Dubai Aerospace Enterprise (DAE) on Tuesday announced an order for 15 Boeing (BA.N) 737 MAX 8 jets, signalling an end to the aircraft leasing giant’s pricing standoff with planemakers.
Dubai state-owned DAE in 2019 abandoned plans to place a major order with Airbus (AIR.PA) and Boeing after it said it was unable to reach agreements on pricing.
It instead sought to expand its fleet by taking over a rival, which is yet to take place, and bought aircraft from airlines who would then take them back on lease.
“We are delighted to deepen our already strong relationship with Boeing,” DAE Chief Executive Firoz Tarapore said in a statement.
“We are confident in the success of these aircraft as domestic and regional air travel is seeing strong signs of recovery.”
The order, worth $1.8 billion at list prices, though discounts are common, also signals a further show of confidence in the narrow-body jet that until recently was banned worldwide.
The United States late last year lifted its safety ban, imposed after two fatal crashes in 2018 and 2019, and the United Arab Emirates followed earlier this year.
DAE, which says it own and manages 162 Boeing aircraft, last year announced an agreement to purchase 737 MAX jets from American Airlines (AAL.O), who would then take them back on lease.