Aviation Finance

Aviation Finance Vol. 15 No 17, August 21st 2025. ISSN 2009-7859

Leasing Business

Leasing company wins appeal in Indian tax case

A recent Indian court order has provided important guidance on the tax treatment of aircraft leases between Indian airlines and overseas aircraft lessors. The order, from the Delhi Bench of the Income Tax Appellate Tribunal on July 25th, 2025 overturned an assessment (which was also upheld by a Dispute Resolution Panel) on the nature of leasing arrangements between an AerCap subsidiary and the parent of Indian airline IndiGo that resulted in a tax charge for the AerCap subsidiary.

Investment in Aviation

SMBC Aviation Capital closes second Japanese investor fund

The lessor’s Global Aviation Equipment Leasing (GAEL) fund raised equity capital from a group of Japanese investors and follows on from its first award-winning GAEL transaction in 2019. This latest deal also sees SMBC Aviation Capital’s managed fleet grow to 110 aircraft which is valued at over $4.5 billion.

Leasing Business

Aviation Capital Group reports record earnings on back of Russia settlements

Aviation Capital Group delivered a ‘solid performance’, in the words of CEO Tom Baker, during the first half of 2025 recording total revenues of $612.5m thanks to ‘robust’ lease revenue, gains on sale of aircraft and significant insurance settlements in relation to claims related to aircraft lost in the Russian market.

  
In this issue

In this issue

The half year performances of BOC Aviation and Aviation Capital Group featured in this issue offer further evidence of the tailwinds global aircraft lessors are experiencing thanks to tight supply of new aircraft and high demand for air travel. We also look at Castlelake’s latest move that sees it launch a new aviation lender, SMBC Aviation Capital’s latest fund and an Indian court order that is described as a ‘welcome relief’ for airlines and lessors active in the fast-growing Indian market.

Aircraft Financing

Castlelake launches $1.8 billion aviation lender

Castlelake’s decision to establish a new aviation lending business is the latest move by the global alternative asset manager to grow and evolve its aviation assets business which has seen it undertake a number of major moves including selling a major stake in its business to investment giant Brookfield and disposing of a 100+ aircraft leasing platform to Avolon, while remaining active in the market as a leading aircraft ABS issuer, aviation lender and recently closed its fifth aviation investment fund earlier this year.

Leasing Business

BOC Aviation core profits grow 20% in H1 2025

BOC Aviation has recorded another period of record profits as the Singapore-headquartered lessor recorded net profit after tax of $342 million for the six months of 2025 with CEO Steven Townend saying the performance was driven by rising demand across all of its key business areas. The lessor also had record operating cash flow net of interest, reaching $1 billion, up 10% on a year earlier.