UNITED ARAB EMIRATES: Avolon, I Squared Capital And ADIA Launch Constellation Aviation Leasing Platform

ABU DHABI, United Arab Emirates

• Aircraft leasing platform Avolon has agreed to form Constellation Aviation, a joint venture (JV) with infrastructure investor I Squared Capital and a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA).
• When the deal completes, Constellation will buy 22 aircraft from Avolon with a current market value of USD 1.4 billion.
• The aircraft are around five years old on average and are on lease to 17 airlines in 15 countries.
• Avolon will keep a minority stake and will manage and service the fleet for the JV on an exclusive basis.
• A filing by Avolon's parent, Bohai Leasing, and a report by Jiemian put the split at 50.1% for I Squared Capital (ISQ), 34.9% for ADIA subsidiary Platinum Investor and 15% for Avolon. They value the 22 aircraft at about USD 1.398 billion.
• The partners plan to grow Constellation over time. They point to rising passenger demand, limited production at aircraft manufacturers and airlines leaning more on leasing to renew and expand their fleets.
• Avolon Chief Financial Officer (CFO) Ross O'Connor said the JV "will expand our asset management business".
• Gautam Bhandari, Global Chief Investment Officer at I Squared Capital, said manufacturers' order books "now stretch a decade or more into the future", leaving airlines dependent on lessors that hold delivery slots.
• Khadem AlRemeithi, Executive Director of ADIA's Infrastructure Department, called aircraft leasing "a resilient and growing sector".
• The deal still needs regulatory approval.
• A syndicated debt facility will fund the JV, with BNPP, CACIB, SocGen, ING, MUFG and Mizuho as Joint Lead Bookrunners. Mizuho is advising the investors on financing.
• Milbank LLP acted for the investors and Clifford Chance for Avolon.
• As of 30 September 2026, Avolon had an owned, managed and committed fleet of 1,092 aircraft across 138 airlines in 62 countries.

Sources:

• Business Wire
• Bohai Leasing (CNINFO filing)
• Jiemian