22 Aug 2025
#4 August 2025: North American Aviation Newsletter
ATSG Delivers Second A330 Converted Freighter to ULS Airlines Cargo
Air Transport Services Group (ATSG) has announced the delivery of its second Airbus A330-300 passenger-to-freighter (P2F) conversion to Istanbul-based ULS Airlines Cargo.
The A330-300P2F offers a gross payload capacity of approximately 62 tonnes and a cargo volume of over 526 cubic meters—making it a versatile widebody freighter for global logistics needs.
Todd France, Chief Commercial Officer at ATSG, commented:
“ATSG’s A330P2F program continues to deliver modern, fuel-efficient freighter capacity to meet the growing demands of global air cargo. The delivery of this second aircraft to ULS reflects our shared commitment to fleet modernization, operational reliability, and long-term partnership.”
Azorra Expands into India with E175 Deliveries to Star Air
Azorra has announced the delivery of its second Embraer E175 aircraft to Indian regional carrier Star Air, marking its first foray into the Indian market. The second 88-seat, all-economy jet arrived in Bengaluru in July 2025, following the initial delivery in April.
Two additional E175s are scheduled for delivery, completing the four-aircraft lease agreement signed earlier this year. In addition, Azorra has acquired four more E175s currently leased to Star Air from DAE, as part of a broader portfolio acquisition.
John Evans, CEO of Azorra, stated:
“These deliveries mark our first transactions in India, one of the world’s most rapidly evolving aviation markets. We believe in Star Air’s potential and in the long-term growth of the Indian market. This expansion is also an important step as Azorra strengthens its presence across the Asia-Pacific region.”
Castlelake Launches New Aviation Lending Entity: Merit AirFinance
Castlelake has announced the launch of Merit AirFinance, a new aviation lending platform dedicated to providing debt capital solutions for new and used aviation assets. Merit will serve airlines and leasing companies with tailored financing solutions, while operating independently from Castlelake’s leasing business.
Merit AirFinance launches with more than $1.8 billion in committed capital through separately managed accounts.
Evan Carruthers, CEO and Chief Investment Officer at Castlelake, said:
“Castlelake has continuously innovated to deliver flexible solutions across all aviation asset classes. The formation of Merit AirFinance reflects our commitment to offering capital across the full aviation capital stack. This approach benefits both aviation industry participants and our investors by providing attractive, risk-adjusted opportunities in the sector.”
Acumen’s Take
On ATSG’s Second A330P2F Delivery to ULS Airlines
ATSG’s continued deployment of A330P2Fs reflects rising demand for fuel-efficient widebody freighters in the post-COVID cargo environment. For regional players like ULS, the A330-300P2F offers payload capacity and range that bridge the gap between mid-tier demand and long-haul network needs. With conversion slots tightening globally, lessors expanding P2F fleets stand to benefit from long-term lease demand and limited replacement competition.
On Azorra’s Expansion into India via Star Air
Azorra’s entry into India is a strategic milestone, as the country’s regional aviation sector matures and demand surges for sub-100-seat aircraft. The dual-track strategy—combining direct leases and portfolio acquisitions—positions Azorra as a long-term partner in India’s connectivity agenda. For asset managers and investors, this underlines the enduring appeal of the E175 as a flexible platform in constrained airport markets.
On Castlelake’s Launch of Merit AirFinance
The creation of Merit AirFinance illustrates the increasing sophistication of capital deployment strategies in aviation finance. By segmenting its lending and leasing arms, Castlelake is signalling a clearer alignment between risk appetite and capital allocation. With over $1.8 billion in dry powder, Merit is well-positioned to capitalise on refinancing demand and distressed opportunities—especially as interest rate dynamics shape a new wave of capital needs in the sector.
Acumen Aviation © 22 August 2025 All Rights Reserved.
