This article is based on an official press release from Falko Regional Aircraft Limited.

Falko Enters Japanese Market with First Regional Aircraft Sale via JOL Structure

Falko Regional Aircraft Limited (Falko), the world’s largest asset manager focused exclusively on the regional aircraft sector, has officially closed its first aircraft sale in the Japanese market. Announced on December 15, 2025, the transaction involves the sale of a Bombardier CRJ900 regional jet to a Japanese investor. The deal was structured as a Japanese Operating Lease (JOL), marking a significant expansion for Falko into a region traditionally dominated by larger narrowbody and widebody investments.

According to the company’s announcement, the transaction was executed in partnership with iStrings Aviation Capital Co., Ltd., a Tokyo-based aviation asset manager and subsidiary of Marubeni Corporation. This collaboration highlights a strategic push to introduce regional aviation assets to Japanese corporate investors, who have historically favored “liquid” assets such as the Boeing 737 or Airbus A320 families.

Transaction Structure and Strategic Partners

The sale utilizes the Japanese Operating Lease (JOL) structure, a financing mechanism widely used by Japanese corporate investors, often Small and Medium Enterprises (SMEs), to defer taxes by writing off asset depreciation against corporate profits. While JOL transactions are common in the aviation finance world, they are rarely applied to regional jets like the CRJ900.

Falko stated that iStrings Aviation Capital acted as the arranger for the deal, bridging the gap between the UK-based lessor and the Japanese investor base. iStrings, wholly owned by the major trading house Marubeni Corporation, specializes in arranging JOL and JOLCO (Japanese Operating Lease with Call Option) transactions.

Hirotoshi Takezoe, Director at iStrings Aviation Capital, commented on the evolving market dynamics in the press release:

“While regional jets have had a limited presence in the JOL space, we are now seeing growing investor interest as the market expands and the investor base diversifies.”

Market Context: A Shift Toward Regional Assets

The Japanese aviation finance market is mature, hosting major global players and significant capital. However, the entry of a dedicated regional aircraft lessor signals a shift in investor sentiment. Regional jets, which typically seat between 50 and 150 passengers, offer a lower capital entry point compared to standard narrowbody aircraft. This “smaller ticket” size allows a broader range of corporate investors to participate in aviation leasing without the massive capital outlay required for larger jets.

Brian Foley, Head of Portfolio Strategy at Falko, emphasized this alignment in the company’s statement:

“The ticket size for used E-Jet, CRJ and A220 aircraft types aligns well with the preferences of Japanese investors, and so we anticipate continued momentum and increased activity in the 50-150 seat aircraft segment.”

AirPro News Analysis

The successful closure of this CRJ900 deal suggests that the Japanese Operating Lease market is undergoing a period of diversification. For decades, the JOL market has been a stronghold for Airbus and Boeing narrowbodies due to their perceived liquidity and standardized value retention. Falko’s ability to close a deal on a regional asset indicates that Japanese investors are becoming more sophisticated, seeking yield and tax benefits in asset classes that were previously considered niche.

Furthermore, this transaction comes approximately one year after Falko’s acquisition by HPS Investment Partners, LLC, which was completed in December 2024. The move into Japan likely represents a strategic initiative under the new ownership to tap into Asian capital markets, diversifying Falko’s funding sources beyond its traditional western bases.

Corporate Background

Falko Regional Aircraft Limited is headquartered in Hatfield, United Kingdom, and manages a portfolio of approximately 226 aircraft leased to 39 customers globally as of late 2024. The company specializes in the 70–150 seat segment, a critical component of the global aviation network that connects secondary cities to major hubs.

The deal also reinforces the role of iStrings Aviation Capital as a key intermediary in Tokyo. By facilitating the entry of specialized lessors like Falko, iStrings is effectively broadening the menu of available assets for Japanese corporate investors, moving beyond the commoditized narrowbody market.

Sources

• Falko Regional Aircraft Limited