Dubai - The Gulf-based leasing company Dubai Aerospace Enterprise (DAE) is in talks with Boeing and Airbus to buy 400 aircraft Reuters reports.

The order cycle is slowing down for both Airbus and Boeing. However, industry experts predict strong growth for air travel in the coming years, notably led by the continued expansion of low-cost operators.

The state-owned leasing company of Dubai is mainly interested in acquiring Airbus A320neo family, and Boeing 737 MAX series aircraft told Reuters CEO Firoz Tarapore on May 18 in an interview at DAE’s offices in Dubai’s financial district.

But Tarapore stated that they are not happy with the prices offered by the manufacturers.

We are nowhere near where we thought we would be in finalizing an order,
he said.

Any deal would not necessarily be evenly split between the two plane makers.

An order for 400 narrow-body aircraft would be worth nearly $40 billion at list prices. However, discounts up to 50 percent are typical for large orders according to market sources.

If Dubai Aerospace Enterprise doesn't reach an agreement with Boeing and Airbus, they might look at other options to acquire new aircraft said Tarapore, but he did not give detail.