Qatar Airways Group has entered Japan’s aircraft financing market with its first Japanese Operating Lease with Call Option (JOLCO) transaction, covering three Boeing 787-9 Dreamliner aircraft and supporting its wider fleet financing strategy.
The transaction was arranged with HSBC and JP Lease Products & Services Co., Ltd. (JLPS). HSBC acted as debt arranger and sole lender, while JLPS arranged and underwrote the equity. The deal is the first of three planned transactions under Qatar Airways Group’s inaugural Japanese JOLCO programme, which will cover seven aircraft.
Qatar Airways Group Chief Executive Officer, Hamad Al-Khater, said, “We view the JOLCO market as a strategic long-term funding source and expect to maintain a consistent presence as we finance future fleet investments and growth opportunities.
Al-Khater added, “This transaction provides Qatar Airways with an important foothold in the Japanese financing market, offering access to a deep pool of capital on extremely attractive financial terms. It further diversifies our funding sources, broadens our investor base, and positions the Group to support its future aircraft financing requirements efficiently and competitively.”
The agreement diversifies the Group’s funding sources and establishes a presence in Japan’s aircraft investment market. The programme is intended to provide access to Japanese capital as Qatar Airways finances future fleet investments and network growth.
JP Lease Products & Services Co., Ltd. President and Chief Executive Officer, Teiji Ishikawa, highlighted, “Japanese investors look first at the credit of the airline. Qatar Airways is a strong credit, and investors in Japan welcome this transaction. We are very pleased to have arranged the equity for the airline’s first JOLCO. We do not see this as a single transaction. It is the start of a long-term programme, and we will continue to support Qatar Airways in the Japanese market for many years to come.”
For aircraft asset management and lifecycle planning, financing structures such as JOLCO can help airlines manage fleet investment costs while preserving capital for operational requirements. Aircraft leasing and financing decisions also influence fleet planning, ownership arrangements and the long-term management of aircraft assets.
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HSBC Qatar Chief Executive Officer, Abdul Hakeem Mostafawi, stated, “Building on HSBC’s longstanding strategic partnership with Qatar Airways Group, HSBC is pleased to support Qatar Airways Group’s inaugural JOLCO. Our role as debt arranger and sole lender in this transaction demonstrates our sector expertise and ability to deliver tailored solutions that support fleet expansion, diversify funding sources, and connect leading airlines with global capital.
The programme strengthens Qatar Airways Group’s aircraft financing options as it continues to expand its fleet. While the transaction is primarily a financial milestone rather than an MRO development, diversified funding arrangements can support long-term fleet acquisition and asset-management strategies.
