Group 1 - Air Lease, an aircraft leasing firm, is being acquired for $7.4 billion, indicating a trend of consolidation in the airplane-renting industry [1][2] - The acquisition is led by Japan's Sumitomo and SMBC Aviation Capital, along with asset managers Apollo and Brookfield, offering shareholders $65 per share, which is an 8% premium over the previous closing price [2] - The total valuation of Air Lease, including debt, is approximately $28.2 billion [2] Group 2 - The aircraft leasing sector has seen a significant increase in rental rates due to a shortage of aircraft caused by the Covid pandemic and supply chain issues, with rates reaching record highs for both new and older models [3] - The ownership share of the aircraft leasing business has grown from 51% in 2009 to 58% currently, although growth has slowed as some airlines have become profitable and are now purchasing their own planes [4] - Airlines are reassessing their capacity plans due to an oversupply of flights affecting fares and profits, exemplified by Spirit Airlines filing for Chapter 11 bankruptcy protection for the second time in less than a year [5] Group 3 - The take-private deal is expected to enhance the scale of the involved companies, with Air Lease operating a fleet of 495 planes as of the second quarter [6] - Air Lease ranks as the fifth-largest aircraft lessor, and the deal is anticipated to close in the first half of 2026, with the new company to be based in Dublin [6] - The acquisition is viewed as a cost-effective strategy for market growth in the aircraft leasing industry [6]
Airplane leasing world shrinks with $7.4 billion takeover of Air Lease