Story ID: 1091113mx
Dubai Ends Discussion on Acquiring BBA Assets
By: David A. Lombardo
Caption: 
Word Count: 181
Dubai Aerospace Enterprise (DAE) has terminated discussions with BBA Aviation about combining unspecified parts of its business. DAE, a Dubai-based MRO, aircraft completions and aircraft leasing company, entered into the discussion with British aircraft services firm BBA late last month to explore merging some of their assets. Reuters reported the talks centered upon an estimated $4.2 billion deal focusing on DAE’s StandardAero. StandardAero did not respond to requests for further comment.

Two weeks ago AINMxReports reported that DAE confirmed it was in preliminary discussions with BBA Aviation.

It wasn’t the first time StandardAero was the focus of negotiations. In late 2010 DAE, feeling the pressure of its significant debt in a lagging United Arab Emirates’ economy, unsuccessfully attempted to auction off StandardAero to pay down a reported $100 billion-plus debt.

DAE acquired Arizona-based StandardAero in 2007 as part of a $1.9 billion deal with The Carlyle Group that included Landmark Aviation. During the same period DAE also ordered more than 200 aircraft for its leasing unit and has subsequently cancelled outstanding Airbus and Boeing orders topping $5.8 billion.