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

Aviation Capital Group (ACG), a prominent global full-service aircraft asset manager, has officially p-shed its 2025 Sustainability Report. The document marks the company’s fifth annual review detailing its progress across key environmental, social, and governance (ESG) priorities.

According to the company’s press release, the 2025 report highlights significant strides in fleet modernization and emissions reductions. As the aviation industry faces mounting pressure to decarbonize, aircraft lessors are increasingly prioritizing newer, more fuel-efficient technology to meet long-term climate targets.

The newly released data underscores ACG’s ongoing transition toward a lower-emission portfolio, supported by strategic financial mechanisms and a growing backlog of next-generation aircraft commitments.

Fleet Modernization and Emissions Reductions

In its official press release, ACG reported that new generation, lower-emissions aircraft now account for 79% of its total fleet. This shift is the result of a deliberate fleet renewal strategy executed throughout the year. During 2025, the lessor added 52 new generation aircraft to its portfolio while simultaneously exiting 36 older generation airframes.

These modernization efforts have yielded measurable environmental benefits. ACG stated that it successfully reduced its relative emissions to 13% below its 2018 baseline. Furthermore, the company noted that its portfolio’s relative emissions are now 14% below the broader aviation industry average.

Looking ahead, the lessor continues to build its pipeline of modern aircraft. As of February 2026, ACG has increased its future aircraft commitments to more than 180 aircraft, ensuring a steady influx of fuel-efficient technology in the coming years.

Financial Commitments and Corporate Governance

Beyond fleet metrics, the 2025 Sustainability Report outlines ACG’s integration of ESG principles into its financial and corporate operations. The company announced the extension and upsizing of its Sustainability Linked Loan, which now totals $575 million. Additionally, ACG signed its first Sustainability Linked Leases, aligning its leasing structures with environmental performance metrics.

On the social responsibility front, the press release highlighted that ACG contributed to more than 20 worthy causes worldwide during the 2025 calendar year.

Company leadership emphasized the importance of these initiatives in the context of broader industry goals.

“I am pleased to share ACG’s 2025 Sustainability Report, which reflects the progress we have made embedding sustainability, social responsibility and governance excellence into all aspects of our business. While the path to achieving net zero by 2050 is becoming increasingly demanding, we remain committed to shaping a sustainable future by deepening our impact as a business and broadening our influence across the wider aviation ecosystem through action, leadership, and collaboration.”

, Thomas Baker, Chief Executive Officer and President of ACG, in a company statement.

AirPro News analysis

The Leasing Sector’s Role in Aviation Sustainability

We observe that aircraft leasing companies like Aviation Capital Group play a pivotal role in the aviation industry’s transition to net-zero emissions. Because lessors finance a substantial portion of the global commercial fleet, their procurement decisions directly influence the speed at which older, less efficient aircraft are retired.

By tying financial instruments, such as the $575 million Sustainability Linked Loan and newly introduced Sustainability Linked Leases, to environmental targets, lessors create tangible economic incentives for airlines to operate cleaner aircraft. ACG’s reported metric of maintaining portfolio emissions 14% below the industry average demonstrates how aggressive fleet renewal strategies can outpace the broader market’s decarbonization curve.

Frequently Asked Questions (FAQ)

What is Aviation Capital Group (ACG)?

Founded in 1989, Aviation Capital Group is a premier full-service aircraft asset manager and a wholly owned subsidiary of Tokyo Century Corporation. According to the company, it has approximately 450 owned, managed, and committed aircraft as of December 31, 2025.

How many airlines does ACG serve?

As of the end of 2025, ACG leases its aircraft to roughly 85 airlines operating in approximately 50 countries worldwide.

What are ACG’s future fleet plans?

The company reported that its future aircraft commitments have grown to more than 180 aircraft as of February 2026, focusing heavily on new generation, lower-emissions technology.

Sources

• Aviation Capital Group

This article is based on an official press release from Joby Aviation.

Joby Aviation has successfully completed a piloted demonstration flight of its electric air taxi across the San Francisco Bay Area, marking a highly visible milestone for the emerging electric vertical takeoff and landing (eVTOL) industry. According to a company press release, the flight showcased the aircraft’s operational readiness against the backdrop of one of the world’s most recognizable skylines.

The demonstration serves as the official launch of the company’s 2026 Electric Skies Tour, a nationwide initiative designed to coincide with the United States’ 250th anniversary. By flying in a region notorious for heavy traffic congestion, Joby aims to highlight the practical benefits of its emissions-free aviation technology.

The Golden Gate Flight and 2026 Tour

Departing from Oakland International Airport, the Joby aircraft, tail number N545JX, was piloted by Andrea Pingitore. The company stated that the air taxi flew quietly across the San Francisco Bay, heading toward the Golden Gate Bridge before turning above the Marin Headlands.

The flight is the first of many planned for the 2026 Electric Skies Tour. Joby expects to present its aircraft in multiple cities across the country, demonstrating the potential for air taxis to connect communities faster and with less noise than traditional Helicopters.

“The Bay Area is home to the world’s most innovative companies, including Joby, but it’s also an area with significant traffic and unique geographical barriers. Our technology provides an opportunity to build on the immense potential of this region while protecting it for the next generation.”

This statement was provided by JoeBen Bevirt, founder and CEO of Joby, in the official release.

Production and Regulatory Milestones

Beyond the ceremonial flight, Joby Aviation shared several operational updates. The company reported that its fleet has completed thousands of test flights, accumulating more than 50,000 miles. Furthermore, Joby recently flew its first FAA-conforming aircraft for Type Inspection Authorization, a critical step that clears the way for Federal Aviation Administration pilots to conduct formal testing later this year.

Joby has also been selected to participate in the White House-backed eVTOL Integration Pilot Program (eIPP). According to the press release, this Partnerships will allow the company to commence early operations across 10 states, including Arizona, Florida, New York, and Texas.

To support its commercial rollout, Joby is scaling its Manufacturing footprint. The company recently acquired a 700,000-square-foot facility in Dayton, Ohio. Alongside existing sites in California, the Dayton plant is designed to help increase production to four aircraft per month by 2027, with an eventual target of delivering up to 500 aircraft annually.

AirPro News analysis

We view the San Francisco Bay flight as a strategic marketing move for Joby Aviation, but it is underpinned by tangible regulatory and manufacturing progress. The accumulation of 50,000 test miles and the initiation of FAA Type Inspection Authorization testing indicate that the company is moving from the conceptual phase into late-stage certification. The expansion into a 700,000-square-foot facility in Ohio also demonstrates a necessary shift toward scaled manufacturing, which remains one of the most significant hurdles for the broader eVTOL sector.

Frequently Asked Questions

What is the 2026 Electric Skies Tour?

According to the company, it is a national showcase by Joby Aviation, timed to celebrate the 250th anniversary of the United States, featuring demonstration flights of its electric air taxi in cities across the country.

Where is Joby manufacturing its aircraft?

Joby operates production and powertrain facilities in Marina and San Carlos, California, and recently acquired a 700,000-square-foot facility in Dayton, Ohio, to scale production to an expected 500 aircraft per year over time.

Sources

• Joby Aviation

This article is based on an official press release from RTX / Collins Aerospace.

On March 16, 2026, Collins Aerospace, an RTX business, announced a major milestone in sustainable aviation by initiating testing for its electric motor drive systems. According to the official press release, this testing is a core component of the European Union’s Clean Aviation SWITCH project, which aims to revolutionize propulsion for future Commercial-Aircraft.

The testing is currently underway at “The Grid,” the company’s advanced electric power systems laboratory located in Rockford, Illinois. This phase marks a critical step in the development of hybrid-electric Propulsion technologies, which are designed to significantly reduce emissions and improve fuel efficiency for future short- and medium-range commercial aircraft.

As the aviation industry faces mounting pressure to decarbonize, hybrid-electric systems offer a viable near-to-medium-term solution. By transitioning from theoretical design to physical megawatt-class testing, Collins Aerospace and its European partners are moving hybrid-electric commercial flight closer to reality.

Inside the Powertrain Testing at “The Grid”

Advancing Megawatt-Class Systems

The current testing phase focuses on an integrated hybrid-electric powertrain subsystem. According to the company’s announcement, this subsystem includes two megawatt-class motor generators, advanced controllers, and comprehensive power distribution systems. Following successful validation, these key subsystems will be integrated into a hybrid-electric Pratt & Whitney GTF engine demonstrator for the next phase of testing.

“The Grid,” where these tests are being conducted, is a $50 million, 25,000-square-foot facility that officially opened in October 2023. Designed with an initial test capability of 8 megawatts, enough to power a small town, the lab allows engineers to evaluate full propulsion systems in real-world configurations rather than isolating individual components.

“The start of powertrain subsystem testing is a key step towards demonstrating the potential of applying more electric systems to future commercial aircraft. Hybrid-electric technology has the potential to transform aviation by enabling greater fuel efficiency across multiple future platforms, including next generation single-aisle aircraft.”
, Kristin Smith, Vice President, Electric Power Systems at Collins Aerospace

The Clean Aviation SWITCH Project

A Collaborative European Initiative

The SWITCH project, standing for Sustainable Water-Injecting Turbofan Comprising Hybrid-Electrics, is a major initiative funded by the European Union under the Clean Aviation Joint Undertaking. The consortium is coordinated by MTU Aero Engines AG and includes major aerospace players such as Pratt & Whitney, Collins Aerospace, GKN Aerospace, Airbus, and various European research institutions.

The project’s primary objective is to develop a novel propulsion concept that merges hybrid-electric propulsion with Water-Enhanced Turbofan (WET) technology and Pratt & Whitney’s GTF engine architecture.

Global Component Origins

The SWITCH powertrain is a testament to cross-border aerospace collaboration. Components were developed across multiple European research and development facilities before arriving in Illinois for testing. Collins Aerospace designed and produced the megawatt-class electric motors and controllers in Solihull, UK, while the power distribution components, including a solid-state power controller and distribution panel, were designed in Nördlingen, Germany. Additionally, GKN Aerospace developed and built the high-voltage electrical wiring interconnection system (EWIS) in Papendrecht, Netherlands.

Environmental Targets and Industry Impact

Pushing Toward Net-Zero

The environmental targets for the SWITCH project are ambitious. The initiative aims to improve fuel burn and energy consumption by 20% while achieving a 50% reduction in the climate impact of both NOx emissions and contrails compared to current state-of-the-art engines. Furthermore, the technologies are being designed to be fully compatible with 100% drop-in Sustainable Aviation Fuel (SAF) and will be evaluated for future use with Hydrogen.

The Clean Aviation Joint Undertaking targets reducing CO2 emissions of short-to-medium-range aircraft by no less than 30%, and regional aircraft by 50%. While fully electric aircraft remain limited by battery weight and energy density, hybrid-electric systems optimize the performance of fuel-burning gas turbines during energy-intensive phases of flight, such as takeoff, significantly reducing overall fuel consumption.

AirPro News analysis

We view the progression of the SWITCH project as a vital indicator of the aerospace sector’s pragmatic approach to decarbonization. By focusing on hybrid-electric architectures for single-aisle aircraft, RTX and its partners are acknowledging the current limitations of battery technology while still pushing for substantial, near-term efficiency gains. The integration of these systems into the proven GTF engine architecture suggests a clear pathway to commercialization, rather than a purely experimental endeavor. Furthermore, RTX’s broader strategy, which includes the hybrid-electric flight demonstrator for regional turboprops and the PioneerLab project, underscores a diversified, multi-platform commitment to electrification.

Frequently Asked Questions

What is the SWITCH project?

SWITCH (Sustainable Water-Injecting Turbofan Comprising Hybrid-Electrics) is an EU-funded initiative aiming to combine hybrid-electric propulsion with Water-Enhanced Turbofan technology to reduce aviation emissions.

Where is Collins Aerospace testing the powertrain?

Testing is taking place at “The Grid,” a $50 million, 8-megawatt advanced electric power systems laboratory located in Rockford, Illinois.

What are the environmental goals of the SWITCH project?

The project targets a 20% improvement in fuel burn and energy consumption, and a 50% reduction in the climate impact of NOx emissions and contrails compared to current engines.

Sources

• RTX / Collins Aerospace Press Release