Dubai’s aircraft leasing company is to postpone a $27 billion order for new aircraft as the emirate continues to struggle with its debt mountain.
Dubai Aerospace Enterprise (DAE), which is owned by a number of Dubai state-owned investment vehicles, is negotiating with Boeing and Airbus to postpone delivery of more than 200 aircraft for its leasing division, according to The Times.
A number of Dubai’s leading companies have been forced to reduce their debt burdens in the wake of the financial crisis. This has included state-owned DP World announcing that it would delay a share listing in London whilst it restructures.
Meanwhile DAE has $800 million of debt to refinance by next year and is facing weak demand for leased planes due to the aviation downturn.
Three years ago DAE placed a record $27 billion order of new aircraft but is now looking to push back the delivery. It is also reported to be considering selling or giving its purchase rights to Emirates, the national airline of Dubai.