Robert Johnson, CEO Dubai Aerospace Enterprise

Dubai Aerospace Enterprise (DAE), the U.A.E.-based multi-billion dollar aerospace manufacturing and services operation, will secure the Carlyle Group acquisition within the next three months, says Bob Johnson, DAE’s CEO.

The news comes just weeks after U.S. oil service giant, Halliburton, announced a shockwave decision to move its headquarters from Houston, Texas, to Dubai.

The former chairman of Honeywell Aerospace, who came out of retirement in 2006 to run the new government-backed Middle Eastern DAE last year, confirmed the process to acquire Carlyle Group subsidiaries, Standard Aero and Landmark Aviation was well underway.

“I don’t have complete control of the timescale, but I would say that it will take us 90 to 120 days to finalize the whole process. So yes, three months is about right,” he said in a recent interview, when asked about the deal with global investment leaders, the Carlyle Group, which maintains an office in Dubai.

Johnson, who headed Honeywell Aviation for six years and has worked in the aviation industry since 1969, is reportedly enjoying his new role in the oil-rich emirates, which he describes as “safe, friendly and culturally diverse.”
The industry heavyweight is in charge of setting up the DAE into what is eventually planned as a $15 billion concern that will play a major role within the global aviation industry.

Johnson said he was certain that Standard Aero and Landmark Aviation would benefit from the deal.
“Standard Aero and Landmark Aviation still have a tremendous amount of growth opportunities in growing markets in North America. The DAE believes that growth will expand into Europe, the Middle Eat and Asia. And so, we would like to be partners in their growth – to help extend their reach and see if we can also help decrease the business jets they service in the region.”

He explained that current economic forecasts showed the companies would increase their profitability under the DAE, and that the corporation would do it’s best to ensure them a favorable future.
“The market they serve, if you look at the future, has had somewhere between a four and seven percent growth per year for quite some time,” Johnson said.

“The build rates, the fast new business jets versus aircrafts, general aviation, the pipelines are full for many years,” Johnson said, adding; “They are clearly good businesses so we’ll give them more reach into Europe and the Middle East and Asia. Their current operations will become the basis for a worldwide platform.”

He added that continued support and active improvements would be key strategies in terms of corporate goals under the new ownership, but said any major decisions would only take place once the acquisition was in place.

“As soon as we get a little further into this process we’ll take a look at the growth opportunities that we think are there, so that collectively, with them [Standard Aero and Landmark Aviation], we create a joint growth strategy.

“We’ve looked at it from the opportunities we’ve seen in the Middle East and Asia in Europe and even in Africa, to serve aircraft and markets that are going to grow in that area. It’s a combination of supporting their initiatives and creating some new ones that create growth.”

When asked about the Democrat reaction to the move, Johnson remained positive, but without giving much away. He declared that any concerns would be dealt through the correct channels.

“…I think we understand the process and we’ve tried to be responsive – really the initial reactions from people we’ve talked to in the press have been very positive and we’re hopeful this action will … help this acquisition pass through. At the same time if we have other concerns we’ll listen and we’ll draft those as well,” he said.

To the question of security, a major concern for U.S. aerospace companies relocating to the Middle East, Johnson said the subject would be dealt with through transparency and cooperation and that the DAE was dedicated to improving the current situation.

He added that the reputation of Dubai was well known, and described the emirate’s business climate as “mature, developed and improved.” The DAE, he said, was committed to allaying fears and would dedicate time and resources to any arising security concerns.

“We’re trying to make sure there are no surprises, that people are aware of all this [the acquisition] well in advance, to enable them to be very transparent and open with everyone who has questions. We appreciate concern about airports and passengers and entering exiting from airfields. We’re trying to anticipate where the concerns may be and be very respectful in light of that concern.”