The Clap
One of the world’s biggest aircraft lessors, SMBC Aviation Capital, wants to acquire its smaller Rival Goshawk for ~$7 billion.
Claps Class
Airlines lease aircraft from other airlines or leasing companies for two main reasons: to operate aircraft without the financial burden of buying them, & to provide a temporary increase in capacity.
More on SMBC
SMBC Aviation Capital is owned by publicly-listed firm Sumitomo Mitsui Financial Group (NYSE: SMFG). SMBC owns & manages more than 750 short-haul Boeing (NYSE: BA) & Airbus models.
Why this matters
There’s a big shift towards consolidating companies in the aircraft leasing industry. Last year, the world’s two largest aircraft leasing companies merged in a deal worth more than $30 billion.
SMBC’s acquisition of Goshawk would create another giant aircraft leasing company.
M&A’s still going strong, even in the aircraft leasing industry🤝
