Aircraft Orders & Deliveries
Titan Aviation Sells Two Boeing 737-800SF Freighters to ST Engineering
Titan Aviation Leasing completes sale of Boeing 737-800SF freighters to ST Engineering, showcasing strategic fleet management in air cargo.
Strategic Fleet Management: Titan and ST Engineering Finalize Deal for Two 737-800SF Freighters
In a significant move within the global air cargo sector, Titan Aviation Leasing, the freighter-focused leasing arm of Atlas Air Worldwide, has completed the sale of two Boeing 737-800SF aircraft to ST Engineering. Announced on November 12, 2025, this transaction is more than a simple exchange of assets; it represents a calculated maneuver by two industry titans, reflecting disciplined financial strategy and a forward-looking approach to the evolving demands of air freight. The deal underscores the intricate relationships between lessors, engineering firms, and operators that define the modern aviation landscape.
The transaction involves two aircraft that were converted from passenger to freighter configuration in 2022 and are currently on long-term leases to Georgian Airlines and ASL Airlines. For Titan Aviation Leasing, a joint venture between Atlas Air’s Titan Aviation Holdings and private equity firm Bain Capital, the sale is a strategic redeployment of capital. For ST Engineering, a global leader in technology and engineering, it marks a key step in expanding its own aviation asset management portfolio. This exchange highlights the lifecycle of aviation assets and the ongoing recalibration of fleets to meet market dynamics, particularly in the popular narrowbody freighter segment.
As the air cargo market continues to stabilize after a period of unprecedented growth fueled by e-commerce, moves like this provide a clear window into corporate strategy. It showcases how established players are optimizing their portfolios, selling mature, high-value assets to fund new acquisitions while partners seize opportunities to grow their own fleets and lessee networks. This deal is a testament to the health and dynamism of the freighter conversion market and the long-term confidence in assets like the Boeing 737-800SF.
A Disciplined Approach to Capital and Growth
Titan Aviation Leasing’s decision to sell the two Boeing 737-800SF aircraft is a clear execution of its stated strategy: managing assets actively to maximize value and reinvest in growth. By selling in-service aircraft, Titan realizes the value of these mature assets, which can then be funneled into new, accretive opportunities. This approach ensures a healthy and modern fleet while maintaining operational stability for the airlines currently leasing the aircraft. The seamless transition to ST Engineering ensures that Georgian Airlines and ASL Airlines experience no disruption.
This sale does not signal a slowdown for Titan. On the contrary, it fuels further expansion. Recent activities underscore this, including the acquisition of a Boeing 777-300ER in October 2025 and two Airbus A330-300P2F freighters in September 2025. These moves indicate a clear focus on diversifying and upgrading its portfolio with modern, in-demand widebody and narrowbody freighters. The capital from the 737-800SF sale directly supports this forward-thinking acquisition strategy, positioning Titan to capitalize on what it sees as continued high demand for cargo capacity.
The leadership at Titan and its parent companies have emphasized this strategic vision. Eamonn Forbes, Chief Commercial Officer at Titan, noted the deal demonstrates a “disciplined approach to capital allocation.” This sentiment was echoed by Michael Steen, CEO of Atlas Air Worldwide, who called the sale “a testament to Titan’s versatile asset management model.” Matt Evans, a Partner at Bain Capital, also highlighted the sale of these “high-quality aircraft assets” to a respected partner, reinforcing the successful model of the joint venture.
“This transaction demonstrates our disciplined approach to capital allocation. Selling in-service aircraft to a strategic partner like ST Engineering allows us to realize value while ensuring continuity for our airline customers. It also positions us to pursue accretive growth opportunities in a market where demand for modern freighter capacity continues to outpace supply.”
– Eamonn Forbes, Chief Commercial Officer, Titan Aviation Leasing
ST Engineering’s Strategic Portfolio Expansion
From the buyer’s perspective, the acquisition is a strategic win. ST Engineering, a powerhouse in the MRO sector, has been steadily growing its aviation asset management division. Acquiring these two Boeing 737-800SF aircraft allows the company to immediately expand its freighter portfolio with reliable, next-generation assets. Furthermore, the deal brings two new lessees, Georgian Airlines and ASL Airlines, into its fold, diversifying its customer base and strengthening its market position.
The choice of the 737-800SF is also significant. This aircraft model, a conversion of the highly successful 737-800 passenger jet, has become a workhorse in the narrowbody freighter market. It offers greater volume and an additional pallet position compared to its predecessors, making it ideal for the e-commerce and express cargo routes that have seen explosive growth. By adding these aircraft, ST Engineering is investing in a platform with a proven track record and a strong future in regional and medium-haul freight.
Ramesh Krishna, Head of Aircraft Leasing at ST Engineering’s Aviation Asset Management, framed the acquisition as part of a larger goal. He stated the collaboration helps “build up our portfolio of next-generation green freighter aircraft,” underscoring a commitment to both fleet flexibility and long-term value. This move aligns with ST Engineering’s broader activities, including its expertise in freighter conversions and its expansion of MRO facilities, such as the new joint venture in Ezhou, China, solidifying its role as an end-to-end service provider in the global aerospace industry.
The Broader Context: A Maturing Freighter Market
This transaction is set against the backdrop of a dynamic and maturing market for converted freighters. The demand for passenger-to-freighter (P2F) conversions, especially for the Boeing 737-800, surged in recent years. The fleet size approached 250 aircraft in 2024, with a peak of 72 conversions completed in 2023 alone. This boom was a direct response to the global rise of e-commerce and the need for efficient, reliable cargo transport.
However, the market is now showing signs of stabilization. The post-pandemic rebound in passenger air travel has made “feedstock”, the passenger aircraft suitable for conversion, more scarce and expensive. This has led to a slowdown in new conversion orders and some analysis pointing to a potential near-term oversupply of narrowbody freighters. Despite this, industry experts remain optimistic about the long-term outlook, with many projecting that demand will return to a more normal growth trajectory by mid-2026. This sale, therefore, can be seen as a strategic positioning by both Titan and ST Engineering in a market that is transitioning from a period of rapid expansion to one of sustained, stable demand.
Conclusion: A Win-Win in a Shifting Market
The sale of two Boeing 737-800SF aircraft from Titan Aviation Leasing to ST Engineering is a prime example of strategic asset management in action. For Titan and its partners, it represents a successful realization of value from mature assets, providing the capital to reinvest in new aircraft and future growth. For ST Engineering, it is a targeted acquisition that expands its freighter portfolio and lessee base with high-demand, modern assets. The deal is a clear win-win, reflecting the sophisticated financial and operational strategies that govern the top tier of the aviation industry.
Ultimately, this transaction does more than just transfer ownership of two aircraft. It offers a snapshot of the broader air cargo ecosystem, where collaboration and strategic foresight are paramount. It underscores the enduring value of converted freighters in the logistics chain and signals confidence in the sector’s long-term stability, even as market conditions evolve. As companies continue to navigate the post-boom landscape, such disciplined and mutually beneficial deals will likely become a hallmark of sustained success.
FAQ
Question: Who were the main companies involved in this aircraft sale?
Answer: The seller was Titan Aviation Leasing, which is a joint venture between Titan Aviation Holdings, Inc. (a subsidiary of Atlas Air Worldwide) and the private equity firm Bain Capital. The buyer was ST Engineering, a global technology, defense, and engineering group based in Singapore.
Question: What specific type of aircraft was sold?
Answer: The sale involved two Boeing 737-800SF aircraft. These are not factory-built cargo planes but are passenger Boeing 737-800s that have been converted into freighters (a process known as P2F conversion).
Question: Why is this transaction considered strategic?
Answer: It is strategic because it aligns with the distinct goals of both companies. Titan Aviation Leasing sold the aircraft to redeploy capital from what it considers mature assets into new aircraft acquisitions. ST Engineering bought the aircraft to expand its freighter portfolio and add two new airline customers (lessees) to its business.
Sources
Photo Credit: Cargo Facts
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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