JP Lease Products & Services Co., Ltd. and JLPS Ireland Limited work together to provide arrangement services for aircraft operating lease, which is a way for airlines to procure aircraft.
(Main schemes)
- JOLCO*1, a 100% financing transaction that mainly combines borrowing from financial institutions and equity investment via Tokumei Kumiai.
- Arrangement of aircraft operating leases, such as JOL*2
- Arrangement of investors that directly own the leased aircraft.
We work together to provide a one-stop service, from negotiating lease terms with airlines, helping with aircraft purchases (for example, by raising funds from financial institutions), managing funds and aircraft during the lease period, through to exit strategies when the lease period expires.
- *1
- JOLCO (Japanese Operating Lease with call option)
JOLCO is an operating lease which gives the lessee an option to purchase the asset at the end of the lease, or at some point during the lease period, at the purchase price determined at the commencement of the lease.
- *2
- JOL (Japanese Operating Lease)
JOL is an operating lease funded by the equity investment from Japanese investor(s) and non-recourse debt from financial institution(s). This structure is used mainly in the aviation industry to provide airlines with 100% financing of aircraft. The lease rates are competitive and attractive for airlines. The equity investor(s) will enjoy tax benefits from the JOL structure and is exposed to the residual value risk at the end of the lease. Therefore, the JOL should be structured by the experts of aircraft leasing in order to minimize the residual value risk.
Origination
JLPS Ireland Limited proposes the most suitable aircraft procurement plans for airlines by utilizing our wealth of knowledge and the abundant networks at our disposal.
Financing
Both JP Lease Products & Services Co., Ltd. and JLPS Ireland Limited have a global network of financial institutions and a network of excellent small/mid-sized corporate investors in Japan. We utilize these networks to support fund procurement.
Lease Management
Our experienced staff in Ireland manage leased assets and funds currently within the lease period. Aircraft must meet various regulations and maintenance conditions in order to continue safe operation. As a lease servicer, we utilize our wealth of experience and skills to provide customers with timely information on assets under management within the lease period.
Remarketing
JLPS Ireland Limited arranges for a new lessee or a buyer for aircraft whose lease period is about to expire.
Exit
Aircraft lease ends with the sale of the aircraft. We will consider the most suitable option based on the condition of the aircraft.
(Main schemes)
- Sale as a used passenger plane
- Sale after conversion to a freight aircraft
- Disassembled and sold as parts (part-out),
etc.
