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Leasing News: October 12, 2025

Leasing News: October 12, 2025
Aviation Leasing: New Deliveries and Fleet Updates
CDB Aviation, the Irish subsidiary of China Development Bank Financial Leasing Co., Ltd. (CDB Leasing), has successfully delivered two new Airbus A320neo aircraft to Azerbaijan Airlines (AZAL). This transaction marks CDB Aviation’s inaugural entry into the Azerbaijani market, establishing AZAL as its newest regional client. The delivered A320neos, powered by CFM LEAP-1A26 engines, form part of AZAL’s ongoing fleet renewal strategy, replacing older A320 and A319 models with more fuel-efficient, next-generation aircraft. Jie Chen, CEO of CDB Aviation, emphasized that these additions will bolster AZAL’s sustainable growth objectives. Similarly, Samir Rzayev, President of Azerbaijan Airlines, noted that the new aircraft align with the airline’s commitment to enhancing passenger comfort while reducing environmental impact.
In parallel, BOC Aviation released its operational results for the third quarter ending September 30, 2025. The company’s portfolio now encompasses 812 aircraft and engines—owned, managed, and on order—with an average aircraft age of five years and an average remaining lease term of 7.8 years across its 442 owned aircraft. The managed fleet currently includes 17 aircraft, following BOC Aviation’s withdrawal from servicer obligations for 15 aircraft. Its order book stands at 343 aircraft, serving 88 airlines across 46 countries and regions. During Q3 2025, BOC Aviation completed 34 transactions, including commitments to purchase three aircraft, delivery of 11 aircraft, sales of 10 owned aircraft, and 10 lease commitments. The company also successfully raised $500 million through 5.5-year bonds at a 4.25% coupon, achieving its tightest bond spread to date.
Avolon, another leading aviation finance firm, provided its Q3 2025 business update, reporting the acquisition of 17 aircraft and the sale of 15 during the quarter. The company concluded the period with 60 aircraft agreed for sale. Avolon entered into letters of intent for the purchase and lease of 10 aircraft and placed eight aircraft from its orderbook, with 99% of its orderbook committed for delivery over the next 24 months. Notably, Avolon has ordered 90 new Airbus aircraft—comprising 75 A321neo and 15 A330neo models—scheduled for delivery through 2033. The company’s total fleet, including owned, managed, and committed aircraft, now totals 1,159, with 522 new technology aircraft on order or committed.
Broader Leasing Market Trends
Beyond aviation, the leasing landscape is experiencing notable shifts across various sectors. In industrial leasing, smaller tenants are increasingly dominating the market, while larger users remain cautious, leading to a transformation in market composition. The residential rental market in Nashville is facing downward pressure on prices, driven by a surge in new housing supply and intensified competition among landlords. The auto leasing sector is also recalibrating expectations amid ongoing tariff policy discussions, with industry competitors adopting more conservative outlooks. Meanwhile, in commercial real estate, Santa Monica, California, has introduced a new guide for short-term office space rentals, reflecting a growing emphasis on flexible leasing arrangements.
These developments highlight the evolving dynamics of the global leasing market, as companies and sectors respond to changing economic conditions, shifting demand patterns, and emerging opportunities for growth and innovation.

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