July 25 (Bloomberg) -- Dubai Aerospace Enterprise, the state-run aviation investment group that agreed to buy Auckland International Airport Ltd., is exploring an airport project in Europe as it sets out to build an international network.

``There will be something in Europe,'' Sheikh Ahmed bin Saeed al-Maktoum, a member of Dubai's ruling family and chairman of Dubai Aerospace, said in an interview in his office yesterday, declining to be specific until ``the right time.''

Dubai Aerospace was formed last year with a goal of becoming a $15 billion airport and aviation services company. In April it agreed to buy two U.S. aviation-maintenance companies from Carlyle Group for $1.8 billion, and this week agreed to buy a controlling stake in Auckland Airport, New Zealand's busiest, for as much as NZ$2.6 billion ($2.1 billion).

``If Dubai's looking at Western Europe, I'd expect their focus to be on the U.K. or Germany, perhaps Ireland and Spain as an outside bet,'' Doug McVitie, managing director of consulting firm Arran Aerospace, said in an interview from France today. ``In the east, there's opportunity in new secondary airports that carriers like Ryanair and EasyJet are looking at.''

Macquarie Airports, Australia's biggest airfields owner, last month agreed to sell its 45 percent stake in Aeroporti di Roma to Gemini SpA for almost three times what it paid in 2003.

Ontario Teachers' Pension Plan and Australia's Victorian Funds Management Corp. in May agreed to pay $836 million for 48 percent of Birmingham International Airport.

Auckland to Dubai

Shares in Air New Zealand Ltd., the nation's biggest airline, dropped the most in a month July 23 on concern Dubai's control of Auckland Airport would benefit Dubai-owned Emirates, the biggest Arab airline.

Emirates sponsored the New Zealand Americas Cup sailing team in this year's competition and flies from Dubai to Auckland twice daily, according to the carrier's Web site. Sheikh Ahmed is Emirates' chairman.

``We operate independently,'' the sheikh said, asked if Auckland would become a hub for Emirates. ``We have to separate DAE from Emirates. Emirates is not a shareholder in DAE.''

Dubai Aerospace's shareholders include Emaar Properties PJSC, Istithmar PJSC, Dubai Airport Free Zone Authority, Dubai International Capital LLC, DIFC Investments LLC, the government of Dubai and Amlak Finance PJSC, according to its Web site.

To contact the reporters on this story: Will McSheehy in Dubai, U.A.E. at wmcsheehy@bloomberg.netMassoud A. Derhally in Dubai, U.A.E. at mderhally@bloomberg.net

Last Updated: July 25, 2007 10:02 EDT