Aviation ABS Merit AirFinance reports 'robust' interest for debut ABS deal
Asset Management Crestone adds scale with a 'natural strategic fit' through Arena dealCrestone Air Partners' acquisition of Arena Aviation Capital is a key consolidation play in the aviation asset management segment and is one of the latest moves in the aviation finance industry trend of platforms adding scale. While the leasing sector is enjoying a period of strong growth, consolidation amongst platform continues as players seek to better position themselves to manage risk across market cycles amidst heightened geopolitical risk and growing economic uncertainties. This deal will see Crestone Air Partners, which is the aviation asset management subsidiary of aviation group Air T Inc, double its assets under management to north of $4 billion while strengthening its global network. Aviation Economics IATA: air travel demand to more than double by 2050IATA projects that global air travel demand will more than double by 2050, driven by sustained annual growth of around 3–4%. The analysis, contained in its Long‑Term Demand Projections (LTDP), forecasts that the mature markets of Europe and North America will remain stable and growth will be concentrated in emerging markets, led by Asia-Pacific and Africa, as rising incomes and a growing middle class in these regions will fuel strong demand for air travel. |
In this issue In this issueDespite the near-term clouds caused by conflicts in Europe and the Middle East the longer-term outlook for the aviation sector is for healthy growth with IATA's latest Long‑Term Demand Projections forecasting a more than doubling of air travel demand by 2050. Africa will be at the heart of this growth and we look at a new initiative from Africa Development Bank aims to break down structural barriers facing African aviation. Consolidation continues and in this issue we analyse the moves by Crestone and Lesha Bank as both companies expand their leasing businesses. Financing Africa Development Bank advances Africa-wide aviation financing platform
Aircraft Leasing Lesha Bank set to buy Amedeo Air Four PlusQatar's Lesha Bank, which has identified aviation and aircraft leasing as a key growth area for its business, has agreed to buy Guernsey-based, LSE-listed aircraft leasing platform Amedeo Air Four Plus Limited (AA4+). Lesha Bank has been actively adding to its small leased aircraft portfolio and was recently reported to have bid for the Macquarie Airfinance business, before DAE reached agreement to acquire that business, showing its ambition in the space but has successfully agreed terms for the significantly smaller AA4+ business, with an all cash recommended offer subject to shareholder approval. |
The aviation lending specialist Merit AirFinance has priced its first ABS, an $817 million aviation loan-backed deal. The company was launched by Castlelake in August 2025 with the capacity to lend $1.8 billion and in early March Merit reported it had made strong progress growing its loan book with deals closed or committed reaching $1.3 billion as it brought the ABS deal to market. The deal supports the company’s strategy to further scale its aviation lending platform.
With Africa expected to become an increasingly important growth pole for global aviation in the coming decades, (see the latest IATA Long‑Term Demand Projections), a new initiative from the Africa Development Bank Group aims to help overcome the persistent structural barriers holding back the growth of African aviation. These challenges include high capital costs, aging fleets, fragmented regulatory frameworks and limited access to long-term financing with the initiative lauded as an important step in positioning African aviation as a bankable and strategic asset for the continent’s growth.