Commercial Aviation
Titan Aviation Bain Capital Atlas Air Launch 410M Freighter Platform
Titan Aviation Leasing, Bain Capital, and Atlas Air Worldwide launch $410M freighter aircraft investment platform to meet growing global air cargo demand.
The global air cargo industry is at a pivotal moment, experiencing both robust growth and significant transformation. This evolution is underscored by the September 2025 announcement of Titan Aircraft Investments II (TAI 2), a $410 million freighter aircraft investment platform created by Titan Aviation Leasing, Bain Capital, and Atlas Air Worldwide. The launch of TAI 2 marks an important milestone for the sector, building on the momentum of the partners’ first $400 million joint venture from 2019 and reflecting the industry’s heightened demand for modern, efficient Cargo-Aircraft.
TAI 2’s introduction comes at a time when the air cargo market is showing exceptional resilience. In 2024, global air cargo demand rose by 11.3% compared to the previous year, outpacing even the pandemic-era highs of 2021. Atlas Air, a key partner in the venture, operates about 14% of the world’s widebody freighter capacity, cementing its leadership in the sector. The renewed partnership is strategically positioned to leverage trends like e-commerce expansion, supply chain modernization, and the need to replace aging fleets. With TAI 1 having acquired 19 aircraft across 11 lessees since its inception, the new platform aims to deploy billions more in freighter assets to meet the complex needs of global cargo supply chains.
The collaboration among Titan Aviation Leasing, Bain Capital, and Atlas Air Worldwide is rooted in a shared vision to address global freighter capacity challenges. Their formal partnership began in December 2019, when Titan Aviation Holdings, a subsidiary of Atlas Air Worldwide, teamed up with Bain Capital Credit to launch their first joint venture. This initiative targeted a diversified freighter leasing portfolio valued at approximately $1 billion, capitalizing on the surge in demand driven by e-commerce and express logistics.
The initial structure saw Bain Capital contributing $360 million in equity and Titan adding $40 million, with provisions for further capital as needed. Titan’s responsibilities spanned aircraft and lease management, including sourcing, conversion, technical oversight, and disposal. This comprehensive approach allowed the partnership to adapt quickly to changing market conditions and customer requirements.
Michael T. Steen, President and CEO of Titan Aviation Holdings and EVP & Chief Commercial Officer of Atlas Air Worldwide, highlighted the strategic alignment: both partners shared an investment Strategy focused on growing the freighter space. The success of TAI 1, which acquired 19 aircraft across 11 lessees, validated this approach. The progression to TAI 2, with a slightly larger $410 million commitment, reflects both inflation and increased confidence in the market opportunity.
“Both Bain and Titan shared the same vision and investment strategy, positioning us extremely well for further opportunities in the growing freighter space.”, Michael T. Steen, Titan Aviation Holdings
The timing of TAI 2 is also notable, coming after Atlas Air’s privatization by Apollo Global Management in March 2023. This move provided Atlas Air with greater flexibility for long-term strategic planning, free from public market pressures, and enabled more decisive action in forming growth-focused partnerships.
TAI 2’s $410 million capital commitment from Bain Capital and Atlas Air Worldwide is designed to support the acquisition of a substantial number of modern freighter aircraft. The platform’s financial structure is informed by TAI 1’s proven model, which efficiently deployed capital across a diverse portfolio, meeting its $1 billion deployment target. With an average investment of about $52.6 million per aircraft, the focus remains on mid-to-large-size widebody freighters serving key international routes.
Beyond direct aircraft purchases, the partnership has secured significant financing facilities to support broader freighter ecosystem needs. Titan Aircraft Investments has arranged a $300 million warehouse financing agreement with CDPQ and BNP Paribas, and a $200 million bridge financing deal with volofin Capital Management. These facilities enable debt financing for both aircraft acquisitions and passenger-to-freighter conversions, expanding the platform’s reach and flexibility. Institutional support, such as CDPQ’s involvement, highlights the appeal of aviation assets for large-scale investors. As Martin Laguerre of CDPQ noted, these investments align with strategies to back high-quality assets in demand by strong counterparties. Atlas Air’s operational performance further supports the investment thesis, with adjusted EBITDA margins averaging 17.5%–20.5% over the past decade and exceeding 26% in recent years after a strategic pivot toward long-term contracts.
“These Investments are part of our capital solutions strategy to create tailored solutions backed by high-quality assets in great demand by strong counterparties.”, Martin Laguerre, CDPQ
This combination of equity and debt capital, along with operational expertise, allows TAI 2 to offer attractive leasing solutions while managing risk and maintaining financial flexibility.
The global air cargo sector has been buoyed by several converging trends. According to IATA, air cargo demand grew by 11.3% in 2024, with revenues reaching $149 billion, up from $139 billion in 2023. Although below the 2021 peak, these figures represent a new baseline for the industry. Air cargo now accounts for approximately 35% of global trade by value, underscoring its importance in the world economy.
Growth is especially strong in the Asia-Pacific region, which saw a 17.8% increase in demand, driven by trade lanes such as Africa-Asia (+40.6%), Europe-Asia (+20.4%), and Intra-Asia (+19.2%). E-commerce continues to be a primary driver, with online shopping fueling demand for express shipping. Supply chain disruptions and ocean freight constraints have also led shippers to favor air cargo for speed and reliability.
Fleet renewal is another key factor: more than 100 widebody freighters globally are over 30 years old, and retirements are tightening capacity. Boeing and Airbus forecast that between 2,470 and 2,845 new freighters will be needed over the next two decades. Operators like Atlas Air, the world’s largest Boeing 747 freighter operator, are well positioned to benefit from these trends, especially with their focus on long-term contracts and stable customer relationships.
“Global air cargo revenues reached an estimated $149 billion in 2024, with air cargo accounting for about 35% of global trade by value.”, IATA
This context creates strong tailwinds for platforms like TAI 2, which are structured to meet both immediate and long-term capacity needs in a rapidly evolving market.
Modern freighter aircraft such as the Boeing 777F and 747-8F are at the heart of TAI’s investment strategy. The 777F, for example, offers a 103-ton payload and nearly 5,000 nautical miles of range, making it ideal for long-haul, high-volume routes. The 747-8F, with its unique nose-loading capability and 20% greater payload than its predecessor, is another key asset, especially as Atlas Air continues to expand its fleet with long-term lease agreements.
Passenger-to-freighter (P2F) conversions are also a growing focus, as airlines retire older passenger jets. Titan has supported such conversions through bridge financing, including a $200 million facility with volofin Capital Management. The company is currently considering converting two Airbus A330-300s for Turkish Airlines, demonstrating its flexibility in asset management. Titan Aviation Holdings, as the third-largest freighter lessor by fleet value, brings deep technical expertise and customer relationships to the table. Its portfolio spans more than 30 aircraft and a book value exceeding $1.5 billion. The partnership’s global reach—Atlas Air operates in 70 countries and serves over 300 destinations—provides a competitive edge in sourcing, leasing, and managing a diverse range of aircraft for an international customer base.
“Atlas Air operates about 14% of global widebody freighter capacity and is the world’s largest operator of Boeing 747 freighters.”, Company Reports
This scale and expertise position TAI 2 to capture opportunities as the market continues to evolve and consolidate around large, well-capitalized players.
Effective risk management is central to TAI 2’s strategy. The platform mitigates residual value risk by focusing on modern, in-demand aircraft, and manages credit risk through careful lessee selection and portfolio diversification. With 19 aircraft leased to 11 customers in TAI 1, concentration risk is kept low. Operational risk is addressed through Titan’s asset management services, which include maintenance oversight and regulatory compliance.
Market risks, such as lease rate fluctuations and shifts in cargo demand, are moderated by the long-term nature of most freighter leases and the essential role of air cargo in global trade. The partnership’s access to institutional capital and sophisticated risk management tools further strengthens its position.
Looking ahead, TAI 2 is well placed to benefit from ongoing trends: e-commerce growth, supply chain resiliency, and the need for fleet renewal. The platform’s flexible approach, including potential expansion into passenger-to-freighter conversions and innovative financing structures, ensures it can adapt to changing market demands. Sustainability is also a growing priority, with newer aircraft offering improved fuel efficiency and lower emissions, aligning with industry and regulatory expectations.
“The TAI platforms’ focus on modern, fuel-efficient aircraft positions them favorably as airlines and logistics companies face growing pressure to reduce environmental impacts.”, Industry Analysis
The launch of Titan Aircraft Investments II represents a significant evolution in freighter aircraft investment, combining institutional capital with operational expertise to address the growing needs of global air cargo. With a $410 million capital commitment and a proven track record from TAI 1, the partnership is poised to support critical supply chains and capture value in a dynamic market.
As e-commerce expands and supply chains become more complex, platforms like TAI 2 will play a vital role in providing flexible, efficient freighter capacity worldwide. The combination of financial strength, technical know-how, and strategic vision positions Titan, Bain, and Atlas Air at the forefront of the industry’s next phase of growth.
What is Titan Aircraft Investments II (TAI 2)? How does TAI 2 differ from the original TAI platform? What market trends support the launch of TAI 2? What types of aircraft does TAI 2 focus on? How does TAI 2 manage investment risk? Sources:
Titan Aviation Leasing, Bain Capital, and Atlas Air Worldwide Launch Second Freighter Aircraft Investment Platform
Strategic Partnership Foundation and Evolution
Financial Architecture and Capital Strategy
Market Dynamics and Industry Context
Aircraft Technology, Fleet Composition, and Competitive Position
Risk Management and Future Outlook
Conclusion
FAQ
TAI 2 is a $410 million joint venture platform launched by Titan Aviation Leasing, Bain Capital, and Atlas Air Worldwide to invest in and lease modern freighter aircraft globally.
TAI 2 builds on the success of the first platform (TAI 1), which launched in 2019 with $400 million. TAI 2 features a larger capital commitment and leverages lessons learned to expand and diversify its portfolio.
Key trends include strong air cargo demand, e-commerce growth, supply chain modernization, and the need to replace aging freighter fleets. Global air cargo revenues reached $149 billion in 2024, with demand rising by 11.3% year-over-year.
The platform primarily targets modern, fuel-efficient widebody freighters such as the Boeing 777F and 747-8F, as well as passenger-to-freighter conversions where appropriate.
By focusing on in-demand aircraft, diversifying its lessee base, and leveraging Titan’s asset management expertise, TAI 2 addresses risks related to asset values, credit, and operations.
GlobeNewswire,
Atlas Air Worldwide Holdings,
IATA
Photo Credit: Atlas Air
Commercial Aviation
China to Buy Up to 120 Airbus Jets in Germany-China Deal
China agrees to purchase up to 120 additional Airbus aircraft during Chancellor Merz’s 2026 Beijing visit, valued at $15-16 billion, addressing trade imbalance.
German Chancellor Friedrich Merz has secured a commitment from the Chinese government to purchase up to 120 additional aircraft from European aerospace manufacturer Airbus. The announcement was made on Wednesday, February 25, 2026, during the Chancellor’s inaugural state visit to Beijing, where he met with Chinese President Xi Jinping and Premier Li Qiang.
According to reporting by Euronews, the agreement serves as a central economic achievement of the diplomatic mission, which aims to deepen ties between the two major economies while addressing ongoing trade disparities. The deal underscores the continued reliance of Chinese carriers on European aerospace technology amidst a complex geopolitical landscape.
Following a dinner meeting with President Xi, Chancellor Merz confirmed to reporters that Beijing intends to place Orders for a significant number of jets. While the specific breakdown of aircraft models, such as the single-aisle A320neo family versus wide-body A350s, was not immediately detailed in the initial reports, the total volume is quantified at “up to 120 units.”
Industry data suggests that a deal of this magnitude, assuming a standard mix of single-aisle jets, could carry a list price value of approximately $15 billion to $16 billion, though Airlines typically negotiate significant discounts for bulk orders. Crucially, Merz emphasized that these are “additional” aircraft, distinct from the approximately 145 firm orders placed by Chinese carriers in late 2025 and January 2026.
The aerospace agreement comes at a time when Germany is seeking to “reset” its economic relationship with China. Reports indicate that Germany is currently grappling with a record trade deficit with China, which reached approximately €89 billion ($105 billion) in 2025. Merz noted that this figure has quadrupled since 2020.
During the visit, the Chancellor pressed for “fair, balanced, and reciprocal” trade terms. The purchase of 120 Airbus jets is widely interpreted by analysts as a gesture from Beijing to help narrow this gap and demonstrate that economic engagement remains mutually beneficial.
“The Chinese leadership will be ordering a larger number of additional aircraft from Airbus.”
, Chancellor Friedrich Merz, via press remarks in Beijing
This announcement reinforces Airbus’s dominant position in the Chinese aviation market, where it held a market share exceeding 50% entering 2026. The European Manufacturers delivered approximately 790 aircraft globally in 2025, outpacing its American rival Boeing. The expansion of Airbus’s local production capabilities, including the second Final Assembly Line (FAL) in Tianjin, has further incentivized local procurement. The Geopolitical “Tightrope”
While the headline number of 120 aircraft is a significant industrial win for Europe, we believe the timing of this deal is as political as it is commercial. With global trade tensions rising and the potential for shifts in U.S. trade policy later this spring, Beijing appears to be utilizing “checkbook diplomacy” to secure European neutrality.
By locking in long-term supply chains with Airbus, China mitigates the risk of potential sanctions or tariff wars that could impact Boeing deliveries. For Chancellor Merz, this deal offers a tangible domestic victory, proving that his administration can secure high-value Contracts for European industry even while taking a firmer stance on systemic rivalries and trade imbalances.
What is the value of the deal? Are these new orders? Who are the key figures involved?
China Commits to 120 Airbus Jets During Chancellor Merz’s Visit
Details of the Agreement
Addressing the Trade Deficit
Strategic Context and Market Impact
AirPro News Analysis
Frequently Asked Questions
While no official contract value was released, industry estimates place the list price value between $15 billion and $16 billion, depending on the final mix of aircraft models.
Yes. Chancellor Merz explicitly categorized these as “additional” aircraft, separate from the ~145 orders placed by Chinese airlines in late 2025 and early 2026.
The agreement was reached following meetings between German Chancellor Friedrich Merz, Chinese President Xi Jinping, and Chinese Premier Li Qiang.
Sources
Photo Credit: Airbus
Aircraft Orders & Deliveries
US Removes Tariffs on Brazilian Aircraft Restoring Duty-Free Trade
The US eliminates 10% tariffs on Brazilian aircraft, benefiting Embraer and US regional airlines with a temporary exemption under Section 122 of the Trade Act.
This article summarizes reporting by Reuters and includes data from public trade records.
The Brazilian government has officially welcomed a decision by the United States to eliminate import tariffs on Brazilian aircraft, effectively restoring a “zero-tariff” trade relationship for the aerospace sector. According to reporting by Reuters, the move reduces the duty on Brazilian jets entering the U.S. from 10% to zero, a significant shift following months of volatile trade policy.
The decision comes in the wake of a pivotal U.S. Supreme Court ruling on February 20, 2026, which struck down previous broad tariff structures. In response, the U.S. administration pivoted to a new strategy under Section 122 of the Trade Act of 1974. While this new measure imposes temporary global tariffs on many goods, civil aircraft, engines, and parts were specifically listed as exempt, providing immediate relief to Brazilian planemaker Embraer and its U.S. customers.
This policy shift marks a return to the status quo that existed for over 45 years prior to April 2025, during which the U.S. and Brazil traded civil aviation products duty-free. The reinstatement of this status is expected to have widespread implications for the regional airline market in the United States.
The removal of the 10% levy is a major victory for Embraer, Brazil’s leading exporter of high-value manufactured goods. For the past year, the tariff placed Embraer at a price disadvantage compared to its primary competitors, such as Canada’s Bombardier and France’s Dassault, whose business jets continued to enter the U.S. market duty-free.
According to trade data, aircraft represent Brazil’s third-largest export to the United States, valued at approximately $1.41 billion in the first half of 2025 alone. Brazilian Vice President and Minister of Development Geraldo Alckmin praised the decision, noting that it restores “competitive parity” for Brazilian industry.
The exemption is also a critical development for U.S. regional airlines. Carriers such as SkyWest, Republic Airways, and American Airlines rely heavily on Embraer’s E175 jets to operate their regional networks. Industry analysts have noted that these airlines faced the prospect of deferring deliveries or absorbing higher costs under the previous tariff regime.
By exempting civil aircraft from the new Section 122 measures, the U.S. administration has ensured a steady supply of regional jets required to replace aging fleets without imposing inflationary costs on domestic carriers. The legal landscape surrounding this decision remains complex. The exemption was triggered after the Supreme Court ruled in Trump v. CASA, Inc. that the executive branch lacked the authority to impose the previous tariff structures under the International Emergency Economic Powers Act (IEEPA). Consequently, the administration invoked Section 122 to maintain trade pressure while carving out exemptions for critical sectors like aerospace.
However, legal experts warn that this relief may be temporary. The tariffs implemented under Section 122 are legally limited to a duration of 150 days, set to expire in July 2026. Furthermore, the administration has indicated that an investigation into Brazil’s trade practices under Section 301 is ongoing, which could lead to targeted tariffs in the future.
“Now it seems we have a window at least where we can import these aircraft free from tariffs. The question is how long that window will last.”
Tobias Kleitman, President of TVPX, via industry reports
We view this exemption as a pragmatic concession by Washington rather than a purely diplomatic gesture toward Brazil. The U.S. regional aviation market is structurally dependent on the Embraer E175; there is currently no U.S.-manufactured alternative that meets the scope clause requirements of major pilot contracts. Penalizing Embraer imports would have disproportionately harmed U.S. airlines and the traveling public in smaller markets.
While the immediate threat has passed, the 150-day clock on Section 122 measures creates a “sunset horizon.” We advise stakeholders to accelerate deliveries where possible before July 2026, as the long-term trade framework between the U.S. and Brazil remains unsettled.
What was the previous tariff rate? Why was the tariff removed? Does this affect private jets?
Brazil Welcomes Removal of U.S. Aircraft Tariffs, Restoring Duty-Free Status for Embraer
Impact on Embraer and Global Competition
Relief for U.S. Regional Carriers
Legal Context and Future Uncertainty
AirPro News Analysis
Frequently Asked Questions
Between April 2025 and February 2026, Brazilian aircraft imports were subject to a 10% tariff.
A Supreme Court ruling invalidated the previous tariff authority. The administration subsequently issued new temporary measures that specifically exempted civil aircraft.
Yes. The exemption covers civil aircraft, which includes executive jets like Embraer’s Praetor and Phenom series.Sources
Photo Credit: Embraer
Commercial Aviation
American Airlines 737 MAX 8 Found with Bullet Hole After Miami-Medellín Flight
A bullet hole was discovered in an American Airlines 737 MAX 8 wing after flights between Miami and Medellín, prompting investigations by US and Colombian authorities.
An American Airlines Boeing 737 MAX 8 was removed from service earlier this week after a bullet hole was discovered in the aircraft’s right wing following a round-trip rotation between Miami and Medellín, Colombia. The incident, which took place between February 22 and February 23, 2026, has prompted investigations by safety authorities in both the United States and Colombia.
According to reporting by CBS News, the damage was identified on a flight control surface, specifically the aileron, consistent with a projectile strike. While the flight landed safely without injury to passengers or crew, the discovery highlights ongoing security concerns regarding flight operations in specific regions of Latin America.
The aircraft involved is a Boeing 737 MAX 8, registered as N342SX. It operated Flight AA923 from Miami International Airport (MIA) to José María Córdova International Airport (MDE) in Rionegro, serving Medellín, on the night of Sunday, February 22. It was scheduled to return as Flight AA924 on the morning of Monday, February 23.
According to data summarized by aviation tracking outlets, the damage involved a puncture hole in the right wing aileron, a critical flight control surface used to bank the aircraft. The damage reportedly showed clear entry and exit points indicative of a bullet strike.
While the existence of the damage is confirmed, reports differ regarding when the bullet hole was first detected. Two primary narratives have emerged from aviation journalism sources:
Following the conclusion of its passenger service, the aircraft was ferried without passengers from Miami to the airline’s maintenance hub at Dallas/Fort Worth (DFW) on the night of February 23 for permanent repairs.
American Airlines confirmed the incident in a statement provided to media outlets. The carrier emphasized that safety remained the priority throughout the operation.
“The aircraft was immediately removed from service for further inspection and repair. We will work closely with all relevant authorities to investigate this incident.”
, American Airlines statement via CBS News
In Colombia, the Civil Aviation Authority (Aerocivil) announced it would launch an investigation to determine the origin of the projectile. According to local reports, Aerocivil is working to establish whether the impact occurred while the aircraft was in Colombian airspace or on the ground. The U.S. Federal Aviation Administration (FAA) is also aware of the incident and is expected to collaborate on the inquiry.
The incident occurs against a backdrop of heightened security alerts in the Rionegro area, where the Medellín airport is located. Local reporting indicates that a significant shooting and police pursuit occurred in Rionegro on February 18, 2026, just days before the aircraft was struck. Authorities have maintained a high alert status at the airport following recent arrests of international fugitives.
This event marks another concerning instance of commercial aircraft becoming collateral damage in volatile security environments. In late 2024, aircraft from Spirit, JetBlue, and American Airlines were struck by gunfire while operating near Port-au-Prince, Haiti, leading to a temporary suspension of flights to that region. While the security situation in Medellín is distinct from Haiti, the vulnerability of aircraft during approach and landing, phases where they are low and slow, remains a critical challenge for airline security teams.
The discrepancy in the timeline of discovery is also significant. If the damage was indeed found in Miami rather than Medellín, it raises questions about the efficacy of turnaround inspections at outstations. Conversely, if it was found and patched in Colombia, it suggests the airline determined the damage was within the Minimum Equipment List (MEL) limits for a safe ferry or revenue flight, a standard but rigorously controlled practice.
Was anyone injured during the incident? What type of plane was involved? Is it safe to fly to Medellín?
Incident Details and Timeline
Conflicting Accounts of Discovery
Official Statements and Investigation
Regional Security Context
AirPro News Analysis
Operational Risk in Latin America
Frequently Asked Questions
No. There were no injuries reported among the passengers or crew on either the inbound or outbound flights.
The aircraft was a Boeing 737 MAX 8, a common narrow-body jet used for short- to medium-haul international routes.
Flights continue to operate. However, aviation authorities and airlines constantly monitor security situations. Following similar incidents in other regions, airlines have occasionally adjusted flight paths or schedules, though no suspension of service to Medellín has been announced at this time.
Sources
Photo Credit: Reuters – Shannon Stepleton
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