Deal Will Reshape Evolving Aircraft Leasing Market

Air Lease (ALC), the aircraft leasing company founded by Steven Udvar-Hazy, is about to be acquired by a group of investors led by SMBC Aviation Capital in a $7.4 billion cash deal that will push the evolution of the aircraft leasing market.

SMBC is joined by Sumitomo Corporation, one of its Japanese owners, along with private equity companies Apollo and Brookfield Credit, in the agreement which ALC’s board has approved.

The acquisition will pay stockholders $65 per share, but the total price to the buyers could rise to as much as $28.2 billion if debt obligations are included.

When the deal closes in the first half of 2026 as expected, ALC will be renamed Sumisho Air Lease and will remain a separate entity, but SMBC will acquire its order book. At the end of 2025Q2, ALC held firm orders for 241 aircraft that includes 36 Airbus A220s, 130 A320/A321neos, one A330neo, 64 Boeing 737 MAX jets and ten 787-9/10s, with deliveries scheduled through 2031.

The addition of ALC’s order book will significantly diversify SMBC’s current order book that consists of 159 A320neo-family aircraft as well as 89 737 MAX models.

SMBC will act as a “servicer” to most of Sumisho Air Lease’s portfolio of nearly 500 in-service aircraft, more than 25% of which are widebodies. Right now, most of SMBC’s 741 owned or managed aircraft are single-aisles along with 21 A350s and 27 787 Dreamliners.

Peter Barrett, Chief Executive of SMBC said, “This transaction is transformational for our business and the leasing landscape, and will allow the company to take a strategic lead in reshaping our sector.

“Our industry is evolving at pace and requires significant and diverse pools of capital so that our airline and investor customers can be provided with the products and services they need.”

The deal remains subject to the usual closing conditions including approval by Air Lease’s shareholders as well as regulatory approval.

FMI:  www.smbc.aero/