ITOCHU Corporation will acquire a 50 percent stake in United States-based aircraft lessor Aviation Capital Group for approximately $1.946 billion, establishing a joint management structure with current owner Tokyo Century Corporation.

The transaction, confirmed in an August 3, 2026, press release, elevates ITOCHU’s position in the commercial aviation sector by integrating the world’s ninth-largest aircraft lessor into its portfolio. The move follows a weekend of media speculation regarding the impending deal.

Structuring the joint venture and financial commitments

To execute the partnership, ITOCHU will purchase a 50 percent equity interest in TC Skyward Aviation U.S., Inc., a wholly owned subsidiary of Tokyo Century that serves as the holding company for Aviation Capital Group (ACG). The companies expect to finalize the ACG investment during the third quarter of fiscal year 2026.

Alongside the direct investment in the leasing firm, ITOCHU will subscribe to 10.0 billion yen of Bond-Type Class Shares issued by Tokyo Century. This secondary financial commitment is scheduled for completion in the second quarter of fiscal year 2026.

The official announcement followed a brief period of market uncertainty. On July 31, 2026, Japanese media outlets reported the impending transaction. ITOCHU initially issued a statement early on August 3 acknowledging the reports but stating no formal decision had been reached, before officially confirming the Acquisitions parameters later that same day.

Expanding ITOCHU’s aerospace footprint

Established in 1989, ACG maintains a global footprint, leasing Commercial-Aircraft to 90 Airlines across 50 countries. The transition to a 50:50 joint management structure with Tokyo Century provides ACG with expanded capital backing from two major Japanese conglomerates.

For ITOCHU, the acquisition represents the culmination of a multi-year strategy to build an integrated aircraft value chain. The corporation currently manages a portfolio of more than 90 aircraft and engines.

The ACG Investments accelerates a sustained pattern of aerospace expansion for the Tokyo-based company. In 2024, ITOCHU invested in Ireland-based Killick Aerospace Limited to grow its used aircraft parts and original equipment manufacturer distributor businesses. The following year, the company established IC Aero Co., Ltd. to specialize in aircraft leasing within the Japanese domestic market. Most recently, ITOCHU invested in Abu Dhabi-based Sirius Aviation Capital Holdings Limited, an aviation investment manager focused on mid-life aircraft operating leases.

AirPro News analysis

We view ITOCHU’s $1.946 billion entry into ACG as a definitive shift in the global aircraft leasing landscape, signaling a strong appetite among Japanese trading houses for top-tier aviation assets. By partnering with Tokyo Century rather than building a competing global lessor from the ground up, ITOCHU immediately secures a top-ten market position and access to ACG’s established airline relationships.

When viewed alongside the company’s recent investments in parts distribution through Killick Aerospace and mid-life leasing through Sirius Aviation Capital, this acquisition completes a comprehensive aerospace portfolio. We expect this joint venture will provide ACG with the robust capital foundation required to compete aggressively for sale-and-leaseback transactions and direct Manufacturers Orders in a constrained global supply environment.

Sources: ITOCHU Corporation Press Release

This article summarizes reporting by The Moscow Times.

The first mass-production model of the Yakovlev MC-21-310 passenger jet, built entirely with domestically sourced Russian components, completed its maiden flight on August 3, 2026, at the Irkutsk Aviation Plant in Siberia.

According to reporting by The Moscow Times, the flight marks a critical milestone for United Aircraft Corporation (UAC) and its parent conglomerate, Rostec. The companies are attempting to field a fully import-substituted commercial aircraft following the cutoff of Western engines and avionics due to international sanctions.

Maiden flight metrics and assembly progress

The August 3 test flight lasted one hour and 23 minutes. The aircraft reached a maximum altitude of 19,700 feet (6,000 meters) and a top speed of approximately 324 knots (600 kilometers per hour). The Moscow Times reported that the aircraft performed according to expectations.

UAC test pilot Roman Taskayev stated that the assembly line aircraft performed well and completed its full flight plan.

The aircraft flown is the first serial production model built entirely with domestic systems. It replaces the Western components originally selected when the program launched in 2009. Prime Minister Mikhail Mishustin announced new state funding on July 30, 2026, to support the production of an initial batch of 18 Yakovlev MC-21-310 aircraft. This funding aims to keep assembly lines moving while engineers finalize the integration of Russian-made engines, avionics, and composite materials, according to Defence Security Asia.

Certification targets and government oversight

The MC-21 program has faced extensive delays since its original mass production target of 2016. The recent acceleration follows a July 24, 2026, visit to the Irkutsk facility by Russian President Vladimir Putin. During the visit, Putin inspected the assembly line and received briefings on the flight testing preparations.

Yakovlev MC-21 Chief Designer Vitaly Naryshkin noted that running production concurrently with testing will help UAC minimize the delay between achieving certification and starting customer deliveries.

The Moscow Times indicates that Rostec is targeting late 2026 for the completion of the certification program, with commercial flights to follow months later. Previous statements from Russian state media and officials suggest that certification flights and serial deliveries could extend into 2027.

AirPro News analysis

The successful flight of a fully import-substituted Yakovlev MC-21-310 demonstrates technical progress for UAC, but the concurrent production and testing strategy carries inherent risks. Building 18 airframes before final certification means any design flaws discovered during the flight test campaign could require costly and time-consuming retrofits across the initial production batch. The aggressive late 2026 certification target appears highly optimistic given the historical delays of the program and the complexity of certifying entirely new domestic avionics and powerplants. We anticipate that the 2027 timeline previously floated by Russian officials represents a more realistic entry-into-service window for Aeroflot (SU) and other domestic operators.

Sources: The Moscow Times

The U.S. Federal Aviation Administration (FAA) granted an amended type certificate for the Boeing 737-7 on August 3, 2026, clearing the smallest and longest-range variant of the 737 MAX family for commercial service. The regulatory approval also updates Boeing Production Certificate No. 700 to include the new aircraft model.

The certification marks the culmination of a multi-year development and testing program that began in 2018. According to a press release issued by The Boeing Company, the milestone allows the manufacturer and launch customer Southwest Airlines (WN) to begin preparations for the first aircraft deliveries. Boeing previously projected initial deliveries for 2027 during its second-quarter financial presentation on July 28, 2026.

Regulatory approval and testing program

The 737-7 certification process required more than 1,000 hours of flight and ground testing. Boeing completed certification flight testing for both the 737-7 and the larger 737-10 in July 2026. The regulatory review incorporated extensive system safety analyses and human factors evaluations to meet updated FAA standards.

The certification process also included the integration of an updated engine anti-ice system. Boeing developed the update to address a potential condition identified during earlier flight testing.

Stephanie Pope, President and CEO of Boeing Commercial Airplanes, stated that the certification validates the rigor of the aircraft’s design and the resilience of the development team.

“Our team of dedicated engineers and test experts worked through challenges, an extended pandemic, and the transition to new certification processes. Through it all, our team stayed focused on completing all requirements and delivering a safe and more capable airplane to our customers,” Pope said.

Aircraft specifications and market position

The Boeing 737-7 is designed to accommodate between 135 and 160 passengers in a standard two-class configuration. It offers a maximum range of 3,800 nautical miles (7,040 kilometers), making it the longest-range aircraft within the 737 MAX family.

Boeing reports that the 737-7 provides a 20 percent reduction in fuel use and carbon dioxide emissions compared to the older generation aircraft it is designed to replace. The manufacturer also notes a 50 percent reduction in the aircraft’s noise footprint.

The 737 MAX family order book currently stands at more than 7,200 airplanes. Through the end of June 2026, Boeing had delivered more than 2,300 aircraft across the certified variants of the MAX family.

Future development and the 737-10

With the 737-7 cleared for commercial operations, Boeing is shifting its regulatory focus to the 737-10, the largest variant in the MAX family. The company anticipates achieving certification for the 737-10 later in 2026.

Mike Sinnett, Senior Vice President of Product Strategy, Product Development and Development Programs at Boeing, indicated that the 737-7 process involved regular and detailed discussions with the FAA to ensure transparency. Sinnett noted that the program provided Boeing with a clearer understanding of the latest regulatory requirements, which the company expects will accelerate future airplane development with an emphasis on human factors, safety, and quality.

AirPro News analysis

The certification of the Boeing 737-7 removes a significant regulatory hurdle for Boeing and provides much-needed fleet clarity for Southwest Airlines. Because Southwest operates an all-Boeing 737 fleet and relies heavily on the smaller variants for its point-to-point network, the 737-7 is a critical component of the airline’s long-term capacity planning. We view the successful integration of the updated engine anti-ice system as a key technical milestone that likely paves a smoother path for the pending 737-10 certification, given the shared architecture and regulatory scrutiny applied to both variants.

Sources: Boeing Press Release