Air Lease Activity Report: Q3 2025

UAE Launches First Hospital Flying Taxi Port to Reduce Patient Travel Time Innovative Transport Solution at Cleveland Clinic Abu Dhabi Cleveland Clinic Abu Dhabi has announced plans to establish the United Arab Emirates’ first hospital vertiport dedicated to flying taxis, aiming to significantly reduce patient travel times compared to conventional ground transportation. This initiative, unveiled on Wednesday, is part of a collaboration with Archer Aviation, whose Midnight aircraft is designed to carry up to four passengers while producing less noise and lower emissions than traditional helicopters. The vertiport will primarily serve non-emergency patients and support the rapid transport of organs for transplantation, enhancing the logistical capabilities of the hospital’s organ transplant programme. Dr Georges-Pascal Haber, the clinic’s chief executive, emphasized that this emission-free mode of transport aligns with the hospital’s sustainability goals, expands travel options for patients, and provides critical logistical support for time-sensitive medical procedures. Challenges and Industry Context While the announcement represents a significant milestone in the UAE’s pursuit of advanced mobility solutions—including drones, autonomous taxis, and air taxis—several obstacles remain before the vertiport becomes fully operational. Key challenges include securing regulatory approval, meeting stringent safety standards, and integrating new technologies within existing infrastructure. The hospital has not yet provided a timeline for the vertiport’s opening or detailed operational plans. Market responses to flying taxis have been mixed, with skepticism surrounding their reliability, cost-effectiveness, and passenger safety. Practical concerns about scaling such services persist despite technological progress. Meanwhile, competition in the air taxi sector is intensifying, with other companies already conducting tests in the UAE potentially accelerating their own launch schedules in response to Cleveland Clinic Abu Dhabi’s announcement. The UAE’s Broader Vision for Futuristic Mobility The UAE continues to advance its ambitions in futuristic transportation. Recently, Ras Al Khaimah announced plans to launch its first passenger air taxi service by 2027, complementing similar projects underway in Abu Dhabi and Dubai. As the country progresses, the integration of flying taxis into healthcare and urban mobility systems could establish a regional precedent, contingent on successfully addressing regulatory, safety, and technological challenges.

Dubai South Expands Aerospace Facilities to Strengthen Global Aviation Hub The Mohammed bin Rashid Aerospace Hub (MBRAH) at Dubai South has announced a major expansion of its Line Maintenance Units (LMUs), aimed at enhancing support for airside operators, including Fixed Base Operators (FBOs), by providing them with direct access to their clients. Upon completion, the expansion will increase the total number of LMUs to 11, encompassing a combined area of 76,000 square feet. Comprehensive Aviation Solutions and Infrastructure The newly expanded LMUs are designed to serve as a comprehensive aviation solutions hub, offering a wide range of services such as storage and maintenance facilities, tooling, engineering support, and a world-class pilot rest area. Additional amenities will include shaded parking, office spaces, and customized facilities tailored to meet the evolving requirements of aviation operators. Construction is currently underway, with the project scheduled for completion in the third quarter of 2026. Mohammad Al Falasi, deputy CEO of MBRAH, emphasized the strategic importance of the expansion, stating, “We have expanded our services to meet the strong demand from the aviation community for line maintenance support. This milestone underscores our commitment to developing a compelling product strategy and building a dynamic ecosystem that fulfills the aspirations of our valued clients. We will continue to spare no effort in strengthening Dubai’s position as a global leader in aviation.” Growth Amidst Challenges in a Competitive Landscape This expansion coincides with a notable 15% increase in business aviation traffic through Dubai, reflecting the emirate’s rising prominence as a global hub for business travel and investment. MBRAH, developed by Dubai South, offers world-class infrastructure and connectivity for international aerospace companies and operates as a free-zone destination for leading airlines, private jet operators, maintenance, repair and overhaul (MRO) firms, and other aviation-related industries. The hub also hosts maintenance centers, training facilities, and education campuses, reinforcing Dubai’s ambition to maintain its leadership in the global aviation sector. Nevertheless, the rapid growth of aerospace facilities in Dubai South presents certain challenges. Industry experts highlight potential supply-chain bottlenecks and the necessity for a comprehensive ecosystem to sustain long-term development. As Dubai continues to enhance its aviation infrastructure, regional competitors are expected to bolster their own aerospace capabilities to preserve market share. Furthermore, the increasing emphasis on sustainability and strategic growth introduces additional complexities to market-entry strategies and long-term planning. Despite these challenges, Dubai South’s continued investments demonstrate a firm commitment to innovation and leadership within the global aviation industry, positioning the emirate as a pivotal player in the future of aerospace.

Autonomous Flight Startup Sees.ai Secures £3.65 Million to Advance BVLOS Drone Technology Sees.ai, a Chichester-based company specializing in autonomous aerial solutions, has successfully raised £3.65 million in a funding round co-led by Sustainable Future Ventures, Hearst Ventures, and Elbow Beach Capital, with additional support from WakeUp Capital. This investment highlights the increasing momentum within the autonomous flight sector, as both industry leaders and investors intensify their focus on AI-driven robotics and next-generation infrastructure management. Pioneering Autonomous Drone Technology Founded in 2018, Sees.ai develops advanced technologies encompassing flight control, collision avoidance, autonomous take-offs, and comprehensive vehicle and safety management systems. The company holds the distinction of being the first in the United Kingdom to receive Civil Aviation Authority (CAA) approval for routine Beyond Visual Line of Sight (BVLOS) drone operations, positioning it at the forefront of regulatory advancements in the field. John McKenna, CEO of Sees.ai, emphasized the significance of the funding, stating, “The precision and value of the asset condition data we are now capturing is unmatched globally. This funding will accelerate our ability to deliver precise intelligence at network scale, shaping how critical infrastructure is designed, developed and managed.” He further noted that Sees.ai’s deployment represents one of the world’s first large-scale implementations of centralized autonomy, marking the beginning of a transformative era where AI and drones redefine work, enhance efficiency, and contribute to environmental stewardship. Industry Context and Challenges Sees.ai’s recent capital injection arrives amid a period of intense competition and rapid innovation within the autonomous systems market. Major corporations such as Northrop Grumman are preparing for significant autonomy testbed flights, while companies like Einride have secured substantial funding—$100 million—for self-driving truck technologies. The sector has also witnessed landmark investments, including Figure AI’s $1 billion Series C and Micro1’s $35 million Series A rounds, underscoring strong investor enthusiasm for AI-powered robotics and autonomous solutions. Despite this progress, regulatory challenges continue to pose significant obstacles to the widespread adoption of autonomous flight. Authorities remain cautious, striving to balance technological innovation with safety and regulatory oversight. Concurrently, the influx of new entrants into the market is intensifying competition, compelling both established firms and startups to accelerate the development and commercialization of their autonomous technologies. Conan Lauterpacht, founding partner at Sustainable Future Ventures, remarked on Sees.ai’s strategic position, stating, “Sees.ai sits at the intersection of two defining megatrends of our time – the application of AI to unlock new levels of efficiency, and the global transition to clean energy. Their autonomous inspection technology has the potential to transform how critical infrastructure is managed, delivering safer, faster and more scalable insights.” He added that Sustainable Future Ventures is enthusiastic about supporting Sees.ai as it scales a solution that is both commercially compelling and essential to the net zero transition. With this latest funding, Sees.ai plans to expand the deployment of its autonomous drone systems, further solidifying its leadership role in the evolving landscape of AI-driven infrastructure management.

AFG Appoints Shiekuma Gemade as Executive Vice President and COO AFG has announced the appointment of Shiekuma Gemade as its new Executive Vice President and Chief Operating Officer, a strategic decision aimed at reinforcing the company’s leadership amid a dynamic aviation sector. Gemade brings more than twenty years of comprehensive experience in aviation, maintenance, repair, and overhaul (MRO), as well as airline management. His expertise encompasses aircraft acquisitions, fleet planning, and leasing transactions exceeding US$12 billion, covering both commercial and cargo operations. Extensive Industry Experience and Leadership Before joining AFG, Gemade held the position of head of fleet at Riyadh Air, where he was instrumental in managing aircraft acquisitions and fleet planning. He played a key role in launching one of the industry’s most ambitious new aircraft programs, demonstrating his ability to oversee complex, large-scale projects within highly competitive global markets. His leadership at Riyadh Air underscored his capacity to deliver strategic initiatives that align with evolving industry demands. Gemade’s prior roles include senior management positions at Atlas Air Worldwide and Titan Aviation Leasing. At these firms, he managed a significant widebody freighter lease portfolio, developed a lease management platform, and conducted cross-border transactions across the Americas, Europe, the Middle East, and Africa. These responsibilities have honed his skills in navigating multi-jurisdictional regulatory environments and fostering international partnerships critical to global aviation operations. He began his career at Delta Air Lines, progressing from an engineering role within Delta Technical Operations to operations leadership, where he optimized performance for a 450-aircraft DC fleet. Gemade holds a Bachelor of Science in Aerospace Engineering and a Master of Science in Aviation Management from Embry-Riddle Aeronautical University, and he is a licensed FAA private pilot. Challenges and Strategic Outlook As Gemade assumes his new role at AFG, the company faces the challenge of integrating his leadership style with its existing corporate culture while ensuring a seamless transition of responsibilities from previous executives. Aligning his vision with AFG’s strategic objectives will be crucial to enhancing operational efficiencies and fostering sustainable growth. Industry analysts and investors are expected to closely observe Gemade’s impact on AFG’s performance, particularly his ability to strengthen the company’s competitive position. Concurrently, competitors may respond by intensifying their own leadership strategies to maintain market advantage. Gemade’s appointment represents a significant milestone for AFG as it seeks to capitalize on his extensive expertise to navigate the complexities of the evolving aviation landscape and pursue new growth opportunities.

Aegean Airlines Expands Regional Fleet with ATR 72-600 Addition Aegean Airlines, through its regional subsidiary Olympic Air, has enhanced its fleet with the introduction of a new ATR 72-600 turboprop aircraft. Alongside this delivery, the airline has placed a direct order for two additional ATR 72-600s, expected to join the fleet by December 2026. This strategic expansion reflects Aegean’s commitment to modernizing its fleet, supporting sustainable growth, and reinforcing its regional network. Strengthening Regional Connectivity Olympic Air currently operates a total of 15 ATR aircraft, including 12 ATR 72-600s and three ATR 42-600s. These aircraft are integral to servicing a broad network of domestic routes within Greece, as well as select short-haul international destinations. The ATR 72-600 is particularly valued for its fuel efficiency, operational reliability, and ability to operate on shorter runways—an essential capability given Greece’s numerous island airports. In 2024, Aegean and Olympic Air collectively transported 16.3 million passengers, offering 19.7 million seats across 47 countries. The group’s network for 2025 is projected to encompass 250 direct routes, with 55 domestic and 195 international connections spanning 162 destinations across Europe, the Middle East, and North Africa. The combined fleet now totals 85 aircraft, underscoring the airline’s expansive reach. Industry Context and Future Outlook Aegean’s investment in additional ATR 72-600s aligns with broader industry trends and competitive pressures. As ATR seeks to increase its footprint in the U.S. market—where its presence remains limited—Aegean’s continued confidence in the aircraft type highlights its suitability for regional operations. This expansion may intensify competition on regional routes, encouraging other carriers to upgrade their fleets. Similar fleet enhancement strategies have been observed among competitors such as Cabo Verde Airlines, which has also expanded its ATR fleet to improve domestic connectivity. Looking ahead, Aegean plans further growth and fleet renewal. Between September 2025 and March 2027, the airline expects to receive 14 new aircraft, including 11 Airbus A321neos and three additional ATR 72-600s. These additions are poised to strengthen Aegean’s position as Greece’s leading carrier and extend its influence across regional and international markets. Through these investments, Aegean Airlines aims to enhance connectivity, improve operational efficiency, and offer greater choice to passengers, while maintaining a strong focus on sustainability and the integration of modern technology.

Caerdav Completes First Aircraft Transition for Avolon Caerdav has marked the beginning of its partnership with aviation leasing giant Avolon by successfully completing its first aircraft transition under a newly established general maintenance agreement. The initial project involved an Airbus A320, previously operated in Asia, which underwent a comprehensive transition check at Caerdav’s St. Athan facility in Wales. This process prepared the aircraft for its subsequent deployment with a Spanish operator. Comprehensive Maintenance and Delivery The transition encompassed a full airframe inspection alongside the replacement of the aircraft’s number two engine, following a detailed boroscope examination. Upon completion of all maintenance tasks, the aircraft was cleared for delivery to Volotea, a low-cost carrier based in Barcelona. Philip Swanson, Business Development Director at Caerdav, emphasized the company’s commitment to quality and efficiency, stating that the new agreement represents a significant step toward establishing Caerdav as a trusted airframe maintenance, repair, and overhaul (MRO) partner for Avolon and the broader leasing community. Strategic Role of Caerdav’s St. Athan Facility Caerdav’s St. Athan base functions as a full-service MRO hub, supporting Avolon’s extensive fleet of over 1,000 aircraft. The facility specializes in Boeing 737 and Airbus A320 families, offering a wide range of services including end-of-lease checks, redeliveries, entry-into-service work, and transition projects. Its flexible approach and in-house expertise allow the company to address unexpected requirements and deliver tailored solutions while adhering to tight schedules. Additional capabilities at the site include non-destructive testing, composite repairs, paintwork, and heat treatments. Market Implications and Future Prospects This new partnership positions Caerdav to service a greater number of Avolon aircraft in the future, reinforcing its reputation as a dependable MRO provider within the global leasing sector. However, the collaboration emerges amid a competitive market environment where reactions from rivals could influence its long-term impact. Industry analysts note that Caerdav’s ability to maintain reliable and efficient service will be closely scrutinized, as competitors may respond by enhancing their own offerings or forming new alliances to safeguard market share. Any delays or complications during aircraft transitions could attract critical attention from investors and analysts, potentially affecting Caerdav’s standing in the industry. By combining technical expertise with operational adaptability, Caerdav aims to strengthen its position and expand its role within the competitive aircraft leasing and MRO landscape.

F-35 Engine Delays Prompt Concerns Over Production Schedule Production Setbacks and Contractual Implications The Pentagon’s F-35 program is confronting renewed delays in the delivery of Pratt & Whitney’s F135 engines, raising concerns about the overall production timeline shortly after a $24.3 billion contract was awarded to Lockheed Martin for 296 new F-35 aircraft. The F-35 Joint Program Office (JPO) has confirmed that contracts for Lots 18 and 19 of the F135 engine will not be finalized until spring 2026, approximately six months later than initially planned. This postponement affects hundreds of engines intended for the upcoming batch of F-35s destined for both U.S. and allied forces. The F135 engine, manufactured by Pratt & Whitney—a subsidiary of RTX—powers all three variants of the F-35: the conventional F-35A, the short-takeoff and vertical-landing F-35B, and the carrier-capable F-35C. The delay follows the recent contract announcement, with deliveries scheduled to commence in 2026 at Lockheed Martin’s assembly facility in Fort Worth, Texas. Although the JPO has not explicitly stated whether these engine delays will impact the overall delivery of F-35 aircraft, any disruption in engine availability could potentially slow the final assembly process. Supply Chain Challenges and Industry Response A recent report by the U.S. Government Accountability Office highlighted that all 123 F135 engines delivered in 2024 arrived behind schedule, with an average delay of 238 days. The report also scrutinized the incentive-fee structure that permits Pratt & Whitney to receive partial payments despite missing delivery deadlines. The company’s manufacturing network is under considerable strain due to ongoing supply chain disruptions, rising costs, and workforce shortages. These challenges have been compounded by RTX’s concurrent recall of its geared turbofan engines used in commercial airliners. These production difficulties have attracted increased scrutiny from international partners and market analysts, raising questions about the reliability and sustainability of the F-35 program. As global competitors such as Russia accelerate their own engine development programs, the United States faces mounting pressure to preserve its technological edge. In response, Pratt & Whitney is advancing its Engine Core Upgrade (ECU) and XA103 engine initiatives. However, the ECU program itself has encountered setbacks, recently missing a critical design review milestone. International and Strategic Implications The delays in F-35 engine production occur at a sensitive juncture for U.S. defense cooperation, particularly with key partners like India. Existing diplomatic tensions have already tested defense relationships, and further setbacks in F-35 deliveries risk complicating ongoing collaboration. Meanwhile, the United Kingdom is exploring interim standoff weapons for its F-35 fleet due to delays in integrating advanced missile systems, illustrating the broader operational ripple effects stemming from engine production issues. Despite these challenges, the JPO has reported no safety or design defects in the F135 engine, attributing delays primarily to production slowdowns and parts shortages rather than technical faults. The engine has powered the F-35 since its maiden flight in 2006 and has accumulated over 1.7 million flight hours. In June, the Pentagon reaffirmed its commitment to the F135, opting to upgrade the existing engine rather than transition to a new adaptive-cycle design proposed by GE Aerospace. This decision was made to minimize costs and avoid disruption to the program. As the F-35 Lightning II remains the world’s largest and most complex weapons program, the latest engine delays highlight the persistent challenges of sustaining production and international defense cooperation amid an evolving global security environment.

Bishop International Airport to Launch New Maintenance Hub Bishop International Airport in Flint, Michigan, is preparing to enhance its aviation infrastructure with the inauguration of a significant maintenance facility. AeroDesign Services (ADS) has announced the opening of its new Federal Aviation Administration Part 145 Certified Maintenance, Repair, and Overhaul (MRO) hub at the airport, marking a strategic expansion in the region’s aviation services. Grand Opening and Strategic Vision The official opening is scheduled for Thursday, October 23, beginning with a VIP reception and facility tour at noon, followed by a formal ceremony from 1 p.m. to 4 p.m. ADS envisions the new facility as a central hub for aviation maintenance in mid-Michigan, aiming to foster workforce development and stimulate regional economic growth. Don Zaharia, CEO and owner of ADS, described the project as more than a physical structure, emphasizing its role as a long-term commitment to advancing aviation excellence and connecting Michigan to global markets. ADS plans to leverage the event to highlight its strategy for building partnerships across the region and creating new opportunities for aviation professionals. The company positions the hub as a catalyst for both industry innovation and local employment, underscoring its broader economic and professional impact. Challenges and Market Implications Despite the promising outlook, the launch of the maintenance hub faces several significant challenges. Securing adequate funding and navigating regulatory approvals remain critical concerns. Additionally, recruiting and training a skilled workforce capable of meeting stringent industry standards will be essential to the facility’s sustained success. Market analysts suggest that the introduction of this new MRO facility could intensify competition within the regional maintenance services sector. This heightened competition may lead to increased operational costs for airlines and could prompt existing providers to expand their capabilities or seek strategic alliances to protect their market positions. Comparable ventures, such as FL Technics’ recent MRO launch in the Caribbean, have encountered similar logistical and operational difficulties, highlighting the complexities involved in establishing new aviation maintenance centers. Despite these obstacles, ADS maintains a positive outlook on the facility’s potential to reinforce Michigan’s role in the global aviation industry and to generate valuable opportunities for local professionals.

Flying Taxis Move Closer to Reality: What Travelers Should Know Dubai’s Ambitious Leap into Aerial Mobility For decades, the concept of flying cars has captivated the public imagination, inspired by iconic visions from popular culture such as *The Jetsons* and *Back to the Future II*. This futuristic dream is now approaching tangible reality, with Dubai emerging as a global pioneer in commercial flying taxi services. The city, renowned for its rapid technological advancements and striking skyline, aims to launch these services as early as 2026. The flying taxis, developed through a collaboration between California-based Joby Aviation and Dubai’s Roads and Transportation Authority, resemble large-scale drones capable of carrying passengers. These electric vertical takeoff and landing (eVTOL) vehicles will operate from specially constructed “vertiports,” with four such hubs planned for the initial rollout. Unlike conventional helicopters, these taxis will be remotely operated, offering a pilot-free and largely autonomous travel experience. Dubai’s adoption of flying taxis aligns with its broader commitment to innovative infrastructure, which already includes a driverless metro system and an extensive public transit network. Despite these advancements, the city continues to face significant traffic congestion. Flying taxis present a potential solution by transporting commuters above ground-level gridlock. However, the service is expected to be costly initially, likely positioning it as a premium option for affluent travelers. Advantages and Challenges of Flying Taxi Technology The introduction of electric flying taxis offers several notable benefits. Their electric propulsion systems promise a reduced carbon footprint compared to traditional aircraft, while their quieter operation could lessen noise pollution in urban environments. The absence of onboard pilots may also appeal to passengers seeking privacy and a novel travel experience. Nevertheless, the path to widespread adoption remains complex. The global race to develop eVTOL technology has witnessed both remarkable progress and significant setbacks. While companies such as Archer Aviation have garnered attention with ambitious projections and public demonstrations, others have encountered difficulties. For instance, Supernal recently suspended its eVTOL program after underestimating the costs and operational challenges involved. Some competitors have shifted focus or abandoned their projects, whereas firms like Joby Aviation and Alef Aeronautics continue to advance their developments. Regulatory frameworks, safety standards, and economic feasibility represent substantial hurdles. Governments are beginning to address these issues; in the United States, a pilot program initiated during the Trump administration seeks to establish foundational regulations for electric flying taxis. However, considerable work remains before the technology can achieve mainstream adoption. Dubai at the Forefront of the Aerial Revolution Currently, Dubai stands at the vanguard of this emerging aerial transportation revolution. Its flying taxi initiative is poised to become one of the city’s most prominent attractions. Should the initial phase prove successful, the network of vertiports could expand rapidly, reflecting Dubai’s reputation for ambitious and swift development. As this vision unfolds, travelers may soon find themselves soaring above the city, experiencing a long-anticipated glimpse of the future.

Floating Fleet AI to Unveil Advanced Scheduling Software at NBAA-BACE 2025 Floating Fleet AI, a leading developer of artificial intelligence-driven scheduling solutions for business aviation, is set to launch its latest platform at the NBAA-BACE 2025 event in Las Vegas. The company asserts that its patented optimisation algorithms can significantly improve the assignment of aircraft and crew, reduce staff workload, and generate measurable cost savings while effectively expanding fleet capacity. Innovative Scheduling Tailored for Business Aviation Primarily designed for floating fleet operators, the AI Scheduler is also well-suited for corporate flight departments and charter brokers. The platform seamlessly integrates with existing flight management systems, including a recent connection with FL3XX, and features a user interface inspired by ChatGPT to ensure ease of use. Dr. Roger Zhan, CEO of Floating Fleet AI, highlighted that users can be trained on the system in as little as ten minutes. “The two most important assets for Part 135 or 91 operators are their crew and aircraft. Those have to come together to serve the customer,” Dr. Zhan explained. “We’re not trying to replace human schedulers. Instead, we provide machine-generated recommendations that schedulers can accept or adjust at their discretion. If satisfied, they can push the schedule directly to their flight management system—whether myairops, FL3XX, or another platform—and continue their workflow seamlessly.” Floating Fleet’s AI is purpose-built for the complexities of aviation logistics, employing custom algorithms capable of rapidly handling intricate scheduling scenarios. Dr. Zhan noted, “Scheduling 30 aircraft over seven days takes just a few seconds for us. I’ve seen other programmes take five to fifteen minutes or fail to manage a full seven-day schedule.” Industry Adoption and Challenges Ahead With a growing customer base across North America, Floating Fleet AI now optimises tens of thousands of flights monthly. Jacob Wall, vice president of operations at Jetvia—the world’s largest Learjet 60 operator and a Floating Fleet client—remarked, “Floating Fleet AI has materially reduced our deadhead percentage by delivering optimisations that exceed what a human could do. The team has been consistently responsive and quick to innovate. Floating Fleet AI is now integral to how we manage our fleet.” Despite the platform’s promise, the rollout of such advanced technology presents challenges. Integrating the AI Scheduler with the diverse systems already employed by business aviation operators requires meticulous coordination. Ensuring compliance with regulatory standards remains a critical priority. Furthermore, some pilots and crew members may resist transitioning from traditional scheduling methods to AI-driven solutions. Market observers are expected to focus on the platform’s potential to enhance operational efficiency and reduce costs. Competitors may respond by upgrading their own scheduling technologies or forming partnerships to incorporate AI capabilities, while also showcasing their advancements to maintain market relevance. Dr. Zhan’s extensive background in business aviation technology, including roles at CitationAir, Textron Aviation, and Wheels Up, has been instrumental in shaping Floating Fleet AI’s platform. As the industry continues to embrace digital transformation, the company’s debut at NBAA-BACE will be closely monitored by operators and competitors alike.