DAE continues to jettison orders with B737 cancellations

The figures became apparent on the Boeing order update available today and sources at Boeing have confirmed that the cancelled orders are attributable to the Dubai leasing company.

Analyst Saj Ahmad said: "As of now, DAE has some 46 airplanes on lease and it won't be long before we see these sold off to other parties. DAE is being wound up and its leaving the leasing game for good and its only a matter of time now before this happens."
 
The Dubai company which was launched on the back of a $15bn investment to take a major hold in the leasing world still has some remaining orders - most notably 15 Boeing 747-8Fs and 6 Boeing 777F's.  "These will probably be shifted back to Emirates - who originally placed orders for these so Boeing won't feel any big loss here.," Ahmad said. "The loss of the 35 737's won't be too traumatic for Boeing either - they have over 2000 units in the backlog to be delivered and if anything, DAE's cancellation now allows more astute customers to step in to get deliveries earlier than planned.

"There are a litany of reasons why DAE has imploded, and Boeing will no doubt be working hard to ensure the remaining high cost dollar value 747-8Fs and 777F's do not get cancelled. This might work very well in Emirates' favour in terms of pricing since they had originally offloaded these orders to mitigate against the falling freight business in the wake of the global financial crisis.  It's been a roller coaster ride for DAE - the question now becomes who the vultures will be to pick off the remaining in-service DAE leased airplanes and buy them, " Ahmad added.