Aviation Finance

Aviation Finance Vol. 16 No 17, August 20th 2026. ISSN 2009-7859

Investment in Aviation

FTAI launches next phase of its mid-life leasing strategy

FTAI has completed the deployment of its first mid-life aircraft leasing SPV, the Strategic Capital Initiative (FTAI SCI 1) fund and launched its second Strategic Capital fund. FTAI said its inaugural fund was fully committed in Q2 and made its first quarterly distribution on June 30th, while its second Strategic Capital Fund has already begun making aircraft acquisition commitments.


Investment in Aviation

MACH OE fund progresses with first aircraft deliveries

MACH OE, the joint venture open-ended aircraft fund launched in April by aircraft lessor Airborne Capital and Japanese investment firm Mercuria Investment Company has reached a major milestone having taken delivery of its first two aircraft at the of July. MACH OE is one of the first of its kind in Japan's aircraft fund space and has a target size of more than $1 billion.


Leasing Business

BOC Aviation hits new record in H1 2026

BOC Aviation has reported improvement across its leasing, trading and financing activities in the first half of 2026, and reports new record levels of profit for the period, surpassing the levels reached in the first half of 2025. Meanwhile fellow lessor Aviation Capital Group, which is set to welcome ITOCHU as a 50% shareholder alongside current owner Tokyo Century before the end of the year, enjoyed revenue growth of 9% for the first half of the 2026.

 
In this issue

In this issue

Enduring Investor interest in, and the strong performance of, the aviation finance sector is evident in this issue. The latest move by FTAI to open up the next stage of its aircraft leasing strategy follows on from it just having deployed c.$6 billion through its first fund. Elsewhere, Sumisho revealed agreements to sell portfolios valued at $4.4 billion to Perseus and Castlelake while BOC Aviation and ACG report robust performance over H1.


Leasing Business

Sumisho reports strong progress on post-deal integration and leverage target

Sumisho Air Lease Corporation says the integration process with SMBC Aviation Capital is 'ahead of expectations' revealing that servicing activities are already in place and robust and are 'ahead of expectations'. However, acquisition-related expenses and aircraft sales have contributed to a quarterly fall in lease income of 10% compared to a year earlier and a drop of 12.4% in total revenues.


Aircraft Deals

Avolon agrees seven aircraft deal with Akasa Air

Avolon has agreed a major sale/leasback deal with Indian airline Akasa Air. The transaction sees Avolon extend its relationship with the young, fast-growing low cost carrier and, with the lessor reporting liquidity of c.$12 billion including unrestricted cash of $356 million at the end of Q2, deploy capital into growing its fleet of new technology aircraft.