Air Lease Corp to be taken over by Sumitomo and SMBC, creating world’s 2nd 1,000 aircraft-plus lessor
September 2, 2025
Major leasing firm Air Lease Corporation is set to be taken over by investors led by Japan’s Sumitomo Corporation. The deal is reported to be worth $7.4 billion, with the company valued at $28.2 billion.
As well as Sumitomo, the investors include rival lessor SMBC Aviation Capital, as well as Apollo and Brookfield. The takeover will see a new holding company, headquartered in Ireland, take ownership of Air Lease: Sumisho Air Lease.
The deal is expected to close in the first half of 2026 pending regulatory and shareholder approval.
Consolidation of Air Lease Corp will see a sizeable combined entity
With SMBC involved in the deal, it’s tempting to see this as a merger. But it’s a little more complex than that.
A new aircraft leasing company, Sumisho Air Lease Corporation, is being formed as the acquiring entity. SMBC Aviation Capital will take on the role of servicer to Sumisho Air Lease’s portfolio and will also receive Air Lease’s order book.
In essence, SMBC remains intact but pivots to a servicing and strategic partner role—helping to manage and deploy the fleet assets.
While the deal is not as significant as the previous AerCap – GECAS tie-up, it will create a significant leasing entity.
SMBC is already the world’s second-largest lessor, according to KPMG’s Aviation Leaders Report 2025. The report notes that the company has 761 aircraft in its fleet, excluding managed and committed orders.
AerCap is larger, with 1,676 aircraft in service, while Air Lease Corp is currently behind Avolon, with 575 aircraft.
The new entity, Sumisho Air Lease, will sport a combined fleet of around 1,214 aircraft, firmly retaining second place but putting a large gap between itself and the next-largest lessor, Avolon, which KPMG reported to have 583 aircraft at the start of the year.
Also of value, however, is the outstanding ALC orderbook. Its financial reports confirm 241 aircraft on order, many likely with preferential placement in the long queues at the manufacturers. Combined with SMBC’s own approximately 228 aircraft on order, the combined entity will have a solid footing in new aircraft deliveries.
SMBC plus ALC: A match made in heaven?
While the new entity won’t be SMBC as such, SMBC will be providing the services so that Sumisho Air Lease can operate.
Historically, SMBC has been an ultra-conservative lessor, with one of the youngest, narrowest portfolios in the industry. More than 80% of its fleet is narrowbody, and all are new technology (737 MAX, A320neo families). It has limited exposure to widebody aircraft, with just over 20 Airbus A350 and a couple of dozen Boeing 787.
Air Lease, on the other hand, has a slightly more widebody-weighted split between aircraft types, although the bulk of its fleet is still narrowbody. Around 50% of the fleet is A321neo or 737-800/737 MAX 8, while around 25-30% of the fleet is widebody.
Together, the combined entity will have a balanced fleet of around 75% narrowbody and 25% widebody. For SMBC, it’s a shortcut to diversification and scale, without the risk of building a widebody portfolio from scratch.
For ALC, including its iconic founder Steve Udvar-Hazy, the deal closes a 15-year-long chapter on a groundbreaking leasing firm.
“Since founding Air Lease in 2010, we have been unwavering in our mission to shape the future of the aviation industry and provide airlines around the world with access to the most modern, fuel-efficient aircraft,” says Udvar-Hazy. “After thoughtful consideration, the Board has unanimously determined that this transaction represents the best path forward for our company as it will deliver an immediate premium and certainty in cash value to our Class A common stockholders.”
