Aircraft Orders & Deliveries
Nigeria Launches National Aircraft Leasing Company to Boost Aviation
Nigeria plans a government-backed aircraft leasing company to reduce costs and improve access for local airlines amid recent legal reforms.
Nigeria Forges Path for National Aircraft Leasing Company to Boost Aviation
In a significant move to reshape its aviation landscape, the Nigerian federal government is advancing plans to establish a national aircraft leasing company. This strategic initiative, announced by the Minister of Aviation and Aerospace Development, Festus Keyamo, aims to dismantle the long-standing barriers that have hindered the growth and stability of domestic airlines. For years, Nigerian carriers have grappled with formidable challenges in acquiring aircraft, facing prohibitive costs and a high-risk perception from international lessors. The proposed leasing company is designed to act as a powerful intermediary, leveraging government backing to secure more favorable terms for the nation’s airlines.
The core of the problem has been a complex mix of economic and legal hurdles. International financial institutions and lessors have traditionally viewed Nigeria as a high-risk jurisdiction, a perception fueled by historical contract disputes, currency repatriation challenges, and a once-unpredictable legal framework for asset repossession. This “country risk” premium translated into higher insurance costs, steep security deposits, and a general reluctance from the global market to engage with Nigerian carriers on competitive terms. The result has been a constrained domestic aviation sector, often operating with older fleets and struggling to expand its operational capacity.
The new national leasing company represents a fundamental shift in strategy. Operating as a Public-Private Partnership (PPP), the entity will be supported by sovereign guarantees from the federal government. This model is intended to de-risk the investment for international partners, allowing Nigeria as a unified entity to negotiate directly with aircraft manufacturers and global lessors. By creating a centralized, government-backed platform, the initiative seeks to solve a market failure and pave the way for a more robust, competitive, and sustainable aviation industry, a key component of the country’s 15-year aviation roadmap.
Tackling Systemic Hurdles to Clear the Runway for Growth
The decision to establish a national leasing company is not a sudden development but a calculated response to deep-seated issues that have long plagued Nigerian aviation. Understanding these challenges is key to appreciating the significance of this new policy direction. The primary obstacle has been the high “country risk” associated with Nigeria, a term that encompasses a range of financial, legal, and political uncertainties that worry international investors and lessors.
Deconstructing “Country Risk” and Its Impact
For decades, international lessors approached the Nigerian market with caution. This was largely due to a history of legal and judicial bottlenecks that made the repossession of multi-million dollar aircraft assets a difficult and prolonged process in cases of default. As Captain Ado Sanusi, CEO of Aero Contractors, pointed out, this risk perception was a major factor driving up costs. Compounding this was the persistent issue of foreign exchange scarcity. Nigerian Airlines, which earn revenue in Naira but pay for leases, insurance, and maintenance in foreign currency, often struggled with the accessibility and repatriation of funds, creating payment uncertainties for their international partners.
These factors created a domino effect. To mitigate their risk, lessors imposed stringent conditions on Nigerian carriers, including higher monthly lease rates and larger security deposits than those offered to airlines in lower-risk nations. Furthermore, the limited capacity of the domestic insurance market meant airlines had to rely on expensive international reinsurance, further inflating their operational costs. This environment made it incredibly difficult for airlines to maintain healthy balance sheets, invest in modern, fuel-efficient fleets, and ultimately, to compete effectively on both domestic and international routes.
Paving the Way with Foundational Legal Reforms
The viability of the new leasing company is anchored in a series of crucial legal and regulatory reforms undertaken by the Nigerian government to build trust with the global financial community. A cornerstone of this effort is the country’s enhanced compliance with the Cape Town Convention (CTC), an international treaty that standardizes transactions involving aircraft and creates a clear, enforceable framework for creditors’ rights, including asset repossession.
Nigeria’s commitment to the CTC has been demonstrated through concrete actions. The recent implementation of the Irrevocable Deregistration and Export Request Authorisation (IDERA) procedure has provided lessors with a more reliable mechanism to reclaim their assets in the event of a lease default. This, along with the signing of the Cape Town Practice Directions in September 2024, has created a more predictable legal landscape for adjudicating aircraft financing cases within the Federal High Court.
These measures have yielded tangible results, with Nigeria’s global aviation rating under the Cape Town Convention recently improving to 75.5%. This improved score sends a strong signal to the international community that Nigeria is serious about creating a stable and transparent environment for aviation investment. It is this foundation of legal certainty that makes the establishment of a national leasing company not just a bold idea, but a feasible one.
A New Public-Private Model for a Modern Fleet
The proposed Nigerian aircraft leasing company is structured as a Public-Private Partnership (PPP), a model chosen to blend government oversight and support with private sector efficiency. This hybrid approach is designed to create a robust financial entity capable of negotiating on the world stage while directly serving the needs of local airlines. The government’s role is not to operate airlines, but to facilitate their success by addressing the primary bottleneck of aircraft acquisition.
Structure, Guarantees, and Global Partnerships
Under the PPP framework, the government and participating local airlines will contribute to a shared capital pool. This collective fund will be significantly bolstered by sovereign guarantees provided by the federal government. These guarantees are the linchpin of the entire strategy, as they serve to underwrite the Investments risk for international lessors and financiers. By backing the lease agreements, the government effectively lowers the risk profile of the transaction, making it a much more attractive proposition for global partners.
Minister Festus Keyamo has confirmed that discussions are already at an advanced stage with “global investors,” including teams from Dubai and Dublin, two of the world’s foremost hubs for aircraft leasing. This indicates strong international interest in the project, likely spurred by the recent regulatory reforms. The plan is for the leasing company to negotiate directly with aircraft Manufacturers like Boeing and Airbus, as well as major international lessors, to secure aircraft on behalf of Nigerian carriers. This collective bargaining power is expected to result in more favorable terms than any single airline could achieve on its own.
“We have put in place a plan to start the Nigerian aircraft leasing company now, and we have secured investors… The idea is for Nigeria, as an entity, to negotiate directly with the world. Airlines won’t need to struggle individually to find aircraft, the government will provide sovereign guarantees with investors’ support.”, Festus Keyamo, Minister of Aviation and Aerospace Development
The industry’s reception has been positive, with airline operators welcoming the government’s intervention. Allen Onyema, Chairman of Air Peace, commended the minister’s efforts, stating, “Before he came, it was a struggle for Nigerian airlines. The minister noticed the gap and fixed it… He changed that narrative.” This sentiment reflects a broader hope that the leasing company will finally allow Nigerian airlines to compete on a more level playing field, equipped with modern and efficient aircraft.
Conclusion: Charting a New Course for Nigerian Aviation
The establishment of a national aircraft leasing company marks a pivotal moment for Nigeria’s aviation sector. It is a direct and strategic intervention designed to solve decades-old problems of high-risk perception and prohibitive financing costs. By leveraging a PPP model and the power of sovereign guarantees, the government aims to unlock access to modern aircraft, which will in turn enhance safety, reduce operational costs, and allow domestic carriers to expand their networks. This initiative, built upon a newly strengthened legal and regulatory foundation, represents a clear commitment to fostering a healthier and more competitive industry.
While the path forward holds immense promise, its success will depend on meticulous execution and sustained political will. The government must ensure transparency and good governance within the PPP structure to maintain the confidence of its private and international partners. Furthermore, the initiative launches at a time of global supply chain disruptions and aircraft shortages, which could present initial challenges in securing assets. However, if navigated successfully, the national leasing company could not only revitalize Nigeria’s aviation industry but also create a powerful ripple effect across the broader economy, boosting trade, tourism, and job creation for years to come.
FAQ
Question: What is the primary goal of Nigeria’s new national aircraft leasing company?
Answer: The main objective is to solve the long-standing challenges Nigerian airlines face in acquiring aircraft. It aims to reduce costs, lower financial risks, and provide easier access to modern fleets by acting as a government-backed intermediary with global lessors and manufacturers.
Question: How will the leasing company operate and be funded?
Answer: It will operate as a Public-Private Partnership (PPP). Funding will come from a shared capital pool contributed by the federal government and local airlines. This will be supported by sovereign guarantees from the government to secure financing and de-risk the investment for international partners.
Question: What recent changes have made this initiative possible?
Answer: The initiative is made viable by significant recent legal and regulatory reforms. These include Nigeria’s improved compliance with the Cape Town Convention, an international treaty that protects creditors’ rights, and the establishment of new court procedures that provide greater legal certainty for investors in the aviation sector.
Sources: ch-aviation
Photo Credit: Anna Zvereva – Wikimedia Commons
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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