Dubai group eyes US aviation assets
Wednesday, March 21, 2007
DUBAI Aerospace Enterprise (DAE) is nearing a deal to buy a series of aviation businesses from United States private equity firm Carlyle Group for more than US$1.5 billion, a source familiar with the matter said on Monday.
As part of the agreement, DAE would buy Landmark Aviation, an aircraft maintenance provider, and Standard Aero, which provides repair and overhaul services at airport terminals for small-jet aviation and some military transports, according to the source.
Carlyle declined to comment on the deal.
An agreement with DAE is likely to face debate in Washington, where last year's state-owned Dubai Ports World's purchase of some US port operations triggered a political firestorm.
Both Democrats and Republicans feared that giving a state-owned Arab firm control of US port terminals would pose a threat to national security.
DPW later agreed to sell the port operations to soothe US congressional concerns.
New York Democratic Senator Chuck Schumer, who led the opposition to the Dubai Ports deal, told the Financial Times: "This purchase is not as much of a security risk as Dubai Ports World, but because it deals with maintenance of aircraft, it certainly raises security questions."
DAE is planning to divest the group of 35 small terminals controlled by Landmark Aviation, the source said. DAE and Carlyle are expected to be reviewed.
Reuters
As part of the agreement, DAE would buy Landmark Aviation, an aircraft maintenance provider, and Standard Aero, which provides repair and overhaul services at airport terminals for small-jet aviation and some military transports, according to the source.
Carlyle declined to comment on the deal.
An agreement with DAE is likely to face debate in Washington, where last year's state-owned Dubai Ports World's purchase of some US port operations triggered a political firestorm.
Both Democrats and Republicans feared that giving a state-owned Arab firm control of US port terminals would pose a threat to national security.
DPW later agreed to sell the port operations to soothe US congressional concerns.
New York Democratic Senator Chuck Schumer, who led the opposition to the Dubai Ports deal, told the Financial Times: "This purchase is not as much of a security risk as Dubai Ports World, but because it deals with maintenance of aircraft, it certainly raises security questions."
DAE is planning to divest the group of 35 small terminals controlled by Landmark Aviation, the source said. DAE and Carlyle are expected to be reviewed.
Reuters
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