Leasing Business Avolon grows near-term deliveries with deal for on-order aircraft from FrontierAvolon has boosted its near-term new aircraft delivery pipeline following an agreement with US low cost carrier Frontier Airlines. The deal sees the lessor acquire 11 Airbus A321neos from Frontier's sizable order backlog with Airbus. The 11 aircraft are scheduled to be delivered between November 2026 and June 2027 and allows Avolon add in-demand narrowbodies to its portfolio while allowing Frontier to further slow the growth of its fleet as it right-sizes its operations. Aviation Business Airbus: Global passenger numbers to more than double over the next 20 years
Leasing Business AerCap closes bond issuance, updates on Q2 activityAerCap has successfully closed a $900 million senior notes issuance in its latest financing move and also revealed its second quarter 2026 activity, during which it leased, purchased and sold over 200 assets. Elsewhere, SMBC Aviation Capital alsmot trebled the sixe of its revolving credit facilty, enhancing its liquidity position and increasing its financial flexibility. |
In this issue In this issueThe launch of Mustang Aerospace, a new co-investment vehicle established by DAE and Neuberger, features in this issue and is yet another example of a global asset manager teaming up with a leasing platform to gain expertise and access to global aviation assets. The $6 billion platform will also add further scale to DAE's fast-expanding business. ABS issuance remains strong with a new issuer, AIP Capital, entering the market while we also look at Avolon's deal to acquire aircraft from Frontier Airline's order backlog with Airbus, as well as the OEM's latest Global Market Forecast. Leasing Business DAE teams up with Neuberger on new $6 billion leasing vehicle
Aircraft ABS AIP Capital in debut ABS issuanceAIP Capital launched its first aircraft ABS, MCAV 2026-1, while Griffin Global Asset Management followed up its 2025 debut issuance with its second deal under its Master Trust structure as the rate of aircraft ABS issuance in 2026 continues to outpace 2025, when a record level of issuance was reached. |
In its latest 'Global Market Forecast 2026-2045' Airbus predicts an extra 1.4 billion people will join the demographic most likely to fly, the 'middle class', by 2045 and that the demand for air travel will see air traffic more than double. Airbus sees this growth in passengers being driven by the faster-paced growth of small and medium urban areas - the resultant demand for air travel from and between these growing urban centres will see airlines establish new city pairs to meet demand.
The firms will launch a new aircraft leasing co-investment vehicle, Mustang Aerospace, which expects to invest $6 billion in aircraft assets over the medium-term across multiple vehicles with ambitions to develop it into a scaled, durable long-term leasing franchise. DAE has been busy dealmaking in the last 18 months having agreed deals for Nordic Aviation Capital and, more recently, Macquarie AirFinance, which has doubled the firm's leasing business while it also announced a multi-billion dollar aviation leasing investment programme with alternative asset management giant Blackstone back in April.