Adia, Avolon and I Squared Capital launch Constellation Aviation platform

Abu Dhabi Investment Authority has partnered with aviation finance company Avolon and infrastructure investor I Squared Capital to launch Constellation Aviation, an aircraft leasing infrastructure investment platform. The three parties announced the formation on 2 November 2026, describing the structure as one that will give airlines fleet capacity access while offering investors contracted cash flow streams over extended periods.

Seed portfolio acquisition of $1.4 billion#

Constellation Aviation is set to purchase from Avolon an initial aircraft portfolio carrying a present market value of $1.4 billion, subject to completion of the transaction. The initial holding consists of 22 aircraft with an average age of approximately five years, placed under lease with 17 airline operators in 15 countries. The companies stated that Constellation is expected to expand its scale in the period ahead. Completion of the transaction awaits regulatory approvals, and a syndicated debt facility arranged by a group of international banks will support the joint venture.

Avolon to retain minority stake and management role#

Under the arrangement, Avolon will hold a minority equity position in the joint venture while acting as the platform's sole aircraft manager and servicer for Constellation. Khadem AlRemeithi, executive director of the infrastructure department at Adia, said aircraft leasing is a resilient and growing sector supported by structural demand for modern aircraft. Passenger numbers continue to rise while airlines face constraints in aircraft supply and delayed deliveries from manufacturers, increasing the requirement for leased capacity to support fleet expansion and renewal programmes.

Order book scale and delivery slots#

Gautam Bhandari, co-founder, managing partner and global chief investment officer of I Squared Capital, said manufacturers' order books extend more than a decade forward, requiring airlines to work with lessors holding delivery positions and operational scale for fleet growth. Avolon holds one of the largest order books with Boeing and Airbus, Bhandari said. In July 2026, plane lessor Dubai Aerospace Enterprise formed a partnership with Neuberger Specialty Finance of the United States to establish Mustang Aerospace, a co-investment vehicle for aircraft leasing with a target of up to $6 billion in assets over the medium term. In April 2026, Dubai Aerospace Enterprise and Blackstone Credit & Insurance formed a platform committing $1.6 billion per year to assemble a commercial aircraft portfolio.