QATAR: Qatar Airways inks first three 787-9 JOLCOs
DOHA, Qatar: Qatar Airways Group signed its inaugural Japanese Operating Lease with Call Option (JOLCO) covering three Boeing 787-9 aircraft. HSBC acted as debt arranger and sole lender.
DOHA, Qatar
- Qatar Airways Group signed its inaugural Japanese Operating Lease with Call Options (JOLCO) covering three Boeing 787-9s
- HSBC acted as debt arranger and sole lender.
- JP Lease Products & Services Co., Ltd. (JLPS) underwrote and arranged the JOLCO equity.
- The transaction is the first of three under an inaugural JOLCO programme in Japan that will cover seven aircraft total.
- JLPS serves as equity arranger for the full programme.
- A JOLCO is a structured finance vehicle that enables airlines to obtain 100% off-balance-sheet financing for high-value assets by pairing non-recourse bank debt with equity from Japanese corporate investors.
- It is highly attractive because it creates a symbiotic financial windfall: Japanese small-and-medium enterprises invest equity to capture steep, front-loaded asset depreciation that offsets their domestic tax liabilities, and in exchange, they pass these tax savings down to the global operator in the form of exceptionally low lease rates and a predictable, discounted purchase option.
- Hamad Al-Khater, Qatar Airways Group Chief Executive Officer, said the JOLCO market is viewed as a strategic long-term funding source.
- Teiji Ishikawa, JP Lease Products & Services Co., Ltd. President and Chief Executive Officer, said the deal marks the start of a long-term programme.
- Abdul Hakeem Mostafawi, HSBC Qatar Chief Executive Officer, said the transaction builds on the longstanding partnership and demonstrates sector expertise.
- Qatar Airways Group said that as it continues to expand its fleet and network, it remains focused on diversifying its funding sources and building long-term relationships with financial institutions and investors in Japan and beyond.
- The Qatari carrier has twenty-nine 787-9s in its fleet alongside thirty-two 787-8s. Boeing's September 2026 fleet data shows Qatar Airways has 56 Boeing 787-9s still due out of an original order of 85, alongside 50 convertible options shared between the 787-9 and 777-9.
- Regarding other 787 variants, the airline holds orders for 75 Boeing 787-10s, while its order book for the Boeing 787-8 has no remaining orders following the complete delivery of all 32 aircraft currently operating in its fleet.
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