dubai Aerospace delivers first of 18 Boeing 737 MAX 8 aircraft to American Airlines. Image courtesy Dubai Media Office Twitter handle. Image used for illustrative purpose.

Dubai Aerospace delivers first of 18 Boeing 737 MAX 8 aircraft to American Airlines. Image courtesy Dubai Media Office Twitter handle. Image used for illustrative purpose.

One of the world’s biggest aircraft leasing companies, Dubai Aerospace Enterprise (DAE), has delivered the first of 18 Boeing 737 MAX 8 jets to American Airlines, which is set to return the grounded aircraft to service this month.

The leasing company, which is owned by sovereign wealth fund Investment Corporation of Dubai, said on Monday that the delivery is part of the purchase and leaseback agreement it had signed with the US carrier in the third quarter.

Since March 2019, Boeing’s 737 Max planes have been grounded following the Ethiopian Airlines crash that killed all 157 passengers onboard. The Federal Aviation Administration (FAA) said recently that the aircraft has been cleared to fly again after a 20-month recertification process.

Return to service

Firoz Tarapore, chief executive officer of DAE, said they are delighted to see the Boeing 737 Max return to service.

“We are also pleased to further invest in these technologically advanced and fuel-efficient aircraft types in line with our commitment to environmental sustainability,” said Tarapore.

“The Boeing 737 Max boasts superior fuel efficiency and reduced emissions and noise pollution, underpinning DAE’s commitment to transition its fleet to new technology assets, reducing the environmental impact of our business and supporting DAE’s customers’ ambitions to become more sustainable operators. Our owned and committed fleet includes 22 Boeing 737 Max 8 aircraft,” said  Tarapore.

DAE is expected to complete the delivery of the 17 remaining 737 Max to American Airlines “in the coming months”.

In November, DAE sold $750 million in sukuk with a tenor of five and a quarter years at 3.875 percent.

(Writing by Cleofe Maceda; editing by Seban Scaria)

Cleofe.maceda@refinitiv.com

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2020

More From Business