Global investor consortium to acquire Air Lease in $7.4B deal
The global airplane leasing business is about to get even more consolidated. Air Lease Corporation, founded by aviation legend Steven Udvar-Házy, has agreed to a $7.4 billion takeover by a group of investors, including Sumitomo Corporation, SMBC Aviation Capital, Apollo, and Brookfield.
Under the deal, Air Lease shareholders will receive $65 per share, about an 8% premium over last week’s closing price. Including debt, the deal values the Los Angeles-based company at $28.2 billion. Once finalized, the newly formed company will be headquartered in Dublin, Ireland, with the deal expected to close in the first half of 2026.
Why this matters
Aircraft leasing is a massive business. Instead of buying planes outright (which can cost over $100 million each), airlines rent them from lessors like Air Lease to save cash. Today, leasing companies own more than half of the world’s commercial fleet, a share that’s steadily grown since 2009.
With airlines still recovering from pandemic disruptions, supply chain delays, and fluctuating demand, leasing has become even more important. Rental rates for both new and used planes have hit record highs, giving lessors a stronger hand in the market.
Industry shake-up
This acquisition is part of a broader wave of consolidation:
- In 2021, GE sold its leasing arm to AerCap, now the world’s biggest lessor.
- In 2022, Standard Chartered sold its leasing unit to AviLease, backed by Saudi Arabia’s sovereign wealth fund.
Air Lease, which currently owns 495 planes with more on order, is ranked as the fifth-largest lessor worldwide. The takeover is seen as a move to quickly expand market presence. As one aviation analyst put it, “It’s the cheapest way to buy growth.”
The man behind it all
Steven Udvar-Házy, often called the “godfather of aircraft leasing,” founded Air Lease in 2010 after decades of shaping the industry. Having escaped Soviet-era Hungary as a child, Udvar-Házy built a career that revolutionized how airlines access modern, fuel-efficient jets. Though he retired earlier this year, his influence continues to define the industry.
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