Commercial Aviation
Cleveland Hopkins Airport $1.1B Overhaul to Boost Regional Travel by 2032
Cleveland Hopkins Airport’s $1.1B redevelopment, set for 2032, modernizes infrastructure, enhances travel experience, and boosts Ohio’s economy.
The $1.1 Billion Cleveland Hopkins Terminal Overhaul: A New Era for Air Travel in Northeast Ohio
Cleveland Hopkins International Airport (CLE) is set to undergo a transformative $1.1 billion redevelopment that promises to reshape the traveler experience and redefine the airport’s role as a regional transportation hub. The centerpiece of this ambitious project is a brand-new terminal to be constructed on the site of the current Smart Parking Garage, with a targeted opening in 2032. This long-awaited modernization comes at a critical juncture for the airport, which has seen rising passenger traffic and mounting pressure to improve aging infrastructure.
Announced in May 2025 by Cleveland Mayor Justin Bibb and Director of Port Control Bryant Francis, the project not only represents a significant investment in local infrastructure but also signals Cleveland’s commitment to becoming a world-class city with world-class amenities. With a phased rollout that includes new parking facilities, a Ground Transportation Center, and an updated RTA station, the plan aims to minimize disruption while maximizing long-term value for both travelers and the regional economy.
This article explores the scope, significance, and strategic vision behind the Cleveland Hopkins redevelopment, offering insights into its phased implementation, design philosophy, economic impact, and alignment with national and global airport trends.
Strategic Phasing and Infrastructure Planning
Phase One: Parking and Ground Transportation
The first major step in the redevelopment is the construction of a new 6,000-space parking garage on the current Orange Lot, slated for completion in 2029. This facility will replace the existing Smart Parking Garage, which will later be demolished to make room for the new terminal. The plan ensures continuity in parking services and aims to address long-standing capacity issues that have plagued travelers during peak seasons.
In addition to parking, the new garage will house a Ground Transportation Center and a relocated RTA Red Line station. This move aligns with broader transportation goals by improving multimodal connectivity and reducing reliance on personal vehicles. The integration of public transit options is a forward-thinking approach that reflects sustainability trends in airport planning.
Before the Orange Lot garage is completed, a new Gold Lot with 1,600 spaces will be constructed adjacent to the long-closed Concourse D, with an expected opening in 2026. This interim solution ensures that travelers will not experience a reduction in parking availability during construction.
“We’re really wanting and needing to focus on improving the front of house,” said Bryant Francis, Director of Port Control. “That’s critical to improving the guest experience.”
Phase Two: Terminal Construction and Design Features
Once the new parking infrastructure is in place, the current garage will be demolished to make way for the new terminal. Designed by Dallas-based Corgan architects, the terminal will feature expansive glass walls, high ceilings with skylights, and architectural nods to Lake Erie and Cleveland’s industrial heritage. These elements aim to create a sense of place while enhancing natural lighting and passenger comfort.
The new terminal will focus primarily on landside improvements, including updated ticketing and baggage claim areas, a consolidated TSA screening checkpoint, and a new customs facility. Post-security, travelers will find a modern food court and retail spaces, although upgrades to gate areas and concourses are deferred to a later phase.
Importantly, the new terminal will be built a few hundred feet from the existing structure, connected by pedestrian bridges. This approach minimizes operational disruptions and allows for continuous airport functionality during construction.
Funding and Airline Partnerships
Financing such a massive project requires close coordination with airline stakeholders. As of May 2025, airlines operating at CLE have committed $301 million toward the new parking garage and an additional $175 million for pre-construction activities. Negotiations are ongoing for the remainder of the terminal’s $1.1 billion cost, with final agreements expected in 2026.
Representatives from United and Frontier Airlines, the airport’s two largest carriers, have expressed support for the plan. Their involvement is crucial not only for funding but also for ensuring that the terminal meets operational needs and passenger expectations.
Airport officials are optimistic that continued collaboration with airline partners will result in a fully funded, state-of-the-art facility that positions CLE for long-term success.
Economic and Regional Impact
Boosting Local Economy and Job Creation
The terminal overhaul is expected to generate thousands of construction jobs and stimulate economic activity across Greater Cleveland. From contractors and engineers to hospitality and retail workers, the project’s ripple effects will be felt well beyond the airport grounds.
Local businesses are also likely to benefit from increased foot traffic and improved traveler experiences. The airport has announced an Industry Day on June 3 to engage regional contractors and suppliers, emphasizing its commitment to local economic inclusion.
By modernizing its primary gateway, Cleveland positions itself to attract more business travelers, tourists, and events, thereby enhancing its competitiveness among peer cities like Pittsburgh and Columbus.
Passenger Experience and Capacity Management
In 2024, CLE served over 10.17 million passengers, the highest volume since 2008. Unlike the past, when CLE served as a hub for Continental Airlines, today’s travelers are predominantly origin-and-destination passengers. This shift places greater demand on parking, check-in, baggage, and security facilities.
The new terminal addresses these challenges head-on by expanding landside services and streamlining passenger flow. A single centralized TSA checkpoint and updated baggage systems are expected to significantly reduce wait times and improve overall efficiency.
While airside improvements are not included in the initial phase, airport officials have committed to revisiting concourse and gate upgrades in the near future. This phased approach allows CLE to tackle its most pressing issues first while laying the groundwork for comprehensive modernization.
Alignment with National and Global Trends
According to the Airports Council International (ACI), North American airports are projected to invest over $150 billion in capital improvements through 2025. Cleveland’s redevelopment is part of this broader trend, reflecting a nationwide push to modernize aging infrastructure and accommodate future growth.
Other major projects, such as those at LaGuardia and O’Hare, have similarly focused on integrating public transit, enhancing passenger amenities, and adopting sustainable design practices. Cleveland’s inclusion of an RTA station and Ground Transportation Center mirrors these efforts and positions the city as a forward-thinking player in the aviation space.
Globally, airports like Amsterdam Schiphol have prioritized rail connectivity and environmental sustainability. While Cleveland’s project is still in its early stages, its focus on accessibility and efficiency suggests a willingness to embrace best practices from around the world.
Conclusion
The $1.1 billion redevelopment of Cleveland Hopkins International Airport is more than a construction project, it’s a strategic investment in the city’s future. By addressing critical infrastructure needs and enhancing the passenger experience, the new terminal promises to elevate CLE’s status as a regional hub and economic driver.
As the project moves forward, continued collaboration with airline partners, local businesses, and the broader community will be essential. With careful planning and execution, Cleveland’s “CLEvolution” could serve as a model for other mid-sized airports facing similar challenges.
FAQ
When will the new Cleveland Hopkins terminal be completed?
The new terminal is expected to open in 2032, following the completion of the new parking garage and other preparatory infrastructure.
What will happen to the current terminal and parking garage?
The existing Smart Parking Garage will be demolished to make room for the new terminal. The current terminal will eventually be torn down after the new facility is operational.
Will the new terminal include upgrades to gate areas?
Not initially. Upgrades to concourses and gate areas are planned for a future phase, once the landside terminal is completed.
Sources: Cleveland.com, Cleveland Hopkins International Airport, Airports Council International (ACI), Boyd Group International
Photo Credit: Axios
Aircraft Orders & Deliveries
Boeing and Icelease Agree on Up to Three 767-300BCF Aircraft
Icelease signs for up to three Boeing 767-300BCF aircraft, with conversions at ST Engineering Singapore starting Q1 2027.
The Boeing Company and aircraft lessor Icelease have finalized an agreement for up to three Boeing 767-300 Boeing Converted Freighter (BCF) aircraft, marking the leasing firm’s expansion into the medium widebody cargo market.
Announced in a press release on November 2, 2026, the transaction includes one firm order and options for two additional conversions. The aircraft will join the managed cargo portfolio of IAT Leasing, a Dublin-based sister company to Icelease.
Conversion timeline and operational details
The formal signing ceremony for the agreement took place on October 22, 2026, during the Cargo Facts Symposium. The physical conversion work will be executed at ST Engineering’s airframe maintenance, repair, and overhaul (MRO) facilities located in Singapore.
Induction of the first Boeing 767-300 aircraft for conversion is scheduled for the first quarter of 2027. Delivery of the completed Boeing 767-300BCF to Icelease and IAT Leasing is expected to follow in the second quarter of 2027. The Boeing Converted Freighter programs are managed by The Boeing Company’s Global Services division.
Lindsey Douglas, Vice President of Cabin, Modifications, Maintenance and Digital Services at The Boeing Company, stated that the agreement underlines the continued collaboration between the two companies to meet global cargo demand.
Sigthor Einarsson, Managing Partner at Icelease, noted the strategic importance of the deal for the lessor’s broader fleet strategy.
“This agreement with Boeing to convert up to three Boeing 767 aircraft marks an important milestone for both Icelease and its Dublin-based sister company IAT Leasing,” Einarsson said.
Icelease and IAT Leasing’s growing cargo portfolio
The Boeing 767-300BCF order builds upon an established relationship between the manufacturer and the lessor. Icelease, an aircraft leasing company with a 21-year history, specializes in aircraft acquisitions, leasing, operations, finance, and investor relations. The firm was originally formed as a spinoff from Icelandair in 2005.
On November 14, 2021, Icelease placed an order for 11 Boeing 737-800 Boeing Converted Freighter (737-800BCF) aircraft during the Dubai Airshow. That order established Icelease as the launch customer for a new conversion line at Boeing’s London Gatwick MRO facility.
The newly ordered widebody freighters will be managed by IAT Leasing. Incorporated in late 2023, IAT Leasing is owned by four equity partners. The Dublin-based entity has rapidly built a portfolio of approximately 40 narrowbody and widebody passenger and Cargo aircraft, which are leased to operators globally. The company’s current managed cargo portfolio already includes seven Boeing 737-800BCF aircraft.
“The history between Icelease and Boeing dates over 20 years and includes a multitude of new aircraft deliveries as well as cargo conversions,” Einarsson said. “The Boeing 767-300BCF will join the growing managed cargo aircraft portfolio of IAT Leasing, which already includes seven Boeing 737-800BCF and other freighters leased to various customers.”
Widebody freighter market outlook
The Boeing 767-300BCF is positioned to serve regional and long-haul cargo networks as a highly efficient medium widebody converted freighter. The aircraft offers a payload capacity of 57 tonnes and a maximum range of 3,300 nautical miles.
The Icelease order aligns with broader industry forecasts regarding long-term air cargo growth. On October 28, 2026, The Boeing Company released projections indicating that the global freighter fleet will exceed 4,000 airplanes by 2045. The manufacturer anticipates that air cargo traffic will double over the same period, providing a sustained demand environment for passenger-to-freighter conversion programs across both narrowbody and widebody platforms.
AirPro News analysis
We view Icelease’s transition from narrowbody to medium widebody conversions as a natural progression for lessors seeking to capture higher-yield cargo segments. While the Boeing 737-800BCF serves domestic and regional express networks effectively, the Boeing 767-300BCF provides the volume and range necessary for intercontinental e-commerce flows. By securing conversion slots at ST Engineering for 2027, Icelease and IAT Leasing are positioning their portfolio to absorb capacity demands as older widebody freighters face retirement toward the end of the decade. The decision to allocate these assets to the recently formed IAT Leasing also highlights the robust investor appetite for dedicated freighter leasing vehicles.
Photo Credit: Boeing
Commercial Aviation
Avolon Launches Constellation Aviation With $1.4B Portfolio
Avolon, I Squared Capital, and ADIA launch Constellation Aviation with a $1.4B aircraft portfolio targeting $6B in scale.
Avolon, I Squared Capital, and the Abu Dhabi Investment Authority (ADIA) have launched Constellation Aviation, a new joint venture aircraft leasing platform seeded with a $1.4 billion initial portfolio.
Announced in a press release on November 2, 2026, the partnership combines institutional capital with Avolon’s aircraft origination and management expertise. The venture is designed to provide airlines with essential fleet capacity amid ongoing constrained aircraft manufacturing, while offering investors exposure to long-term contracted cash flows.
Seed portfolio and operational structure
Constellation Aviation will acquire its initial seed portfolio directly from Avolon. The $1.4 billion portfolio consists of 22 modern, fuel-efficient aircraft, specifically Boeing 737 MAX, Airbus A320neo, and Airbus A330neo models. The aircraft have an average age of five years and are currently leased to 17 airlines across 15 countries.
Under the terms of the joint venture, Avolon will retain a minority equity interest in Constellation Aviation. The Dublin-based lessor will also serve as the exclusive aircraft manager and servicer for the platform, leveraging its existing global relationships.
Avolon Chief Financial Officer Ross O’Connor stated that the joint venture will expand the company’s asset management business. He noted that the partnership reflects the confidence leading institutional investors place in the aviation sector and in Avolon’s ability to originate, manage, and service high-quality assets.
The transaction is supported by a syndicated debt facility provided by a consortium of international banks. BNP Paribas, Crédit Agricole CIB, Société Générale, ING, MUFG, and Mizuho are acting as joint lead bookrunners. Mizuho is also serving as the financial advisor to the investors. Milbank LLP acted as legal counsel to the investors, and Clifford Chance acted as legal counsel to Avolon. The deal remains subject to standard regulatory approvals.
Capitalizing on constrained manufacturing
The launch of Constellation Aviation occurs during a period of significant supply chain disruption in the aerospace sector. Aircraft lessors currently own approximately half of the global airline fleet. This share is in high demand due to substantial backlogs in new aircraft deliveries from major manufacturers.
Gautam Bhandari, Co-Founder, Managing Partner, and Global Chief Investment Officer of I Squared Capital, highlighted this dynamic in the announcement.
“Aircraft manufacturers’ order books now stretch a decade or more into the future, and airlines rely on lessors with scale and aircraft delivery slots to grow their fleets. Avolon has one of the largest order books with Boeing and Airbus and thus enjoys significant benefits of scale.”
Avolon, a subsidiary of China‘s Bohai Leasing Co Ltd, recently solidified its delivery pipeline. On October 9, 2026, the lessor placed a firm order for 250 new-technology aircraft. That order included 140 Boeing 737 MAX aircraft and 110 Airbus aircraft, split between 75 A320neo family and 35 A330neo family jets. The transaction brought Avolon’s total order book to 749 aircraft. As of September 30, 2026, Avolon reported an owned, managed, and committed fleet of 1,092 aircraft, serving 138 airlines in 62 countries.
The new joint venture partners bring substantial financial weight to the platform. I Squared Capital is an independent global infrastructure investor headquartered in Miami with over $60 billion in assets under management. ADIA, established in 1976, is a globally diversified sovereign wealth fund investing on behalf of the Government of Abu Dhabi.
Khadem AlRemeithi, Executive Director of the Infrastructure Department at ADIA, described aircraft leasing as a resilient and growing sector supported by strong structural demand for modern aircraft.
Long-term growth ambitions
While the platform launches with a $1.4 billion portfolio, the partners intend to grow the venture significantly. According to reporting by Reuters, Constellation Aviation aims to scale its portfolio over time with ambitions to reach a $6 billion valuation.
The creation of Constellation Aviation mirrors other recent large-scale lessor partnerships designed to distribute capital risk. Reuters noted that the structure is similar to SMBC Aviation Capital’s deal last year to share the risk of acquiring U.S.-based rival Air Lease Corp for $7.4 billion with a group of investors via a newly established entity.
AirPro News analysis
The formation of Constellation Aviation highlights a continuing shift in how aircraft leasing is financed. By partnering with I Squared Capital and ADIA, Avolon is effectively utilizing a capital-light growth strategy. The lessor recently committed to 250 new aircraft in October, a massive capital expenditure. This joint venture allows Avolon to place those future deliveries into a managed vehicle where it earns servicing fees and retains a minority stake, without carrying the full debt burden on its own balance sheet.
Furthermore, the involvement of a major infrastructure fund like I Squared Capital underscores that modern commercial aircraft are increasingly viewed by institutional investors as core infrastructure assets rather than alternative investments. With Boeing and Airbus sold out for years, existing delivery slots and young, fuel-efficient aircraft are scarce commodities. Sovereign wealth funds and infrastructure managers are willing to deploy billions to secure the long-term, contracted yield these assets generate, provided they have an experienced servicer like Avolon to manage the technical and placement risks.
Photo Credit: Avolon
Aircraft Orders & Deliveries
AerCap Leases Two Boeing 777-300ERSF to Turkish Airlines
AerCap finalizes lease of two Boeing 777-300ERSF freighters to Turkish Airlines, with deliveries scheduled for 2027.
AerCap Holdings N.V. has finalized lease agreements with Turkish Airlines for two Boeing 777-300ERSF converted freighters, with deliveries scheduled between March and September 2027.
Announced on October 29, 2026, the transaction expands the Turkish flag carrier’s dedicated cargo capacity while utilizing Etihad Engineering’s maintenance, repair, and overhaul (MRO) facility in Abu Dhabi for the passenger-to-freighter (P2F) modifications. In a press release detailing the agreement, the Dublin-based aviation lessor emphasized the strategic alignment between the aircraft’s capabilities and the airline’s expanding freight network.
Expanding Turkish Airlines’ cargo operations
The agreement builds on an existing relationship between AerCap and Turkish Airlines, which operates a large international network requiring substantial dedicated cargo lift. The addition of the two widebody freighters is intended to support the carrier’s volume requirements on high-demand international routes.
Peter Anderson, Chief Commercial Officer at AerCap, stated that the aircraft will provide the airline with additional cargo capacity combined with the performance capabilities specific to the 777-300ERSF platform. Financial terms of the lease agreements, including the exact lease duration and the specific aircraft serial numbers, were not disclosed in the announcement.
The Big Twin conversion program
The Boeing 777-300ERSF, marketed as “The Big Twin,” is a P2F conversion program developed through a joint venture between AerCap and Israel Aerospace Industries (IAI). It represents the first program designed to convert the Boeing 777-300ER into a dedicated freighter configuration.
According to AerCap’s cargo division, the 777-300ERSF offers 25 percent more cargo volume than the factory-built Boeing 777-200LRF. This increased capacity positions the converted twin-engine aircraft as a cost-effective replacement for aging four-engine Boeing 747 freighters currently operating in the global fleet.
AerCap delivered the first 777-300ERSF to launch customer Kalitta Air in September 2025. Since that initial delivery, the lessor has handed over aircraft to Fly Meta and secured lease agreements with other major operators, including Ethiopian Airlines and China Southern Group.
Regional conversion strategy in Abu Dhabi
The physical conversion of the two aircraft destined for Turkish Airlines will be executed at the Etihad Engineering MRO hub in Abu Dhabi, United Arab Emirates. This facility serves as a dedicated regional conversion center for the 777-300ERSF program.
Anderson highlighted the strategic importance of the location, noting that the Abu Dhabi facility provides a regional platform capability that enables aircraft to be converted in the Middle East prior to delivery. This localized approach is designed to efficiently serve customers across the Europe, Middle East, and Africa (EMEA) market.
“The dedicated 777-300ERSF conversion facility at Etihad Engineering’s MRO hub in Abu Dhabi provides an important regional platform capability, enabling the aircraft to be converted in the Middle East ahead of delivery to Turkish Airlines,” Anderson said.
AerCap’s broader market position
The Turkish Airlines agreement follows a period of strong financial performance for AerCap. On October 28, 2026, the company reported its third-quarter financial results, citing record adjusted earnings per share and raising its full-year 2026 guidance amid high lease rates and sustained demand for aviation assets.
As of September 30, 2026, AerCap’s total portfolio included 1,537 owned and managed aircraft, alongside approximately 1,300 engines and over 300 helicopters. The company’s dedicated cargo division manages a fleet of approximately 110 owned, managed, and on-order freighters, having completed more than 160 passenger-to-freighter conversions to date.
AirPro News analysis
We view the placement of 777-300ERSF aircraft with a major network carrier like Turkish Airlines as a strong validation of the Big Twin program’s economic proposition. As operators look to phase out older Boeing 747 freighters, the 25 percent volume advantage over the 777-200LRF makes the converted 300ER an attractive middle ground between factory-built twin-engine freighters and legacy four-engine platforms. Utilizing the Etihad Engineering facility in Abu Dhabi for a European customer also demonstrates the logistical efficiency of AerCap’s decentralized conversion strategy, reducing ferry times and regional friction for EMEA operators.
Photo Credit: AerCap
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