Avolon has agreed with I Squared Capital and a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) to establish Constellation Aviation, an aircraft-leasing and infrastructure investment platform. At completion, the venture is expected to acquire a $1.4 billion portfolio of 22 aircraft from Avolon, leased to 17 airlines in 15 countries. Avolon will retain a minority equity interest and serve as the platform’s exclusive aircraft manager and servicer.
The portfolio has an average aircraft age of about five years. Avolon will provide origination, leasing, asset-management and technical capabilities, while I Squared Capital and ADIA bring institutional capital. The partners intend to grow the platform over time, but have disclosed neither a quantified target nor Avolon’s precise ownership stake.
The transaction remains subject to regulatory approvals. A syndicated debt facility will support the joint venture, with BNPP, CACIB, SocGen, ING, MUFG and Mizuho acting as joint lead bookrunners. The platform is being formed amid continuing passenger-demand growth, constrained aircraft manufacturing capacity and airline reliance on leasing to renew and expand fleets.