Business Aviation
Castlelake Launches 1.8 Billion Merit AirFinance Platform in Aviation
Castlelake introduces Merit AirFinance, a $1.8B platform providing flexible aircraft financing amid growing aviation demand and supply challenges.
Castlelake LP’s launch of Merit AirFinance marks a significant development in the Commercial-Aircraft finance sector, introducing a dedicated $1.8 billion lending platform at a time when the industry is experiencing rapid transformation. The new platform, led by Patrick Mahoney, is designed to address the increasing demand for flexible aircraft financing as Airlines and lessors navigate ongoing supply chain disruptions, evolving business models, and a resurgence in passenger demand. This move not only reinforces Castlelake’s commitment to aviation but also highlights the growing role of private credit in asset-based markets, where traditional banks have pulled back and alternative lenders are stepping in to fill the gap.
As the aviation industry recovers from pandemic-era lows, the need for innovative financing solutions has never been more pronounced. With global passenger traffic rebounding and aircraft supply unable to keep pace, airlines and leasing companies are seeking new sources of capital to fund fleet expansion and modernization. Castlelake’s new platform aims to provide that capital, leveraging its deep sector experience and global relationships to offer tailored lending products across the aviation value chain.
The launch of Merit AirFinance is emblematic of broader trends in private credit and structured finance, where asset-backed strategies are gaining favor among institutional investors seeking downside protection and uncorrelated returns. By focusing on aviation, Castlelake is positioning itself at the intersection of strong secular growth, asset scarcity, and the increasing sophistication of capital markets solutions.
Castlelake LP is a global alternative investment manager with approximately $22 billion in assets under management, specializing in asset-based private credit across specialty finance, real assets, and aviation. Founded in 2005 and headquartered in Minneapolis, Castlelake has grown to over 220 employees, including around 80 investment professionals who operate from nine offices worldwide. The firm’s philosophy centers on providing investors with exposure to hard assets and cash flows, balanced by rigorous downside protection and cycle-tested expertise.
One of Castlelake’s distinguishing features is its strategic partnership with Brookfield Asset Management, a global investment powerhouse with roughly $1 trillion in AUM. This collaboration provides Castlelake with access to additional capital and market reach, enhancing its ability to offer differentiated asset-based investment opportunities. The partnership supports the firm’s focus on specialty finance, real assets, and aviation, allowing for flexible deployment of capital across market cycles and geographies.
Castlelake’s approach is rooted in deep sector knowledge, data-driven decision-making, and a hands-on investment process. The firm’s aviation platform, in particular, has been a cornerstone of its strategy, with more than $22 billion invested and relationships spanning approximately 200 airlines in over 80 countries. This global reach and sector specialization position Castlelake as a leading player in the increasingly competitive aviation finance landscape.
The partnership with Brookfield not only brings additional capital but also aligns Castlelake with one of the most influential institutional investors globally. This relationship has enabled Castlelake to scale its operations and pursue larger, more complex transactions, particularly in aviation where capital intensity and asset complexity are high. The firm’s entrepreneurial culture and emphasis on innovation have been central to its growth and ability to adapt to changing market dynamics.
Castlelake’s global footprint allows it to maintain close relationships with airlines, lessors, and other industry participants, facilitating the origination of attractive investment opportunities. Its multi-disciplinary teams are equipped to navigate the technical, legal, and regulatory challenges inherent in aviation finance, ensuring that the firm remains agile and responsive to market shifts. With a track record of successful fundraising, including over $2 billion raised for its fifth aviation fund in 2025, Castlelake has demonstrated its ability to attract institutional capital and deploy it effectively across a range of aviation assets and financing structures.
“Castlelake’s specialization in asset-based private credit and its global relationships have positioned it as a leading provider of innovative capital solutions in the aviation sector.”
The launch of Merit AirFinance with over $1.8 billion in committed capital marks a strategic evolution for Castlelake’s aviation activities. This platform is designed to provide debt financing to airlines and leasing companies for both new and used aircraft, addressing a gap left by traditional banks that have scaled back their aviation lending. The focus on flexible, tailored solutions allows Merit AirFinance to serve a broad spectrum of clients, from established carriers seeking fleet modernization to emerging airlines expanding in high-growth markets.
Patrick Mahoney, appointed as president of Merit AirFinance, brings a wealth of experience from his tenure at Castlelake, where he has led aviation capital markets and structured finance initiatives. Since joining the firm in 2017, Mahoney has played a key role in developing Castlelake’s aviation lending strategies and executing complex transactions across the sector. His background in asset-backed direct lending and aviation underwriting, combined with prior experience in private equity and investment banking, equips him to lead Merit AirFinance as it seeks to capture new opportunities in a dynamic market.
The platform’s substantial initial capitalization provides the scale necessary to compete for large transactions and build enduring relationships with major industry players. By leveraging Castlelake’s global network and technical expertise, Merit AirFinance is positioned to offer differentiated products that meet the evolving needs of the aviation industry.
Merit AirFinance’s launch comes at a time of renewed activity in aviation financing, as lower interest rates and strong passenger demand drive increased aircraft acquisition. The platform’s emphasis on both new and used aircraft financing is particularly relevant given the current supply constraints, which have elevated values for existing aircraft and increased demand for secondary market transactions.
Castlelake’s established relationships with airlines and lessors provide a robust origination pipeline for the platform, while its technical teams ensure rigorous asset evaluation and risk management. The platform’s structure allows for customized financing solutions, accommodating the unique requirements of different operators and market segments.
This strategic flexibility is expected to be a key differentiator as the aviation finance market continues to evolve, with private credit providers playing an increasingly central role in funding industry growth.
“The launch of Merit AirFinance is the culmination of Castlelake’s long-standing commitment to aviation and represents a focused effort to address the industry’s most pressing financing needs.”
The aviation finance market is undergoing a period of rapid change, driven by strong passenger demand recovery, persistent supply chain challenges, and the growing influence of private credit. Global passenger traffic has rebounded to pre-pandemic levels, with commercial air travel demand projected to continue growing as economies recover and travel restrictions ease. This resurgence has created significant financing requirements for airlines seeking to expand and modernize their fleets. The commercial aircraft finance market was valued at $90.08 billion in 2024 and is expected to grow substantially in the coming decade, reflecting increased aircraft Orders and a shift toward more fuel-efficient, technologically advanced fleets. Leasing companies now play a pivotal role in financing, as airlines increasingly favor asset-light models to manage financial risk. This trend has contributed to a steady rise in the share of leased aircraft within the global fleet.
Private credit has emerged as a dominant force in aviation financing, filling the void left by traditional banks and offering customized solutions for structured debt transactions. Asset-backed securities (ABS) markets have also shown renewed strength, with robust issuance and improved performance metrics in 2025. These developments underscore the growing sophistication and diversity of capital sources available to the aviation industry.
Aircraft Manufacturers continue to face significant supply chain challenges, resulting in extended delivery timelines and a persistent backlog of orders. Airbus and Boeing maintain full order books, with some delivery slots stretching well into the next decade. This scarcity has forced airlines to extend the operational life of existing fleets and increased demand for used aircraft, maintenance services, and secondary market transactions.
These constraints create both challenges and opportunities for financing providers. Platforms like Merit AirFinance are well-positioned to support airlines and lessors in acquiring available aircraft, financing fleet modernization, and navigating the complexities of the current supply environment. The ability to offer flexible, tailored financing solutions is increasingly important as operators seek to optimize their fleet strategies and capitalize on growth opportunities.
Global passenger traffic is expected to surpass 10 billion in 2025, with the Asia-Pacific region driving much of the growth. This sustained demand, combined with limited aircraft supply, is likely to support strong lease rates and asset values, benefiting both lessors and financing providers.
The regulatory environment for aviation finance is evolving, with increased emphasis on environmental, social, and governance (ESG) factors. Castlelake has adopted an ESG philosophy focused on mitigating risks and supporting sustainable investment practices, particularly in aviation where environmental concerns are front of mind for airlines, lessors, and regulators.
Financial institutions are increasingly offering green financing options, and airlines are prioritizing the acquisition of low-emission aircraft to align with regulatory requirements and sustainability goals. This shift presents opportunities for financing providers who can structure transactions that support ESG objectives while delivering attractive returns.
Trade policies and tariffs remain a consideration for market participants, but the aviation leasing model, where lessees typically bear these costs, limits direct exposure for financing platforms. Nonetheless, indirect effects such as changing demand patterns and operating costs may influence asset values and transaction performance over time. “The intersection of supply chain constraints, strong demand, and evolving regulatory standards is reshaping the aviation finance landscape, creating new opportunities for specialized lenders.”
Castlelake’s launch of Merit AirFinance, with $1.8 billion in committed capital, signals a strategic expansion into a market characterized by strong growth, asset scarcity, and increasing complexity. Under Patrick Mahoney’s leadership, the platform combines sector expertise, global relationships, and substantial capital resources to address the pressing financing needs of airlines and lessors worldwide.
As the aviation industry continues to recover and evolve, the demand for innovative, flexible financing solutions is expected to grow. Merit AirFinance is well-positioned to support this growth, providing tailored capital solutions that enable operators to navigate supply constraints, pursue fleet modernization, and meet rising passenger demand. The platform’s launch underscores the broader shift toward private credit and asset-based finance, setting the stage for continued innovation and growth in the years ahead.
Question: What is Merit AirFinance and who is leading it? Question: Why is private credit becoming more important in aviation finance? Question: How does Castlelake’s platform address current industry challenges? Question: What role does ESG play in aviation finance today? Sources: Castlelake Press Release, Merite AirFinance
Castlelake Launches $1.8 Billion Merit AirFinance Platform: Strategic Expansion in Aviation Private Credit Market
Company Background and Market Position
Strategic Partnerships and Capital Resources
Merit AirFinance Platform Launch and Leadership
Platform Strategy and Market Timing
Aviation Finance Market Context and Industry Dynamics
Supply Chain Constraints and Growth Opportunities
Regulatory and ESG Considerations
Conclusion
FAQ
Answer: Merit AirFinance is a new aviation lending platform launched by Castlelake LP with $1.8 billion in committed capital. It is led by Patrick Mahoney, an experienced aviation finance executive who has been with Castlelake since 2017.
Answer: Private credit is filling the gap left by traditional banks, which have reduced their lending to the aviation sector. Private credit providers offer flexible, tailored financing solutions and have become a dominant force in meeting the industry’s growing capital needs.
Answer: Merit AirFinance provides financing for both new and used aircraft, helping airlines and lessors navigate supply chain constraints, rising asset values, and the need for fleet modernization. The platform leverages Castlelake’s global relationships and technical expertise to offer customized solutions.
Answer: ESG considerations are increasingly important, with a focus on sustainable aviation, emissions reduction, and responsible investment practices. Financing providers are responding by offering green financing options and supporting the acquisition of more efficient, lower-emission aircraft.
Photo Credit: Castlelake – Montage
Business Aviation
Summit Helicopters Acquires Blackcomb Helicopters Aviation Assets
Summit Helicopters acquires Blackcomb Helicopters’ fleet and sightseeing operations in BC, continuing services under the Blackcomb brand.
This article is based on an official announcement from Blackcomb Helicopters and additional industry reporting.
In a significant shift for the Sea-to-Sky aviation landscape, Summit Helicopters has officially acquired the aviation assets and sightseeing business of Blackcomb Helicopters. The deal, announced on January 22, 2026, transfers the operation of the region’s iconic sightseeing tours and utility contracts to Summit, a subsidiary of the Ledcor Group of Companies.
According to the official announcement from Blackcomb Helicopters, the transaction ensures that the “same friendly team” will remain in place to deliver services. While Summit Helicopters takes over ownership of the fleet and bases, the popular sightseeing tours will continue to operate under the established Blackcomb brand, preserving a name that has served the corridor since 1989.
The acquisition involves the transfer of Blackcomb Helicopters’ remaining fleet of seven aircraft, along with its operational bases in Whistler and Squamish, British Columbia. Summit Helicopters will now oversee a diverse range of mission profiles previously managed by Blackcomb, including:
In a statement regarding the transition, Blackcomb Helicopters emphasized the continuity of service:
“Summit will now operate our fleet of seven helicopters continuing Blackcomb’s work at our Squamish and Whistler bases in utility, film, firefighting, and emergency response – and will proudly continue to offer our popular sightseeing tours under the Blackcomb brand.”
— Blackcomb Helicopters Official Announcement
Peter Rice, Vice President of Summit Helicopters, welcomed the expansion, noting in industry reports that the move adds valuable talent and fleet assets to Summit’s operations, which already span Northern and Interior British Columbia, the Northwest Territories, and international markets.
This transaction marks the conclusion of a strategic restructuring for Blackcomb Helicopters under its previous owner, the McLean Group. Industry reporting indicates that this is the second phase of a two-part divestiture strategy executed over the winter of 2025–2026.
Prior to this asset sale, the McLean Group sold Blackcomb’s “Tourism Division”, specifically the Coast Range Heli-Skiing and Tyax Adventures brands, to Whitecap Alpine Adventures in December 2025. This effectively separated the adventure tourism marketing entities from the aviation operations. With the current deal, Summit Helicopters acquires the “hard assets”, the machines, hangars, and air operator certificates, necessary to fly the missions. Consequently, Summit is expected to act as the aviation provider for the tourism brands now owned by Whitecap, while simultaneously running its own utility operations.
Jason McLean, CEO of the McLean Group, reflected on the family’s tenure owning the operator since 2006. In a statement reported by industry sources, McLean expressed confidence in the new operators:
“After decades of specialized helicopter service which started in the Sea to Sky corridor and expanded throughout Canada, it is time for our family to make a change and pass Blackcomb Helicopters onto new operators. With shared values and commitment to always putting safety and premier customer experience first, we know our customers, our team and the communities we serve are in exceptionally good hands.”
— Jason McLean, CEO, The McLean Group
This acquisition reflects a broader trend of consolidation within the Canadian aviation sector. By absorbing Blackcomb’s Sea-to-Sky operations, Summit Helicopters (backed by the industrial giant Ledcor) secures a lucrative foothold in the Vancouver-Whistler corridor, complementing its existing strongholds in Yellowknife, Terrace, and Kamloops.
For the local market, the retention of the Blackcomb brand for sightseeing is a strategic move to maintain consumer trust. However, the operational shift to a larger corporate parent suggests a move toward greater economies of scale, likely necessary to buffer against the volatility of seasonal tourism and wildfire contract cycles.
Sources: Blackcomb Helicopters Official Announcement, Summit Helicopters / Ledcor Group Press Materials
Summit Helicopters Acquires Blackcomb Helicopters’ Aviation Assets and Sightseeing Operations
Operational Continuity and Asset Transfer
Context: The Final Step in Restructuring
Separating Adventure from Aviation
Executive Commentary
AirPro News Analysis
Sources
Photo Credit: Blackcomb Helicopters
Business Aviation
Bombardier Global 8000 Gains EASA Certification for Ultra-Long-Range Jet
Bombardier’s Global 8000 business jet receives EASA certification, completing approvals for operation in key markets with top speed Mach 0.95 and 8,000 nm range.
This article is based on an official press release from Bombardier.
Bombardier has officially announced that its flagship aircraft, the Global 8000, received type certification from the European Union Aviation Safety Agency (EASA) on January 23, 2026. This approval marks the final major regulatory milestone for the ultra-long-range jet, clearing it for operation across all key western markets following earlier approvals in North America.
Marketed by the manufacturer as the “world’s fastest business jet,” the Global 8000 is designed to connect extensive city pairs such as London to Perth or Singapore to Los Angeles non-stop. According to the company’s announcement, this certification cements the aircraft’s entry into service, which officially began in December 2025.
The EASA certification completes a rapid sequence of regulatory approvals for the Canadian manufacturer. Data provided by Bombardier and aviation authorities confirms the following certification timeline:
Stephen McCullough, Executive Vice President of Engineering at Bombardier, highlighted the significance of the European approval in a statement regarding the program’s development.
“Attaining EASA certification illustrates the hard work and dedication of Bombardier’s highly skilled employees and suppliers… This accomplishment further strengthens the momentum behind this groundbreaking business jet.”
, Stephen McCullough, Executive VP of Engineering, Bombardier
The Global 8000 is positioned at the pinnacle of the business aviation market, primarily defined by its speed and range capabilities. The aircraft boasts a top speed of Mach 0.95 (approximately 729 mph) and a maximum range of 8,000 nautical miles.
Bombardier notes that the aircraft’s performance credentials were validated during flight testing in May 2021. During these tests, a Global 8000 test vehicle (FTV-5) broke the sound barrier, achieving a speed of Mach 1.015 in a shallow dive while utilizing Sustainable Aviation Fuel (SAF). This achievement allows the manufacturer to claim the title of the fastest civil aircraft since the Concorde.
Beyond raw performance, the press release emphasizes the aircraft’s focus on passenger wellness during ultra-long-haul flights. Key features cited by the manufacturer include: With the Global 8000 now fully certified in North America and Europe, the battle for dominance in the ultra-long-range segment intensifies. The Global 8000’s primary competitor is the Gulfstream G800. While both aircraft offer an identical range of 8,000 nautical miles, Bombardier has aggressively positioned the Global 8000 around the metric of speed.
The Global 8000’s top speed of Mach 0.95 edges out the Gulfstream G800’s Mach 0.925. While the practical time savings on a typical 12-hour flight may be marginal (estimated at 20 to 30 minutes), the marketing value of the “World’s Fastest” title is substantial in the elite tier of private-jets. Furthermore, Bombardier’s focus on cabin altitude, offering a slightly lower pressure altitude than competitors, suggests a strategy focused on “wellness and productivity” to appeal to executives flying 14-hour missions.
Bombardier Global 8000 Secures EASA Certification, Completing Regulatory Trifecta
Regulatory Timeline and Entry into Service
Performance Specifications
Cabin Technology and Passenger Experience
AirPro News Analysis
The Race for the Ultra-Long-Range Market
Frequently Asked Questions
Sources
Photo Credit: Bombardier
Business Aviation
Honeywell and Flexjet Settle Dispute and Extend Engine Contract to 2035
Honeywell and Flexjet resolve litigation over engine maintenance delays and renew their HTF7000-series engine contract through 2035 with a $470M cash settlement.
This article is based on an official press release from Honeywell and Flexjet.
On January 21, 2026, Honeywell and Flexjet announced a comprehensive settlement to resolve all pending litigation regarding engine maintenance delays. The agreement not only ends a high-stakes legal battle that began in 2023 but also secures a long-term Partnerships between the two aviation giants. As part of the deal, the companies have renewed their Master Maintenance Agreement (MSA) for Honeywell HTF7000-series engines through 2035.
According to the joint press release, the settlement resolves all claims between the parties, including related litigation involving third-party maintenance providers StandardAero and Duncan Aviation. The deal allows Flexjet to secure guaranteed support for its fleet while enabling Honeywell to clear significant legal liabilities ahead of its planned corporate restructuring.
The settlement involves substantial financial considerations and service commitments. While the official press release emphasizes the renewed partnership, regulatory filings and company statements provide a clearer picture of the financial magnitude of the agreement.
Flexjet has characterized the total value of the settlement as exceeding $1 billion. This figure includes both “cash considerations and service credits,” which will likely be applied to future engine maintenance events. In contrast, Honeywell’s disclosures offer specific details regarding the immediate financial impact.
According to Honeywell’s SEC Form 8-K filings referenced in market reports, the settlement involves a one-time cash payment of approximately $470 million. Additionally, Honeywell expects to record a charge in the fourth quarter of 2025 that will reduce sales by approximately $310 million and operating income by roughly $370 million.
“We are pleased to have reached a resolution that supports our long-term growth and ensures the highest level of service for our customers.”
, Joint Statement from Honeywell and Flexjet
The renewed Master Maintenance Agreement covers the HTF7000-series engines, which power a significant portion of Flexjet’s mid- and super-midsize fleet. This extension guarantees maintenance support through 2035, providing Flexjet with operational certainty for the next decade. The conflict between the two companies originated from a 2019 maintenance agreement. In May 2023, Flexjet filed a lawsuit alleging that Honeywell had failed to meet contractual turnaround times for engine repairs and did not provide sufficient rental engines during maintenance events.
Flexjet’s legal filings claimed that these service failures led to significant aircraft groundings. At the peak of the supply chain crisis, reports indicated that up to 40 aircraft were parked due to a lack of available engines. Flexjet argued that Honeywell had prioritized new engine deliveries to original equipment manufacturers (OEMs) over supporting existing customers, a claim Honeywell contested.
The dispute escalated in 2025 when a New York court upheld the enforceability of a liquidated damages clause. This ruling exposed Honeywell to potentially massive liability, which analysts believe accelerated the push for a settlement before a jury trial scheduled for 2026 could commence.
The settlement serves distinct strategic goals for both organizations. For Flexjet, the deal secures the stability of its core fleet, which includes Bombardier Challenger 300/350 and Embraer Praetor 500/600 aircraft. The inclusion of service credits effectively subsidizes future maintenance costs, offsetting the financial impact of previous disruptions.
For Honeywell, the agreement removes a major legal distraction. The company is currently preparing for a spin-off of its Advanced Materials business. By resolving this litigation, Honeywell presents a “cleaner” investment profile to shareholders and avoids the unpredictability of a prolonged court battle.
We observe that this settlement is emblematic of the broader post-pandemic aerospace supply chain crisis. The dispute between Honeywell and Flexjet was not an isolated incident but a high-profile symptom of industry-wide shortages in skilled labor and critical parts, such as castings and forgings.
The structure of the settlement, heavy on “service credits”, is a common mechanism in aviation disputes. It allows the vendor to retain the customer’s business long-term while inflating the “headline value” of the compensation package without requiring an equivalent immediate cash outflow. For the industry at large, this agreement may set a precedent for how operators negotiate compensation for service failures, signaling that major OEMs are willing to pay a premium to avoid reputational damage and legal uncertainty during restructuring phases.
What engines are covered by the renewed contract? How much is the settlement worth? Does this end all litigation between the parties?
Honeywell and Flexjet Settle Billion-Dollar Dispute, Extend Engine Contract to 2035
Key Deal Terms and Financial Impact
Valuation and Cash Payments
Contract Extension
Background of the Dispute
Operational Disruptions
Strategic Implications
AirPro News Analysis
Frequently Asked Questions
The agreement covers Honeywell HTF7000-series engines, which power Flexjet’s Bombardier Challenger 300/350 and Embraer Praetor 500/600 fleets.
Flexjet values the total package at over $1 billion, including cash and service credits. Honeywell’s regulatory filings indicate a cash payment of approximately $470 million.
Yes. The settlement resolves all pending claims between Honeywell and Flexjet, as well as related litigation involving third-party maintenance providers StandardAero and Duncan Aviation.
Sources
Photo Credit: Flexjet
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