Growing into One of the World’s Largest Aircraft Leasing Businesses: The Sumitomo Corporation Team Behind a Turning Point

What kind of business is aircraft leasing?

Saito Aircraft leasing is a business where a leasing company purchases aircraft and leases them to airlines for long-term periods – typically around 10 years. For mid- to large-sized aircraft, the sums involved are massive, ranging from US$150 million to just under US$200 million per plane, and the timeframes are equally significant. At the same time, this business requires carefully assessing the value of individual aircraft and global air travel demand, making a series of calculated decisions for each asset. This is a highly dynamic business that combines both financial and operational aspects, and we have long worked in collaboration with the SMFG Group, which has a strong financial foundation.

Why was the acquisition of ALC so important in this market?

Maedomari Passenger demand, which had plummeted during the COVID-19 pandemic, staged a robust recovery over the subsequent two to three years. Meanwhile, aircraft manufacturers have struggled to keep pace with demand, making the role of leasing companies increasingly vital for airlines trying to secure the aircraft that they need. In this environment, acquiring ALC – with its high-quality aircraft portfolio and established customer base – presented a major opportunity to further enhance the scale and global presence of the Sumitomo Corporation Group’s aircraft leasing business.

How did you feel when the idea of acquiring ALC first came up internally?

Saito We had long been monitoring key players in the industry, aiming to strengthen our own presence in the aircraft leasing sector. Against this backdrop, the possibility of the transaction emerged through initial discussions among relevant stakeholders. If realized, it would further strengthen the scale and global presence of the Sumitomo Corporation Group’s aviation business. Hearing this news instantly boosted morale on the front lines, though we also realized that it would be a far-from-simple undertaking.

Maedomari ALC has been a world-class company in terms of both track record and brand reputation ever since I joined Sumitomo Corporation in 2015. I never imagined I would be involved in a transaction of this scale. It was an incredibly challenging undertaking, but one that promised to take our business to the next level. I was determined to make it a success.

What kind of structure was used to carry out this transaction?

Saito A core team of five – three from Sumitomo Corporation’s Commercial Aviation SBU and two from the department tasked with investment advisory supporting the transaction – led the process while coordinating with the accounting, tax, legal and finance teams. In addition, engagement with various stakeholders, including industry specialists and external advisors, was an important element of the process. Given the immense scale of the transaction, extensive analysis and consultation were required throughout. Ultimately, following multifaceted risk assessments covering operational, financial and legal aspects, the transaction was completed with the participation of four investors: Sumitomo Corporation, SMBC Aviation Capital, Apollo Global Management and Brookfield*.

What were the main challenges in this transaction?

Saito The transaction was exceptionally challenging both in terms of scale and complexity as it involved a publicly traded company and multiple stakeholders. Throughout the process, market conditions remained dynamic, requiring continuous assessment of risks, opportunities and long-term value. Against this backdrop, we conducted a multifaceted analysis of the target company’s business and growth potential, carefully determining its intrinsic corporate value. Throughout the evaluation process, we reviewed pricing considerations, transaction structures and investment assumptions to ensure that the transaction met Sumitomo Corporation’s objectives. Further, the schedule leading up to the signing was exceptionally demanding. It was a real challenge to align the perspectives and priorities of numerous stakeholders within a limited timeframe.

Maedomari The final stages of the project were particularly intense, as negotiations, analysis and internal approval processes all advanced simultaneously. The project required frequent communication across multiple organizations, functions and time zones.

Saito In the final stages of the project, I traveled to Dublin and participated in a series of discussions related to the transaction alongside various stakeholders. The schedule was extremely demanding, and discussions continued late into the night as a number of important points still required careful consideration. Even when the project was approaching its final stages, there was a real sense of tension, as each stakeholder had its own perspectives and priorities.
I still remember grabbing a quick meal during a short break late one night. It was a small moment, but it gave me a chance to reflect on just how intense the process had been. What stands out most in my memory is the professionalism and commitment demonstrated by everyone involved throughout the process. That made the successful completion of the transaction all the more rewarding. I was also very grateful to receive words of appreciation from colleagues involved in the project after its completion. For me, it was an invaluable experience and one that I will remember for a long time.

At what points, specifically, was your role put to the test?

The acquired ALC began operating as "Sumisho Air Lease Corporation" ( Sumisho ALC ) in April 2026. What steps are you taking to get the new company off to a successful start?

Saito Since the completion of the transaction, we have been engaging with management and employees to support a smooth transition and establish a shared understanding of future priorities. Building on that, we have been engaging in ongoing discussions regarding the company’s future vision.

Maedomari I have been on secondment at Sumisho ALC since April 2026. One of my priorities has been gaining a deeper understanding of the company’s operations, organizational culture and strengths. From there, the challenge is how to deepen cooperation across the broader aviation platform while respecting Sumisho ALC’s existing strengths. Supporting effective communication and coordination among stakeholders remains a key part of my role.

Please tell us about the future outlook for the Sumitomo Corporation Group’s aviation-related businesses.