FTAI Aviation has acquired 27 Boeing 737-700 aircraft from WestJet, with 10 off-lease aircraft set to support its CFM56-7B engine maintenance and exchange business and 17 remaining in service under a sale-leaseback arrangement.
Under the transaction, FTAI’s Strategic Capital business acquired 17 aircraft through its 2026 special purpose vehicle (SPV), which will lease them back to WestJet. The remaining 10 off-lease aircraft will support FTAI’s Aerospace Products business.
The 10 aircraft will expand FTAI’s supply of CFM56-7B engines and modules available to its Maintenance, Repair and Exchange (MRE) customers. The additional inventory is intended to support engine maintenance requirements and component exchange activity.
The acquisition also demonstrates how FTAI combines aircraft ownership and leasing with its engine maintenance operations, covering both in-service aircraft and assets transitioning out of airline fleets.
“We are pleased to expand our relationship with WestJet through this transaction,” said David Moreno, President at FTAI Aviation. “It demonstrates how our Strategic Capital and Aerospace Products businesses work together to offer airlines comprehensive fleet solutions, from sale-leaseback capital for in-service aircraft to a flexible exit for aircraft transitioning out of the fleet. For Aerospace Products, the retiring aircraft will add CFM56-7B engines and modules to the exchange pool to support our customers’ maintenance requirements.”
WestJet said the transaction marks the beginning of its retirement of the 737-700 fleet.
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“This 27-aircraft transaction is a strategic milestone that officially marks the start of the retirement of our 737-700 fleet. We’re pleased to partner with FTAI Aviation Ltd. to make this happen, and we look forward to building on this relationship for future opportunities,” said Mike Scott, WestJet Group Executive Vice-President and Chief Financial Officer.
The transaction is one of FTAI’s largest aircraft acquisitions to date and expands its mid-life narrowbody aircraft portfolio while adding engine inventory for its aftermarket business.
