Cravath, Swaine & Moore and Milbank have advised Japan’s SMBC Aviation Capital on its $6.7 billion acquisition of rival aircraft lessor Goshawk Aviation from NWS Holdings and Chow Tai Fook Enterprises, with Clifford Chance representing the sellers.

The deal comes during a period of strong recovery for the global airline industry, and six months after Ireland's AerCap Holdings consolidated its position as the world's largest aircraft lessor through its takeover of General Electric's leasing business, Reuters said.

The purchase of the smaller rival would create a combined company with $38.5 billion in assets, which SMBC Aviation Capital said would make it the world's second largest aircraft lessor by bringing its total fleet to 709, Reuters added.

The Cravath team was led by partners O. Keith Hallam III and Daniel J. Cerqueira, while the Milbank team was led by partner James Cameron.

The Clifford Chance team was led by partner Virginia Lee, with support from partner Ranbir Hunjan.