Aircraft Orders & Deliveries
Novus and SMTB Launch Third Ortus Aircraft Leasing Fund Ortus III
Novus Aviation Capital and SMTB launch Ortus III, expanding aircraft leasing fund to Asia and Middle East amid Airbus and Boeing production backlogs.
This article is based on an official press release from Novus Aviation Capital.
On May 11, 2026, Novus Aviation Capital and Sumitomo Mitsui Trust Bank (SMTB) officially announced the launch of their third co-sponsored operating lease fund, the Ortus Aircraft Leasing Fund, L.P. III (Ortus III). The new fund is strategically focused on acquiring commercial aircraft manufactured by Airbus and Boeing, which will subsequently be placed on operating leases with airlines globally.
This latest iteration of the Ortus platform marks a significant geographic expansion for the partnership. While the first two funds were marketed exclusively to institutional investors in Japan, Ortus III is broadening its fundraising footprint. According to the official press release, the new fund will be offered to investors across Asia-Pacific and the Middle-East, aiming to capture the region’s escalating demand for alternative, asset-backed investment opportunities.
The launch of Ortus III arrives at a critical juncture for the global aviation industry. As passenger traffic continues its robust post-pandemic resurgence, airlines are grappling with severe aircraft shortages. With major manufacturers facing historic production backlogs, the leasing market has become an indispensable resource for operators seeking flexible capacity and financing solutions.
The Evolution of the Ortus Platform
A Decade-Long Partnership
The introduction of Ortus III underscores a ten-year collaborative relationship between Novus Aviation Capital, an independent aircraft leasing and financing platform, and SMTB, Japan’s largest trust bank. Industry data indicates that the inaugural fund, Ortus I, was established in June 2016 with a target size of $200 million. This was followed by Ortus II in 2019, which launched with a similar initial target but was highly successful, ultimately raising close to $300 million before the close of that year.
In the company’s press release, Takeru Mifune, Head of the Asset Finance Team at SMTB, highlighted the durability of the joint venture through recent global disruptions.
“We are pleased that we have successfully launched our third aircraft leasing fund in partnership with Novus. This achievement represents another significant milestone in our decade-long collaboration. Despite the unprecedented challenges posed by the COVID 19 pandemic, our existing funds have demonstrated the strength and resilience of our partnership, while underscoring Novus’s exceptional management capabilities throughout the period.”
Geographic Expansion and Investor Appetite
The decision to expand the fund’s reach beyond Japan reflects broader macroeconomic trends. By targeting the wider Asian and Middle Eastern markets, Novus and SMTB are tapping into emerging wealth hubs that show a growing appetite for aviation-backed alternative investments. George Ai, Head of Asia and Capital Formation for Novus, noted in the release that the renewed collaboration signals a shared confidence in the aviation sector’s long-term viability.
“After a period of pause driven by the impact of COVID, this renewed collaboration reflects our shared confidence in the long term resilience of the aviation sector. With investor interest in asset backed strategies continuing to strengthen, this new fund reinforces our commitment to meeting the industry’s evolving financing needs while delivering stable, attractive returns for our investors.”
Market Dynamics Driving Leasing Demand
OEM Backlogs and Supply Chain Constraints
A primary catalyst for the current aircraft leasing boom is the inability of Original Equipment Manufacturers (OEMs) to deliver new aircraft at the pace required by global airlines. According to March 2026 commercial aircraft order and delivery reports from Forecast International, Airbus currently holds a backlog of 9,031 commercial aircraft, representing approximately 10.4 years of production coverage. Boeing’s backlog stands at roughly 6,719 aircraft, equating to about 10.1 years of production.
These record-high backlogs are further compounded by severe supply chain disruptions and ongoing engine supply issues, such as Pratt & Whitney GTF inspections and wiring defects. Because airlines cannot easily acquire new aircraft directly from manufacturers in the near term, they are increasingly reliant on leasing companies to secure the necessary fleet capacity to meet surging passenger demand.
Leasing Market Growth Projections
As airlines shift toward asset-light business models to manage capital expenditures, the leasing sector’s valuation is climbing rapidly. Market research from Global Market Insights and Research and Markets estimates the global aircraft leasing market was valued between $187 billion and $197 billion in the 2024/2025 period. Driven by the need for fleet modernization and flexible capital management, the market is projected to reach between $320 billion and $354 billion by 2030, expanding at a compound annual growth rate (CAGR) of roughly 8% to 11.8%.
AirPro News analysis
We view the launch of Ortus III as a highly strategic maneuver that capitalizes on a unique bottleneck in commercial aviation. The reality of a 10-plus-year production backlog at both Airbus and Boeing means that airlines have virtually no choice but to turn to lessors if they want to expand or modernize their fleets before the mid-2030s. Furthermore, the geographic pivot from a Japan-exclusive investor base to the broader Middle East and Asia is a shrewd acknowledgment of where current institutional liquidity resides. The Middle East, in particular, is heavily investing in aviation infrastructure and asset-backed alternatives, making it fertile ground for a fund like Ortus III. Ultimately, the fact that Novus and SMTB are launching this third fund after a pandemic-induced pause serves as a strong indicator that institutional confidence in commercial aviation has fully rebounded.
Frequently Asked Questions
What is the Ortus III fund?
The Ortus Aircraft Leasing Fund, L.P. III (Ortus III) is an operating lease fund co-sponsored by Novus Aviation Capital and Sumitomo Mitsui Trust Bank (SMTB). It focuses on acquiring Airbus and Boeing commercial aircraft to lease to airlines worldwide.
Why is the aircraft leasing market growing so quickly?
The market is expanding due to a combination of surging post-pandemic travel demand and severe supply chain bottlenecks at major manufacturers. With Airbus and Boeing facing production backlogs of over 10 years, airlines must rely on leasing companies to acquire the aircraft they need today.
How does Ortus III differ from previous Ortus funds?
While Ortus I (launched in 2016) and Ortus II (launched in 2019) were marketed exclusively to institutional investors in Japan, Ortus III is expanding its fundraising efforts across the broader Asian and Middle Eastern markets.
Sources
Photo Credit: Novus Aviation Capital
Aircraft Orders & Deliveries
Avolon Acquires 11 Airbus A321neo Jets from Frontier Airlines
Avolon acquires 11 A321neo delivery slots from Frontier Airlines, valued at US$1.425B, as the carrier reduces capital commitments after a 2025 net loss.
Aircraft lessor Avolon Holdings Limited will acquire 11 Airbus A321neo aircraft originally ordered by Frontier Airlines, absorbing near-term delivery slots scheduled between November 2026 and June 2027.
The transaction was unanimously approved by the board of directors of Avolon parent company Bohai Leasing Co Ltd on June 30, 2026. The agreement allows the Dublin-based lessor to expand its narrowbody portfolio amid ongoing global supply chain constraints. For Frontier Airlines, the transfer reduces capital commitments following a financially challenging 2025 in which the United States-based ultra-low-cost carrier reported a net loss of US$137 million.
Transaction details and delivery timeline
According to a regulatory filing submitted to the Shenzhen Stock Exchange (SZSE), the 11 aircraft hold a combined list value of US$1.425 billion based on 2018 Airbus SE catalogue prices. The final purchase price remains confidential under the terms of the agreement.
The aircraft are scheduled to join the Avolon fleet between November 2026 and June 2027. These airframes are drawn from a November 14, 2021, order placed by Frontier Airlines for 91 Airbus A321neo jets.
Fleet strategy and market dynamics
The agreement highlights shifting fleet strategies among operators and lessors. Frontier Group Holdings, the parent company of Frontier Airlines, generated US$3.724 billion in revenue during 2025 but ultimately posted a US$137 million net loss. Offloading these near-term delivery slots provides the airline with a mechanism to adjust its capacity growth and financial obligations.
Avolon gains access to highly sought-after narrowbody aircraft. Original equipment manufacturer (OEM) delivery delays have constrained the supply of new aircraft, driving intense demand in the leasing market for fuel-efficient models like the Airbus A321neo.
AirPro News analysis
We view this transaction as a mutually beneficial realignment of assets driven by current macroeconomic pressures in the aviation sector. Frontier Airlines secures immediate relief from the capital expenditure required to induct 11 new aircraft over an eight-month period, which aligns with the carrier’s need to stabilize its balance sheet after its 2025 losses. Avolon secures premium, near-term delivery slots that are virtually impossible to obtain directly from Airbus at this stage. Given the persistent shortage of narrowbody lift globally, Avolon is well-positioned to place these aircraft with operators eager for capacity.
Sources: Shenzhen Stock Exchange
Photo Credit: Airbus
Aircraft Orders & Deliveries
CDB Aviation Signs 787-9 Sale Leaseback with Lufthansa
CDB Aviation completes its first direct lease with Lufthansa Airlines, covering two Boeing 787-9s with Allegris cabins.
CDB Aviation has executed a sale and leaseback agreement with Lufthansa Airlines for two Boeing 787-9 aircraft, marking the Irish lessor’s first direct leasing transaction with the German flag carrier.
Announced in a company press release on July 1, 2026, the transaction involves widebody aircraft delivered to Lufthansa in late 2025 and early 2026. The deal expands CDB Aviation, a wholly owned subsidiary of China Development Bank Financial Leasing Co., Ltd., into a direct relationship with a top-tier European credit while adding new-technology assets to its portfolio.
Transaction details and delivery timeline
The two Boeing 787-9s involved in the agreement feature Lufthansa’s new Allegris cabin configuration. The lessor is acquiring the aircraft specifically from Lufthansa Asset Management Leasing GmbH, the airline’s dedicated asset management entity.
The leaseback arrangement, structured under operating leases, is expected to close by mid-July 2026. This timeline aligns with CDB Aviation’s broader strategy to grow its aviation leasing assets under Hong Kong listing rules, securing long-term placements for highly liquid aircraft types.
Expanding the Lufthansa Group relationship
While this agreement represents the first direct aircraft lease between CDB Aviation and Lufthansa Airlines, the lessor has an established history with the broader corporate group. CDB Aviation previously executed aircraft sales to Lufthansa Group sister carriers Austrian Airlines and Eurowings, and has also conducted business with Lufthansa’s engine leasing division.
Gavan Daly, Head of Commercial for Europe, the Middle East, and Africa at CDB Aviation, highlighted the strategic value of formalizing a direct lease with the mainline carrier.
“This sale and leaseback agreement with Lufthansa represents a key transaction for CDB Aviation, as we continue to grow the portfolio with top-tier credits and new technology, liquid assets.”
AirPro News analysis
We view this transaction as a standard but strategic portfolio enhancement for CDB Aviation, aligning with the broader industry trend of lessors targeting highly liquid, new-generation widebody aircraft. Securing a direct lease with Lufthansa Airlines diversifies the lessor’s European footprint while providing the airline with capital flexibility following its recent fleet modernization investments. The Boeing 787-9 remains a highly sought-after asset in the secondary market, minimizing residual value risk for the lessor over the life of the operating lease.
Sources: CDB Aviation
Photo Credit: Lufthansa Group
Aircraft Orders & Deliveries
BOC Aviation Signs A350-1000 Leaseback Deal With Qatar Airways
BOC Aviation finalizes a purchase and leaseback of three Airbus A350-1000s with Qatar Airways, its first financing of the type for the carrier.
BOC Aviation Limited has finalized a purchase and leaseback agreement with Qatar Airways for three Airbus A350-1000 aircraft, marking the lessor’s first financing of the widebody type for the Doha-based carrier.
Announced in a press release on June 30, 2026, the transaction involves aircraft that were originally delivered to the airline in late 2025. The long-term operating leases expand BOC Aviation’s widebody portfolio while providing liquidity to Qatar Airways as the airline continues its network restoration efforts.
Transaction details and fleet integration
The three Airbus A350-1000 aircraft are powered by Rolls-Royce Trent XWB-97 engines. According to a regulatory filing with the Hong Kong Stock Exchange (HKEx), the formal agreement was executed on June 29, 2026.
BOC Aviation Chief Executive Officer and Managing Director Steven Townend highlighted the strategic nature of the deal.
“We deliberately strengthened our liquidity position earlier this year with transactions of this quality in mind and we are delighted to deploy that capacity in support of one of our largest and most valued customers,” Townend stated.
The lessor noted that this agreement builds on a long-standing partnership with Qatar Airways. As of March 31, 2026, BOC Aviation reported a portfolio of 813 owned, managed, and on-order aircraft and engines, leased to 88 airlines globally.
Qatar Airways operational context
The leaseback arrangement follows a period of executive restructuring and operational recovery for Qatar Airways. On June 18, 2026, the airline reported that its network had been restored to 85 percent of pre-crisis levels.
The carrier, which operates an active fleet of approximately 230 aircraft, also recently created two new executive roles to focus on operations and customer experience. According to reporting by Aviation Week, this follows a sudden leadership transition in December 2025, when Hamad Ali Al-Khater was appointed Group Chief Executive Officer, succeeding Badr Mohammed Al-Meer.
AirPro News analysis
We view this purchase and leaseback agreement as a standard capital management maneuver for Qatar Airways, allowing the carrier to free up balance sheet liquidity tied up in its late-2025 widebody deliveries. For BOC Aviation, securing three high-value Airbus A350-1000 assets on long-term leases with a premium Gulf carrier aligns with the lessor’s stated strategy of deploying its strengthened capital reserves into low-risk, high-yield widebody assets. The transaction underscores the ongoing reliance of major network carriers on the sale-and-leaseback market to optimize capital structures during periods of network expansion.
Sources: BOC Aviation
Photo Credit: Airbus
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