The fallout from Dubai’s debt crisis has continued with the emirate’s aircraft leasing company looking to postpone a $27 billion (£18 billion) order for new planes.
A number of Dubai’s leading companies have been forced to reduce their debt burdens and strengthen operations after a severe downturn in the local economy. The restructuring of Dubai’s commercial interests has also led to DP World, the ports operator that owns P&O, announcing that it would delay a share listing in London.
Dubai Aerospace Enterprise (DAE), which is owned by a number of Dubai state-owned investment vehicles, is understood to be negotiating with Boeing and Airbus to postpone delivery of more than 200 aircraft for its leasing division.
The company has $800 million of debt to refinance by next year and is facing weak demand for leased planes as airlines have cut capacity to survive the recession.
Three years ago DAE placed an enormous order for $27 billion of new aircraft but is now looking to push back delivery of these planes. It is also reported to be considering selling or giving its purchase rights to Emirates, the national airline of Dubai.
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DAE, Boeing and Airbus all declined to comment.