Aircraft Orders & Deliveries
Star Air Plans 40-Aircraft Embraer Order to Expand Fleet by 2030
Star Air targets fleet growth from 11 to 50 aircraft by 2030 with a potential order of 40 Embraer jets backed by new investors and UDAN scheme support.
Star Air Eyes Major Fleet Expansion with Potential 40-Aircraft Embraer Order
Star Air, the aviation arm of the Sanjay Ghodawat Group (SGG), is reportedly in the advanced planning stages of a significant fleet expansion that could reshape regional connectivity across India. According to recent industry reports, the airline is eyeing a new order for approximately 40 Embraer aircraft. This strategic move is designed to propel the carrier from a niche regional player to a substantial national connector, targeting a fleet size of roughly 50 aircraft by the year 2030.
This ambitious growth trajectory marks a pivotal shift for the airline, which currently operates a modest fleet of 11 aircraft. The expansion plan is not merely aspirational; it is supported by concrete financial developments. For the first time in its history, Star Air has sought and secured external capital, validating its business model to the broader investment community. This influx of funds is expected to fuel the acquisition of new assets and the development of supporting infrastructure.
The timing of this potential order aligns with the broader maturation of the Indian aviation market, particularly in the regional sector. By focusing on Tier-2 and Tier-3 cities often bypassed by larger carriers, Star Air has carved out a profitable niche. We observe that this expansion is heavily influenced by the government’s UDAN (Ude Desh ka Aam Nagrik) scheme, which incentivizes connectivity to underserved airports, providing a stable foundation for the airline’s aggressive growth strategy.
Strategic Capital and Fleet Composition
To support this massive scaling of operations, Star Air successfully raised ₹150 crore (approximately $18 million) in November 2025. This capital injection represents the first tranche of a planned ₹350 crore Series B funding round. Notably, this round attracted marquee investors, including Micro Labs Limited, a pharmaceutical major, and Deepak Agarwal, the promoter of Bikaji Foods. Prior to this, the airline was fully funded by its parent company, the Sanjay Ghodawat Group. The transition to external funding indicates a maturing corporate structure and high investor confidence in the airline’s operational efficiency.
The capital raised is earmarked for specific strategic pillars: fleet expansion through deposits and leases, the broadening of the route network, and the establishment of in-house MRO capabilities. Developing internal MRO facilities is a critical step for any growing airline, as it significantly reduces long-term operational costs and ensures higher aircraft availability. This vertical integration suggests that Star Air is planning for sustainable, long-term operations rather than short-term market capture.
Regarding the hardware, the potential order for 40 aircraft is expected to be finalized or placed in 2026, with deliveries staggered to meet the 2030 target. Industry analysis suggests the order will likely include more Embraer E175 jets, which the airline currently operates with success. Furthermore, there is strong speculation regarding the inclusion of the newer Embraer E190-E2 or E195-E2 jets. Embraer has been aggressively pitching these “Profit Hunter” E2 series aircraft to Indian carriers, citing their fuel efficiency and lower seat costs as ideal solutions for the price-sensitive regional market.
“This fundraise brings us closer to our vision of building a comprehensive aviation platform spanning airline operations, NSOP services, MRO facilities, cargo, and aviation training.”, Shrenik Ghodawat, Managing Director, Sanjay Ghodawat Group
The Regional Advantage and Operational Model
Star Air’s operational philosophy differs significantly from the dominant low-cost carriers in India, such as IndiGo or the Air India group. While major carriers focus on high-volume trunk routes connecting metropolitan hubs like Delhi and Mumbai, Star Air targets “thin” routes. These are connections between smaller cities, such as Hubballi, Kishangarh, Jamnagar, and Kolhapur, and major metros. By utilizing aircraft with 50 to 76 seats, the airline can achieve break-even load factors with fewer passengers, a feat that is mathematically impossible for competitors flying 180-seat Airbus A320s or Boeing 737s on the same routes.
The backbone of this strategy is the government’s UDAN scheme, which provides viability gap funding and route exclusivity for a fixed period. This subsidy structure mitigates the financial risk of opening new routes and protects the airline from immediate competition. While other regional carriers like TruJet and Air Costa have struggled or ceased operations, Star Air has maintained profitability by adhering to a disciplined cost structure and matching capacity strictly to demand. The decision to stick with Embraer aircraft further consolidates this advantage, as these jets are capable of landing on the shorter runways common in smaller Indian towns, opening up destinations inaccessible to larger narrow-body jets.
However, this rapid expansion is not without challenges. The global aviation industry is currently grappling with severe Supply-Chain constraints, particularly regarding engine parts and aircraft deliveries. If Star Air opts for the E2 series, they will need to navigate the availability of Pratt & Whitney engines, which have faced global scrutiny for supply delays. Additionally, tripling the fleet size necessitates a massive recruitment drive. Finding and training skilled pilots and technicians to man 50 aircraft by 2030 will be a logistical hurdle in a market already facing a shortage of qualified aviation personnel.
“As we progress toward our 50-aircraft goal by 2030, our focus remains on maintaining operational excellence, safety, and delivering a seamless experience for our customers.”, Captain Simran Singh Tiwana, CEO, Star Air
Concluding Section
Star Air’s move to acquire approximately 40 new Embraer aircraft signals a vote of confidence in the future of India’s regional aviation sector. By securing external funding and committing to a specific fleet type that matches the unique demands of Tier-2 and Tier-3 connectivity, the airline is positioning itself as a critical link in the national transport grid. If successful, this expansion will not only quadruple the airline’s capacity but also enhance economic mobility for smaller Indian cities.
Looking ahead, the execution of this order and the subsequent integration of new aircraft will be the true test of the airline’s management. Balancing rapid growth with operational reliability, while navigating global supply chain volatilities, will determine if Star Air can transition from a successful niche player to a major national airline. As the order is expected to be finalized in 2026, the industry will be watching closely to see how this ambitious roadmap unfolds.
FAQ
Question: How many aircraft does Star Air plan to order?
Answer: Star Air is in the planning stages for an order of approximately 40 Embraer aircraft to reach a target fleet size of 50 by 2030.
Question: Who are the new investors in Star Air?
Answer: In its recent Series B funding round, Star Air raised capital from investors including Micro Labs Limited and Deepak Agarwal, the promoter of Bikaji Foods.
Question: What aircraft types does Star Air currently operate?
Answer: As of late 2025, Star Air operates a fleet of 11 aircraft, consisting of Embraer ERJ-145s and Embraer E175s.
Sources
Photo Credit: Star Air
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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