Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2024 02 07T155144Z 1 LYNXMPEK160O8 RTROPTP 4 BOEING 737 MAX DAE 1 - Business Express

Aircraft lessor DAE expects further Boeing delays

Aircraft lessor DAE expects further Boeing delays

(Reuters) – A production cap and recent incidents with Boeing’s 737 MAX aircraft will “undoubtedly” impede the planemaker’s ability to catch up on already delayed delivery commitments, lessor Dubai Aerospace Enterprise (DAE) Capital said on Wednesday.

The Federal Aviation Administration (FAA) has ordered Boeing to cap 737 production at the current rate of 38 jets a month for an undefined period while it addresses quality lapses, deferring the increases needed to meet rising demand for new jets.

Boeing has been under fire from regulators and airlines since the Jan. 5 blowout of a door plug on a 737 MAX 9.

“To be candid we’re not sure that Boeing can deliver on their current contractual commitments because I’m not sure that they control their destiny right now in the way that they would like to,” DAE CEO Firoz Tarapore said on an analyst call, adding the aircraft lessor had already been impacted by delays.

“Now, despite this noise, we are confident that Boeing will right the ship in a way that provides the assurance to both our airline customers and us, the leasing customers, that we are indeed buying a quality product from a quality organisation.”

A spokesperson for Boeing did not immediately respond to a request for comment.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

DAE, one of the world’s top 10 lessors with a 500-strong fleet of owned, managed or ordered aircraft, agreed to buy 64 Boeing 737 MAX jets last August that were scheduled for delivery between 2023 and 2026.

DAE reported a $351 million full year profit on Wednesday that included a $118 million insurance claim settlement for seven aircraft previously leased to Aeroflot and stranded in Russia following Western sanctions imposed on Russia over its invasion of Ukraine.

DAE wrote off $577 million in 2022 for its 19 aircraft stuck in Russia. Asked if it could receive additional proceeds on the other 12 aircraft, Tarapore said DAE was seeking the appropriate approvals needed to come to a potential commercial agreement.

“Based on what we have seen so far predicting what will happen is a very dangerous game … We’re trying and we’re hoping for an outcome that works for everybody within the construct of all the approvals that we need to obtain,” he said.


(Reporting by Padraic Halpin in Dublin; Editing by Kirsten Donovan and David Evans)

Recent Post: