A consortium led by Japanese trading house Sumitomo Corp. struck a $7.4 billion deal to acquire Air Lease Corp., marking another major consolidation in the aircraft leasing industry as supply shortages drive up asset values.
The Los Angeles-based lessor’s shareholders will receive $65 per share in cash through a new Dublin-based holding company. While executives touted the deal as delivering “immediate premium and certainty,” the 7% bump over Air Lease’s recent all-time high closing price hardly represents a windfall for investors who watched the stock climb as aircraft scarcity boosted lease rates.
The transaction reflects the challenging position airlines face as manufacturers remain sold out for years ahead, forcing carriers to accept whatever terms lessors demand. Air Lease, founded in 2010, has benefited from this dynamic alongside other major lessors.
The newly formed entity will be backed by Sumitomo Corp., SMBC Aviation Capital, Apollo Global Management and Brookfield Asset Management. Air Lease’s order book will transfer to SMBC Aviation Capital as part of the transaction, consolidating assets under the Japanese-controlled platform.
The deal follows SMBC Aviation Capital’s $6.7 billion acquisition of Goshawk Aviation in 2022, underscoring how deep-pocketed investors are consolidating the fragmented leasing market. Lessors are benefiting from unprecedented lease extension requests—with some receiving requests to extend 90% or more of maturing leases compared to the typical 33%.
Industry pioneer Steven Udvar-Házy, who announced retirement plans in March, will see his creation absorbed into a larger conglomerate. The transaction, not subject to financing contingency, is expected to close in the first half of 2026.
J.P. Morgan Securities advised Air Lease on the sale.
