Singapore-based aircraft leasing company BOC Aviation Limited has announced a second sale-and-leaseback agreement with Indian carrier Akasa Air. According to a company press release issued on May 20, 2026, the new transaction involves the purchase and long-term operating lease of three additional Boeing 737-8200 aircraft.

All three of the high-capacity narrowbody jets will be powered by CFM International LEAP-1B engines. BOC Aviation stated that the aircraft are scheduled to be delivered by Boeing to the airline by the end of 2026.

This latest agreement highlights the rapid expansion of the Indian aviation market and underscores Akasa Air’s aggressive fleet growth strategy. By utilizing sale-and-leaseback financing, the airline continues to scale its operations to meet surging domestic and international passenger demand.

Deepening a Strategic Financing Partnership

The May 2026 announcement marks the second transaction between the two aviation entities. In November 2025, BOC Aviation and Akasa Air signed their inaugural agreement for the purchase and leaseback of three Boeing 737-8 aircraft, with deliveries that were slated to begin in January 2026. Once the newly announced Boeing 737-8200s are delivered, the total number of Akasa Air aircraft leased from BOC Aviation will double to six.

As of May 2026, Akasa Air operates a fleet of 38 Boeing 737 MAX aircraft. The airline has been rapidly building its domestic footprint while simultaneously growing its international network. Company leadership emphasized that partnering with established global lessors is a cornerstone of their financial strategy.

“We are pleased to further deepen our partnership with BOC Aviation through this second transaction that adds further three Boeing 737-8200 aircraft, which reflects a shared long-term conviction in Akasa Air’s growth trajectory and the strength of the Indian aviation market. As a leading global aircraft lessor, BOC Aviation brings deep institutional expertise and a strong understanding of the evolving aviation landscape, making it an important strategic financing partner for Akasa Air. This agreement aligns with our disciplined approach to scaling the airline through a modern, fuel-efficient fleet while maintaining capital efficiency, financial flexibility, and long-term operational resilience.”

Fleet Strategy and the Boeing 737-8200

The Boeing 737-8200 is a high-capacity variant of the 737 MAX family, highly sought after by low-cost carriers globally. According to industry data cited in the release, the aircraft offers an attractive balance of high passenger capacity, improved fuel efficiency, lower operating costs, and enhanced range capability.

BOC Aviation, which is listed on the Hong Kong Stock Exchange, maintains a massive global footprint to support such fleet strategies. As of March 31, 2026, the lessor reported a portfolio of 813 aircraft and engines, encompassing owned, managed, and on-order assets, leased to 88 airlines across 46 countries and regions.

“Following our successful transaction last November, we are pleased to be executing a further agreement with Akasa as it builds its business in India and beyond. The modern Boeing 737 family on which it is centering its fleet development remains one of the world’s most popular single-aisle jets, demonstrates industry-leading fuel efficiency and is a cornerstone of our orderbook.”

AirPro News analysis

We view this transaction as a clear barometer for the broader growth of the Indian aviation sector. Indian airlines are currently engaged in a historic capacity expansion to capture surging domestic traffic and a larger share of international routes. For a fast-growing carrier like Akasa Air, the sale-and-leaseback model is a critical financial tool. In this arrangement, the airline receives the aircraft from the manufacturer, sells it to a leasing company like BOC Aviation, and immediately rents it back. We note that this standard industry practice allows airlines to scale their fleets rapidly without tying up massive amounts of capital, thereby ensuring the financial flexibility required to compete in India’s highly dynamic market.

Frequently Asked Questions

What aircraft are included in this new agreement?

The agreement covers three Boeing 737-8200 aircraft, powered by CFM International LEAP-1B engines.

When will Akasa Air receive these new planes?

According to BOC Aviation, all three aircraft are scheduled for delivery by the end of 2026.

How many aircraft does Akasa Air currently operate?

As of May 2026, Akasa Air operates a fleet of 38 Boeing 737 MAX aircraft.

Sources: BOC Aviation Press Release

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

• Novus Aviation Capital Official Press Release

Aviation Capital Group LLC (ACG), a premier global full-service aircraft asset manager, has reported a highly successful first quarter for 2026. According to an official company press release, the lessor achieved significant year-over-year growth across all major financial metrics, including a 67 percent increase in pre-tax net income.

This financial momentum coincides with an aggressive fleet expansion and modernization strategy executed in the early months of 2026. By capitalizing on high global demand for fuel-efficient, new-technology commercial aircraft, ACG is positioning itself as a critical partner for airlines navigating ongoing supply chain constraints.

We note that these results, released by ACG, underscore the broader aviation leasing sector’s current strength, as carriers increasingly rely on lessors to secure delivery slots amid manufacturing delays at major aerospace companies.

First Quarter 2026 Financial Performance

According to the first-quarter earnings release, ACG’s financial results reflect strong operational execution. For the three months ending March 31, 2026, the company reported total revenues of $323 million, representing a 15 percent increase over the same period in 2025. Pre-tax net income reached $44 million.

The company also reported robust liquidity and asset growth. Operating cash flow rose 41 percent year-over-year to $175 million, while total assets increased by 4 percent from the end of 2025 to reach $14.3 billion. ACG maintains $5.4 billion in available liquidity, providing substantial capital to fund future growth and manage its net debt-to-equity ratio of 2.1x. Furthermore, the company maintained a robust sales pipeline with $372 million of aircraft held for sale as of March 31.

“2026 is off to a fast start, as we delivered meaningful year-over-year improvement… reflecting the durability of our earnings and the quality of our portfolio.”

— Thomas Baker, CEO and President of ACG, via company press release

Fleet Modernization and Strategic Acquisitions

Q1 Fleet Additions

ACG continues to focus its investments on highly liquid, new-technology aircraft. The company’s press release indicates that as of March 31, 2026, its portfolio consisted of 511 owned, managed, and committed aircraft leased to approximately 90 airlines across 50 countries. During the first quarter, ACG invested $530 million in aircraft purchases, adding 11 aircraft to its portfolio. Ten of these were new-technology jets, including seven Boeing 737 MAX family aircraft, one Airbus A320neo, one Airbus A220, and one Airbus A350.

Major 2026 Transactions

Beyond the first-quarter deliveries, ACG has executed several major strategic moves in 2026. In January, the lessor finalized an order for 50 Boeing 737 MAX jets, split evenly between the 737-8 and 737-10 variants. This order doubled ACG’s 737-10 backlog, securing delivery slots between 2026 and 2033. Furthermore, in February 2026, ACG signed agreements to acquire a 24-aircraft portfolio from rival lessor Avolon, encompassing 18 narrowbody and six widebody aircraft. In March, the company also delivered the first of six new Boeing 737-8 MAX aircraft to Royal Air Maroc.

Executive Leadership Transitions

The strong first-quarter performance comes amid a transition in ACG’s executive leadership team. The company announced in April 2026 that Executive Vice President and Chief Financial Officer Craig Segor will step down effective May 31, 2026. Segor, who joined the firm in 2022, was credited with bringing financial discipline to the organization. A search for his successor is currently underway.

Additionally, ACG appointed Rob Downes to the newly created role of Chief OEM Officer in April 2026, signaling a strategic focus on strengthening relationships with original equipment manufacturers.

AirPro News analysis

We view ACG’s first-quarter results as a direct reflection of the current supply-and-demand imbalance in commercial-aircraft. With global supply chain constraints and manufacturing delays at both Boeing and Airbus, airlines are increasingly turning to lessors to secure capacity. ACG’s strategy of locking in delivery slots through 2033, bolstered by its massive 50-aircraft Boeing order, gives it a significant competitive advantage. Furthermore, the creation of a Chief OEM Officer role is a calculated move to ensure ACG maintains priority access to new aircraft in a market where narrowbody jets remain in critically short supply.

Frequently Asked Questions

What were Aviation Capital Group’s total revenues for Q1 2026?
ACG reported total revenues of $323 million for the first quarter of 2026, a 15 percent increase compared to the same period in 2025.

How many aircraft did ACG add to its portfolio in Q1 2026?
The company added 11 aircraft to its portfolio during the first quarter, 10 of which were new-technology aircraft.

What major aircraft orders has ACG placed recently?
In January 2026, ACG finalized an order for 50 Boeing 737 MAX jets, consisting of 25 737-8s and 25 737-10s, with deliveries scheduled between 2026 and 2033.

Sources

• Aviation Capital Group / PRNewswire