DAE plans to invest 15 bn dollars in Asia, WAsia

Mumbai, June 12: Dubai Aerospace Enterprise (DAE) said today it plans to invest 15 billion dollars in aviation business, a move that could have repercussions in India and elsewhere in Asia and West Asia.

The plan includes airport development, leasing of aircraft, aircraft maintenance and aviation campus for all levels of training, said its Chief Executive Officer Robert Johnson.

''We'll provide integrated services across all key verticals of the aviation industry. We've a long-term aerospace focus.'' Just two days ago, DAE said it has arranged funding for its planned 1.8 billion dollar takeover of two aircraft servicing companies in the United States.

It will buy Standard Aero Holdings Inc and Piedmont/Hawthorne Holdings Inc from private equity firm Carlyle Group. The deal needs US government approval.

''Rapid airline expansion in Asia and West Asia is accelerating the global aerospace industry,'' said Mr Johnson. ''Our focus segments will include large airport development, research and development, manufacturing, maintenance, repair and overhaul, aircraft leasing and aerospace services.'' In India, he said, low cost carriers have taken 35 per cent of market share and will double that by 2010. ''We see a lot of opportunities that justify our presence there. We realise how serious the shortage of pilots is.'' Mr Johnson said DAE is currently building six synergetic businesses: capital, manufacturing, engineering, university, airports and services. It plans to establish Dubai as a centre of gravity for world-class operations in aviation and aerospace.

UNI