Dubai Aerospace Enterprise (DAE) posted a 43 per cent profit increase in 2014, as the leasing and maintenance company continues its recovery since the global financial crisis.
The Dubai-based government enterprise reported a net profit of Dh586 million for 2014, versus Dh410m in 2013, it said in a statement on its website.
Profit had stood at just Dh29m in 2012.
Revenue for 2014 was Dh7.76 billion, up marginally from Dh7.735bn in 2013. the 2012 figure was Dh7.1bn.
DAE has two divisions: engineering, which maintains, repairs and overhauls aircraft; and capital, which is the region’s biggest aircraft lessor.
Khalifa AlDaboos, DAE’s managing director, said the engineering side had improved its profit margins thanks to “an enhanced focus on operational excellence”.
DAE’s engineering division was restructured in 2013 to create an organisation structure that would be, in Mr AlDaboOs’s words, “more efficient.”
The capital side, Mr AlDaboos said in the statement, had “continued its impressive asset growth in 2014”. He said that its leasing portfolio had a net book value of Dh13.4bn at year’s end, representing an increase of 50 per cent over three years.
In February, Reuters reported, citing sources, that DAE was looking to sell its Arizona-based aviation services unit, StandardAero, for more than US$1.8bn. DAE bought the unit – which provides engine maintenance, repair and overhaul, along with paint for commercial and military aircraft – in 2007 from the global asset management Carlyle Group.
In 2014, DAE ordered 40 aircraft from the French-Italian manufacturer ATR in a deal worth $988m. Deliveries are scheduled between 2015-18.
DAE, which came into being in 2006, was created to support Dubai’s growth as an aerospace hub and boost the emirate in the aircraft leasing business.
The company scaled back its expansion plans after the 2008 financial crisis, cancelling several high-profile orders, with many senior executives leaving in 2011.
But by November 2013 the company was taking delivery of three Boeing 777-200 freighters, which have been placed under long-term lease with Emirates.
In 2013, DAE was in discussions with Britain’s BBA Aviation regarding a potential merger of some of the two companies’ assets. However, talks fell through in September of that year.
DAE’s website says the company has 4,000 employees.
The company’s shareholders include Investment Corp of Dubai, Dubai International Capital, Dubai Silicon Oasis Authority, Istithmar World and Emaar Properties.
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