DAE Capital was among many lessors affected by the Ukraine crisis, which forced it to write-off $538 million for 22 aircraft seized in Russia, so its parent company—DAE—was pleased to see another part of its business do well in the first six months of the year
“DAE Engineering had another strong quarter, with its Joramco business again achieving record revenue, as well as adding and renewing a number of large maintenance agreements, including with GetJet Airlines, DHL, Ryanair and Corendon Airlines in the quarter,” said Firoz Tarapore, chief executive officer of DAE. “We look forward to continuing to expand our engineering business.”
Although MRO is only about 10% of DAE’s revenue stream, with the rest coming from leasing, it grew 18% in the first six months of the year versus the prior-year period, with engineering maintenance service revenue rising by $8.2 million to $55 million.
The cost of providing engineering maintenance services increased by $4 million, or 12.5%, for the six months, to $35.9 million.
And while the resulting profit for DAE Engineering is a relatively minor part of the $140 million total net income of DAE for the six months, the extension of contracts with marquee names like Ryanair provides an ideal platform for further growth.
Under the five-year contract, Ryanair aircraft will occupy up to six heavy maintenance bay slots at Joramco’s Amman, Jordan facility during the five winter seasons. The deal builds on a 2019 agreement between the parties, under which the Dublin-based low-cost carrier booked two lines at Joramco’s facility for heavy checks of its Boeing 737NG aircraft.
DAE owns 80% of Joramco, which operates a 100,000 m2 (107,639 ft.2) facility in Amman. Joramco focuses on airframe MRO services for Airbus, Boeing and Embraer aircraft. It has five aircraft hangars that can accommodate up to 17 widebody and narrowbody aircraft simultaneously.
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