CANADA; UNITED STATES OF AMERICA —FTAI Aviation has finalized the acquisition of 27 Boeing 737-700 aircraft from WestJet, marking a significant expansion of its aviation asset portfolio. The transaction is structured in two parts: the 2026 special purpose vehicle of the FTAI Strategic Capital division acquired 17 in-service aircraft through a sale-leaseback arrangement. Concurrently, FTAI purchased 10 off-lease aircraft to directly support its Aerospace Products business.
This development is strategically important for both parties as it facilitates WestJet ongoing fleet modernization and retirement of older narrowbody models. For FTAI, the acquisition of the off-lease units provides an immediate influx of CFM56-7B engines and modules. These components are critical for the company maintenance, repair, and exchange operations, addressing persistent industry demand for reliable aftermarket aviation parts.
The broader aviation industry is experiencing a structural shift in how mid-life aircraft are valued and utilized. Rather than viewing retiring airframes solely as end-of-life assets, lessors and specialized aviation firms are capitalizing on their residual value, particularly the high demand for certified engine components. This transaction underscores the growing synergy between aircraft leasing and aftermarket parts supply, allowing firms to capture value across the entire lifecycle of an aviation asset.
From a market perspective, the deal reinforces the differentiated position of FTAI as a buyer of mid-life narrowbody aircraft. The 2026 special purpose vehicle builds upon the momentum of the company 2025 fund, which successfully raised two billion dollars in equity commitments and deployed approximately six billion dollars in total capital across more than 300 aircraft. By integrating asset ownership with proprietary engine maintenance capabilities, FTAI offers airlines comprehensive fleet solutions, from capital generation via sale-leasebacks to flexible exit strategies for aging equipment.
FTAI Aviation is a global infrastructure and aviation asset management company that combines advanced turbine technology with strategic asset ownership to serve essential markets. WestJet is a major Canadian airline group that operates an extensive domestic and international network, currently undergoing fleet optimization to improve operational efficiency and reduce long-term maintenance costs.
