A group of investors led by Sumitomo Corp and SMBC Aviation Capital are taking Air Lease, founded by aviation mogul Steven Udvar-Házy, private for $7.4 billion.
Aircraft lessor Air Lease, founded by aviation mogul Steven Udvar-Házy, has agreed to a $7.4 billion takeover. The take-private deal is led by group of investors led by Sumitomo Corp and SMBC Aviation Capital as well as asset managers Apollo and Brookfield.
The deal would further consolidate the aircraft leasing industry, which controls more than half of the world's commercial fleet. An Airbus A321 is being assembled in the final assembly line hangar at the Airbus U.S. Manufacturing Facility in Mobile, Alabama., founded by industry mogul Steven Udvar-Házy, agreed to sell itself in deal that would take it private to a group of investors for $7.4 billion, ushering in more consolidation in the airplane-renting business. The planned acquisition, announced Tuesday, was led by Japan's Sumitomo and SMBC Aviation Capital, and also includes asset managersand Brookfield. Shareholders in Los Angeles-based Air Lease would receive $65 a share, a nearly 8% premium to Friday's close. Including debt, the investors are valuing the company at about $28.2 billion. Lessors rent aircraft to airlines, helping those carriers conserve cash they'd otherwise have to use to buy planes that can cost more than $100 million apiece at list prices. A shortage of aircraft in recent years — driven by the Covid pandemic,The aircraft leasing business, which owns more than half of the world's fleet of passenger jets, has grown from a 51% ownership share in 2009 to a 58% share currently, according to aviation consulting firm IBA Group. It hasn't seen more growth because some large airlines became profitable, allowing them to own many of their planes.At the same time, many airlines are now rethinking their capacity plans as an oversupply of flights has weighed on fares and eaten into their profits this year. On the extreme end, Spirit Airlines on Friday filed for Chapter 11The take-private deal underscores a wave of consolidation in the industry, and will help the companies grow their scale. Air Lease ended the second quarter with 495 planes in its owned fleet. Including its backlog, Air Lease is the fifth-largest aircraft lessor, according to a tally by IBA. The parties expect the deal to close in the first half of 2026. The new company will be based in Dublin. "It makes perfect sense when you consider it's … the cheapest way to buy market growth," said IBA's Hatcher.How much are Southwest's new assigned seats? It dependsTwo years ago, Standard Chartered agreed to sell its aircraft leasing business to AviLease, which is owned by Saudi Arabia's sovereign wealth fund. Steven Udvar-Hazy, chairman of Air Lease Corp., poses for a photograph after speaking at an Aviation Club lunch in London, U.K., on Thursday, Sept. 13, 2018.Often dubbed the "godfather" of aviation leasing, Udvar-Házy founded Air Lease in 2010, working closely with Air Lease CEO John Plueger. "Since founding Air Lease in 2010, we have been unwavering in our mission to shape the future of the aviation industry and provide airlines around the world with access to the most modern, fuel-efficient aircraft," Udvar-Házy said Tuesday. Udvar-Házy, who fled Soviet Hungary with his parents in the late 1950s, has had a lifelong love of aviation and has often been credited with creating the aircraft leasing business. He co-founded his previous leasing company, later known as ILFC, in 1973 and it was later sold to AIG. He continued to run it until 2010 and announced his retirement from Air Lease this past March.
Travel Transportation Aerospace And Defense Industry Business Life Breaking News: Business Air Lease Corp Apollo Global Management Inc Aercap Holdings NV General Electric Co John Plueger BROOKFIELD ASSET MANAGEMENT LTD Business News
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Air Force unveils 'Air Power Legacy Series' uniforms to be worn against NavyThe new Air Force uniform honors the F-16 fighter jet that is used in the military branch.
Read more »
US Army scores first air-to-air kill using Claymore mine-loaded droneThe US Army’s 173rd Airborne Brigade has conducted the first test in the United States of a drone shooting down another drone.
Read more »
Chicago Air and Water Show rehearsal begins as U.S. Air Force Thunderbirds take over skiesThe full practice for the Chicago Air and Water Show takes place Friday morning, beginning with the U.S. Air Force Thunderbirds.
Read more »
Polish Air Force pilot killed after crashing F-16 jet during air show rehearsalShocking footage of F-16 fighter jet crashing during Polish airshow rehearsal
Read more »
Before the Cleveland Air Show, came the Cleveland Air RacesThe Cleveland Air Races predated the Cleveland National Air Show and put Cleveland at the epicenter of the fledgling aviation industry.
Read more »
Air Lease to be sold to Sumitomo-led group for $7.4 BillionAir Lease Corp., the aviation finance firm built by industry pioneer Steven Udvar-Hazy, agreed to a $7.4 billion sale to a group led by Sumitomo Corp.
Read more »