Aviation Finance

Aviation Finance Vol. 16 No 02, January 22nd 2026. ISSN 2009-7859

Aviation ABS

Aircraft ABS market opens with two debut deals

Issuance in the aircraft ABS market exceeded $10 billion in 2025 across 16 deals as the lessors took advantage of receptive markets for ABS and investor demand for exposure to aviation assets. Activity in the early weeks of 2026 indicates that the aircraft ABS market will again prove a popular financing avenue with two deals already off the ground from debut issuers - Perseus Asset Management and High Ridge Aviation.

Aviation Business

Consolidation identified as the big theme for leasing in 2026

2026 will see more M&A activity in the aircraft leasing sector according to PwC Ireland's Global Aviation Finance Outlook for 2026. It says this consolidation will be the key theme for lessors during the year and expects a changed market, characterised by a more regular aircraft delivery and aircraft trading environment, to enable lessors to grow their portfolios and describes 2026 as a year of 'transition and opportunity'.

Investment in Aviation

Airborne launches open-ended aircraft fund

Airborne Capital and joint venture partner Mercuria Investment have launched an open-ended aircraft fund, adding to the range of closed-ended funds the partners offer to Japanese investors. The target asset size is the equivalent of c.$940 million and it will be one of the first of its kind in Japan's aircraft fund space.

  
In this issue

In this issue

Early activity in 2026 points to the continuation of a strong aviation finance market with two aviation ABS deals already off the ground, innovation in the aviation funds space, significant investment by global investment managers in the leasing space and strong trading updates from lessors for the final quarter of 2025. Looking ahead in this issue, further consolidation amongst lessors is predicted for 2026 while a changing market, with greater numbers of deliveries, should give lessors more opportunities to grow their portfolios.

Leasing Business

Q4 activity shows leasing sector finished 2025 with a flourish

CDB Aviation closed 2025 with another major sustainability linked loan, described as a milestone by CEO Jie Chen, while Q4 trading updates from lessors including Avolon, BOC Aviation, Air Lease and Aircastle show the sector closed out 2025 in robust health.

Aviation Leasing

Willis scales its asset management capability with new division

Recent deals with Blackstone Credit & Insurance and Liberty Mutual Investments, as well as its long standing joint ventures with Mitsui & Co. and China Aviation Supplies Company, has prompted Willis Lease Finance Corporation to establish a new asset management operation called Willis Aviation Capital (WAC). The new division will focus on the management of third-party assets and capital through discretionary funds and will help accelerate its asset management business.