Daedalus Aviation Secures Used Boeing 737-700 Jets for Major DHS Deportation Push.

A little-known Virginia firm is rapidly assembling a jet fleet. Daedalus Aviation Corp., a military maintenance, repair, and overhaul (MRO) specialist, won a significant government contract. The company secured a nearly $140 million contract with the Department of Homeland Security (DHS). This deal is designed to support the U.S. government’s increased deportation efforts. It signals a major change in how the government handles air transport for removals.

Background on the Contract

The contract was finalized in late 2025. It tasks Daedalus with providing six Boeing 737 aircraft to the DHS. These planes will be used by U.S. Immigration and Customs Enforcement (ICE). Specifically, they will support ICE Air Operations (IAO). IAO is the primary air division for removals and domestic transfers. The move follows a massive funding increase from Congress. This funding supports President Donald Trump's border and immigration agenda.

Historically, IAO relied on commercial charter operators. This model often resulted in high and unpredictable costs. DHS spokeswoman Tricia McLaughlin confirmed the agreement. She stated that owning a fleet will save taxpayers an estimated $279 million. The goal is to operate more efficiently.

The Aircraft Acquisition and Used Jet Market

To fulfill the $140 million aircraft purchase, Daedalus Aviation has begun acquiring jets. Federal Aviation Administration (FAA) data shows four aircraft are now registered to the company. These are Boeing 737-700 models. The used commercial jet acquisition is a key part of the new strategy. These specific jets were previously operated by discount carrier Avelo Inc..

The acquisition of these Boeing 737-700 aircraft comes at a pivotal time. The Boeing 737 used market has seen recent activity. The DHS had previously approached other carriers for aircraft. The shift to owning a fleet requires sourcing reliable, available airframes. The 737-700 model is a workhorse of the Boeing [https://www.boeing.com] Next-Generation family. It offers the range and capacity needed for the long-haul deportation missions.

Industry Impact and Operational Shift

This new strategy marks a significant shift away from the previous aviation government charter shift model. For years, ICE relied on private contractors. Companies like CSI Aviation and Global Crossing Airlines (GlobalX) were major players. Budget airline Avelo Inc. was also a key provider of Avelo Airlines deportation flights.

• Charter Model Exit: Avelo Airlines announced in early January 2026 it was ending its DHS deportation flights. This followed a year-long public pressure campaign.
• Operational Control: The DHS is now gaining direct operational control. This allows for better alignment of aircraft availability with mission demand.
• New Contractor Profile: Daedalus Aviation Corp. is a relatively new federal contractor. The company is described as a military MRO specialist Daedalus. This background suggests a focus on specialized, high-utilization operations.

The creation of a dedicated ICE Air Operations fleet presents new logistical challenges. The DHS must now manage all aspects of a full-scale airline operation. This includes maintenance, crew sourcing, and regulatory compliance. Former officials previously rejected similar plans due to these high costs and logistical complexities. However, the new funding and the promise of $279 million in savings justified the change. The long-term success of this aircraft fleet ownership strategy will depend on efficient management and operational reliability.

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