Aircraft Orders & Deliveries
DAE and United Airlines Expand Boeing 737-9 Leaseback Partnership
DAE and United Airlines sign a leaseback deal for 10 Boeing 737-9 aircraft to support fleet modernization and sustainability goals.
DAE and United Airlines Expand Partnership with 10 Boeing 737-9 Aircraft Leaseback Deal
Dubai Aerospace Enterprise (DAE) and United Airlines have signed a major purchase and leaseback agreement involving 10 Boeing 737-9 aircraft. The deal, announced in July 2025, marks a significant milestone in the ongoing partnership between the Middle Eastern lessor and the U.S.-based airline. Deliveries are scheduled between August 2025 and February 2026, aligning with United’s broader fleet modernization strategy.
This transaction reflects DAE’s strategic focus on expanding its presence in North-America, one of the most competitive and high-demand aviation markets globally. It also reinforces industry trends toward asset-light operations, where Airlines increasingly rely on lessors to maintain fleet flexibility without the capital burden of ownership.
As the aviation industry continues to recover from pandemic-era disruptions, deals like these signal a renewed emphasis on efficiency, sustainability, and long-term partnerships between airlines and lessors. The 737-9, part of Boeing’s MAX family, offers operational improvements that are attractive to both operators and financiers.
Background: DAE and United’s Growing Partnership
Founded in 2006, Dubai Aerospace Enterprise is one of the world’s largest aircraft leasing companies, managing a fleet of approximately 750 aircraft. Of these, 225 are Boeing aircraft, leased to over 200 airline customers across 85 countries. DAE operates through two key divisions: DAE Capital, which handles leasing, and DAE Engineering, which provides maintenance, repair, and overhaul (MRO) services.
United Airlines, one of the largest carriers in the United States, has been a recurring partner for DAE. Prior to this Boeing 737-9 deal, DAE had leased an Airbus A321neo to United, highlighting the trust and cooperation between the two companies. This continuity suggests a long-term alignment of strategic goals, particularly in fleet modernization and operational efficiency.
DAE’s CEO, Firoz Tarapore, has publicly emphasized the importance of the North American market. By deepening its relationship with United, DAE is not only expanding its footprint but also reinforcing its status as a key player in the global aviation leasing landscape.
Aircraft Specifications and Efficiency
The Boeing 737-9 is part of the 737 MAX family, designed for short- to medium-haul operations. It features CFM International LEAP-1B engines, which contribute to a 20% reduction in fuel consumption compared to previous-generation aircraft. This makes the model particularly attractive to airlines aiming to cut costs and reduce their environmental impact.
In addition to fuel efficiency, the aircraft offers a 50% smaller noise footprint, enhancing its appeal for operations in noise-sensitive airports. With seating capacities ranging from 178 to 193 in a two-class configuration, and a range of 3,300 nautical miles, the 737-9 is well-suited for both domestic and transcontinental routes.
DAE’s choice to invest in this aircraft aligns with its broader fleet strategy. The average age of DAE’s fleet is 6.3 years, reflecting a preference for modern, efficient aircraft that meet evolving regulatory and operational standards.
“We are delighted to continue building on our valued relationship with United. Today’s announcement reflects our continued commitment to the North American market.”, Firoz Tarapore, CEO of DAE
Financial and Operational Implications
While the financial terms of the deal were not disclosed, purchase and leaseback arrangements typically allow airlines to unlock capital tied up in aircraft purchases. This model enables United to maintain operational control of the aircraft while avoiding the upfront costs of ownership.
For DAE, the deal provides a stable, long-term revenue stream. Leaseback agreements are generally structured over multi-year periods, offering predictable cash flows and reduced asset risk. The timing of the deliveries, spanning six months, also allows for staggered integration into United’s operations, minimizing disruption.
This transaction follows a broader trend in aviation finance, where lessors like DAE are increasingly seen as strategic partners rather than mere financiers. By aligning delivery schedules and aircraft types with airline needs, lessors can enhance their value proposition and deepen client relationships.
Industry Context and Strategic Relevance
The global aircraft leasing market is undergoing a transformation. According to industry reports, the market is projected to grow at a compound annual growth rate (CAGR) of over 8% through 2034. This growth is driven by several factors, including rising air travel demand, the need for fleet flexibility, and increasing regulatory pressure to adopt more sustainable aircraft.
DAE’s investment in the Boeing 737-9 is consistent with these trends. The aircraft’s fuel efficiency and lower emissions help airlines meet both economic and environmental targets. Moreover, the ongoing shift toward asset-light business models makes leasing an attractive option for carriers seeking to optimize their balance sheets.
North America remains a critical market in this context. With high passenger volumes and a robust regulatory framework, the region presents both challenges and opportunities for lessors. DAE’s focus on the U.S. market, underscored by its deals with United, positions it well to capitalize on future growth.
Broader Market Trends
In recent years, the aircraft leasing industry has seen increased consolidation. DAE’s acquisition of AWAS in 2017 significantly expanded its portfolio and global reach. This trend is expected to continue as larger players seek to scale operations and improve bargaining power with manufacturers and airlines.
Another emerging trend is the integration of digital tools and artificial intelligence in lease management. Although not directly related to this deal, such innovations are reshaping how lessors manage risk, predict maintenance needs, and optimize asset utilization.
Environmental, Social, and Governance (ESG) criteria are also becoming more prominent in leasing decisions. Lessors are under pressure to invest in aircraft that contribute to lower carbon footprints, a factor that further elevates the importance of models like the 737 MAX series.
Conclusion
The purchase and leaseback agreement between DAE and United Airlines for 10 Boeing 737-9 aircraft is a strategic move that benefits both parties. For United, it supports an ongoing fleet modernization initiative aimed at improving efficiency and sustainability. For DAE, it reinforces its presence in the North American market and strengthens its relationship with a major global carrier.
Looking ahead, this deal could serve as a blueprint for similar transactions in the aviation industry. As airlines seek to balance operational flexibility with financial prudence, and lessors aim to deploy capital into high-demand assets, partnerships like this will likely become more common. The focus on newer, more efficient aircraft also aligns with global sustainability goals, making such deals not just commercially viable but also socially responsible.
FAQ
What is a purchase and leaseback agreement?
It’s a financial arrangement where an airline sells an aircraft to a leasing company and immediately leases it back. This allows the airline to raise capital while retaining use of the aircraft.
Why did DAE choose the Boeing 737-9?
The 737-9 is a fuel-efficient, modern aircraft with a strong track record. Its lower emissions and operational costs make it attractive for both lessors and airlines.
When will the aircraft be delivered?
Deliveries are scheduled from August 2025 to February 2026, allowing for phased integration into United’s fleet.
How does this deal benefit United Airlines?
United gains access to modern aircraft without the capital burden of ownership, supporting its fleet renewal and environmental goals.
What does this mean for the aircraft leasing industry?
It highlights the growing importance of lessors in fleet strategy and the shift toward asset-light models in Commercial-Aircraft aviation.
Sources
Photo Credit: DAE – Montage
Aircraft Orders & Deliveries
AerCap Leases Two Boeing 777-300ERSF to Turkish Airlines
AerCap finalizes lease of two Boeing 777-300ERSF freighters to Turkish Airlines, with deliveries scheduled for 2027.
AerCap Holdings N.V. has finalized lease agreements with Turkish Airlines for two Boeing 777-300ERSF converted freighters, with deliveries scheduled between March and September 2027.
Announced on October 29, 2026, the transaction expands the Turkish flag carrier’s dedicated cargo capacity while utilizing Etihad Engineering’s maintenance, repair, and overhaul (MRO) facility in Abu Dhabi for the passenger-to-freighter (P2F) modifications. In a press release detailing the agreement, the Dublin-based aviation lessor emphasized the strategic alignment between the aircraft’s capabilities and the airline’s expanding freight network.
Expanding Turkish Airlines’ cargo operations
The agreement builds on an existing relationship between AerCap and Turkish Airlines, which operates a large international network requiring substantial dedicated cargo lift. The addition of the two widebody freighters is intended to support the carrier’s volume requirements on high-demand international routes.
Peter Anderson, Chief Commercial Officer at AerCap, stated that the aircraft will provide the airline with additional cargo capacity combined with the performance capabilities specific to the 777-300ERSF platform. Financial terms of the lease agreements, including the exact lease duration and the specific aircraft serial numbers, were not disclosed in the announcement.
The Big Twin conversion program
The Boeing 777-300ERSF, marketed as “The Big Twin,” is a P2F conversion program developed through a joint venture between AerCap and Israel Aerospace Industries (IAI). It represents the first program designed to convert the Boeing 777-300ER into a dedicated freighter configuration.
According to AerCap’s cargo division, the 777-300ERSF offers 25 percent more cargo volume than the factory-built Boeing 777-200LRF. This increased capacity positions the converted twin-engine aircraft as a cost-effective replacement for aging four-engine Boeing 747 freighters currently operating in the global fleet.
AerCap delivered the first 777-300ERSF to launch customer Kalitta Air in September 2025. Since that initial delivery, the lessor has handed over aircraft to Fly Meta and secured lease agreements with other major operators, including Ethiopian Airlines and China Southern Group.
Regional conversion strategy in Abu Dhabi
The physical conversion of the two aircraft destined for Turkish Airlines will be executed at the Etihad Engineering MRO hub in Abu Dhabi, United Arab Emirates. This facility serves as a dedicated regional conversion center for the 777-300ERSF program.
Anderson highlighted the strategic importance of the location, noting that the Abu Dhabi facility provides a regional platform capability that enables aircraft to be converted in the Middle East prior to delivery. This localized approach is designed to efficiently serve customers across the Europe, Middle East, and Africa (EMEA) market.
“The dedicated 777-300ERSF conversion facility at Etihad Engineering’s MRO hub in Abu Dhabi provides an important regional platform capability, enabling the aircraft to be converted in the Middle East ahead of delivery to Turkish Airlines,” Anderson said.
AerCap’s broader market position
The Turkish Airlines agreement follows a period of strong financial performance for AerCap. On October 28, 2026, the company reported its third-quarter financial results, citing record adjusted earnings per share and raising its full-year 2026 guidance amid high lease rates and sustained demand for aviation assets.
As of September 30, 2026, AerCap’s total portfolio included 1,537 owned and managed aircraft, alongside approximately 1,300 engines and over 300 helicopters. The company’s dedicated cargo division manages a fleet of approximately 110 owned, managed, and on-order freighters, having completed more than 160 passenger-to-freighter conversions to date.
AirPro News analysis
We view the placement of 777-300ERSF aircraft with a major network carrier like Turkish Airlines as a strong validation of the Big Twin program’s economic proposition. As operators look to phase out older Boeing 747 freighters, the 25 percent volume advantage over the 777-200LRF makes the converted 300ER an attractive middle ground between factory-built twin-engine freighters and legacy four-engine platforms. Utilizing the Etihad Engineering facility in Abu Dhabi for a European customer also demonstrates the logistical efficiency of AerCap’s decentralized conversion strategy, reducing ferry times and regional friction for EMEA operators.
Photo Credit: AerCap
Aircraft Orders & Deliveries
CDB Aviation Leases Additional Boeing 737-800 to Neos
CDB Aviation will deliver a Boeing 737-800 to Italian leisure carrier Neos in November 2026, expanding a partnership begun in 2021.
Irish aircraft lessor CDB Aviation will expand its existing relationship with Italian leisure carrier Neos S.p.A. by leasing the airline one additional Boeing 737-800 narrowbody aircraft. The aircraft is scheduled for delivery in November 2026 and will support the carrier’s intra-European and intercontinental route networks.
The agreement, announced in an October 28, 2026, press release, builds upon a leasing partnership established between the two companies in 2021. The transaction highlights continued demand for current-generation narrowbody assets to sustain short- and medium-haul leisure operations.
Expanding the Neos narrowbody fleet
Neos, a wholly owned subsidiary of Alpitour S.p.A. based at Milan Malpensa Airport (MXP), operates an all-Boeing fleet. The airline currently utilizes 18 aircraft, comprising the Boeing 737-800, Boeing 737 MAX 8, and widebody Boeing 787-9 Dreamliner.
The Boeing 737-800 serves as a core asset for the airline’s short- to medium-haul leisure routes. Neos deploys these narrowbody aircraft on intra-European and select intercontinental flights. This narrowbody capacity complements its widebody Boeing 787-9 Dreamliner fleet, which is dedicated to long-haul operations across the carrier’s 85 global destinations in Europe, Africa, Asia, the Middle East, and the Americas.
Marco Brusa, Chief Operating Officer of Neos, stated that the planned addition reflects confidence in the lessor as a trusted partner.
“We are pleased to further strengthen our partnership with CDB Aviation with the planned addition of this Boeing 737-800 to our fleet,” Brusa said. “This agreement builds on our established relationship and reflects our confidence in CDB Aviation as a trusted partner. We look forward to welcoming the aircraft and continuing our successful collaboration.”
A growing lessor-operator partnership
The commercial relationship between CDB Aviation and Neos began in 2021 with an initial agreement covering two Boeing 737-800s. CDB Aviation officially announced the delivery of those two aircraft on February 7, 2023. Those initial airframes were configured with 186 single-class seats to support the carrier’s network.
CDB Aviation, a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., Ltd., operates globally from its Dublin headquarters. As of early 2025, the lessor reported a fleet of 521 owned and committed assets, with aircraft placed at 85 airlines across 40 countries.
Gavan Daly, Head of Commercial EMEA at CDB Aviation, noted the company’s satisfaction with the expanded agreement.
“We are delighted to deepen our partnership with Neos through the agreement to lease this additional 737-800 from CDB Aviation’s portfolio,” Daly said.
Photo Credit: CDB Aviation
Aircraft Orders & Deliveries
Atlantic Airways Orders Two More A320neos for 2030 Fleet Goal
Atlantic Airways ordered two Airbus A320neos on Oct 27, 2026, targeting an exclusively neo fleet by 2030.
Atlantic Airways has committed to an exclusively next-generation fleet by 2030 following a firm order for two additional Airbus A320neo aircraft signed on October 27, 2026, in Toulouse, France. The Faroe Islands’ national carrier will use the new jets to phase out its older Airbus A320ceo models, standardizing its operations around the more fuel-efficient variant.
In a press release issued by Airbus, the manufacturer confirmed the agreement supports the airline’s strategy to streamline maintenance and reduce emissions while maintaining regional connectivity for Faroese communities. The financial terms and specific delivery dates for these two newly ordered airframes were not disclosed.
Fleet modernization and operational strategy
The transition to a single-variant fleet provides distinct economic advantages for regional operators. By standardizing on the Airbus A320neo, Atlantic Airways can simplify its maintenance planning and streamline pilot training processes. The A320neo variant delivers at least a 20 percent reduction in fuel consumption and carbon dioxide emissions compared to previous-generation single-aisle aircraft.
Niels Mortensen, Chairman of the Board for Atlantic Airways, emphasized the strategic nature of the acquisition.
“Our ambition is to operate an exclusively A320neo aircraft fleet in the near future, and this agreement marks a significant step towards achieving that goal,” Mortensen said. “This investment will help ensure the continuous renewal of our fleet while supporting efficient operations.”
Airbus executives highlighted the role of the aircraft in maintaining essential transport links. Benoît de Saint-Exupéry, Executive Vice President of Sales for the Commercial Aircraft business at Airbus, noted that the addition of the latest generation aircraft reinforces the airline’s commitment to regional connectivity.
Atlantic Airways’ transition timeline
The Faroe Islands flag carrier has been an Airbus customer since 2008. The airline began its current modernization program when it took delivery of its first Airbus A320neo on July 12, 2019. The carrier currently operates a fleet of four Airbus A320 Family aircraft, split evenly between two older-generation A320ceos and two A320neos.
Prior to the October 2026 announcement, Atlantic Airways already held orders for two additional A320neos. Those airframes are scheduled for delivery in 2028 and 2029. The two newly ordered aircraft will complete the replacement cycle, allowing the airline to retire its remaining A320ceos and meet its 2030 target for an all-neo fleet.
The Airbus A320 Family remains the most popular single-aisle aircraft program globally. According to Airbus, the aircraft family has secured more than 20,400 orders from operators worldwide.
Photo Credit: Airbus
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