Commercial Aviation
AviaAM Leasing Sells Upgraded Boeing 737-800s in Strategic Move
AviaAM Leasing completes sale of refurbished Boeing 737-800s, highlighting market growth and value-added asset management in aircraft leasing.
In a dynamic aviation landscape shaped by supply chain disruptions, sustainability mandates, and evolving airline strategies, aircraft leasing companies play a pivotal role in fleet optimization. One recent example is AviaAM Leasing’s completion of the sale of two Boeing 737-800 aircraft, MSN 37751 and MSN 37765, following substantial maintenance and cabin upgrades. This transaction not only reflects AviaAM’s technical and commercial expertise but also highlights broader trends in the global aircraft leasing market.
The Boeing 737-800, a reliable workhorse for short- to medium-haul routes, continues to hold strong residual value. With the global leasing market projected to grow from $193.33 billion in 2024 to $294.88 billion by 2029, transactions like these underscore the importance of strategic asset management. AviaAM’s approach, refurbishing and repositioning aircraft for international operations, demonstrates how lessors can add value in a capital-intensive industry.
Before the sale, both aircraft underwent extensive technical upgrades, including heavy maintenance checks, landing gear replacements, auxiliary power unit (APU) overhauls, and cabin interior modifications. These interventions are not merely cosmetic; they are essential for ensuring airworthiness, passenger comfort, and compliance with regulatory standards.
Heavy maintenance checks, such as D-checks, are typically required every 6–10 years and can cost up to $1.5 million per aircraft. In AviaAM’s case, landing gear replacements alone were estimated at $20,000–$23,000 per unit, while cabin refurbishments, including seat reconfigurations and carpet replacements, added further costs. Engine installations, a critical component for flight reliability, were also completed to ensure the aircraft could be deployed immediately upon sale.
These upgrades not only extended the aircrafts’ operational life but also enhanced their marketability. In a leasing environment where maintenance lead times can exceed 12 months, having ready-to-operate aircraft is a significant competitive advantage. According to industry benchmarks, such comprehensive refurbishments can add 15–20% to an aircraft’s resale value.
“AviaAM’s integration of technical upgrades underscores its remarketing proficiency, adding substantial value while transferring maintenance liability to the buyer.”
Investing in maintenance and refurbishment is a calculated move. For older aircraft like the 737-800, ongoing maintenance costs can reach up to $52.82 per flight hour during C-checks. However, these costs are often offset by the aircraft’s lower acquisition price and strong lease demand, especially in markets facing aircraft shortages.
Cabin enhancements, such as leather seat conditioning (estimated at $3,400–$3,800) and modernized interiors, align with passenger expectations and airline branding strategies. These upgrades also support higher lease rates and faster placement with new operators. In AviaAM’s case, the aircraft were positioned for immediate international operations, emphasizing the value of pre-sale investments.
Furthermore, by completing these works before the transaction, AviaAM effectively transferred future maintenance liabilities to the new owner. This strategy not only simplifies the sales process but also enhances buyer confidence, particularly in a market where aircraft availability is constrained by supply chain issues and delayed new aircraft deliveries. The sale of these two aircraft takes place within a robust and evolving aircraft leasing market. As of 2024, leasing finances 53% of the world’s commercial fleet. Airlines increasingly rely on leasing to maintain operational flexibility and avoid the capital burden of aircraft ownership, especially amid rising interest rates and geopolitical uncertainties.
AviaAM Leasing, with a portfolio exceeding 150 aircraft transactions worth $2 billion, is among the top 50 lessors globally. Its strategic moves, including partnerships in China and diversification into cargo operations, highlight its adaptability. The company’s joint venture with Henan Civil Aviation Development and Investment Company, for instance, facilitated the acquisition of 16 new aircraft valued at $1 billion, solidifying its presence in Asia.
Emerging trends such as sustainability-linked leases, digital twin technology for predictive maintenance, and aircraft-as-a-service models are reshaping the industry. Lessors like AviaAM are leveraging these innovations to enhance asset life cycles and meet the aviation sector’s decarbonization goals.
The Boeing 737-800 remains a preferred aircraft among airlines due to its operational efficiency and high passenger capacity. With a cruising speed of 525 mph and a range of 2,835 miles, it suits a wide array of routes. Its market value retention is notable, averaging 40% of its original value after 15 years, compared to 32% for the Airbus A320-200.
During the COVID-19 pandemic, 737-800 values dipped by 13–17% but have since rebounded, driven by spare-part demand and delays in the Boeing 737 MAX program. Today, the aircraft’s market value hovers around $55 million, with lease rates reaching up to $400,000 per month. This resilience is further supported by demand for freighter conversions and the aircraft’s extensive global operator base.
However, long-term risks remain. As newer MAX variants enter service, older 737-800s may face accelerated depreciation post-2030. Nonetheless, in the near term, persistent engine shortages and high maintenance costs for new aircraft continue to sustain strong demand for the 737-800.
“Market values remain significantly above base levels due to undersupply and maintenance cost inflation.”, Hashen Hewawasam, IBA
For lessors, the key to success lies in strategic timing and value-added refurbishments. By investing in pre-sale upgrades, companies like AviaAM can command higher prices and reduce asset downtime. This approach is particularly effective in a market where MRO (maintenance, repair, and overhaul) capacity is stretched and new aircraft deliveries are delayed.
Airlines, on the other hand, must weigh the benefits of leasing older aircraft against the operational costs and future depreciation. Extending leases on existing aircraft, such as the 737-800, offers a cost-effective alternative to financing new deliveries, especially as interest rates rise and capital becomes more expensive. Policymakers and regulators also have a role to play. Incentivizing the adoption of sustainable aviation fuel (SAF) and supporting green leasing initiatives can help align fleet modernization with environmental goals. As the industry transitions toward net-zero emissions, collaborative efforts between lessors, airlines, and governments will be essential.
AviaAM Leasing’s sale of two refurbished Boeing 737-800 aircraft exemplifies the intersection of technical expertise, market awareness, and strategic foresight. By completing comprehensive upgrades prior to the transaction, the company not only enhanced asset value but also ensured operational readiness for the buyer, a critical factor in today’s constrained supply environment.
Looking ahead, the aircraft leasing industry will continue to evolve in response to economic pressures, technological advancements, and environmental mandates. Companies that can adapt, by embracing digital tools, diversifying portfolios, and prioritizing sustainability, will be best positioned to thrive. AviaAM’s approach offers a compelling blueprint for navigating these complexities and capitalizing on emerging opportunities.
What aircraft were sold by AviaAM Leasing? What upgrades were performed on the aircraft? Why is the Boeing 737-800 still in high demand? What is the current market value of a Boeing 737-800? How does AviaAM Leasing add value to its aircraft? Sources: AviaAM Leasing, Financial Times, Reuters, IBA Group, Simple Flying
Strategic Aircraft Sales: AviaAM Leasing and the Boeing 737-800 Transaction
Comprehensive Maintenance and Asset Enhancement
Economic Rationale Behind the Upgrades
Market Dynamics and Leasing Industry Trends
The Boeing 737-800’s Market Resilience
Strategic Implications for Lessors and Airlines
Conclusion: Navigating a Complex Aviation Landscape
FAQ
Two Boeing 737-800 aircraft, MSN 37751 and MSN 37765, were sold after undergoing major maintenance and cabin upgrades.
The aircraft received heavy maintenance checks, landing gear and APU replacements, engine installations, and cabin interior modifications.
Due to supply chain issues, delays in new aircraft deliveries, and strong demand for freighter conversions, the 737-800 maintains strong residual value and lease appeal.
Market values for the Boeing 737-800 are approximately $55 million, with lease rates around $400,000 per month, depending on condition and configuration.
By performing technical upgrades and refurbishments before sale, AviaAM increases asset value and reduces post-sale liabilities for buyers.
Photo Credit: AviaAM
Airlines Strategy
Sabre and WestJet Renew Partnership to Advance Airline Retail Tech
Sabre and WestJet extend their partnership, maintaining SabreSonic while preparing for AI-driven Offer and Order retailing with SabreMosaic.
This article is based on an official press release from Sabre Corporation.
Sabre Corporation and WestJet Airlines have officially announced a multi-year renewal of their long-standing technology partnership. The agreement ensures WestJet’s continued use of the SabreSonic Passenger Service System (PSS) while laying the groundwork for a transition to modern “Offer and Order” retailing through Sabre’s AI-driven SabreMosaic platform.
According to the press release issued today, this renewal extends a relationship that has spanned more than 25 years. The deal is critical for WestJet as it seeks to maintain operational stability through the SabreSonic system,which manages reservations, ticketing, and check-in,while simultaneously upgrading its IT infrastructure to support personalized, e-commerce-style selling.
For Sabre, the agreement represents a significant vote of confidence in its strategic pivot toward modular, cloud-native technology. As the airline industry moves away from legacy ticketing standards, technology providers are racing to offer solutions that allow carriers to bundle flights, ancillaries, and third-party services into single, dynamic offers.
The core of the renewed agreement focuses on two distinct but complementary technology tracks: maintaining current operations and preparing for future retail models.
WestJet will continue to rely on the SabreSonic PSS as the backbone of its daily operations. This system handles the essential logistics of airline management, including inventory control, passenger reservations, and departure control. By renewing this component, WestJet ensures continuity for its fleet of nearly 200 aircraft and its expanding network focused on Western Canada and leisure destinations.
A key highlight of the announcement is WestJet’s commitment to utilizing SabreMosaic. This platform is designed to facilitate the industry-wide shift toward “Offer and Order” retailing. Unlike traditional systems that rely on static pricing and fragmented records (such as separate tickets and miscellaneous documents for baggage), SabreMosaic utilizes artificial intelligence to create personalized bundles for travelers.
In the company statement, WestJet Chief Information Officer Tanya Foster emphasized the forward-looking nature of the deal: “We’re delighted to extend our collaboration with Sabre, our trusted technology partner for more than 25 years. With this latest agreement, we’re thinking about the needs of our business and our customers both today and tomorrow.”
The partnership renewal comes at a time when the global aviation industry is undergoing a massive digital transformation. The International Air Transport Association (IATA) has set a goal for the industry to transition to “Offer and Order” systems by 2030. This shift aims to replace decades-old EDIFACT standards with modern digital retailing similar to Amazon or other e-commerce giants.
Under the new model, the concept of a “Passenger Name Record” (PNR) and an “Electronic Ticket” is replaced by a single “Order.” This unification allows airlines to:
Darren Rickey, SVP of Airline IT Sales and Services at Sabre, noted the strategic importance of this shift for WestJet:
“As WestJet advances its expansion and growth plans, the airline will require increasingly sophisticated retailing capabilities… This multi-year renewal reflects a strong vote of confidence in Sabre’s vision for the future of airline retailing.”
This renewal reinforces the financial stability of Sabre Corporation (NASDAQ: SABR) as it executes its turnaround strategy. According to Sabre’s Q3 2025 financial results, the company reported revenue of $715 million and an Adjusted EBITDA of $141 million, signaling improved operational efficiency. The company has been aggressively paying down debt and investing in SabreMosaic to compete with rivals like Amadeus in the next-generation technology space.
For WestJet, the deal supports its strategic refocus on affordability and efficiency. As a private company owned by Onex Corporation, WestJet has concentrated its efforts on dominating the Western Canadian market and expanding its leisure offerings. The efficiency gains promised by Sabre’s technology are essential for maintaining the low cost base required for this business model.
The renewal between Sabre and WestJet is more than a standard contract extension; it serves as a bellwether for the adoption of “Offer and Order” technology among mid-sized carriers. While global giants like Lufthansa have led early experimentation with modern retailing, WestJet’s commitment indicates that the technology is maturing enough for broader market adoption.
Furthermore, this deal validates Sabre’s heavy R&D investment in the SabreMosaic platform. Securing a long-term commitment from a major North-American carrier helps Sabre demonstrate market viability to other potential customers who may be hesitant to migrate away from legacy systems. It suggests that a “hybrid” approach,keeping the lights on with legacy PSS while experimenting with modular retailing tools,is the likely path forward for most airlines over the next five years.
What is a Passenger Service System (PSS)? What is “Offer and Order”? How long have Sabre and WestJet been partners?
Sabre and WestJet Renew Technology Partnership to Drive Retail Modernization
Bridging Legacy Operations and Future Retailing
The SabreSonic Foundation
Transitioning to SabreMosaic
Industry Context: The Shift to Offer and Order
Financial and Strategic Implications
AirPro News Analysis
Frequently Asked Questions
A PSS is the central IT system for an airline, managing critical functions such as flight schedules, ticket reservations, and passenger check-in.
It is a modern retailing standard where airlines dynamically create offers (bundles of flights and services) and manage them as a single order record, replacing the complex web of legacy tickets and reservation codes.
The companies have partnered since 1998, a relationship spanning over 25 years.
Sources
Photo Credit: Westjet
Commercial Aviation
Edelweiss Air Launches New A350 Cabin with Business Suites and Free Wi-Fi
Edelweiss Air unveils new Airbus A350 cabin with Business Suites, hard-shell Premium Economy, and free Starlink Wi-Fi starting December 2026.
This article is based on an official press release from Edelweiss Air.
Edelweiss Air has officially presented the future cabin interiors for its Airbus A350-900 fleet, marking a significant upgrade in passenger comfort and onboard technology. Announced on January 20, 2026, the Swiss leisure airline revealed a completely new configuration that prioritizes personal space and connectivity.
The new cabin, designed under the motto “More room to feel good,” will feature 319 seats across three classes, a reduction from the temporary 339-seat layout currently in use. According to the airline, the retrofit program is scheduled to begin in late 2026, with the first aircraft featuring the new interior entering commercial service in December 2026.
The most substantial upgrade is found in the Business Class cabin, which will accommodate 32 passengers in a 1-2-1 configuration using the Thompson Vantage XL+ platform. This layout ensures that every passenger has direct access to the aisle, eliminating the need to step over a neighbor.
Edelweiss is introducing an exclusive “Business Suite” product in the first row of the cabin. These four seats offer enhanced privacy and space compared to the standard business class offering.
“The first row consists of four exclusive Business Suites… featuring 1.2-meter high closable doors, larger footwells, and a wider seat area.”
Passengers in these suites will view entertainment on massive 32-inch 4K screens. Additionally, the middle suites feature adjustable dividers, allowing couples to dine or relax together comfortably.
Rows 2 through 9 feature standard business class seats that convert into fully flat beds measuring two meters in length. The airline notes that these seats include high-quality acoustic insulation and privacy wings to ensure a restful journey. Entertainment is provided via 17-to-19-inch 4K screens.
Edelweiss is expanding its premium offerings with a dedicated Premium Economy cabin and significant enhancements to the standard Economy experience. The new Premium Economy cabin will consist of 28 seats in a 2-3-2 layout. A key feature of this cabin is the use of hard-shell seats. Unlike traditional reclining seats, these recline within their own fixed shell, ensuring that a passenger’s personal space is never intruded upon by the person seated in front of them.
According to the press release, these seats offer approximately one meter (39 inches) of legroom. Service upgrades for this class include welcome drinks, meals served on china tableware, and the provision of noise-canceling headphones identical to those used in Business Class.
The Economy cabin will hold 259 seats in a 3-3-3 configuration. While maintaining high density, Edelweiss has introduced specific comfort improvements:
In a move that sets a high standard for leisure carriers, Edelweiss announced that the entire A350 fleet will be equipped with high-speed satellite internet.
The airline confirmed that high-speed internet via Starlink will be available to all guests in all classes, free of charge. This allows for streaming and high-bandwidth activities that were previously difficult to manage on traditional inflight networks.
To support the use of personal devices, every seat in the aircraft, including Economy, will feature USB-A and USB-C ports with 60W power delivery, which is sufficient to charge most laptops. The inflight entertainment system features 4K anti-glare screens with Bluetooth audio connectivity, allowing passengers to pair their own wireless headphones.
Edelweiss is currently in a transition phase, replacing its aging Airbus A340-300s with six Airbus A350-900s. The A350s that joined the fleet in 2025 are currently operating with a temporary interior inherited from the previous operator, LATAM.
The timeline for the new cabin rollout is as follows:
The decision to reduce the total seat count from 339 (in the temporary configuration) to 319 signals a strategic shift for Edelweiss. While leisure airlines typically prioritize density to lower unit costs, Edelweiss is aligning closer to the premium standards of its parent company, Lufthansa Group.
The inclusion of “Business Suites” with doors and hard-shell Premium Economy seats places Edelweiss competitively against full-service legacy carriers rather than just low-cost holiday airlines. Furthermore, the adoption of free Starlink Wi-Fi across all classes is a significant differentiator that addresses one of the most common passenger complaints on long-haul flights: poor connectivity. When will the new Edelweiss A350 cabin be available? Is Wi-Fi free on Edelweiss A350 flights? What is the difference between the current and new A350 interiors? Sources: Edelweiss Air Press Release
Edelweiss Unveils New A350 Cabin: Business Suites, Hard-Shell Premium Economy, and Free Starlink Wi-Fi
Business Class: Suites and Direct Aisle Access
The Business Suites
Standard Business Features
Premium Economy and Economy Upgrades
Hard-Shell Premium Economy
Economy Class Enhancements
Connectivity and Technology
Free Starlink Wi-Fi
Power and Entertainment
Fleet Rollout and Timeline
AirPro News Analysis
Frequently Asked Questions
The first aircraft featuring the new cabin is scheduled to enter service in December 2026. The full fleet retrofit will be finished by July 2027.
Yes. Once the new cabin is installed, high-speed Starlink Wi-Fi will be free for all passengers in all classes.
The current A350s fly with a temporary ex-LATAM interior (339 seats). The new custom Edelweiss interior will have 319 seats, including a new Business Class with doors, a dedicated Premium Economy with hard-shell seats, and updated technology throughout.
Photo Credit: Edelweiss Air
Route Development
Chicago O’Hare Launches Orchard-Inspired Concourse D Expansion
O’Hare International Airport’s $1.3B Concourse D with orchard-inspired design and 19 flexible gates is set to open in late 2028.
This article is based on an official press release from the City of Chicago.
On Thursday, February 5, 2026, Chicago Mayor Brandon Johnson and the Chicago Department of Aviation (CDA) released a detailed animated preview of “The New Concourse D” at O’Hare International Airports. Formerly known as Satellite Concourse 1, this $1.3 billion infrastructure project represents a pivotal phase in the airport’s massive ORDNext expansion program.
According to the official announcement, the new facility is currently under construction following a groundbreaking ceremony in August 2025. Scheduled to open to the public in late 2028, Concourse D is designed to modernize the passenger experience with a focus on wellness, natural light, and operational flexibility. The project is being led by the architectural firm Skidmore, Owings & Merrill (SOM), alongside partners Ross Barney Architects and Juan Gabriel Moreno Architects (JGMA).
The newly released video highlights a dramatic shift in design philosophy for the airport, moving away from industrial aesthetics toward a “nature-infused” environment that pays homage to the site’s history.
The central theme of the new concourse is a direct nod to O’Hare’s pre-aviation history as an apple orchard, originally known as Orchard Field, which gave the airport its “ORD” IATA code. The City of Chicago press release details how the interior architecture features tree-like structural columns that branch out to support the roof, creating a canopy effect intended to reduce travel stress.
A key feature of the design is the “Oculus,” a central skylight that serves as the building’s architectural focal point. The design team emphasizes that this feature is not merely aesthetic but functional, directing natural daylight deep into the building to aid in intuitive wayfinding.
“We designed the new satellite concourse to create a frictionless experience for travelers… The gate lounges feature column-free expanses for easy wayfinding, high ceilings to optimize views, and a daylighting strategy to help align the body’s natural rhythms.”
, Scott Duncan, Design Partner at SOM
The facility will include over 20,000 square feet of airline lounge space and 30,000 square feet dedicated to retail and concessions. In a move to accommodate modern traveler needs, the design also incorporates a dedicated children’s play area and multi-level communal seating equipped with integrated charging stations. Beyond the aesthetics, Concourse D is a critical component of the broader ORDNext (formerly O’Hare 21) capital program. The expansion is necessary to maintain O’Hare’s status as a global hub by increasing gate capacity and flexibility.
According to the CDA, the concourse will add 19 new flexible gates to the airport’s portfolio. These gates are designed with versatility in mind, capable of accommodating:
This flexibility allows the airport to adjust to shifting market demands between domestic and international travel without requiring physical construction changes.
“By breaking ground on Concourse D, we are taking a critical first step toward enhancing how the airport welcomes and serves more than 80 million passengers each year.”
, Michael McMurray, CDA Commissioner
Mayor Brandon Johnson emphasized the economic impact of the project, noting that it serves as an economic engine for the region. The city estimates the project will create approximately 3,800 construction jobs.
The rebranding of “Satellite 1” to “Concourse D” and the release of this high-fidelity animation signal a clear intent by Chicago officials to solidify the project’s identity before the steel rises significantly. By leaning heavily into the “Orchard” narrative, the CDA is attempting to differentiate O’Hare from other sterile, glass-and-steel global hubs.
From an operational standpoint, the “flexible gate” configuration is the most significant detail. As airline fleets evolve and the mix between wide-body international haulers and narrow-body domestic hoppers fluctuates, static gates can become liabilities. The ability to park two narrow-bodies in the footprint of one wide-body maximizes the return on Investments for this $1.3 billion asset, ensuring it remains relevant regardless of how airline strategies shift in the 2030s.
The project is currently active, with construction managed by the joint venture AECOM Hunt Clayco Bowa. The timeline provided by the city outlines the following key milestones:
Concourse D is located just south of the existing Concourse C (Terminal 1) and will be connected via a new walkway extension. It serves as the precursor to the eventual demolition of Terminal 2, which will make way for the future O’Hare Global Terminal.
Where is the new Concourse D located? When will Concourse D open? Why is it called the “Orchard” design? How much will the project cost?
O’Hare Unveils “Orchard-Inspired” Vision for New Concourse D
Design Philosophy: Returning to the Orchard
Operational Capacity and ORDNext Strategy
AirPro News Analysis
Timeline and Next Steps
Frequently Asked Questions
It is located directly south of the existing Concourse C at Terminal 1. It will be connected to the main terminal complex via a new walkway extension.
The City of Chicago and the Chicago Department of Aviation have scheduled the opening for late 2028.
The design pays tribute to “Orchard Field,” the original name of the airfield that became O’Hare. The interior columns resemble trees, and the layout emphasizes nature and light.
The budget for Concourse D is set at $1.3 billion.
Sources
Photo Credit: City of Chicago
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