Avolon, I Squared Capital and a wholly owned subsidiary of Abu Dhabi Investment Authority (ADIA) have agreed to form an aircraft-leasing investment platform expected to acquire 22 planes valued at $1.4 billion.
The venture will be called Constellation Aviation, Avolon announced Monday. Its initial portfolio is expected to come from Avolon after the transaction closes. The $1.4 billion figure is the aircraft’s current market value; the company did not disclose a purchase price.
Seventeen airlines in 15 countries lease the aircraft, whose average age is about five years. Avolon will retain a minority stake in Constellation and manage and service the planes under an exclusive arrangement. The company did not specify the size of its stake.
International banks will provide a syndicated debt facility for the venture, Avolon said. It did not give the facility’s size.
The partners say the platform is intended to provide airlines with fleet capacity while giving investors exposure to payments from long-term contracts. Avolon cited continued passenger-demand growth, constrained aircraft manufacturing capacity and airlines’ use of leasing to finance fleet renewal and expansion as reasons for the venture.
Khadem AlRemeithi, executive director of ADIA’s Infrastructure Department, cited “strong structural demand for modern aircraft.” I Squared Capital co-founder, managing partner and global chief investment officer Gautam Bhandari said manufacturers’ order books extend a decade or more, and airlines rely on lessors with aircraft delivery slots to expand their fleets.
Dubai Aerospace Enterprise announced two other aircraft investment ventures in 2026. Its Mustang Aerospace venture with Neuberger Specialty Finance targets about $6 billion in aircraft assets over the medium term. Equator, its venture with Blackstone Credit & Insurance, targets about $1.6 billion in aircraft investment annually.
Avolon reported an owned, managed and committed fleet of 1,092 aircraft as of Sept. 30 and said it served 138 airlines in 62 countries. Regulatory approvals are required before the Constellation transaction can close; the companies gave no closing date.
