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.
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.
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.
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
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.
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.
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.
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.
What is a purchase and leaseback agreement? Why did DAE choose the Boeing 737-9? When will the aircraft be delivered? How does this deal benefit United Airlines? What does this mean for the aircraft leasing industry?
DAE and United Airlines Expand Partnership with 10 Boeing 737-9 Aircraft Leaseback Deal
Background: DAE and United’s Growing Partnership
Aircraft Specifications and Efficiency
Financial and Operational Implications
Industry Context and Strategic Relevance
Broader Market Trends
Conclusion
FAQ
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.
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.
Deliveries are scheduled from August 2025 to February 2026, allowing for phased integration into United’s fleet.
United gains access to modern aircraft without the capital burden of ownership, supporting its fleet renewal and environmental goals.
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