The Japanese trading company Itochu intends to acquire a 50 percent stake in the US aircraft leasing company Aviation Capital Group (ACG) for US$1,95 billion. As the companies involved announced, Itochu will acquire half of the shares in TC Skyward Aviation US, a former subsidiary of the Japanese financial group Tokyo Century, which controls the California-based ACG.
The remaining 50 percent will remain with Tokyo Century, meaning the lessor will operate as a joint venture under the joint management of both companies. A preliminary agreement was signed on August 3, 2026. The transaction is expected to close in November 2026, pending all necessary regulatory approvals and the fulfillment of contractual closing conditions. Itochu's investment is intended to strengthen the company's equity and expand its aircraft portfolio, enabling it to achieve a stronger market position in the consolidating global aircraft leasing market.
Transaction structure and timetable for participation
The transaction stipulates that Itochu will acquire half of the shares in the intermediate holding company TC Skyward Aviation US. Tokyo Century, which initially acquired a 20 percent stake in ACG in 2017 and fully acquired the company in 2019, will thus relinquish sole control. The initial agreement for this share purchase was signed on August 3, 2026. The final purchase agreement is expected to be signed later in August 2026, with the actual transfer of shares targeted for November 2026.
The purchase price of US$1,95 billion reflects the market value of the leasing company, which has an extensive fleet portfolio. For Tokyo Century, the acquisition of Itochu means a distribution of financial risk while simultaneously providing new capital for further fleet growth. Going forward, operational management will be jointly managed by both owners.
Composition of the Aviation Capital Group's fleet portfolio
Aviation Capital Group is one of the major players in the global aircraft leasing market. At the end of 2025, ACG's portfolio comprised a total of 446 aircraft, either owned, managed, or under firm purchase agreements. Specifically, 278 aircraft were directly owned, 33 were managed for third parties, and firm orders existed with manufacturers for a further 135 aircraft.
At the end of 2025, the company's customer base comprised 85 airlines in 50 countries. These customers include established international carriers such as United Airlines, Air France, WestJet, Wizz Air, Air India Express, LOT Polish Airlines, ITA Airways, Royal Air Maroc, and South Korea's T'way Air. The fleet is primarily comprised of narrow-body aircraft from the Airbus A320neo and Boeing 737 Max families, comprising approximately 94 percent of the total, and is mainly used for short- and medium-haul routes. The average age of the company's own fleet was reported as 5,4 years at the end of 2025.
Strategic objectives and expansion of business areas
For Itochu, the investment in ACG represents a crucial platform for expanding its activities in the aerospace sector. The trading company already has various investments in Japan, the United States, and Ireland. These include direct investments in airlines, aircraft leasing, maintenance companies, and the trade of used aircraft components. Among other things, Itochu acquired a stake in the Irish spare parts supplier Killick Aerospace in 2024.
The partners plan to expand ACG beyond traditional aircraft leasing for new vehicles, and also intensify the buying and selling of aircraft on the secondary market. Furthermore, Itochu and Tokyo Century aim to extend their business activities into adjacent areas. These include technical maintenance services, engine leasing, and the sale of used spare parts and components salvaged from older aircraft.
Competitive situation in the global leasing market
The aircraft leasing market has been undergoing consolidation for years. Large leasing companies such as AerCap and SMBC Aviation Capital have continuously expanded their market share through acquisitions. In a comparison of the industry, ACG recently ranked ninth among global leasing providers in terms of fleet size.
With the additional capital and Itochu's global presence, the shareholders aim to position ACG among the top five aircraft leasing companies worldwide. Demand for modern narrow-body aircraft is high, as numerous airlines replace older models with more fuel-efficient aircraft and expand their route networks. However, the sector's growth also faces challenges. Delivery delays from manufacturers Airbus and Boeing, coupled with limited engine overhaul capacity, are hindering the timely delivery of new aircraft and increasing the costs of maintaining existing fleets. ACG's future development will therefore depend significantly on how efficiently the two Japanese owners can deploy the provided capital in a market environment characterized by supply chain disruptions.