Dubai Aerospace Enterprise Ltd (DAE), controlled by the sovereign wealth fund Investment Corporation of Dubai, is considering the sale of its aircraft maintenance division. This is reported by foreign media.
DAE has engaged Morgan Stanley to evaluate the potential sale of an 80% stake in Joramco, a Jordanian aircraft maintenance and repair company. DAE acquired a stake in Joramco from the private investment company Abraaj Group in 2016, with the remaining 20% under the control of Jordan's state-owned airline Royal Jordanian.
Joramco, as well as other jet maintenance providers, has seen a surge in demand for services as delays in deliveries of new Boeing Co. and Airbus SE jets, as well as a global shortage of aircraft, force carriers to extend the service life of older aircraft.
DAE recently bought out the regional jet aircraft lessor, Nordic Aviation Capital, in a deal valued at over $2 billion.
Joramco provides aircraft maintenance services to customers in Europe, the Middle East, Africa and South Asia from its base in Amman, Jordan. The company was founded as an engineering division of Royal Jordanian 60 years ago.
DAE is the largest aircraft leasing company in the Middle East. The fleet includes about 500 aircraft with a total value of $20 billion.
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