Atlas Air Worldwide-affiliated Titan Aviation and Bain Capital Credit have agreed to form a joint venture  to develop a freighter leasing business.

The anticipated value of the JV is approximately $1 billion. The long-term JV aims to capitalise on demand for cargo aircraft.

Under the JV, Bain and Titan have committed to provide $360 million and $40 million of equity capital, respectively, which may be supplemented with additional commitments over time, to acquire aircraft over the next several years.

Titan will also provide aircraft- and lease-management services to the venture. Since its inception in 2009, Titan has grown to become the third-largest freighter lessor globally by fleet value, with over 30 aircraft and a book value of over $1.5 billion.