Key facts
- Itochu plans to invest approximately 300 billion yen ($1.9 billion).
- Itochu will acquire a 50% stake in Aviation Capital Group (ACG).
- ACG is a U.S. aircraft lessor.
- ACG is a subsidiary of Tokyo Century.
- The investment aims to expand Itochu's aircraft leasing business.
- The move is driven by a global jet shortage.
- The move is driven by recovering air travel demand.
Itochu Corporation, a prominent Japanese trading house, has announced plans to invest approximately 300 billion yen, equivalent to $1.9 billion, to secure a 50% ownership stake in Aviation Capital Group (ACG). ACG is a significant U.S.-based aircraft lessor and operates as a subsidiary of Tokyo Century Corporation. This substantial investment is designed to facilitate the expansion of Itochu's existing aircraft leasing operations. The strategic move comes at a time when the global aviation industry is experiencing a pronounced shortage of available jets. Simultaneously, demand for air travel is showing a robust recovery following recent global disruptions. By acquiring a 50% share in ACG, Itochu aims to leverage the lessor's established position and fleet to navigate the current market dynamics. The partnership is expected to enhance Itochu's capabilities in the competitive aircraft leasing market, allowing it to capitalize on the increasing need for aircraft from airlines worldwide. The deal underscores the strategic importance of aircraft leasing as a growth area for major trading companies in Japan.