Major Aviation Shake-Up: SMBC-Led Consortium Acquires Air Lease in $7.4 Billion Deal

The global aircraft leasing market is poised for a significant transformation following the announcement that Air Lease (ALC), founded by Steven Udvar-Hazy, is set to be acquired by a powerful consortium. The $7.4 billion cash deal, led by rival SMBC Aviation Capital and including private equity giants Apollo and Brookfield Credit alongside Sumitomo Corporation, promises to reshape the competitive landscape.

SMBC has confirmed that a definitive agreement has been approved by ALC’s board, with stockholders slated to receive $65 per share. While the cash equity value stands at $7.4 billion, the total enterprise value, including debt obligations to be assumed or refinanced, soars to $28.2 billion net of cash.

The transaction, expected to close in the first half of 2026, will see Air Lease rebranded as Sumisho Air Lease, operating as a distinct entity. Crucially, SMBC will integrate its new sister company’s substantial order book, which currently includes 241 aircraft such as Airbus A220s, A320/A321neos, A330neo, Boeing 737 Max jets, and 787-9/10s, with deliveries extending through 2031. This move will dramatically diversify SMBC’s existing order book, predominantly comprised of single-aisle aircraft.

SMBC Chief Executive Peter Barrett hailed the acquisition as “transformational,” stating it will enable the company to “take a strategic lead in reshaping our sector.” He emphasized the industry’s need for diverse capital pools to support airline and investor customers.

Beyond the order book, SMBC will also serve as a manager for the majority of Sumisho Air Lease’s 495 in-service aircraft portfolio, significantly expanding SMBC’s current fleet, which primarily consists of single-aisle jets. The deal, backed by $12.1 billion in committed financing from SMBC, Citi, and Goldman Sachs Bank USA, remains subject to customary closing conditions, including shareholder and competition regulator approvals.

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