Commercial Aviation
AIP Capital and Monroe Capital Launch $1B Aircraft Leasing Venture
$1 billion joint venture targets mid-life aircraft leasing amid supply chain disruptions, backed by Deutsche Bank and Fifth Third Bank.
The aviation finance world has just witnessed a significant development with the announcement of a joint venture between AIP Capital and Monroe Capital. This strategic partnership aims to acquire a diversified portfolio of mid-life aircraft on long-term leases to global Airlines, with an initial investment target of $1 billion. Backed by a $500 million senior secured warehouse facility from Deutsche Bank and Fifth Third Bank, the venture is poised to capitalize on the growing demand for mid-life aircraft amid global supply chain disruptions and rising air travel demand.
This collaboration merges AIP Capital’s deep expertise in aviation asset management with Monroe Capital’s strength in private credit and asset-based finance. As the aircraft leasing market continues to expand, projected to reach $401.67 billion by 2032, this venture represents a timely and calculated move to address airline needs for flexible, cost-efficient fleet solutions. The deal reflects broader trends in private credit’s increasing role in aviation finance and the revaluation of mid-life aircraft as valuable, income-generating assets.
Monroe Capital, a $20.7 billion asset manager with a strong track record in private credit, brings institutional capital and structuring capabilities to the table. Its Alternative Credit Solutions (ACS) group has been active across sectors, including infrastructure and industrials, and now sees aviation as a “natural extension” of its platform. By partnering with AIP Capital, Monroe expands into a sector with long-term demand visibility and tangible collateral.
AIP Capital, founded in 2023, has quickly built a reputation for aviation finance innovation. With $4 billion in assets under management and operations spanning Dublin, New York, Stamford, and Singapore, the firm operates across three verticals: aviation asset management, direct aircraft investing, and private credit. Its wholly owned lessor, Phoenix Aviation Capital, has already acquired 30 Boeing 737-8 aircraft for long-term leases to airlines like LOT Polish Airlines and Flair Airlines.
The partnership structure designates AIP as the servicer of the aircraft assets, handling lease administration, technical oversight, and trading. Monroe, meanwhile, provides capital through its institutional investor network. This division of labor allows each firm to play to its strengths while jointly navigating the complexities of aircraft acquisition and leasing.
“This venture provides scalable and stable capital; critically, it enhances value to our global airline customers and lessor trading partners even as capital markets have increased volatility.”, Jared Ailstock, Managing Partner at AIP Capital
The timing of this venture is particularly strategic. Aircraft manufacturers like Airbus and Boeing are facing production delays due to supply chain issues, resulting in a shortage of new aircraft. This has elevated the value and demand for mid-life aircraft, typically those aged 12 years or older, that are now being rebranded as “mature, proven assets.”
Lease rates for mid-life aircraft such as the Airbus A320ceo have risen by more than 20% annually, with some models nearing parity with newer aircraft like the Boeing 737-800. Airlines are extending leases on these aircraft to maintain capacity, especially as new deliveries are delayed until at least 2030. The AIP-Monroe venture targets this segment to benefit from elevated lease rates and strong residual values.
Moreover, mid-life aircraft offer financial advantages. Having already undergone significant depreciation, these assets present lower capital costs while maintaining operational efficiency. Their maintenance schedules are also well understood, making them attractive to lessors and investors seeking predictable returns. The venture’s initial $500 million warehouse facility, secured from Deutsche Bank and Fifth Third Bank, allows for scalable capital deployment without immediate equity dilution. This facility supports the acquisition of aviation assets under long-term leases, focusing on portfolio diversification and lease stability.
Legal and tax advisors ensured the structure’s compliance and tax efficiency. Gibson Dunn served as transaction counsel and PwC acted as tax advisor to AIP Capital, while Milbank LLP and KPMG advised Monroe. This meticulous structuring reflects the venture’s ambition to scale while maintaining robust operational and legal governance.
By targeting multiple aircraft types and lessees, the venture aims to mitigate concentration risk and optimize residual values. AIP’s technical expertise will be instrumental in managing asset performance and maximizing lease income through potential secondary market trading, a segment that grew by 35% in 2024.
The global aircraft leasing market is experiencing a period of rapid expansion. Valued at $172.88 billion in 2023, it is projected to grow to $401.67 billion by 2032, driven by increasing air travel and airlines’ preference for leasing over ownership. Leasing allows airlines to optimize capital allocation and maintain fleet flexibility.
Europe remains the largest market, holding over 50% share in 2023, thanks to Ireland’s favorable tax and regulatory environment. However, Asia-Pacific is the fastest-growing region, fueled by the rise of low-cost carriers and expanding route networks. Narrowbody aircraft, especially the Boeing 737 MAX and Airbus A320neo families, are in highest demand, with lease rates for new models exceeding $400,000 per month.
Due to production delays, an estimated 3,000-aircraft deficit has emerged, extending the economic life of current-generation models. This has created a window of opportunity for lessors focusing on mid-life assets, which are increasingly seen as essential to maintaining airline capacity in the near term.
Mid-life aircraft are being re-evaluated in the context of ongoing supply chain disruptions and evolving airline strategies. The term “mature, proven assets” reflects their reliability, cost-effectiveness, and operational readiness. These aircraft are now central to airline fleet strategies, particularly for low-cost carriers operating in volatile demand environments.
Three main factors are driving the value appreciation of mid-life assets: IBA forecasts suggest that lease rates for mid-life aircraft will remain elevated through at least 2025, with models like the Airbus A330 and Boeing 777-300ER surpassing pre-pandemic values. This sets the stage for sustained profitability in the mid-life leasing segment.
AIP and Monroe enter a competitive but expanding field that includes established lessors like AerCap and SMBC Aviation Capital. However, their unique combination of private credit and integrated servicing offers a differentiated model. Monroe’s non-bank financing capabilities and AIP’s asset management expertise create operational agility and capital efficiency.
The venture’s initial $500 million facility provides room for rapid scaling, with additional capital infusions possible as the portfolio matures. Success will be measured by portfolio diversification, residual value retention, and secondary market activity. Analysts project the venture could capture 2–3% of the global mid-life segment by 2027, generating up to $180 million in annual lease income.
Looking ahead, the venture may expand into adjacent asset classes such as engine leasing, where similar supply-demand imbalances exist. This would further diversify revenue streams and enhance portfolio resilience.
The joint venture between AIP Capital and Monroe Capital marks a strategic evolution in aviation finance. By targeting mid-life aircraft, assets that are increasingly vital in a constrained supply environment, the partnership offers airlines access to reliable capacity and investors exposure to resilient, income-generating assets. With a scalable capital base and deep operational expertise, the venture is well-positioned to navigate market volatility and capitalize on long-term trends.
As the global aircraft leasing market continues to grow and mature, this collaboration could serve as a model for future private credit-led investments in aviation. Stakeholders should monitor the venture’s asset acquisition strategy, lease performance metrics, and potential expansion into related sectors to gauge its broader impact on the industry.
What is the goal of the AIP-Monroe joint venture? Why focus on mid-life aircraft? Who is financing the venture? What role does AIP Capital play? What are the risks involved? Sources: AIP Capital, Fortune Business Insights, IBA
AIP Capital and Monroe Capital Launch $1 Billion Aircraft Leasing Venture
The Strategic Rationale Behind the AIP-Monroe Venture
Combining Capital and Aviation Expertise
Market Timing and Asset Strategy
Financing Structure and Legal Framework
Aircraft Leasing Market Trends and Implications
Global Market Growth and Regional Dynamics
Mid-Life Aircraft as Strategic Assets
Competitive Landscape and Future Expansion
Conclusion
FAQ
The venture aims to acquire a diversified portfolio of up to $1 billion in mid-life aircraft on long-term leases to global airlines.
Mid-life aircraft offer operational reliability, lower capital costs, and strong lease rate performance due to supply chain-induced shortages of new aircraft.
Monroe Capital is providing the investment capital, supported by a $500 million warehouse facility from Deutsche Bank and Fifth Third Bank.
AIP Capital will act as the servicer of the assets, managing lease administration, technical operations, and asset trading.
Key risks include interest rate volatility, lessee credit defaults, and market shifts in aircraft values. However, the asset-backed nature of the venture provides mitigation.
Photo Credit: AIP Capital
Airlines Strategy
JetBlue Launches Public Vote for Dominican Republic Aircraft Livery
JetBlue starts public voting for a Dominican Republic-themed aircraft livery by local artists, debuting in Spring 2026 on an A320.
This article is based on an official press release from JetBlue.
JetBlue has announced the launch of a new cultural campaign, “RD: Orgullo que Eleva” (DR: Pride That Elevates), aimed at celebrating the airline’s long-standing relationship with the Dominican Republic. As the largest carrier currently serving the market between the United States and the Dominican Republic, the airlines is introducing a public voting initiative to select a custom aircraft livery designed by Dominican artists.
According to the company’s announcement, this marks the first time JetBlue will dedicate a specific aircraft livery to the Dominican Republic. The winning design will be painted on an Airbus A320, which is scheduled to enter service in Spring 2026. The initiative highlights the carrier’s strategy to deepen ties with the Dominican community, a market it has served for nearly 22 years.
The core of the “RD: Orgullo que Eleva” campaign is community engagement. JetBlue has commissioned three distinct Dominican artists and collectives to propose designs that reflect the country’s folklore, nature, and spirit. The airline has opened a public voting platform where community members can select their preferred design.
Voting is currently open and will run through February 1, 2026. The airline directs participants to cast their votes at VotaJetBlueRD.com. Following the conclusion of the voting period, the winning concept will be announced in February, with the aircraft expected to debut later in the spring.
“As the largest airline serving the Dominican Republic, we’re proud to introduce JetBlue’s first livery dedicated to the country, which will showcase the work of a local artist and be chosen by the community. This initiative honors the country’s vibrant culture and creative talent, while reflecting the strong bond we’ve built there for more than twenty years.”
JetBlue selected three artists to interpret Dominican culture through their unique visual styles. The public will choose between the following concepts:
An art director and muralist with over two decades of experience, Willy Gómez is known for merging Neo-traditional and Art Nouveau styles. His proposed design focuses on the theme of “Nature & Rhythm,” utilizing bold colors to depict the island’s coastal beauty and musical heritage.
This design collective brings a contemporary social lens to their work. Their concept, centered on “Everyday Life & Folklore,” features playful illustrations that highlight Dominican gastronomy, family life, and traditional folklore. An internationally recognized illustrator, Lena Tokens combines surrealism with natural elements. Her design theme, “Tradition & Identity,” incorporates the colors of the Dominican flag and features figures representing the nation’s creativity and rhythm.
The launch of this campaign underscores the strategic importance of the Dominican Republic to JetBlue’s network. Data provided in the announcement indicates that JetBlue expects to average more than 30 daily departures from the Dominican Republic by Spring 2026.
The airline currently operates service to four major airports in the country:
Recent network adjustments include the relaunch of service between Fort Lauderdale (FLL) and Santiago (STI), as well as new routes connecting Tampa (TPA) to Punta Cana (PUJ). Beyond flight operations, the airline highlighted its philanthropic footprint through the JetBlue Foundation, which supports local educational initiatives like the Mariposa DR Foundation and the DREAM Project.
While special liveries are a common marketing tool in aviation, JetBlue itself has previously released liveries for the Boston Celtics, the New York Jets, and the FDNY, dedicating an aircraft to a specific international destination is a distinct move. It signals a defensive strategy to solidify brand loyalty in a high-volume “Visiting Friends and Relatives” (VFR) market.
By involving the community in the design process, JetBlue is likely aiming to differentiate itself from competitors by positioning the brand not just as a transit provider, but as a cultural partner. This is particularly relevant as the airline continues to manage capacity and optimize its route network in the Caribbean region.
When does voting close? Which aircraft will feature the new design? When will the aircraft start flying? Who are the artists involved?
JetBlue Launches Public Vote for First-Ever Dominican Republic Livery
Campaign Details and Voting Process
The Contending Artists
Willy Gómez: Nature and Rhythm
Los Plebeyos: Everyday Life and Folklore
Lena Tokens: Tradition and Identity
Market Position and Operational Context
AirPro News Analysis
Frequently Asked Questions
Voting for the new livery closes on February 1, 2026.
The winning design will be painted on a JetBlue Airbus A320.
The aircraft is scheduled to debut in Spring 2026.
The three contending artists are Willy Gómez, the collective Los Plebeyos, and Lena Tokens.
Sources
Photo Credit: JetBlue
Airlines Strategy
ITA Airways Plans 500 Hires and Fleet Growth After Lufthansa Deal
ITA Airways to hire 500 employees in 2026 and expand its fleet to 100 aircraft by 2030 after Lufthansa acquires a 41% stake.
This article summarizes reporting by La Repubblica. The original report is paywalled; this article summarizes publicly available elements and public remarks.
Following the finalization of Lufthansa’s 41% stake acquisition in ITA Airways earlier this month, the Italian flag carrier has outlined a comprehensive strategy shifting from consolidation to aggressive growth. In a recent interview with the Italian newspaper La Repubblica, ITA Airways CEO Joerg Eberhart detailed plans to hire 500 new staff members in 2026 and expand the airline’s fleet to 100 aircraft by the end of the decade.
The strategic roadmap comes as the airline prepares to exit the SkyTeam alliance and integrate with the Star Alliance network, aligning itself with new partners such as United Airlines and Air Canada. According to Eberhart’s comments to the Italian press, the carrier is prioritizing long-haul connectivity to the Americas and demanding higher operational efficiency from its primary hub at Rome Fiumicino (FCO).
The centerpiece of the 2026 strategy is a significant recruitment drive aimed at supporting the airline’s increasing capacity. Eberhart confirmed to La Repubblica that the carrier intends to bring on 500 new employees this year.
The hiring plan specifically targets flight operations personnel to staff incoming aircraft. The breakdown provided in the report includes:
Eberhart noted that former staff from Alitalia, the predecessor entity, would be considered for these positions, signaling a potential return for experienced crew members who were not initially transitioned to the new company.
To support this workforce expansion, ITA Airways is aggressively renewing and growing its Strategy. The CEO stated that the airline aims to reach a total fleet size of 100 aircraft by 2030. The immediate focus is on long-haul capabilities, which Eberhart described as the “backbone” of the carrier’s future profitability.
According to the interview, the fleet rollout schedule includes:
The fleet will transition to an all-next-generation composition, utilizing Airbus A320neo, A220, A330neo, and A350 models to drive down fuel consumption and maintenance costs.
Geopolitical constraints have forced a strategic realignment of ITA Airways’ route network. Eberhart explained that the ongoing closure of Russian airspace has made Asian routes significantly longer and more expensive to operate. Consequently, the airline is pivoting its focus toward North-America and South America. As part of this transatlantic push, the airline is currently studying a new route connecting Rome (FCO) to Newark (EWR). This potential addition would complement existing services to New York JFK and align with the hub structure of United Airlines, a key partner in the Star Alliance.
While outlining growth targets, Eberhart also addressed the infrastructure requirements necessary for ITA Airways to compete as a global hub carrier. He emphasized the need for “a more efficient airport,” referring to Rome Fiumicino.
“Serve un aeroporto più efficiente [We need a more efficient Airports].”
While Fiumicino has received accolades for passenger satisfaction, the CEO’s comments highlight the technical demands of a hub-and-spoke model. To compete with major European hubs like Frankfurt or Munich, the airport must support tight connection windows and rapid turnaround times for waves of incoming and outgoing flights.
Despite reporting a positive EBIT (Operating Profit) for the previous year, ITA Airways posted a net loss. Eberhart attributed this largely to external factors, specifically citing engine issues. The grounding of aircraft due to Pratt & Whitney engine defects reportedly caused approximately €150 million in damages. High aircraft leasing costs also contributed to the net loss.
With Lufthansa now holding a minority stake, questions regarding the brand’s future have surfaced. Eberhart confirmed that the name “ITA Airways” will remain. However, he acknowledged the enduring value of the Alitalia brand, which the company acquired during its formation. He hinted that iconic elements of the Alitalia identity, such as the stylized “A” on the tail, could be revived to enrich the current brand.
Operationally, the carrier is set to leave SkyTeam and join Star Alliance in 2026. Immediate integration priorities include aligning the Volare loyalty program with Lufthansa’s Miles & More and expanding codeshare agreements to feed traffic into the Rome hub.
The pivot to the Americas is a pragmatic response to the closure of Russian airspace, but it also places ITA Airlines directly into the highly competitive transatlantic market. By joining Star Alliance, ITA gains access to the massive North American feed of United Airlines and Air Canada, a critical advantage it lacked within SkyTeam relative to the Delta/Air France-KLM joint venture.
However, Eberhart’s comments on airport efficiency suggest a looming friction point. As ITA attempts to scale its “wave” model at Fiumicino, the airport’s infrastructure will be tested. If turnaround times cannot match those of Munich or Zurich, the efficiency gains promised by the Lufthansa partnership may be slower to materialize. Sources:
ITA Airways Targets Growth with 500 New Hires and Fleet Expansion Following Lufthansa Deal
Workforce and Fleet Expansion
Recruitment Breakdown
Long-Haul Fleet Strategy
Network Shift: Focus on the Americas
Operational Challenges and Hub Efficiency
Financial Headwinds
Brand Identity and Alliance Integration
AirPro News analysis
Photo Credit: Lufthansa
Route Development
San Francisco International Airport Opens New Operations Center with Digital Twin
SFO unveils a $250M Airport Integrated Operations Center featuring digital twin technology to centralize and enhance airport management.
This article is based on an official press release from San Francisco International Airport (SFO).
San Francisco International Airport (SFO) has officially opened its new Airport Integrated Operations Center (AIOC), a centralized hub designed to unify critical airport functions under one roof. According to an official announcement from the airport, the facility began full operations with a celebration on January 22, 2026. The 22,000-square-foot center represents a significant shift in how the airport manages its daily logistics, moving from decentralized departments to a collaborative, technology-driven model.
Located within the newly constructed Courtyard 3 Connector (C3C), a secure building linking Terminal 2 and Terminal 3, the AIOC serves as the operational “brain” of the airport. SFO officials state that the facility brings together security, dispatch, facilities, and airline coordinators into a single workspace, enabling faster response times and better coordination during both routine operations and emergencies.
The AIOC is a primary component of the Courtyard 3 Connector project, which SFO reports has an estimated value of $250 million. The project was delivered by a design-build team led by general contractor Hensel Phelps, with architectural design by HOK and MEI Architects. The facility features 67 workstations designed to foster cross-functional collaboration, breaking down the traditional silos that often exist between different airport departments.
Beyond housing the operations center, the C3C building provides a secure post-security walkway for passengers moving between terminals. This dual-purpose design improves passenger flow while simultaneously upgrading the airport’s operational infrastructure. In line with SFO’s sustainability goals, the building is “Net Zero Energy ready” and is targeting LEED Gold certification.
A key feature of the new center is its integration of “digital twin” technology. Developed in partnership with Esri, this system creates a real-time 3D digital replica of the entire airport complex. According to the project details, this system allows staff to monitor a wide array of operational metrics, including:
The system utilizes color-coded alerts to notify staff of potential issues before they escalate. For example, the system can flag delays or early arrivals, allowing the integrated teams to reallocate resources proactively. In the event of a crisis, such as a security breach or natural disaster, the AIOC converts into a command post to coordinate a unified response among all agencies.
Mike Nakornkhet, the Airport Director at SFO, emphasized the strategic importance of the new facility in the official release:
“The AIOC is all about running the very best airport operation to deliver a consistent and seamless airport experience for our guests. Utilising a wealth of emerging technologies and historical data, the AIOC’s primary purpose is to ensure teams have the capacity to proactively monitor conditions, activate contingency plans and deploy resources.”
The opening of SFO’s AIOC highlights a broader trend in the aviation industry toward “predictive operations.” Historically, airports have operated in a reactive mode, addressing bottlenecks at security or baggage claim only after they occur. By co-locating key decision-makers and equipping them with a digital twin, SFO is attempting to transition to a model where operational disruptions are identified and mitigated before they impact the passenger. This consolidation of command and control is particularly critical for airports with constrained footprints like SFO. With limited physical space to expand, efficiency gains must come from better management of existing assets. The “digital twin” concept, while common in manufacturing and urban planning, is rapidly becoming the standard for major international hubs seeking to optimize gate utilization and turnaround times without pouring new concrete.
What is the Airport Integrated Operations Center (AIOC)? Where is the new facility located? What is a “Digital Twin”? When did the AIOC open?
SFO Unveils High-Tech “Nerve Center” to Centralize Airport Operations
A $250 Million Infrastructure Investment
Digital Twin Technology and Real-Time Monitoring
AirPro News Analysis
Frequently Asked Questions
The AIOC is a centralized facility at SFO where security, dispatch, maintenance, and airline operations teams work together in a shared space to manage airport logistics 24/7.
It is located in the Courtyard 3 Connector (C3C), a new building that connects Terminal 2 and Terminal 3.
A Digital Twin is a virtual 3D replica of the airport that uses real-time data to simulate and monitor operations, helping staff predict and prevent delays.
While the unit began initial operations earlier, the official opening celebration took place on January 22, 2026.
Sources
Photo Credit: San Francisco Airport
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