Avolon Raises US$420M in Largest European Samurai Loan Issuance
Avolon completed a US$420 million Samurai loan, expanding its capital base with Japanese institutional investors and attracting 12 banks.

This article is based on an official press release from Avolon.
On March 4, 2026, Dublin-based global aviation finance company Avolon announced the successful completion of its inaugural Samurai loan facility. According to the company’s press release, the transaction raised the equivalent of US$420 million in unsecured financing, marking a significant milestone in the lessor’s capital strategy.
The transaction stands as the largest and longest-tenor debut Samurai issuance by a European company to date. Furthermore, it represents Avolon’s first borrowing outside of traditional US dollar-denominated financing, highlighting a strategic push to diversify its capital base by tapping into the Japanese institutional market.
For a highly capital-intensive industry like aviation leasing, securing diverse and reliable funding streams is critical. By accessing Japanese capital, Avolon has demonstrated its ability to attract global institutional investment while optimizing its overall capital stack.
Transaction Details and Syndicate Structure
The newly secured financing is structured as a dual-tranche, five-year unsecured facility. Based on the official announcement, the total US$420 million equivalent is broken down into approximately US$346 million and ¥11.7 billion (approximately US$75 million).
A “Samurai loan” is a cross-border syndicated loan structured and distributed within the Japanese domestic loan market. It is typically utilized by foreign issuers seeking to access Japanese capital. While Avolon’s functional currency remains the US dollar, the company noted that the spread dynamics and diversification benefits of the Japanese market presented a highly favorable window for this transaction.
Banking Partners and Lead Arrangers
The financing attracted strong market demand, resulting in a 12-bank syndicate. Notably, the press release highlights that nine of these institutions are new banking partners for Avolon. All participating lenders are either Japanese banks or international banks operating through Tokyo branches.
The transaction was arranged by Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Trust Bank (SMTB), and the Development Bank of Japan (DBJ), acting as mandated lead arrangers and bookrunners. MUFG also served as the facility agent.
“Avolon visited many different financing markets, both secured, unsecured, and geographically diverse. MUFG was able to take them through the idea of the Samurai loan, and now the spread dynamics work for them… Taking all into consideration, new bank relationships, currency and diversification purposes, there was a window for us to approach the market with a transaction that worked within the context of their overall capital stack.”
Broader Financial Strategy and Q1 2026 Activity
The Samurai loan is part of a highly active first quarter for Avolon’s treasury team. As of early March 2026, the company stated it has raised US$1.9 billion in new unsecured facilities.
This total includes a major private offering priced on February 18, 2026. Through its subsidiary, Avolon Holdings Funding Limited, the company priced a US$1.5 billion offering consisting of US$750 million of 4.200% notes due 2029 and US$750 million of 4.850% notes due 2033.
AirPro News analysis
We view Avolon’s entry into the Japanese domestic loan market as a prudent hedge against over-reliance on traditional USD debt markets. The heavy oversubscription of this facility, coupled with the onboarding of nine new banking relationships, signals a robust global appetite for unsecured lending to top-tier aviation leasing companies. Despite broader macroeconomic fluctuations, institutional lenders clearly see long-term stability in scaled aviation assets.
“This inaugural Samurai Facility further diversifies our capital base and expands our global banking relationships through the addition of new institutional lenders. This transaction further demonstrates the strong global appetite for unsecured lending to aviation leasing companies and reflects confidence in Avolon’s performance and growth outlook.”
Avolon’s Market Position and Financial Health
To understand the strong institutional demand for Avolon’s debt, it is helpful to look at the company’s current market position. Founded in 2010, Avolon has grown to become the third-largest aircraft leasing company globally. As of December 31, 2025, the company reported an owned, managed, and committed fleet of 1,132 aircraft, serving 139 Airlines across 61 countries.
The company’s recent Financial-Results has been exceptionally strong. According to their full-year 2025 results, net income increased 29% year-over-year to US$591 million, with total revenue reaching US$3 billion.
This financial discipline has been recognized by major rating agencies. In May 2025, Fitch upgraded Avolon to ‘BBB’, Moody’s upgraded it to ‘Baa2’, and S&P Global Ratings revised its outlook on Avolon’s ‘BBB-‘ rating to positive, citing improving profitability and favorable demand conditions.
Frequently Asked Questions
What is a Samurai loan?
A Samurai loan is a yen-denominated or dual-tranche cross-border syndicated loan issued in Japan by a non-Japanese company. It allows foreign companies to tap into the Japanese domestic capital market and diversify their investor base.
How much did Avolon raise in its inaugural Samurai loan?
Avolon raised the equivalent of US$420 million, split between approximately US$346 million and ¥11.7 billion (approx. US$75 million).
Who were the lead arrangers for this transaction?
The transaction was arranged by Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Trust Bank (SMTB), and the Development Bank of Japan (DBJ).
Sources: Avolon Official Press Release
Photo Credit: Avolon
Commercial Aviation
Ascend Airways UK wet-lease operator ceases operations amid cost pressures
Ascend Airways enters liquidation due to rising fuel costs, UK expenses, engine reliability issues, and post-Brexit regulatory challenges.

This article summarizes reporting by The Sun. Additional industry context is provided via verified web research.
UK-based wet-lease operator Ascend Airways has officially entered liquidation, surrendering its Air Operator’s Certificate (AOC) to the UK Civil Aviation Authority on April 28, 2026. According to reporting by The Sun, the sudden shutdown has resulted in the immediate cessation of operations and the return of its seven-Commercial-Aircraft fleet to lessors.
The collapse puts approximately 161 jobs at risk and highlights the severe macroeconomic pressures facing the European aviation sector. Ascend Airways, which provided aircraft and crew for major carriers including Oman Air, TUI Airways, and Air Sierra Leone, cited a “perfect storm” of soaring fuel costs, high UK operating expenses, and engine reliability issues as the primary drivers of its demise.
The closure marks a significant setback for its parent company, Avia Solutions Group (ASG), which acquired the Airlines, formerly known as Synergy Aviation, in 2023 to serve as its primary UK-based ACMI (Aircraft, Crew, Maintenance, and Insurance) provider.
The Timeline of the Collapse
Sudden Shutdown and Staff Impact
The final moments of Ascend Airways unfolded rapidly. According to The Sun, management delayed the public announcement of the liquidation until the airline’s final flight, YD187 from Muscat, landed safely at London Stansted Airports. Following the landing, crew members were informed via internal letters that the company was ceasing operations immediately.
“It’s gone bust today, we got the news this afternoon. We’ve all been given the letters that it’s all going into liquidation,” an insider told The Sun.
While the suddenness of the announcement shocked many employees, especially following recent recruitment drives, financial strain had reportedly been mounting for months. Industry data indicates the airline had been losing over £3 million per month in early 2026. The Sun reports that the final trigger for the collapse was the airline’s failure to meet payment obligations to its leasing companies.
Primary Causes for Liquidation
Economic Pressures and Operating Costs
A combination of geopolitical and structural factors contributed to the airline’s downfall. A company email cited by The Sun pointed to a challenging economic environment, soaring costs in the UK, and an inability to secure viable contracts for the upcoming summer season.
Operating a UK AOC presented structural disadvantages compared to European competitors. Following Brexit, the lack of reciprocal wet-leasing rights for UK carriers severely limited Ascend’s operational flexibility within the broader European ACMI market.
“It’s 40 per cent cheaper to use airlines in Europe than the UK because taxes are too high,” an airline insider claimed to The Sun.
Fleet and Engine Reliability Issues
Ascend Airways operated a modern fleet consisting of one Boeing 737-800 and six Boeing 737 MAX 8 aircraft. However, industry reports highlight that the MAX 8s, powered by early-production CFM International LEAP-1B engines, suffered from reliability issues. These technical challenges led to increased maintenance requirements and reduced aircraft availability, negating the expected fuel-efficiency benefits of the newer aircraft.
Furthermore, the airline’s strategic growth plans were derailed in March 2026 when it failed to secure a crucial IATA Operational Safety Audit (IOSA) license, which management had banked on to unlock more lucrative global routes.
Impact on Employees and Parent Company
Payroll Concerns and Fleet Returns
The liquidation leaves 161 employees facing an uncertain future. An insider speaking to The Sun expressed deep concern over unpaid wages, noting that staff feared they would not be paid for May and would have to rely on liquidators for capped compensation. However, Ascend Airways released an official statement asserting that it had met all April payroll obligations in full prior to surrendering its AOC.
The airline’s seven Boeing 737s are now being returned to their respective lessors, which include major aviation finance firms such as Air Lease, AviLease, Avolon, Bocomm Leasing, and SMBC Aviation Capital.
Broader Consolidation at Avia Solutions Group
The closure of Ascend Airways is part of a wider restructuring effort by its parent company, Avia Solutions Group. ASG has faced significant headwinds across its portfolio; in late 2025, its Latvian charter carrier SmartLynx entered restructuring with reported debts exceeding €240 million. ASG has also recently consolidated other subsidiaries, combining AirExplore with KlasJet and reducing headcount at Avion Express. Despite the UK closure, ASG confirmed that its Southeast Asian subsidiary, Ascend Airways Malaysia, remains unaffected and continues normal operations.
AirPro News analysis
The collapse of Ascend Airways underscores the fragile nature of the ACMI market in a high-cost, post-Brexit UK environment. While wet-lease operators typically thrive by providing flexible capacity to major airlines during peak seasons, Ascend was squeezed by a convergence of external shocks. The inability to leverage the European market efficiently due to regulatory barriers, combined with the operational unreliability of its LEAP-1B engines, created an unsustainable cash burn. ASG’s decision to cut its losses in the UK reflects a broader industry trend of consolidating operations into lower-cost, more flexible European jurisdictions until market volatility stabilizes, which ASG projects may occur by the summer of 2027.
Frequently Asked Questions
What is Ascend Airways?
Ascend Airways was a UK-based airline operating under the ACMI (Aircraft, Crew, Maintenance, and Insurance) or “wet-lease” model. Originally founded in 2004 as Synergy Aviation, it was rebranded in 2023 after being acquired by Avia Solutions Group. It provided aircraft and crew to other airlines to help them cover peak seasons or maintenance gaps.
Why did Ascend Airways collapse?
The airline cited a combination of soaring jet fuel prices, high UK operating costs and taxes, a lack of reciprocal wet-leasing rights post-Brexit, and engine reliability issues with its Boeing 737 MAX 8 fleet. The failure to secure a crucial IOSA safety license in March 2026 also prevented the airline from securing necessary global contracts.
Will passenger flights on partner airlines be canceled?
Client airlines such as TUI Airways, Oman Air, and Air Sierra Leone are reportedly unaffected by the collapse. Because Ascend Airways merely operated services on their behalf, these major brands will source alternative aircraft to fulfill their passenger schedules.
Sources: The Sun | Verified Industry Research
Photo Credit: ASCEND Airways
Defense & Military
Spain Launches ITS-C Program with Airbus and Turkish Aerospace
Spain’s ITS-C program led by Airbus introduces the SAETA II trainer with 60% Spanish industry participation and phased delivery by 2035.

This article is based on an official press release from Airbus, supplemented by industry research.
Spain Unveils Industrial Programme for New SAETA II Combat Training System
On April 28, 2026, an Airbus-led consortium of Spanish aerospace and defense companies officially presented the industrial framework for the Spanish Air and Space Force’s new Integrated Combat Training System (ITS-C). According to an official press release from Airbus, the ambitious programme is designed to replace Spain’s aging fleet of Northrop F-5M aircraft, ensuring a modernized training pipeline for the next generation of fighter pilots.
The ITS-C programme is anchored by a co-development agreement between Airbus, acting as the prime contractor, and Turkish Aerospace (TA). The initiative will introduce a customized Spanish variant of TA’s HÜRJET advanced training aircraft, officially designated as the SAETA II. Industry research indicates that the December 2025 contract underpinning this programme is valued between €2.4 billion and €2.6 billion, marking a historic procurement milestone for both Spain and Turkey.
A central pillar of the agreement is the commitment to domestic industry. The Airbus press release confirms that the programme mandates a 60% participation rate from Spanish national industry. This localized approach aims to secure technological sovereignty, allowing Spain to independently manage the sustainment, maintenance, and future evolution of the 30-aircraft fleet.
The SAETA II and Phased Implementation
A Historic Procurement and Infrastructure Overhaul
The selection of the HÜRJET platform follows a rigorous evaluation process. According to defense industry reports, Spain evaluated a prototype of the Turkish-built supersonic advanced jet trainer in July 2024 at Torrejón Air Base. The subsequent December 2025 contract represents Turkey’s largest-ever single aircraft export deal and its first sale of a complete aircraft system to a NATO and European Union member state.
Beyond the aircraft themselves, the ITS-C programme encompasses a comprehensive infrastructure overhaul. Airbus announced it will lead the redesign of the Fighter and Strike School Training Centre at the Talavera la Real Air Base in Extremadura, Spain. This modernized facility will house an Aircraft Conversion Centre and state-of-the-art synthetic training simulators developed in collaboration with Spanish defense technology firm Indra.
Two-Phase Rollout Timeline
The Airbus press release outlines a two-phase implementation strategy designed to seamlessly transition the Spanish Air and Space Force to the new system:
- Phase 1 (2028–2030): The programme will commence with the delivery of an initial batch of 21 aircraft in their baseline configuration. Airbus will utilize one of these early jets as a prototype to integrate next-generation, Spanish-specific avionics and mission equipment. Concurrently, the ground-based training system is scheduled to become operational during the 2029–2030 academic year.
- Phase 2 (2031–2035): During this phase, the initial 21 aircraft, alongside the remaining nine jets on order, will undergo full conversion to the finalized SAETA II standard. Simulators will be updated to match this configuration, with all deliveries and integrations slated for completion by 2035.
Strategic Autonomy and Domestic Integration
Empowering the Spanish Defense Sector
By localizing 60% of the programme’s value, Spain is deliberately insulating its pilot training ecosystem from critical foreign dependencies. While Turkish Aerospace provides the baseline HÜRJET platform, Spanish industry will be responsible for integrating the aircraft’s “brain.”
According to Airbus, several key national technology firms have been tapped for critical systems integration. GMV will provide the inertial/GPS navigation and mission computers, while Sener is tasked with the DataLink systems. Aertec will supply remote interface units, Grupo OesÃa will handle audio management, and Orbital will integrate VMDR mission recorders. Indra will supply the Identification Friend or Foe (IFF) systems alongside its work on the ground simulators.
Company and government officials emphasized the strategic importance of this domestic focus during the April 28 presentation in Getafe.
“As a result of this national programme, Spain achieves three strategic milestones: we ensure technology transfer in key areas, we obtain a deep-reaching industrial return, and, above all, we provide the programme with the strategic sovereignty and independence necessary to manage the sustainment and any future evolution of the system.”
“[The ITS-C] is a project that mobilises our industry, generates knowledge, employment, and opportunities throughout the entire value chain… it strengthens our strategic autonomy by allowing us to design, integrate, and evolve our own capabilities, reducing critical dependencies.”
Industry research also highlights the perspective of Turkish officials. Speaking on the December 2025 contract signing, Turkey’s Defense Industry President Haluk Görgün noted the comprehensive nature of the agreement.
“This is a high-value-added, multi-dimensional defense export rather than a conventional platform sale.”
AirPro News analysis
We observe that Spain’s selection of a Turkish-designed platform over traditional Western or European trainers, such as the Boeing T-7 Red Hawk or the Leonardo M-346, signals a notable shift in the European defense procurement landscape. It demonstrates that emerging aerospace suppliers can successfully compete for top-tier NATO contracts by offering highly flexible, co-development frameworks rather than rigid, off-the-shelf products.
Furthermore, the ITS-C programme exemplifies the modern “ecosystem” approach to military procurement. Spain is not merely purchasing 30 airframes; it is investing in a holistic training architecture. By securing domestic rights to the conversion centers, synthetic ground-based simulators, and long-term maintenance, the Spanish Air and Space Force is ensuring its pilots are prepared for the digital battlefield of 4.5- and 5th-generation fighters like the Eurofighter Typhoon, without being tethered to external supply chain bottlenecks.
Frequently Asked Questions (FAQ)
What is the SAETA II?
The SAETA II is the customized Spanish variant of the Turkish Aerospace HÜRJET. It is a supersonic advanced jet trainer and light combat aircraft that will serve as the backbone of Spain’s new Integrated Combat Training System (ITS-C). The name pays homage to the Hispano HA-200 Saeta, Spain’s first indigenous jet trainer.
When will the new aircraft enter service?
According to the Airbus press release, the initial phase begins in 2028 with the delivery of the first batch of aircraft. The ground-based training system is expected to be operational by the 2029–2030 academic year, with the fully converted SAETA II fleet delivered between 2031 and 2035.
Why is Airbus involved if the aircraft is Turkish?
Airbus Defence and Space is acting as the prime contractor and national coordinator for Spain. While Turkish Aerospace manufactures the baseline HÜRJET, Airbus is leading the integration of Spanish-specific avionics, mission equipment, and ground-based training infrastructure to ensure the system meets the exact requirements of the Spanish Air and Space Force.
Photo Credit: Airbus
Training & Certification
Saudia Academy Gains ETEC Accreditation for Maintenance Technician Program
Saudia Academy’s Aircraft Maintenance Technician Program received ETEC accreditation, enabling academic bridging to aerospace engineering degrees and supporting Saudi Vision 2030.

This article is based on an official press release from Saudia Academy, supplemented by industry research and secondary reporting.
Saudia Academy, formerly known as Prince Sultan Aviation Academy, has officially secured programmatic accreditation for its Aircraft Maintenance Technician Program. The accreditation was granted by Saudi Arabia’s Education and Training Evaluation Commission (ETEC). According to a public statement released by the academy, this milestone confirms the high quality of their technical Training and aligns directly with the national competency and workforce goals outlined in Saudi Vision 2030.
The official agreement was signed on April 22, 2026, according to industry research and a report by Aviation Flight Monitor (AFM.aero). The accreditation not only validates the existing diploma, which is already approved by the General Authority of Civil Aviation (GACA), but also establishes a critical academic bridging pathway for graduates seeking advanced engineering degrees.
“We are proud that the Aircraft Maintenance Technician Program at Saudi Academy has received program accreditation from the Education and Training Evaluation Commission, confirming the quality of training and the efficiency of the outputs,” the academy stated in its official release.
Details of the ETEC Accreditation and Academic Bridging
The accreditation process was overseen by “Masar,” the National Center for Training Evaluation and Accreditation, which operates under the umbrella of ETEC. Established in 2016, ETEC serves as the independent government body tasked with evaluating and accrediting educational and training institutions across the Kingdom, as noted in background data from Saudipedia.
The April 22 signing ceremony featured key representatives from both organizations. Dr. Al-Hussein bin Abdullah Al-Ahdal, General Manager of Technical Training and Program Supervisor at Saudia Academy, signed the agreement alongside Dr. Mohammed Al-Khairi, Executive Director of Masar.
A Pathway to Higher Education
One of the most significant developments stemming from this accreditation is the introduction of an academic bridging program. According to the provided research report, graduates of the Aircraft Maintenance Technician diploma will now have the opportunity to transition directly into King Abdulaziz University’s Engineering Department. This pathway allows technical graduates to pursue a full bachelor’s degree in aerospace engineering, effectively merging vocational training with higher academic education.
Strategic Implications for Saudi Arabia’s Aviation Sector
The accreditation of Saudia Academy’s maintenance program is closely tied to the Kingdom’s broader economic objectives under the National Aviation Strategy. As the official training division for Saudia Airlines and the oldest commercial training center in the Middle East, the academy plays a central role in workforce localization, commonly referred to as Saudization.
Fleet Expansion and Job Creation
Saudia Group is currently undergoing a massive operational expansion. According to a February 2026 report by India Times and ETHRWorldEMEA, the group plans to take Delivery of 185 new Commercial-Aircraft in the coming years. This fleet expansion is projected to generate more than 12,000 jobs across the aviation ecosystem. To support this rapid growth, institutions like Saudia Academy are scaling up their output; in early 2026, the academy celebrated the graduation of over 1,000 Saudi men and women, marking the largest graduating class in its history.
The “Nartaqi” Program and Local Content
Furthermore, the push for certified local technicians supports Saudia Group’s “Nartaqi” program. Launched in late 2024, the initiative aims to increase local content in aviation supply chains to 45% by 2030, according to official Saudia Group press releases. Developing a domestic pipeline of accredited aircraft maintenance technicians is a foundational step in localizing maintenance, repair, and overhaul (MRO) services within Saudi Arabia.
AirPro News Analysis
AirPro News analysis
At AirPro News, we view the ETEC accreditation of Saudia Academy’s maintenance program as a strategic maneuver to solve a critical bottleneck in the Middle Eastern aviation market: the shortage of highly qualified, locally sourced MRO personnel. By establishing a bridging program with King Abdulaziz University, Saudia Academy is elevating the prestige of the maintenance technician role.
Historically, vocational aviation training has been siloed from traditional university engineering tracks. This new pathway incentivizes ambitious Saudi youth to enter the technical trades by ensuring their diploma can serve as a stepping stone to a bachelor’s degree in aerospace engineering. As Saudia Group prepares to absorb 185 new aircraft, relying heavily on expatriate technical labor is neither economically viable nor aligned with Vision 2030. This accreditation ensures that the domestic workforce is not only trained to GACA standards but is also academically recognized, creating a sustainable talent pipeline for the region’s booming aviation sector.
Frequently Asked Questions
What is the Saudia Academy Aircraft Maintenance Technician Program?
It is a technical training diploma approved by the General Authority of Civil Aviation (GACA) designed to train students in the maintenance, repair, and overhaul of commercial aircraft.
What does the ETEC accreditation mean for graduates?
Beyond validating the quality of the program, the accreditation establishes an academic bridging pathway. Graduates can now transition to King Abdulaziz University to pursue a bachelor’s degree in aerospace engineering.
How does this support Saudi Vision 2030?
The program directly supports Vision 2030 by upskilling the local workforce (Saudization), creating high-quality technical jobs, and increasing local content in the aviation sector to support Saudia Group’s incoming fleet of 185 new aircraft.
Sources:
Photo Credit: Saudia Academy
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