Aircraft Orders & Deliveries
Phoenix Aviation Capital Secures 550 Million Credit Facility for Growth
Phoenix Aviation Capital upsizes credit facility to 550 million to support aircraft leasing growth and modern fleet expansion.
Phoenix Aviation Capital and AIP Capital Lock in $550 Million Credit Facility, Signaling Major Growth Phase
In a significant move that underscores robust confidence from the global financial community, Phoenix Aviation Capital, a full-service aircraft lessor, has successfully upsized its senior secured credit facility to an impressive $550 million. This strategic financial maneuver, managed by the alternative investment firm AIP Capital, represents a substantial increase of $250 million from its previous threshold. The transaction is not merely a balance sheet adjustment; it’s a clear statement of intent, equipping Phoenix with enhanced capital and flexibility to aggressively pursue its Strategy in the dynamic global aviation market.
The expansion of this credit facility is a testament to the strength of Phoenix’s business model and the perceived stability of the aircraft leasing sector. Backed by a consortium of heavyweight international banks, the deal highlights the deep-seated trust in Phoenix’s management and its portfolio of modern, in-demand aircraft. As the aviation industry continues its post-pandemic recovery, driven by surging air travel demand and a pressing need for fleet modernization, lessors like Phoenix are becoming increasingly pivotal. This capital injection positions the company to better serve its global Airlines customers, enabling them to expand and update their fleets without the massive capital outlay required for direct purchases.
This development arrives at a crucial time. The aircraft leasing market is experiencing a period of sustained growth, with airlines worldwide seeking more flexible and financially efficient ways to manage their fleets. Phoenix’s focus on new-generation aircraft, including a significant order for Boeing 737 MAX jets, aligns perfectly with industry trends toward greater fuel efficiency and reduced environmental impact. The upsized facility provides the necessary firepower to not only manage its existing commitments but also to seize new opportunities in a competitive landscape.
A Deeper Dive into the Financial Architecture
The mechanics of this upsized credit facility reveal a well-orchestrated collaboration among some of the world’s leading financial institutions. The increase was supported by a powerful syndicate of banks, including HSBC, Truist, Fifth Third Bank, Crédit Agricole, BNP Paribas, and Bayern LB. The deal’s architecture was meticulously crafted, with the Royal Bank of Canada (RBC) serving as the Structuring Agent, while RBC, Citibank, and Morgan Stanley acted as Joint Lead Arrangers. This level of participation from top-tier banks signals a strong endorsement of Phoenix’s strategy and its prospects for long-term success.
The successful execution of such a complex transaction also relied on a team of expert advisors. Phoenix and its manager, AIP Capital, were counseled by Vedder Price and McCann Fitzgerald for Irish legal matters, with PwC providing tax advisory services. On the other side of the table, the lenders were represented by the legal expertise of Clifford Chance. This assembly of high-caliber advisors ensures that the facility is built on a solid legal and financial foundation, ready to support Phoenix’s operational ambitions.
This $550 million facility is a cornerstone of a much larger capital-raising effort. Since the beginning of 2025, Phoenix has successfully raised over $2 billion in bank and institutional capital. This demonstrates a consistent and effective strategy to build a formidable capital base, allowing the company to operate with both strength and agility in the global marketplace. The funds are earmarked to provide Phoenix with the critical capacity and flexibility needed to support its airline partners and to continue its upward trajectory.
“This expanded participation in the facility represents further confidence in the business among Phoenix’s lender group. We are grateful for the support from the bank group as we continue to execute on Phoenix’s growth strategy.” – Jared Ailstock, Managing Partner at AIP.
Strategic Vision and Market Positioning
The primary purpose of this capital infusion is to empower Phoenix to execute its strategic vision. The company is focused on financing modern, fuel-efficient aircraft for a diverse and global base of airline customers. A key component of this strategy is its significant orderbook of 30 Boeing 737 MAX aircraft. To support this, Phoenix and AIP had already closed a pre-delivery payment (PDP) facility of up to $300 million in April 2025. The newly upsized credit facility provides further resources to manage these and other future acquisitions, ensuring a steady pipeline of new aircraft for its clients.
Recent activities underscore the company’s proactive approach. In May 2025, Phoenix announced the acquisition of a Boeing 787-8 aircraft on a long-term lease with LOT Polish Airways. This move, combined with the 737 MAX order, showcases a balanced portfolio strategy that includes both popular narrow-body jets and modern wide-body aircraft. This diversification allows Phoenix to cater to a wider range of airline needs, from short-haul domestic routes to long-haul international flights.
The backing of BC Partners, a leading international Investments firm that counts AIP Capital as a portfolio company, provides another layer of strategic depth. Patrick Schafer, a Partner at BC Partners and a board member of Phoenix, noted that welcoming new lenders demonstrates the strong support Phoenix and AIP command in the aviation bank market. This relationship provides not only capital but also access to a global network and deep industry expertise, further solidifying Phoenix’s competitive position.
Navigating a Thriving Aircraft Leasing Landscape
The timing of Phoenix’s capital raise could not be better. The aircraft leasing market is in a period of robust health, buoyed by several powerful tailwinds. Projections indicate significant market growth, fueled primarily by a relentless rise in global air travel demand. As more people take to the skies, airlines are under pressure to expand their fleets, and leasing provides a fast and capital-efficient solution to meet this need. This creates a fertile environment for lessors with available capital and modern assets.
Furthermore, the global airline industry is undergoing a massive wave of fleet modernization. Airlines are keen to replace older, less efficient aircraft with new-generation models like the Boeing 737 MAX and Airbus A320neo families. These modern jets offer lower fuel consumption, reduced carbon emissions, and decreased maintenance costs, all critical factors for an airline’s bottom line and sustainability goals. Phoenix’s strategic focus on these exact types of aircraft places it directly in the path of this powerful trend.
Leasing also offers airlines invaluable financial flexibility. By opting to lease rather than purchase aircraft, carriers can operate on an asset-light business model, preserving precious capital for other strategic investments like route expansion or customer service enhancements. This model also allows them to adapt more quickly to market shifts. Compounding this, ongoing supply chain disruptions and production delays from major aircraft Manufacturers can make leasing the most reliable way for an airline to secure needed capacity in a timely manner, further strengthening the position of lessors like Phoenix.
Conclusion: A Clear Runway for Growth
The successful upsize of its senior secured credit facility to $550 million is a landmark achievement for Phoenix Aviation Capital and its manager, AIP Capital. It is far more than a financial transaction; it is a powerful validation of their strategic direction, operational excellence, and the confidence they inspire in the global financial market. With the backing of a strong syndicate of banks and the strategic oversight of AIP and BC Partners, Phoenix is exceptionally well-positioned to capitalize on the favorable conditions within the aircraft leasing sector.
Looking ahead, this expanded financial capacity will serve as a high-octane fuel for Phoenix’s growth engine. The capital provides the flexibility to expand its portfolio, support its global airline customers with modern and efficient aircraft, and navigate the competitive landscape with confidence. As the aviation industry continues its upward trajectory, Phoenix Aviation Capital has clearly secured its ticket to be a significant player in shaping the future of aircraft leasing.
FAQ
Question: What was the total value of the upsized credit facility for Phoenix Aviation Capital?
Answer: The senior secured credit facility was upsized to a total of $550 million, which is an increase of $250 million.
Question: Which major financial institutions were involved in this transaction?
Answer: The upsize was supported by a consortium of global banks including HSBC, Truist, and BNP Paribas. Royal Bank of Canada (RBC) acted as the Structuring Agent, with RBC, Citibank, and Morgan Stanley serving as Joint Lead Arrangers.
Question: What is the primary purpose of these additional funds?
Answer: The funds are intended to provide Phoenix Aviation Capital with additional capacity and flexibility to support its global airline customers and to execute its ongoing growth strategy, which includes financing its orderbook of modern aircraft.
Sources
Phoenix Aviation Capital and AIP Capital Announce Upsize of Senior Secured Credit Facility
Photo Credit: Phoenix Aviation Capital
Aircraft Orders & Deliveries
Boeing and Icelease Agree on Up to Three 767-300BCF Aircraft
Icelease signs for up to three Boeing 767-300BCF aircraft, with conversions at ST Engineering Singapore starting Q1 2027.
The Boeing Company and aircraft lessor Icelease have finalized an agreement for up to three Boeing 767-300 Boeing Converted Freighter (BCF) aircraft, marking the leasing firm’s expansion into the medium widebody cargo market.
Announced in a press release on November 2, 2026, the transaction includes one firm order and options for two additional conversions. The aircraft will join the managed cargo portfolio of IAT Leasing, a Dublin-based sister company to Icelease.
Conversion timeline and operational details
The formal signing ceremony for the agreement took place on October 22, 2026, during the Cargo Facts Symposium. The physical conversion work will be executed at ST Engineering’s airframe maintenance, repair, and overhaul (MRO) facilities located in Singapore.
Induction of the first Boeing 767-300 aircraft for conversion is scheduled for the first quarter of 2027. Delivery of the completed Boeing 767-300BCF to Icelease and IAT Leasing is expected to follow in the second quarter of 2027. The Boeing Converted Freighter programs are managed by The Boeing Company’s Global Services division.
Lindsey Douglas, Vice President of Cabin, Modifications, Maintenance and Digital Services at The Boeing Company, stated that the agreement underlines the continued collaboration between the two companies to meet global cargo demand.
Sigthor Einarsson, Managing Partner at Icelease, noted the strategic importance of the deal for the lessor’s broader fleet strategy.
“This agreement with Boeing to convert up to three Boeing 767 aircraft marks an important milestone for both Icelease and its Dublin-based sister company IAT Leasing,” Einarsson said.
Icelease and IAT Leasing’s growing cargo portfolio
The Boeing 767-300BCF order builds upon an established relationship between the manufacturer and the lessor. Icelease, an aircraft leasing company with a 21-year history, specializes in aircraft acquisitions, leasing, operations, finance, and investor relations. The firm was originally formed as a spinoff from Icelandair in 2005.
On November 14, 2021, Icelease placed an order for 11 Boeing 737-800 Boeing Converted Freighter (737-800BCF) aircraft during the Dubai Airshow. That order established Icelease as the launch customer for a new conversion line at Boeing’s London Gatwick MRO facility.
The newly ordered widebody freighters will be managed by IAT Leasing. Incorporated in late 2023, IAT Leasing is owned by four equity partners. The Dublin-based entity has rapidly built a portfolio of approximately 40 narrowbody and widebody passenger and Cargo aircraft, which are leased to operators globally. The company’s current managed cargo portfolio already includes seven Boeing 737-800BCF aircraft.
“The history between Icelease and Boeing dates over 20 years and includes a multitude of new aircraft deliveries as well as cargo conversions,” Einarsson said. “The Boeing 767-300BCF will join the growing managed cargo aircraft portfolio of IAT Leasing, which already includes seven Boeing 737-800BCF and other freighters leased to various customers.”
Widebody freighter market outlook
The Boeing 767-300BCF is positioned to serve regional and long-haul cargo networks as a highly efficient medium widebody converted freighter. The aircraft offers a payload capacity of 57 tonnes and a maximum range of 3,300 nautical miles.
The Icelease order aligns with broader industry forecasts regarding long-term air cargo growth. On October 28, 2026, The Boeing Company released projections indicating that the global freighter fleet will exceed 4,000 airplanes by 2045. The manufacturer anticipates that air cargo traffic will double over the same period, providing a sustained demand environment for passenger-to-freighter conversion programs across both narrowbody and widebody platforms.
AirPro News analysis
We view Icelease’s transition from narrowbody to medium widebody conversions as a natural progression for lessors seeking to capture higher-yield cargo segments. While the Boeing 737-800BCF serves domestic and regional express networks effectively, the Boeing 767-300BCF provides the volume and range necessary for intercontinental e-commerce flows. By securing conversion slots at ST Engineering for 2027, Icelease and IAT Leasing are positioning their portfolio to absorb capacity demands as older widebody freighters face retirement toward the end of the decade. The decision to allocate these assets to the recently formed IAT Leasing also highlights the robust investor appetite for dedicated freighter leasing vehicles.
Photo Credit: Boeing
Aircraft Orders & Deliveries
AerCap Leases Two Boeing 777-300ERSF to Turkish Airlines
AerCap finalizes lease of two Boeing 777-300ERSF freighters to Turkish Airlines, with deliveries scheduled for 2027.
AerCap Holdings N.V. has finalized lease agreements with Turkish Airlines for two Boeing 777-300ERSF converted freighters, with deliveries scheduled between March and September 2027.
Announced on October 29, 2026, the transaction expands the Turkish flag carrier’s dedicated cargo capacity while utilizing Etihad Engineering’s maintenance, repair, and overhaul (MRO) facility in Abu Dhabi for the passenger-to-freighter (P2F) modifications. In a press release detailing the agreement, the Dublin-based aviation lessor emphasized the strategic alignment between the aircraft’s capabilities and the airline’s expanding freight network.
Expanding Turkish Airlines’ cargo operations
The agreement builds on an existing relationship between AerCap and Turkish Airlines, which operates a large international network requiring substantial dedicated cargo lift. The addition of the two widebody freighters is intended to support the carrier’s volume requirements on high-demand international routes.
Peter Anderson, Chief Commercial Officer at AerCap, stated that the aircraft will provide the airline with additional cargo capacity combined with the performance capabilities specific to the 777-300ERSF platform. Financial terms of the lease agreements, including the exact lease duration and the specific aircraft serial numbers, were not disclosed in the announcement.
The Big Twin conversion program
The Boeing 777-300ERSF, marketed as “The Big Twin,” is a P2F conversion program developed through a joint venture between AerCap and Israel Aerospace Industries (IAI). It represents the first program designed to convert the Boeing 777-300ER into a dedicated freighter configuration.
According to AerCap’s cargo division, the 777-300ERSF offers 25 percent more cargo volume than the factory-built Boeing 777-200LRF. This increased capacity positions the converted twin-engine aircraft as a cost-effective replacement for aging four-engine Boeing 747 freighters currently operating in the global fleet.
AerCap delivered the first 777-300ERSF to launch customer Kalitta Air in September 2025. Since that initial delivery, the lessor has handed over aircraft to Fly Meta and secured lease agreements with other major operators, including Ethiopian Airlines and China Southern Group.
Regional conversion strategy in Abu Dhabi
The physical conversion of the two aircraft destined for Turkish Airlines will be executed at the Etihad Engineering MRO hub in Abu Dhabi, United Arab Emirates. This facility serves as a dedicated regional conversion center for the 777-300ERSF program.
Anderson highlighted the strategic importance of the location, noting that the Abu Dhabi facility provides a regional platform capability that enables aircraft to be converted in the Middle East prior to delivery. This localized approach is designed to efficiently serve customers across the Europe, Middle East, and Africa (EMEA) market.
“The dedicated 777-300ERSF conversion facility at Etihad Engineering’s MRO hub in Abu Dhabi provides an important regional platform capability, enabling the aircraft to be converted in the Middle East ahead of delivery to Turkish Airlines,” Anderson said.
AerCap’s broader market position
The Turkish Airlines agreement follows a period of strong financial performance for AerCap. On October 28, 2026, the company reported its third-quarter financial results, citing record adjusted earnings per share and raising its full-year 2026 guidance amid high lease rates and sustained demand for aviation assets.
As of September 30, 2026, AerCap’s total portfolio included 1,537 owned and managed aircraft, alongside approximately 1,300 engines and over 300 helicopters. The company’s dedicated cargo division manages a fleet of approximately 110 owned, managed, and on-order freighters, having completed more than 160 passenger-to-freighter conversions to date.
AirPro News analysis
We view the placement of 777-300ERSF aircraft with a major network carrier like Turkish Airlines as a strong validation of the Big Twin program’s economic proposition. As operators look to phase out older Boeing 747 freighters, the 25 percent volume advantage over the 777-200LRF makes the converted 300ER an attractive middle ground between factory-built twin-engine freighters and legacy four-engine platforms. Utilizing the Etihad Engineering facility in Abu Dhabi for a European customer also demonstrates the logistical efficiency of AerCap’s decentralized conversion strategy, reducing ferry times and regional friction for EMEA operators.
Photo Credit: AerCap
Aircraft Orders & Deliveries
CDB Aviation Leases Additional Boeing 737-800 to Neos
CDB Aviation will deliver a Boeing 737-800 to Italian leisure carrier Neos in November 2026, expanding a partnership begun in 2021.
Irish aircraft lessor CDB Aviation will expand its existing relationship with Italian leisure carrier Neos S.p.A. by leasing the airline one additional Boeing 737-800 narrowbody aircraft. The aircraft is scheduled for delivery in November 2026 and will support the carrier’s intra-European and intercontinental route networks.
The agreement, announced in an October 28, 2026, press release, builds upon a leasing partnership established between the two companies in 2021. The transaction highlights continued demand for current-generation narrowbody assets to sustain short- and medium-haul leisure operations.
Expanding the Neos narrowbody fleet
Neos, a wholly owned subsidiary of Alpitour S.p.A. based at Milan Malpensa Airport (MXP), operates an all-Boeing fleet. The airline currently utilizes 18 aircraft, comprising the Boeing 737-800, Boeing 737 MAX 8, and widebody Boeing 787-9 Dreamliner.
The Boeing 737-800 serves as a core asset for the airline’s short- to medium-haul leisure routes. Neos deploys these narrowbody aircraft on intra-European and select intercontinental flights. This narrowbody capacity complements its widebody Boeing 787-9 Dreamliner fleet, which is dedicated to long-haul operations across the carrier’s 85 global destinations in Europe, Africa, Asia, the Middle East, and the Americas.
Marco Brusa, Chief Operating Officer of Neos, stated that the planned addition reflects confidence in the lessor as a trusted partner.
“We are pleased to further strengthen our partnership with CDB Aviation with the planned addition of this Boeing 737-800 to our fleet,” Brusa said. “This agreement builds on our established relationship and reflects our confidence in CDB Aviation as a trusted partner. We look forward to welcoming the aircraft and continuing our successful collaboration.”
A growing lessor-operator partnership
The commercial relationship between CDB Aviation and Neos began in 2021 with an initial agreement covering two Boeing 737-800s. CDB Aviation officially announced the delivery of those two aircraft on February 7, 2023. Those initial airframes were configured with 186 single-class seats to support the carrier’s network.
CDB Aviation, a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., Ltd., operates globally from its Dublin headquarters. As of early 2025, the lessor reported a fleet of 521 owned and committed assets, with aircraft placed at 85 airlines across 40 countries.
Gavan Daly, Head of Commercial EMEA at CDB Aviation, noted the company’s satisfaction with the expanded agreement.
“We are delighted to deepen our partnership with Neos through the agreement to lease this additional 737-800 from CDB Aviation’s portfolio,” Daly said.
Photo Credit: CDB Aviation
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