Phoenix Aviation Acquires Boeing 787-8 for LOT Polish Airlines Fleet

Phoenix Aviation Capital Acquires Boeing 787-8 for LOT Polish Airlines: Strategic Implications and Industry Context

The global aviation sector continues to experience structural shifts in the wake of post-pandemic recovery, supply chain disruptions, and growing sustainability mandates. Within this dynamic landscape, aircraft leasing has emerged as a pivotal mechanism for airlines to modernize their fleets without incurring the heavy capital burden of outright purchases. A recent transaction between Phoenix Aviation Capital and LOT Polish Airlines exemplifies this trend.

On May 7, 2025, Phoenix Aviation Capital, a Dublin-based full-service aircraft lessor managed by AIP Capital, announced the acquisition of a 2014-vintage Boeing 787-8 Dreamliner, powered by Rolls-Royce Trent 1000 engines, on long-term lease to LOT Polish Airlines. This deal not only strengthens the strategic partnership between Phoenix and LOT but also highlights broader movements in aircraft leasing, sustainability, and long-haul network expansion.

Background and Strategic Vision

Phoenix Aviation Capital and AIP Capital

Phoenix Aviation Capital was established in April 2024 as a subsidiary of AIP Capital, an alternative investment manager with approximately $11 billion in assets under management. With offices in Dublin and Stamford, AIP Capital has positioned itself as a significant player in asset-based finance, particularly aviation leasing. Phoenix serves as the operational arm focused on acquiring and managing modern, fuel-efficient aircraft for global clients.

Initially, Phoenix focused on narrowbody aircraft, including a portfolio of 30 Boeing 737 MAX 8s acquired from 777 Partners. The move into widebody leasing with the Boeing 787-8 acquisition marks a strategic diversification aimed at tapping into the growing demand for long-haul aircraft, especially in emerging and recovering markets.

According to AIP Capital’s Managing Partner Mathew Adamo, Our focus is on meeting airlines’ financing needs across market cycles, whether through narrowbodies for regional routes or widebodies for long-haul growth. This flexible and adaptive approach is central to Phoenix’s long-term growth strategy.

LOT Polish Airlines: Fleet Modernization

LOT Polish Airlines, the flag carrier of Poland, operates a fleet of 83 aircraft across 98 destinations, including long-haul routes to North America and Asia. The airline has prioritized fleet modernization as a core component of its operational and sustainability strategy. The addition of the Boeing 787-8 aligns with this vision, offering improved fuel efficiency, lower emissions, and enhanced passenger experience.

The newly leased Dreamliner, bearing manufacturer serial number 35942, joins LOT’s existing fleet of 15 Dreamliners (eight 787-8s and seven 787-9s). With a range of 7,305 nautical miles and a two-class configuration seating 252 passengers, the aircraft is optimized for transcontinental routes such as Warsaw-Chicago and Warsaw-Tokyo.

Maciej Dziudzik, LOT’s Fleet Bureau Director, emphasized the strategic value of the acquisition: Modern, next-generation aircraft are central to our growth strategy. They allow us to improve connectivity in Central Europe while reducing our environmental footprint.

Modern, next-generation aircraft are central to our growth strategy., Maciej Dziudzik, LOT Polish Airlines

Transaction Details and Financial Context

Aircraft Specifications and Leasing Structure

The Boeing 787-8 acquired by Phoenix is configured with 18 business class, 21 premium economy, and 213 economy seats. It boasts a maximum takeoff weight of 502,500 pounds and delivers approximately 20% better fuel efficiency than older widebody models, making it a strong fit for LOT’s sustainability targets.

While the financial terms of the lease remain confidential, industry benchmarks provide context. For instance, in March 2025, LOT leased two 787-8s from DP Aircraft for a combined $167.63 million over 12 years. Current market lease rates for the 787-8 range between $350,000 to $380,000 per month, reflecting robust demand amid limited supply.

Phoenix has also secured a $240 million loan in December 2024 to finance acquisitions of six next-generation aircraft, signaling its commitment to aggressive portfolio expansion and financial agility.

Portfolio Diversification and Growth

In addition to the 787-8, Phoenix has made several strategic acquisitions to bolster its portfolio. In July 2024, the company acquired ten CFM LEAP-1B engines to support its 737 MAX 8 deliveries. In March 2025, Phoenix, in partnership with AIP Capital and LuminArx Capital Management, acquired three Airbus A330-300 aircraft on lease to China Airlines and EVA Air.

These moves align with projections for the global aircraft leasing market, which is expected to grow from $210.4 billion in 2024 to $294.88 billion by 2029, at a compound annual growth rate (CAGR) of 8.8%. Phoenix’s diversified portfolio positions it well to capitalize on this growth trajectory.

The company’s ability to acquire mid-life aircraft at competitive rates, such as the 2014-vintage 787-8, offers both cost efficiency and strategic flexibility amid ongoing supply chain constraints in aircraft manufacturing.

Industry Trends and Implications

Rise of Operating Leases

Globally, operating leases now account for over 50% of airline fleets. This model allows airlines to access modern aircraft without the financial burden of ownership, enabling greater agility in fleet management. For LOT, leasing from Phoenix supports its goal of doubling its fleet by 2028 without incurring significant debt.

Leasing also enables airlines to reallocate capital toward customer experience improvements, including cabin upgrades and digital services, which are increasingly important differentiators in competitive markets.

This shift has been accelerated by the financial pressures of the COVID-19 pandemic, which exposed the vulnerabilities of capital-heavy business models in aviation. Lessors like Phoenix are stepping in to fill the gap with flexible, scalable solutions.

Demand for Widebody Aircraft

The resurgence of long-haul travel has reignited demand for widebody aircraft like the Boeing 787 and Airbus A330ceo. Analysts anticipate lease rates for these aircraft could rise by 10–15% in 2025 due to limited production and delivery delays at Boeing and Airbus.

LOT’s decision to expand its 787-8 fleet is consistent with this trend, particularly in Central and Eastern Europe, where airlines are seeking to capture transatlantic and intra-Asian market share. The 787-8’s smaller size and fuel efficiency make it ideal for secondary routes with lower passenger volumes.

Furthermore, the aircraft’s environmental benefits—such as 15% lower CO₂ emissions per seat-mile—support airlines’ broader sustainability commitments, including LOT’s target to reduce emissions by 30% by 2030.

Our focus is on meeting airlines’ financing needs across market cycles., Mathew Adamo, AIP Capital

Conclusion

Phoenix Aviation Capital’s acquisition of a Boeing 787-8 for LOT Polish Airlines marks a significant milestone in the evolving dynamics of aircraft leasing and fleet modernization. For Phoenix, the deal represents a strategic expansion into the widebody segment, while for LOT, it provides a cost-effective path to enhance long-haul capabilities and environmental performance.

As the aviation industry continues to navigate economic uncertainties, supply chain disruptions, and sustainability mandates, partnerships between lessors and airlines will play an increasingly critical role. The Phoenix-LOT transaction is a clear example of how such collaborations can drive mutual growth and resilience in a rapidly changing global market.

FAQ

What is the significance of Phoenix acquiring a Boeing 787-8 for LOT?
It strengthens Phoenix’s portfolio and supports LOT’s long-haul expansion without significant capital expenditure.

Why are operating leases becoming more popular in aviation?
They offer airlines financial flexibility, allowing them to access modern aircraft without the burden of ownership.

How does the 787-8 support LOT’s sustainability goals?
The aircraft is 20% more fuel-efficient than older models and emits 15% less CO₂ per seat-mile, aligning with LOT’s emission reduction targets.

Sources: PR Newswire, FlightGlobal, ch-aviation, aapnews.aap.com.au