FTAI Aviation Acquires 27 Boeing 737-700s from WestJet

FTAI Aviation Ltd. has acquired 27 Boeing 737-700 aircraft from the WestJet Group in a transaction that splits the fleet between continued airline operations and aftermarket engine support. Announced on September 28, 2026, the deal marks the formal beginning of WestJet’s retirement program for its older-generation narrowbody fleet.

In a press release, FTAI detailed that the acquisition is divided into two distinct segments. Seventeen of the aircraft were acquired through a sale-leaseback arrangement via FTAI’s 2026 special purpose vehicle (SPV). The remaining 10 off-lease airframes will be absorbed into FTAI’s Aerospace Products division to harvest CFM56-7B engines and modules.

Structuring the 27-aircraft transaction

The sale-leaseback portion of the deal utilizes capital from FTAI’s 2026 SPV. This investment vehicle secured a $2.0 billion warehouse financing facility on August 14, 2026. The facility was syndicated among 13 financial institutions to fund the acquisition of on-lease, mid-life Boeing 737NG and Airbus A320ceo aircraft.

The 10 off-lease aircraft will transition out of active service. FTAI President David Moreno stated that these retiring airframes will supply the company’s exchange pool with CFM56-7B engines and modules, supporting the maintenance requirements of FTAI’s global customer base.

Moreno noted that the dual-purpose transaction highlights the interaction between the company’s Strategic Capital and Aerospace Products businesses, offering Airlines a combination of sale-leaseback funding and a flexible exit strategy for aging airframes.

WestJet fleet modernization strategy

For the Calgary-based WestJet Group, the agreement represents a definitive step in its fleet renewal program. The carrier’s move to draw down its 737-700 inventory aligns with broader operational shifts reported in June 2026. Facing high fuel costs, WestJet accelerated the retirement timeline for the older variants, planning to replace them on a largely one-for-one basis with newer, more fuel-efficient Boeing 737 MAX 8 aircraft.

“This 27-aircraft transaction is a strategic milestone that officially marks the start of our retirement of our 737-700 fleet,” said Mike Scott, WestJet Group Executive Vice-President and Chief Financial Officer. “We’re pleased to partner with FTAI Aviation Ltd. to make this happen, and we look forward to building on this relationship for future opportunities.”

AirPro News analysis

We view this transaction as a textbook execution of FTAI’s integrated business model. By acquiring a mixed portfolio of active and retiring aircraft in a single deal, FTAI secures immediate lease revenue while simultaneously feeding its aftermarket engine business. The CFM56-7B remains one of the most widely used Commercial-Aircraft engines globally. Securing a steady supply of modules from retiring 737-700s positions FTAI to capitalize on ongoing supply chain constraints in the maintenance, repair, and overhaul (MRO) sector. For WestJet, offloading 27 older airframes in one transaction simplifies its transition to the Boeing 737 MAX 8 and provides an immediate capital injection through the sale-leaseback of the 17 active units.

Sources: FTAI Aviation Ltd.