Emirates has finalized a landmark Japanese Operating Lease with Call Option (JOLCO) financing deal with HSBC, securing over $1 billion to fund the acquisition of six new Airbus A350-900 aircraft. The innovative structure, arranged by ABL Aviation and supported by HSBC Middle East, represents one of the most sophisticated financing transactions in the regional aviation sector and reinforces Emirates’ strategy of balancing operational expansion with disciplined financial management. Four aircraft have already joined the fleet in early 2025, with the remaining two scheduled for delivery in October and November.
This transaction underscores Emirates’ continued leadership in aviation innovation, sustainability, and capital optimization. It reflects the airline’s commitment to integrating next-generation aircraft that combine efficiency, reduced emissions, and long-haul performance while maintaining strong balance sheet discipline.
The JOLCO structure, widely used in the global aviation sector, allows investors to finance aircraft through Japanese operating leases while providing Emirates with the call option to purchase at a later stage. This hybrid structure offers both fiscal efficiency and long-term control over fleet assets.
The structure’s success illustrates how aviation finance is evolving beyond traditional bank lending toward structured, cross-border private capital participation.
Complex transactions of this scale depend on strong institutional collaboration and precise execution. HSBC Middle East served as the lead financier and advisor, while legal counsel was provided by Nishimura & Asahi and Norton Rose Fulbright, ensuring compliance with multi-jurisdictional regulatory and tax frameworks.
The addition of six new A350-900 aircraft enhances Emirates’ ability to meet rising global demand and optimize its route network. The aircraft’s efficiency and range complement the airline’s existing fleet, particularly for mid-to-long-haul destinations across Europe, Asia, and Africa.
The recognition of this deal as the “Structured Finance Deal of the Year” reflects broader trends in aviation funding—where private capital, sovereign investors, and institutional financiers are reshaping the landscape of asset acquisition. For the UAE, this demonstrates growing expertise in deploying innovative financing to support national aviation growth and diversification.
Emirates’ JOLCO transaction marks a turning point for structured aviation finance in the region. By combining global capital markets sophistication with strategic fleet expansion, the airline reinforces the UAE’s role as a hub for innovation in both aviation and finance. This deal is not just about aircraft acquisition—it’s a model for how disciplined structure and visionary execution can redefine industry growth in a competitive global market.
