Japanese trading company Itochu plans to pay $1.95 billion for a 50% stake in Aviation Capital Group, one of the world’s largest aircraft leasing companies.
Itochu will acquire half of TC Skyward Aviation US, the Tokyo Century-owned company that controls California-based Aviation Capital Group, or ACG.
Tokyo Century will retain the other 50%, placing ACG under joint ownership and management by the two Japanese companies. The deal remains subject to final agreements, regulatory approval and other closing conditions.
Itochu and Tokyo Century signed the initial agreement on August 3, 2026. They expect to sign a final agreement later in August and complete the transfer in November.
ACG had 446 owned, managed and committed aircraft at the end of 2025, including 278 aircraft it owned outright, 33 managed aircraft and commitments for another 135.
The company leases aircraft to 85 airlines in 50 countries. About 94% of its fleet consists of narrowbody aircraft, including members of the Airbus A320neo and Boeing 737 MAX families. The average fleet age was 5.4 years at the end of 2025.
ACG’s airline customers include 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, among others.
Tokyo Century first bought a 20% stake in ACG in 2017 before acquiring the remaining shares in 2019. ACG is currently a wholly owned Tokyo Century subsidiary.
Itochu said it plans to use ACG as the main platform for expanding its aerospace business. The companies said they plan to grow ACG’s new-aircraft leasing operation, increase aircraft purchases and sales and look at further acquisition opportunities. They’ll also seek to expand into related areas such as aircraft maintenance, engine leasing and used-parts sales.
Itochu already has aviation investments in Japan, the United States and Ireland. Its businesses include aircraft leasing, airline investments, aircraft maintenance and the sale of used aircraft parts.
The company invested in Irish aircraft-parts supplier Killick Aerospace in 2024 and has identified aerospace as one of its priority growth areas.
Tokyo Century said bringing in Itochu would give ACG more room to add aircraft and compete with larger leasing companies.
ACG ranked ninth among global aircraft lessors by total fleet size in figures presented by Tokyo Century. The company said it wants ACG to move into the top five as the leasing industry continues to consolidate.
ACG’s portfolio is heavily weighted toward newer narrowbody aircraft, which remain in strong demand as airlines replace older jets and expand short- and medium-haul networks.