Irish-based lessor Avolon has completed the acquisition of fellow lessor Castlelake Aviation, an agreement initially unveiled last year.
Avolon will acquire 106 aircraft in the lease portfolio.
It will also take over orders and commitments for 10 addition aircraft, which it describes as “new technology” models.
Avolon’s fleet will expand to 664 aircraft under ownership and management. It will also have commitments to a further 465.
At the time when the agreement was initially unveiled, Avolon stated that the Castlelake portfolio, valued at $5 billion, comprised 118 aircraft of which 68% were narrowbodies.
It added that the portfolio had up to $3.3 billion of transferable debt available and that Avolon would fund the balance with its own liquidity sources – totalling over $8 billion at the time.
The lessor says this high liquidity and the strength of its balance sheet has enabled the transaction.
Avolon acquired 45 aircraft last year and sold 55 and, with the Castlelake agreement included, ended 2024 with an owned, managed and committed portfolio of 1,129 aircraft.
It is forecasting that lease rates this year will remain strong, following their rise over the past two years as airlines cope with supply-chain issues by extending leases in their current fleets.
“Securing aircraft for expansion and fleet replacement will continue to be a major challenge in 2025, with slots for new aircraft sold out beyond 2030,” it says.
Avolon is forecasting deliveries of new aircraft will top 1,400 this year, although it expects Airbus and Boeing will “continue to struggle” to overcome ramp-up hitches.
“Lessors now hold more new aircraft supply out to 2030 than Boeing and Airbus combined,” it claims.
“Orderbooks have consolidated around a smaller number of lessors who will benefit from higher placement returns as under-ordered airlines compete for scarce aircraft.”
