ITOCHU backs Sirius aviation growth

Japan’s ITOCHU Corporation has taken a strategic stake in Abu Dhabi-based Sirius Aviation Capital Holdings, strengthening the emirate’s position as a base for aircraft investment at a time when airlines are extending the use of mid-life jets to offset delivery delays and capacity constraints.

The transaction brings one of Japan’s largest trading and investment groups into the shareholder base of Sirius, an aviation investment manager headquartered in Abu Dhabi Global Market. Financial terms and the size of the shareholding have not been disclosed. ITOCHU joins Abu Dhabi Catalyst Partners, the investment platform jointly owned by Mubadala Capital and Alpha Wave Global, as a strategic shareholder in the business.

Sirius, established in 2019 and led by chief executive Edward Coughlan, focuses on acquiring and managing aircraft on operating lease to airlines across global markets. Its business model is centred on mid-life aircraft, particularly narrow-body jets used on short-haul and regional routes, a segment that has gained greater importance as manufacturers struggle to meet delivery schedules and carriers seek capacity without waiting years for new aircraft.

The investment is being framed as a move to support Sirius through its next stage of growth, with ITOCHU bringing experience in aircraft and engine asset management. The Japanese group manages a portfolio of more than 90 aircraft and engines and has been expanding its exposure to aviation aftermarket services, a field that includes maintenance, asset trading, leasing support and lifecycle management.

The timing is significant. Airlines worldwide continue to face a shortage of available aircraft as Airbus and Boeing work through large order backlogs, supplier bottlenecks and engine durability issues. Demand for single-aisle aircraft remains strong, driven by domestic and regional travel, low-cost carrier expansion and growth across Asia, the Middle East and Africa. Forecasts by major aircraft manufacturers point to more than 43,000 new commercial aircraft being required over the next two decades, with single-aisle aircraft accounting for the dominant share.

That imbalance between demand and supply has lifted the value of aircraft already in service. Mid-life jets, once viewed mainly as transitional assets, have become central to fleet planning for carriers that need reliable capacity but cannot secure new deliveries on schedule. Lease rates for popular narrow-body types have stayed firm as airlines keep older aircraft flying for longer and compete for available units.

For Abu Dhabi, the deal fits a broader strategy to attract financial platforms, alternative asset managers and specialised investment firms to ADGM. The financial centre has sought to build scale in private markets, aircraft finance, asset management and capital markets infrastructure, benefiting from the emirate’s sovereign investment ecosystem and its links to global funds.

Abu Dhabi Catalyst Partners has been an early backer of Sirius, having committed capital to the platform as part of a broader effort to draw international investment firms into ADGM. The platform manages a fund of more than $2 billion and has built a portfolio of over 30 investment partnerships across sectors. Its continuing presence in Sirius provides local institutional backing while ITOCHU adds an industrial and international aviation dimension.

Sirius has built its portfolio through aircraft acquisitions, lease extensions and financing transactions involving Airbus A320 family aircraft and other single-aisle assets. Its earlier transactions included aircraft leased to carriers such as Air France, Air New Zealand and other operators, reflecting a focus on widely used aircraft types with broad secondary-market appeal.

The company’s strategy also reflects the growing role of specialised lessors outside the traditional aircraft leasing hubs. Ireland, Singapore and the United States remain major centres for aviation finance, but Gulf financial centres are gaining attention as regional carriers expand, capital pools deepen and investors seek asset-backed income streams tied to global mobility.

ITOCHU’s entry is also likely to deepen links between Sirius and aviation markets in Asia. Japan has long been active in aircraft leasing and structured finance, with trading houses, banks and leasing companies participating in aircraft ownership and financing structures. The investment gives ITOCHU exposure to a platform based closer to high-growth airline markets across the Gulf, Africa and South Asia.