Stock Markets January 26, 2026

DAE Capital CEO Pins Production Bottlenecks on Engine Makers and Smaller Suppliers, Sees Boeing Progress

Firoz Tarapore says airframe builders have improved while engine OEMs and ancillary suppliers remain the primary constraint; forecasts consolidation among mid-ranked aircraft lessors

By Caleb Monroe
DAE Capital CEO Pins Production Bottlenecks on Engine Makers and Smaller Suppliers, Sees Boeing Progress

Firoz Tarapore, CEO of Dubai Aerospace Enterprise (DAE) Capital, told delegates at the Airline Economics conference that engine manufacturers and smaller suppliers are the principal constraints on aircraft production. He contrasted those bottlenecks with what he described as "enormous progress" at Boeing and warned of forthcoming consolidation among aircraft lessors ranked roughly 20th through 50th.

Key Points

  • DAE Capital CEO Firoz Tarapore identified engine manufacturers and smaller suppliers as the main bottlenecks in aircraft production.
  • Tarapore stated DAE is seeing "enormous progress coming out of Boeing," indicating improvements among major airframe makers.
  • He predicted notable consolidation among aircraft leasing companies ranked roughly 20th to 50th, signaling potential market restructuring in the leasing sector.

Firoz Tarapore, the chief executive of Dubai Aerospace Enterprise (DAE) Capital, identified engine manufacturers and smaller suppliers as the principal choke points for aircraft production, saying these parts of the supply chain are where most problems persist.

Speaking at the Airline Economics conference on Monday, Tarapore emphasized that DAE has observed notable gains at major airframe producers, singling out Boeing when describing improvements in that segment. He contrasted that progress with persistent difficulties at engine original equipment manufacturers (OEMs) and among a range of smaller suppliers, which he said continue to impede manufacturing and delivery timelines.

Tarapore underscored the mismatch between current production practices and historic expectations: "There’s just no easy way to reconcile why we are still where we are relative to where we used to be in terms of how long it takes to manufacture something, deliver something or to agree to commit to do that," he said during his address. The remark framed his broader point that, while some large airframe companies are advancing, other vendors in the production chain have not kept pace.

In addition to diagnosing supply-side issues, Tarapore offered an outlook for the aircraft leasing industry. He predicted that consolidation will accelerate within the leasing sector, specifically naming companies ranked between 20th and 50th as likely candidates for M&A or other consolidation activity. His forecast signals an expectation of market reshuffling among mid-tier lessors rather than among the largest firms.

The comments link operational supply constraints and market structure: continuing difficulties at engine OEMs and smaller suppliers could prolong manufacturing timelines and delivery schedules, while pressure in the leasing market may drive consolidation among smaller and mid-sized leasing firms. Tarapore’s remarks at the conference highlight two distinct fault lines for the aviation sector — upstream supply-chain performance and downstream fleet-ownership dynamics — without attributing causes beyond the issues he identified.

Risks

  • Persistent bottlenecks at engine OEMs and smaller suppliers could keep manufacturing and delivery times elevated - impacts aircraft manufacturers, airlines, and leasing firms.
  • Consolidation among mid-ranked lessors may reduce competition or concentrate risk within a smaller group of owners - impacts the aircraft leasing and finance sector.
  • Ongoing inability to reconcile production and delivery timelines may introduce uncertainty for fleet planning and capital deployment across aviation-related markets.

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