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ACG Acquires 24 Aircraft from Avolon

ACG Acquires 24 Aircraft from Avolon, Strengthening Portfolio Amid Dynamic Leasing Market
Aviation Capital Group (ACG) has finalized agreements to acquire a portfolio of 24 aircraft from Avolon Aerospace Leasing, marking a significant development in the competitive aircraft leasing industry. The portfolio comprises 18 narrow-body aircraft, including 12 new-technology models, alongside six wide-body aircraft, all equipped with the latest technological advancements. By February 1, 2026, the average age of the portfolio will be approximately four and a half years, with an average remaining lease term of 8.9 years. These aircraft are currently leased to 17 airlines across 16 countries, with four of these airlines set to become new customers for ACG.
Strategic Growth and Industry Implications
Thomas Baker, CEO and President of ACG, highlighted the acquisition as a key element of the company’s growth strategy, emphasizing the importance of proactive aircraft trading. He stated that the addition of these 24 in-demand aircraft not only strengthens ACG’s portfolio but also supports its ambition to operate at scale as a global lessor. Baker further noted that the transaction enhances the sustainability of ACG’s fleet, which is already among the youngest in the industry. He also acknowledged Avolon’s collaborative role in facilitating the deal.
From Avolon’s perspective, Chief Financial Officer Ross O’Connor remarked that the transaction extends the ongoing relationship between the two companies and underscores ACG’s capability to execute large-scale aircraft trades. O’Connor added that the deal builds on Avolon’s strong trading performance in 2025 and reflects sustained robust demand for its assets.
This acquisition follows ACG’s purchase of a 19-aircraft portfolio from Avolon in 2025, further solidifying the established trading partnership between the two lessors.
Market Context and Future Outlook
The transaction occurs amid a particularly dynamic period in the aircraft leasing market, where lessors and lessees face challenges such as the grounding of certain aircraft models and fluctuating demand between new and used aircraft. The competitive environment is driving companies to recalibrate their strategies to maintain or expand market share. Industry observers are closely monitoring how ACG’s expanded portfolio will influence its market position and financial performance, especially as competitors may respond with their own strategic initiatives.
Broader economic conditions, alongside factors such as aircraft age, maintenance costs, and the ongoing demand for new-technology aircraft, are expected to shape the market’s reaction to this acquisition. As the sector continues to evolve, ACG’s latest transaction highlights the critical importance of scale, fleet modernization, and adaptability within the global aircraft leasing industry.

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