Economy April 9, 2026 07:02 AM

DAE and Blackstone Credit and Insurance set up $1.6 billion per-year aircraft leasing programme

Equator platform to assemble leased commercial aircraft portfolio with DAE sourcing and managing assets under third-party arrangements

By Nina Shah
DAE and Blackstone Credit and Insurance set up $1.6 billion per-year aircraft leasing programme

Dubai Aerospace Enterprise (DAE) and Blackstone Credit and Insurance have launched a joint aircraft leasing investment programme called Equator, targeting roughly $1.6 billion in annual deployments. DAE will source aircraft while its Aircraft Investor Services unit will manage the assets. The investor group will include capital from funds managed by ITE Management, and Blackstone Credit and Insurance’s relevant group manages more than $100 billion.

Key Points

  • DAE and Blackstone Credit and Insurance launched an aircraft leasing programme named Equator targeting approximately $1.6 billion in annual deployments, aimed at building a global commercial aircraft lease portfolio.
  • DAE will source aircraft from third parties and its Aircraft Investor Services unit will manage the assets; the investor group includes capital from funds managed by ITE Management.
  • Blackstone Credit and Insurance’s Infrastructure and Asset Based Credit Group, which manages more than $100 billion, is a principal partner in the programme; DAE operates about 700 aircraft and will have over 100 third-party managed aircraft valued at more than $4 billion as of end-2025.

Dubai Aerospace Enterprise (DAE) and Blackstone Credit and Insurance announced the formation of a joint aircraft leasing investment programme, branded Equator, that is intended to deploy about $1.6 billion each year into commercial aircraft leases to airlines worldwide.

Under the arrangement, DAE will be responsible for sourcing aircraft from third parties. Its Aircraft Investor Services unit will take on asset management responsibilities for the fleet assembled under Equator, according to the companies' statement. The programme is designed to build a portfolio of commercial aircraft leased to carriers globally.

Blackstone Credit and Insurance's Infrastructure and Asset Based Credit Group, which the statement says manages more than $100 billion, will be the other principal partner in the programme. The investor group backing Equator will include capital from funds managed by ITE Management, identified in the statement as a strategic partner of Blackstone Credit and Insurance.

The announcement highlights continued expansion by alternative asset managers into aviation finance, a space that has drawn growing institutional interest as constrained aircraft supply has pushed lease rates higher. The statement frames Equator as a vehicle to channel institutional capital into leasing structures that place aircraft on lease to airlines.

DAE itself operates a fleet of roughly 700 aircraft. The company noted that, as of end-2025, it will have more than 100 aircraft under third-party management with an aggregate value in excess of $4 billion. In addition to sourcing and managing aircraft, DAE serves as servicer under seventeen management agreements for institutional and financial investors, per the companies' statement.

For market participants and institutional investors, the structure combines DAE's aircraft sourcing and servicer capabilities with the capital and credit platform of Blackstone Credit and Insurance and partner funds. The statement does not provide further operational specifics, such as timing of initial deployments, breakdown of aircraft types, or the precise composition of investor commitments beyond the inclusion of ITE Management-managed funds.


Market context and structural notes

The programme is presented as a scaled, repeatable leasing vehicle focused on commercial aircraft placed with airline lessees worldwide. DAE's role as both a source of aircraft and a manager- servicer for third-party capital is central to the Equator structure as described. Blackstone Credit and Insurance contributes an institutional credit and insurance platform reported to include a large credit group with over $100 billion in assets under management.

The statement does not specify regulatory, financing or underwriting parameters for Equator, nor does it disclose detailed investor commitments beyond the reference to ITE Management as a strategic partner providing capital through its funds.

Risks

  • The companies did not disclose precise investor composition or the full scale of capital commitments for Equator beyond noting participation by funds managed by ITE Management, leaving investor detail and timing unclear - this affects capital markets and institutional investors.
  • Aircraft supply constraints are already cited as pushing lease rates higher; how those supply dynamics evolve remains uncertain and could influence lease pricing and demand - this impacts aviation finance and lessor returns.
  • The statement provides limited operational detail on deployment timing, specific aircraft types and underwriting parameters for Equator, creating uncertainty about execution and asset mix - this matters to aviation, credit and asset management sectors.

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