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Aegean Airlines has joined the global exclusive club of carriers that use the JOLCO financing tool.
The five-letter acronym stands for the Japanese Operating Lease with Call Option, which airlines choose to finance the purchase of new wide-body and narrow-body aircraft, such as the Airbus A320 and A321neo.
JOLCO is considered one of the cheapest ways to secure liquidity, also due to the volatility between the US dollar and the Japanese yen. However, accessing financing through JOLCO is difficult because Japanese investors are particularly conservative and selective, avoiding risk.
According to information, just before 2024 ended, Aegean completed a JOLCO agreement for the supply of a new A321, which is part of the 50 aircraft it has ordered. The contractor and manager is Credit Agricole, which, along with Japan’s Sumitomo Mitsui Trust Bank, also acted as a lender. This is the third Japanese operating lease agreement in a row, with the previous two, which took place in September and June 2024, concerning the financing of two A320neo. The company will proceed with a similar form of financing this year for future aircraft deliveries.