Tokyo-headquartered Daiwa Securities Group has moved into the aircraft leasing sector through a strategic partnership with Dublin-based specialist aircraft leasing and asset manager Airborne Capital.

This move, which includes both a business and capital alliance, signals a renewed focus on alternative investment opportunities in the wake of Asia’s airline sector recovery from the global pandemic.

The newly formed joint venture, tentatively named Daiwa Airborne, will combine Daiwa’s expansive client network in Japan with Airborne Capital’s expertise in managing aircraft assets.

As part of its forward-looking strategy, Daiwa Airborne plans to develop leasing products that respond to market dynamics, including eco-friendly aviation solutions to meet increasing demands for sustainability in the sector.

Together, the companies aim to strengthen offerings in Japanese operating lease (JOL) products, which combine tax benefits with competitive returns for investors, and provide tailored solutions for high-net-worth individuals and corporate clients.

The alliance comes at a pivotal moment with the global commercial aircraft sector, experiencing a rebound, with annual passenger demand projected to grow by 3% to 4%, fuelling the demand for aircraft leasing.

With its robust aviation market and increasing passenger numbers, Asia-Pacific has emerged as a central hub for aircraft leasing with the region offering strong growth opportunities. Japan, in particular, has become a hotspot for JOL products.

The joint venture will be evenly split, with both Daiwa Securities Group and Airborne Capital holding 50% stakes. The equitable structure, the companies say, reflects their shared commitment to advancing the aviation finance sector.

“Alternative investments, such as aircraft leasing, provide stability and broaden revenue streams for investors,” says Akihiko Ogino, Daiwa Securities’ president and CEO. “This partnership is aligned with our goal of maximizing customer asset value through innovative, high-demand solutions.”

Ramki Sundaram, Airborne Capital CEO, adds: “Japan is a key market for Airborne Capital, and Daiwa’s deep market reach complements our aviation expertise. This partnership will allow us to expand our footprint in Asia, a region poised for sustained growth in aircraft leasing.”