Connect with us

Aircraft Orders & Deliveries

ACG Extends $3.1 Billion Credit Facility to June 2030

Aviation Capital Group extends its $3.1B revolving credit facility to 2030, backed by 24 banks and a 121-aircraft 737 MAX backlog.

Published

on

Aviation Capital Group (ACG) has secured long-term liquidity by extending the maturity of its $3.1 billion senior unsecured revolving credit facility to June 2030.

Announced in a press release on June 10, 2026, the amendment and restatement of the facility was completed with JPMorgan Chase Bank acting as the administrative agent. The extension from its previous June 2028 maturity date provides the Newport Beach, California-based aircraft lessor with continued financial flexibility to fund new aircraft deliveries and support its global airline customer base.

Facility details and banking syndicate

The $3.1 billion facility is supported by commitments from 24 financial institutions. This core credit line is part of ACG’s broader liquidity strategy, which includes approximately $5.1 billion in total revolving commitments. Alongside the primary syndicate, ACG maintains a $1.5 billion line of credit provided by its parent company, Tokyo Century Corporation, and a separate $500 million revolving credit facility with a syndicate of lenders based in Asia.

Matthew Novell, Vice President of Capital Markets and Assistant Treasurer of ACG, stated that the extension reflects the strength of the company’s platform and the depth of its global banking relationships.

“This extension further enhances our liquidity and financial flexibility, enabling us to continue investing in our fleet, support our airline customers and execute on our growth objectives,” Novell said.

Fleet expansion and corporate restructuring

The extended credit facility arrives as ACG actively expands its portfolio, which stood at approximately 500 owned, managed, and committed aircraft as of March 31, 2026. The lessor currently places aircraft with roughly 90 Airlines across 50 countries. To support this fleet growth, ACG finalized an Orders for 50 Boeing 737 MAX jets on January 13, 2026, splitting the commitment evenly between the Boeing 737 MAX 8 and Boeing 737 MAX 10 variants. This order increased the company’s total 737 MAX backlog to 121 aircraft.

Deliveries are ongoing, with ACG handing over its first of six new Boeing 737 MAX 8 aircraft to Royal Air Maroc on March 31, 2026. The lessor has also restructured its executive team to manage these manufacturer relationships, appointing Rob Downes to the newly created role of Chief Original Equipment OEMs Officer on April 16, 2026.

AirPro News analysis

We view the successful extension of ACG’s $3.1 billion credit facility as a strong indicator of institutional confidence in the aircraft leasing sector. By pushing the maturity date to 2030, ACG insulates itself from near-term refinancing risks while securing the capital required to absorb its expanding Boeing 737 MAX order book. The backing of 24 financial institutions, combined with the $1.5 billion backstop from Tokyo Century, positions the lessor to capitalize on high global demand for narrowbody lift even as it navigates a transition period following the May 31, 2026, departure of Chief Financial Officer Craig Segor.

Sources: Aviation Capital Group

Photo Credit: Boeing

Continue Reading
Click to comment

Leave a Reply

Aircraft Orders & Deliveries

Russia Certifies Il-114-300 Turboprop and PD-8 Engine

Russia grants type certificates to the Il-114-300 turboprop and PD-8 turbofan, clearing both for commercial serial production.

Published

on

The Federal Air Transport Agency of the Russian Federation (Rosaviatsiya) has officially granted type certificates for the Ilyushin Il-114-300 regional turboprop and the PD-8 turbofan engine, clearing both domestic programs for commercial serial production.

The certifications, announced on June 5, 2026, at the St. Petersburg International Economic Forum (SPIEF), mark a critical milestone in Russia’s mandate to achieve aviation independence and import substitution following Western sanctions. According to a press release from Rostec State Corporation, the parent company of both United Aircraft Corporation (UAC) and United Engine Corporation (UEC), the approvals remove major constraints for multiple domestic aircraft programs.

Advancing the Il-114-300 turboprop program

The Il-114-300 is the first transport-category turboprop to receive certification in Russia in more than two decades. Designed by the Ilyushin Aviation Complex (JSC Il) and manufactured at the Lukhovitsy Aircraft Plant, the Commercial-Aircraft features a basic layout accommodating 66 passengers.

First Deputy Prime Minister of Russia Denis Manturov stated that Rostec enterprises executed a deep modernization of the aircraft’s systems.

“The aircraft is designed in a basic layout with 66 seats. It is equipped with new Russian turboprop engines, modern avionics, a digital flight and navigation system and an ergonomic passenger cabin interior,” Manturov said, according to reporting by Oreanda-News.

Three mass-produced Il-114-300 airliners are currently at various stages of completion at the Lukhovitsy facility. During the SPIEF event, the State Transport Leasing Company (GTLK) signed an agreement to lease these initial three production aircraft to the 2nd Arkhangelsk United Aviation Squadron, also known as Arctic Airlines. Deliveries are expected in late 2026, with the carrier planning to utilize the turboprops for regional passenger flights, cargo transport, and medical rescue operations.

PD-8 engine certification unlocks Superjet production

The Certification of the PD-8 turbofan engine, developed and manufactured by UEC-Saturn, resolves a primary bottleneck for the Yakovlev SJ-100 (Superjet) program. The SJ-100 is undergoing a reconfiguration to utilize fully domestic components, with the PD-8 replacing the Franco-Russian PowerJet SaM146 engine. RuAviation reports that the PD-8 will also replace the Ukrainian-supplied D-436TP engines on the Beriev Be-200 amphibious aircraft.

Prior to certification, the PD-8 accumulated 6,500 running hours during extensive flight and bench testing. The engine provides eight tons of takeoff thrust. Rostec highlighted the domestic engineering effort behind the powerplant, noting that 25 domestic materials and technologies were utilized during the design stage, including 17 created exclusively for the PD-8 program.

Production timelines and international interest

While initial deliveries of the Il-114-300 are slated for late 2026, production rates will take time to scale. Manturov cautioned that shipments might face a temporary decline due to a disconnect between the contracting and certification processes, before rhythmically increasing in volume starting in 2028.

Beyond domestic operators, the newly certified aircraft are generating international interest. UAC Director General Vadim Badekha noted that Indian carriers have expressed demand for up to 200 Russian-made aircraft to support regional connectivity initiatives, specifically citing the SJ-100 and Il-114-300, according to ANI News.

AirPro News analysis

We view the dual certification of the Il-114-300 and the PD-8 engine as a technical necessity for the Russian aerospace sector, which has been entirely cut off from Western supply chains, maintenance support, and engine components. The PD-8 approval is particularly critical. Without a domestically produced turbofan, the SJ-100 program would remain stalled, leaving Russian airlines without a viable regional jet replacement as their existing Western fleets age and face parts shortages.

Achieving type certification is only the first hurdle. The transition from prototype testing to reliable, high-volume serial production remains a significant industrial challenge. The acknowledgment of a potential delivery dip before 2028 suggests that UAC and UEC are still establishing the necessary domestic supply chain depth to support sustained Manufacturing rates.

Sources: Rostec State Corporation

Photo Credit: Rostec

Continue Reading

Aircraft Orders & Deliveries

GE Aerospace Eyes China Engine Orders After Boeing Deal

China committed to 200 Boeing jets at the May 2026 Trump-Xi summit, with GE Aerospace set to supply up to 450 engines.

Published

on

This article summarizes reporting by Bloomberg by Siddharth Philip and Guy Johnson, with additional context from AP News and the White House.

GE Aerospace anticipates a resurgence in aircraft engine orders from China following a diplomatic summit in Beijing that yielded an initial commitment for 200 Boeing Co. commercial jets.

The May 2026 meeting between United States President Donald Trump and Chinese President Xi Jinping marked the end of a nearly decade-long freeze on major state-linked aircraft purchases by China. According to reporting by Bloomberg published on June 7, 2026, GE Aerospace leadership remains optimistic that this initial breakthrough will translate into sustained long-term engine sales and maintenance revenue.

The 200-aircraft commitment and engine supply

During the summit, which included U.S. business leaders such as GE Aerospace Chief Executive Officer Larry Culp and Boeing Chief Executive Officer Kelly Ortberg, the two nations reached an agreement to reopen the Chinese aviation market to American manufacturers. A White House fact sheet released on May 17, 2026, confirmed China’s commitment to purchase 200 American-made Boeing aircraft.

Because GE Aerospace supplies engines for various Boeing commercial aircraft programs, the airframe order directly benefits the engine manufacturer. President Trump stated that General Electric would supply between 400 and 450 engines under the potential deal, according to AP News.

Reopening a dormant market

The U.S. aerospace sector has faced a prolonged drought in the Chinese market, with the last major Boeing order occurring in 2017 during Trump’s first term. The recent agreement signals a significant shift in trade relations for the aviation industry.

In an official statement cited by AP News, Boeing confirmed the objective of the Beijing visit, noting the company accomplished its major goal of reopening the China market to orders for its aircraft.

Unconfirmed fleet expansion details

While the initial commitment for 200 airframes is confirmed, the specific breakdown of aircraft models and engine variants remains undisclosed. Neither the Chinese government, Boeing, nor GE Aerospace has officially confirmed the exact fleet composition.

President Trump indicated aboard Air Force One that China reserved the right to purchase as many as 750 Boeing aircraft. These expanded figures have not been formalized in official statements from the manufacturers or the purchasing entities.

AirPro News analysis

We view the reopening of the Chinese market as a critical catalyst for GE Aerospace’s long-term revenue projections. While the initial engine deliveries represent substantial immediate capital, the true value of these orders lies in the aftermarket. Commercial aircraft engines generate the majority of their profit through decades of maintenance, repair, and overhaul (MRO) services. Securing a footprint of 400 to 450 new engines in China ensures a steady stream of high-margin service revenue well into the 2040s. The lack of specific aircraft model confirmations suggests that negotiations regarding delivery timelines and specific fleet requirements are likely ongoing.

Sources: Bloomberg, AP News, The White House

Photo Credit: GE Aerospace

Continue Reading

Aircraft Orders & Deliveries

Uganda Airlines Orders 10 Boeing Aircraft in $982M Deal

Uganda Airlines finalized a $982M Boeing order on June 10, 2026, covering 8 passenger jets and 2 cargo freighters.

Published

on

Uganda Airlines and The Boeing Company finalized an agreement on June 10, 2026, for the acquisition of 10 new aircraft. The transaction represents the largest fleet expansion for the national carrier since its commercial operations resumed in 2019.

The order is valued at approximately 3.7 trillion Ugandan shillings ($982 million) and includes eight passenger aircraft alongside two dedicated cargo aircraft. According to statements from State House Uganda, the acquisition is designed to bolster the country’s export economy and position Entebbe as a competitive regional aviation hub capable of challenging established networks in Nairobi, Addis Ababa, and Kigali.

Fleet expansion and cargo strategy

The cargo portion of the agreement includes a Boeing 767 converted freighter and a Boeing 737 Boeing Converted Freighter (BCF). Regional reporting indicates these dedicated freighters will primarily support Uganda’s export markets, specifically targeting the transport of coffee, flowers, and fish.

The eight passenger aircraft specified in the agreement will each feature a 294-seat capacity. While the exact Boeing model for the passenger jets was not explicitly named in the primary announcements, previous government funding documents have referenced Boeing Dreamliner aircraft. The new passenger capacity is intended to support the airline’s 10-year growth plan, which targets an expansion to 35 destinations.

This is a strategic investment in Uganda’s future and a major step towards establishing Uganda as a leading aviation hub in the region.

The official statement from Uganda Airlines emphasized the strategic nature of the investment. State House Uganda echoed this sentiment, noting that the fleet expansion will strengthen trade, tourism, and investment across the region.

Leadership and regional hub ambitions

The signing ceremony took place at State House Entebbe, attended by Ugandan President Yoweri Museveni. Reports from regional outlets present conflicting information regarding the Boeing signatory. The Daily Star identified Brad McMullen, Boeing Senior Vice President of Commercial Sales and Marketing, as the representative, the agreement was signed by Anbessie Yitbarek, Boeing Vice President of Commercial Sales and Marketing for Africa.

This major capital investment follows a significant leadership change at the carrier. On February 16, 2026, President Museveni appointed veteran aviation executive Girma Wake as acting Chief Executive Officer. Wake, the former CEO of Ethiopian Airlines, was brought in to rectify management issues and oversee the carrier’s strategic expansion.

Prior to this Boeing order, Uganda Airlines operated a mixed fleet. The carrier utilizes two Airbus A330-800neo aircraft for long-haul routes and four Bombardier CRJ-900LR jets for regional operations. The airline also recently added an Airbus A320-200 on a short-term wet lease to meet immediate capacity demands. The carrier currently serves 17 destinations and recently launched direct flights to London Gatwick, its third destination outside of Africa alongside Mumbai and Dubai.

AirPro News analysis

We view this 10-aircraft order as a highly ambitious pivot for Uganda Airlines, one that introduces significant operational complexity. Transitioning from a fleet built around Airbus widebody aircraft and Bombardier regional jets to incorporating a large Boeing contingent will require substantial investments in pilot training, maintenance infrastructure, and spare parts provisioning.

The decision to acquire converted freighters rather than factory-new cargo aircraft reflects a pragmatic approach to building dedicated freight capacity. This allows the airline to support national export initiatives without the higher capital expenditure associated with new-build freighters. The success of this expansion will likely depend heavily on the expertise of acting CEO Girma Wake, whose experience building Ethiopian Airlines into a dominant regional force aligns directly with Uganda’s goal of competing with established hubs in neighboring nations.

Sources: State House Uganda

Photo Credit: Uganda Airlines

Continue Reading
Every coffee directly supports the work behind the headlines.

Support AirPro News!

Advertisement

Follow Us

newsletter

Latest

Categories

Tags

Every coffee directly supports the work behind the headlines.

Support AirPro News!

Popular News