Avolon is to sell 22 leased aircraft with a market value of about US$1.398bn to Constellation Aviation, a new aircraft leasing platform led by I Squared Capital, its Shenzhen-listed parent Bohai Leasing said on 2 November 2026.
Why Constellation Aviation (I Squared Capital, ADIA and Avolon) is buying Portfolio of 22 leased aircraft from Avolon
Bohai Leasing said the joint venture would widen Avolon's channels for disposing of aircraft and improve its asset structure, while Avolon earns management fees and commissions as exclusive servicer. Constellation will buy aircraft from Avolon's fleet and from other sources and earn returns from holding and selling leased aircraft.
Deal terms and financing
Avolon units signed an initial investment agreement on 31 October with an I Squared Capital vehicle and a second investor group. Constellation will be owned 50.1% by I Squared, 34.9% by the second group and 15% by Avolon, which will invest up to US$75m. The 22 aircraft are 16 narrowbodies, five widebodies and one regional jet, with an average age of about 5.2 years and about 8.3 years of remaining lease term. The final price will be negotiated with reference to the US$1.398bn market value, and payment will be made aircraft by aircraft at delivery. The National reported that a syndicated bank facility will support the venture.
Regulatory approvals and timing
Bohai Leasing's board approved the transaction, and no shareholder vote is needed. The full set of agreements will be signed once conditions precedent are met; The National said closing depends on regulatory approvals.
Market context
Avolon is a Dublin-based aircraft lessor controlled by Bohai Leasing. According to The National, the 22 aircraft are leased to 17 airlines in 15 countries.
