This article summarizes reporting by Reuters.

DAE Capital Reportedly Poised to Acquire Macquarie AirFinance

Dubai Aerospace Enterprise (DAE) Capital is reportedly in the final stages of negotiations to acquire a controlling stake in Dublin-based lessor Macquarie AirFinance. According to exclusive reporting by Reuters on February 22, 2026, the Dubai-based giant has emerged as the leading contender in a competitive bidding process, potentially solidifying its status as one of the world’s premier aviation lessors.

The potential transaction highlights the intense consolidation currently reshaping the global aircraft leasing sector. As supply chain constraints continue to plague major manufacturers, established lessors are increasingly turning to Mergers and Acquisitions to secure fleet growth and valuable delivery slots.

Deal Dynamics and Competitive Landscape

Sources close to the matter told Reuters that DAE Capital is “closing in” on an agreement to purchase the controlling interest in Macquarie AirFinance. The deal follows a strategic review by Macquarie Group, which reportedly engaged JP Morgan to explore options for the business, including a potential sale.

The bidding process reportedly attracted significant interest from other major players in the Middle East, underscoring the region’s growing dominance in aviation finance. Reuters notes that DAE competed against:

• AviLease: A rapidly expanding lessor backed by Saudi Arabia’s Public Investment Fund.
• Lesha Bank: A Qatar-based investment bank seeking to expand its asset base.

While the final terms have not been publicly disclosed, the acquisition targets the ownership stakes currently held by Macquarie Asset Management (50%), the PGGM Infrastructure Fund (25%), and the Australian Retirement Trust (25%).

According to the Reuters report, DAE Capital is “closing in” on a deal to acquire a controlling stake in the Dublin-based lessor.

Strategic Rationale: The Race for Scale

If completed, this acquisition would represent a significant expansion for DAE Capital, which has pursued an aggressive growth strategy in recent years. By integrating Macquarie AirFinance’s portfolio, DAE would cement its position within the top tier of global aircraft lessors.

The Value of the Order Book

Industry data indicates that a primary driver for this transaction is Macquarie’s robust order book. With original equipment Manufacturers (OEMs) like Boeing and Airbus facing multi-year backlogs, acquiring a lessor with confirmed delivery slots is one of the few viable paths for near-term growth.

Macquarie AirFinance holds a portfolio of approximately 225 to 233 owned and managed aircraft. Crucially, this includes confirmed orders for 70 Boeing 737 MAX aircraft, alongside additional Airbus A220 and A320neo jets. For DAE, gaining access to these delivery slots would provide a critical pipeline of new technology aircraft at a time when production delays are keeping lease rates at historic highs.

Financial Strength and Fleet Composition

DAE Capital enters this potential deal from a position of financial strength. According to company filings for the fiscal year 2025, DAE reported a net profit of approximately $702.2 million, a year-over-year increase of roughly 47%. As of year-end 2025, DAE’s total assets stood at approximately $16.5 billion, with a fleet of roughly 604 owned and managed aircraft.

The addition of Macquarie’s fleet, valued at roughly $6.4 billion, would complement DAE’s existing holdings. Macquarie’s portfolio is split fairly evenly between Airbus and Boeing narrowbodies, assets that are currently in high demand due to the global shortage of single-aisle lift.

AirPro News Analysis

Consolidation in a “Seller’s Market”

We view this potential acquisition as a clear indicator that the aviation finance market has shifted firmly into a consolidation phase. The chronic inability of manufacturers to meet delivery targets has created a “seller’s market” for existing aircraft portfolios. Lessors with available metal or confirmed delivery slots are commanding premium valuations.

For DAE, this move appears to be a continuation of a long-term strategy to achieve scale through acquisition rather than solely through organic orders. Having previously acquired AWAS in 2017 and Nordic Aviation Capital (NAC) for $2 billion, DAE has demonstrated a capability to integrate large, complex portfolios. This deal would further dilute the influence of Western-centric lessors, shifting the center of gravity in aviation finance toward the Middle East, where sovereign wealth capital is actively seeking dollar-denominated, real assets.

Frequently Asked Questions

Who currently owns Macquarie AirFinance?
As of the latest reports, the company is owned by a consortium comprising Macquarie Asset Management (50%), PGGM Infrastructure Fund (25%), and the Australian Retirement Trust (25%).

How large is the combined fleet?
DAE Capital currently manages approximately 604 aircraft. Macquarie AirFinance manages roughly 225 aircraft. A combined entity would oversee a fleet approaching 830 aircraft, placing it firmly among the largest lessors globally.

Why is the order book important?
Airlines are desperate for new, fuel-efficient aircraft, but Boeing and Airbus are sold out for several years. Buying a lessor with an existing order book (like Macquarie’s 70 Boeing 737 MAX orders) allows the buyer to skip the line and secure immediate future growth.

Sources: Reuters, DAE Capital Filings, Macquarie Asset Management

Adani Defence & Aerospace and Embraer have officially signed an enhanced Memorandum of Understanding (MoU) to establish a Final Assembly Line (FAL) for the Embraer E175 regional jet in India. The agreement, exchanged in the presence of Brazilian President Luiz Inácio Lula da Silva and Indian Commerce Minister Piyush Goyal, marks a potential turning point for India’s aviation sector, aiming to transition the nation from a pure importer to a manufacturer of commercial-aircraft.

According to the company press release, this partnerships focuses on setting up a comprehensive aviation ecosystem in India. While the centerpiece is the assembly of the E175, the collaboration extends to establishing maintenance, repair, and overhaul (MRO) facilities, as well as pilot and technical training centers. The initiative aligns with the Indian government’s “Atmanirbhar Bharat” (Self-Reliant India) vision, seeking to localize critical defense and aerospace capabilities.

Establishing India’s First Commercial Aircraft Assembly Line

The proposed facility would represent India’s first private-sector plant dedicated to assembling commercial passenger aircraft. Adani Defence & Aerospace, already a significant player in the defense manufacturing sector, views this move as a strategic diversification into civil aviation. Embraer, the world’s third-largest aircraft manufacturers, is positioning itself to capture a larger share of India’s rapidly expanding regional market.

Scope of the Agreement

The MoU outlines a broad scope of cooperation. Beyond the physical assembly of the jets, the partners intend to build a local supply chain to support production. This includes sourcing components domestically, which would gradually increase the indigenous content of the aircraft. The inclusion of MRO and training facilities suggests a long-term commitment to supporting the lifecycle of the fleet within India, rather than relying on external support networks.

“The partnership extends beyond simple assembly to include establishment of a comprehensive supply chain… and pilot and technical training centers.”

, Summary of partnership details based on Embraer announcements

The E175 and Regional Connectivity

The Embraer E175 is a regional jet typically configured to carry between 76 and 88 passengers. It features a 2×2 seating configuration, eliminating the middle seat, a distinct passenger comfort advantage over larger narrow-body jets. The aircraft is specifically targeted at “thin” routes that connect Tier-2 and Tier-3 cities, where passenger demand is growing but may not yet justify the use of larger 180-seat aircraft like the Airbus A320 or Boeing 737.

Addressing the UDAN Scheme

This aircraft is positioned to serve India’s UDAN (Ude Desh ka Aam Nagrik) regional connectivity scheme. Industry analysis suggests that while turboprops like the ATR-72 currently dominate this segment, they suffer from speed limitations and lower passenger appeal on longer regional sectors. The E175 offers jet speeds and comfort, potentially making it a viable alternative for routes spanning 60 to 120 minutes.

Market Realities and Strategic Hurdles

While the MoU represents a significant diplomatic and industrial milestone, market analysts caution that the project’s realization faces substantial commercial hurdles. The primary challenge is order volume. According to industry reports and market research, Embraer has indicated that establishing a local FAL is commercially viable only if the partnership secures at least 200 firm orders from Indian carriers.

Currently, Star Air is the primary operator of the E175 in India. While the airline plans to expand its fleet significantly by 2030, its volume alone is unlikely to sustain a full assembly line. Consequently, the viability of the project likely hinges on securing a major order from a dominant market player, such as IndiGo, which is reportedly evaluating regional jets including the E175, Airbus A220, and ATR 72-600.

Government Incentives

To bridge the cost gap associated with domestic manufacturing, the Indian government is reportedly developing a Production Linked Incentive (PLI) scheme for civil aircraft. Market data suggests this scheme could be valued between ₹12,000 and ₹15,000 crore, potentially mandating high levels of domestic content by 2028-29. If implemented, this policy would be a critical enabler for the Adani-Embraer joint venture.

AirPro News Analysis

The “Chicken-and-Egg” Dilemma

We observe that this deal is currently in a fragile “proposal” stage. The requirement for 200 firm orders creates a classic chicken-and-egg scenario: airlines may be hesitant to commit to a large fleet without a guaranteed local support ecosystem, while the manufacturers are hesitant to build the ecosystem without the orders. The involvement of the Adani Group, with its extensive portfolio in airports and infrastructure, may provide the financial stability and political leverage needed to break this deadlock. However, without a commitment from a “whale” customer like IndiGo, the FAL risks remaining a proposal rather than a concrete industrial reality.

Frequently Asked Questions

What is the Embraer E175?
The E175 is a regional jet capable of carrying 76 to 88 passengers, designed for short-to-medium haul routes. It is widely used in North America and is gaining traction in other markets for connecting smaller cities.

When will the factory be built?
No specific groundbreaking date has been set. The project is currently at the MoU stage, and actual construction is likely contingent on securing sufficient aircraft orders from Indian airlines.

Who are the potential customers?
Star Air is currently the only Indian operator of the E175. However, for the factory to be viable, the partnership is likely targeting large orders from major carriers like IndiGo.

Sources: Embraer Press Release, Industry Market Research (Web Search)

This article is based on an official press release from Aviation Capital Group (ACG).

Aviation Capital Group Acquires 24-Aircraft Portfolio from Avolon in Major Fleet Expansion

Aviation Capital Group LLC (ACG) announced on February 19, 2026, that it has signed definitive agreements to acquire a portfolio of 24 Commercial-Aircraft from Avolon. This transaction represents a significant expansion for ACG and marks the second major portfolio trade between the two global lessors in less than 12 months.

According to the company’s announcement, the acquisition aligns with ACG’s strategy to scale its operations and modernize its fleet profile. The portfolio consists predominantly of new-technology aircraft, which are currently in high demand across the aviation sector due to ongoing production delays at major Manufacturers.

The deal underscores the growing trend of lessor-to-lessor trading as a primary mechanism for fleet management in the current market environment. By acquiring assets with existing leases, ACG secures immediate revenue generation while Avolon continues its capital recycling program following recent large-scale Investments.

Transaction Overview and Fleet Composition

The portfolio acquired by ACG is diverse, comprising both narrowbody and widebody assets. According to the press release and transaction details released by the companies, the 24-aircraft package includes:

• 18 Narrowbody Aircraft: 12 of these are classified as “New Technology” models.
• 6 Widebody Aircraft: All six are “New Technology” models.

Data provided regarding the portfolio’s status as of February 1, 2026, indicates that the fleet has an average age of approximately 4.5 years and a weighted average remaining lease term of roughly 8.9 years. The aircraft are currently on lease to 17 different Airlines spread across 16 countries. ACG noted that this transaction will introduce four new airline customers to its client roster.

Thomas Baker, CEO and President of ACG, highlighted the strategic importance of the acquisition in a statement:

“Proactive aircraft trading is an important pillar of our growth Strategy… It also enhances the sustainability of our fleet, already among the youngest in the industry.”

, Thomas Baker, CEO of ACG

Strategic Rationale for Avolon

For the seller, Avolon, this divestment appears to be a calculated move to manage liquidity and rebalance its portfolio. This sale follows Avolon’s significant acquisition of Castlelake Aviation, which closed in January 2026 and involved the purchase of 118 aircraft. By selling this 24-aircraft tranche to ACG, Avolon effectively recycles capital to maintain a robust balance sheet.

Ross O’Connor, CFO of Avolon, commented on the demand for aircraft assets in the current market:

“The transaction builds on our record trading performance in 2025, reflecting the continuing strong demand we are seeing for our assets.”

, Ross O’Connor, CFO of Avolon

AirPro News Analysis: The Secondary Market Boom

We observe that the secondary market for commercial aircraft has become increasingly active in early 2026. With original equipment manufacturers (OEMs) like Airbus and Boeing facing persistent supply chain constraints, lessors are turning to one another to meet growth targets.

This “trading between giants” allows firms like ACG to bypass long delivery wait times and instantly add young, revenue-generating assets to their books. Conversely, it allows sellers like Avolon to monetize assets at premium values driven by the industry-wide shortage of airworthy lift. The fact that ACG and Avolon executed a similar 20-aircraft deal in 2025 suggests a deepening trading relationship between the two firms, facilitating efficient capital deployment for both parties.

Timeline of the Partnership

This transaction is the latest in a series of dealings between ACG and Avolon. The relationship has accelerated over the last year:

• April 2025: ACG agreed to acquire 20 aircraft (16 narrowbody, 4 widebody) from Avolon.
• July 2025: The transfer of aircraft from the 2025 agreement commenced.
• January 2026: Avolon closed its acquisition of Castlelake Aviation, adding 118 aircraft to its managed fleet.
• February 2026: ACG signs agreements for this new 24-aircraft portfolio.

Both companies appear well-capitalized to execute these transactions. Financial disclosures indicate that Avolon priced a $1.5 billion senior unsecured note offering in February 2026, while ACG closed a $1 billion note offering in January 2026.

Sources

• Aviation Capital Group Press Release
• Avolon Corporate News