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

This article is based on an official press release from KLM.

KLM Cityhopper Increases Capacity on Embraer 195-E2 Fleet Through Galley Optimization

KLM Cityhopper (KLC) has officially commenced operations with its upgraded Embraer 195-E2 fleet, marking a strategic shift to increase capacity without compromising passenger legroom. On December 6, 2025, the first modified aircraft departed Amsterdam for Porto, Portugal, debuting a new configuration that adds four seats to the cabin.

According to the airline’s official announcement, the entire fleet of 22 Embraer 195-E2 aircraft will undergo this retrofit, increasing the seating capacity from 132 to 136. The project is scheduled for completion by June 2026. This initiative aligns with the carrier’s broader goals to maximize revenue per flight while simultaneously improving Sustainability metrics per passenger.

Optimizing Space Without Squeezing Passengers

A primary concern with cabin densification, often referred to in the industry as “up-gauging”, is the potential reduction of seat pitch (legroom). However, KLM Cityhopper has stated that the additional row of seats was made possible through the reconfiguration of service areas rather than the seating area itself.

The airline achieved the extra space by optimizing the galley (kitchen) layout. By reducing the physical footprint of the galley and refining stocking methods, KLC created enough room to install four additional seats. The aircraft continue to utilize Recaro BL3710 and SL3710 seats, maintaining the existing comfort standards associated with the E2 fleet.

“All 22 Embraer 195-E2s will be fitted with four additional seats in Economy Class. This enables KLM Cityhopper to carry more passengers and generate increased revenue.”

, KLM Corporate News

Weight Reduction and Efficiency

Beyond the addition of revenue-generating seats, the retrofit involves a significant overhaul of the onboard catering process. The new configuration is designed to be lighter, reducing the “dead weight” carried on each sector.

According to technical data released regarding the upgrade, the optimized catering process is projected to reduce the total catering weight across the fleet by approximately 5 million kilograms annually. This reduction in weight directly correlates to fuel efficiency. KLC estimates that these changes will save approximately 160,000 kilograms of jet fuel per year.

Sustainability Implications

The Embraer 195-E2 is already marketed as the most efficient aircraft in its class, offering a 63% reduction in noise and significantly lower fuel burn compared to the previous generation E190s. The densification of the cabin further enhances these environmental credentials on a per-passenger basis.

By spreading the fuel burn over 136 passengers instead of 132, and combining this with the weight savings from the galley, KLM reports that CO₂ emissions per passenger will decrease by 3%. This supports KLM’s “Fly Responsibly” campaign, which seeks to lower the environmental footprint of aviation through incremental operational improvements.

AirPro News Analysis

The Economics of Marginal Gains

In the high-volume, low-margin world of regional aviation, the addition of four seats represents a massive potential revenue upside. While four seats may seem negligible on a single flight, the cumulative effect across a fleet of 22 aircraft operating multiple sectors daily is substantial. If an aircraft flies four sectors a day, that is 16 additional revenue opportunities per plane, per day.

We view this move as a prime example of “smart densification.” Unlike low-cost carriers that often reduce pitch to the regulatory minimum to add rows, KLM Cityhopper has leveraged the often-underutilized galley space. This allows the airline to maintain its premium positioning and passenger experience while reaping the economic benefits of a higher-density cabin. It also standardizes the fleet configuration, simplifying operations at their Amsterdam Schiphol hub.

Sources

• KLM Corporate News

This article is based on an official press release from AerCap Holdings N.V.

AerCap Expands into Central Asia with Lease of Two A321neos to Uzbekistan’s My Freighter

AerCap Holdings N.V., the global leader in aviation leasing, has officially announced the signing of lease agreements for two new Airbus A321neo aircraft with My Freighter, an airline based in Uzbekistan. According to the company’s announcement, the aircraft are scheduled for delivery in the fourth quarter of 2027.

This agreement marks a significant milestone for AerCap as it welcomes My Freighter as its first customer in Uzbekistan. The new aircraft will be operated by My Freighter’s passenger subsidiary, Centrum Air, to support the carrier’s modernization and route expansion strategy. The deal highlights the growing importance of Central Asia as a connecting node in the global aviation network.

Strengthening the Fleet with the A321neo

The selection of the Airbus A321neo aligns with the broader industry trend toward utilizing long-range narrowbody aircraft to open new markets efficiently. In the official press release, AerCap emphasized that these aircraft will help the airline leverage Uzbekistan’s geographic position to connect Tashkent with destinations across Europe and Asia.

Peter Anderson, the Chief Commercial Officer of AerCap, commented on the strategic value of the partnership:

“We are very pleased to welcome My Freighter as AerCap’s first customer in Uzbekistan. The A321neo is one of the most in-demand aircraft in the world and will enable My Freighter to meet the growing demand for air travel in the region. With its market-leading fuel efficiency and extended range, the A321neo will help drive the expansion of My Freighter and its passenger airline, Centrum Air, as they enter new markets.”

The A321neo is renowned for its operational efficiency, offering significant fuel savings and carbon emission reductions compared to previous-generation aircraft. For an emerging carrier like Centrum Air, these economics are vital for maintaining competitive operating costs while expanding into longer sectors.

Centrum Air’s Expansion Strategy

While the lease agreement is signed with My Freighter, the holder of the Air Operator Certificate (AOC), the aircraft are specifically designated for Centrum Air, the company’s passenger brand established in early 2023. Centrum Air has been aggressively building its fleet to serve both regional and international routes.

Abdulaziz Abdurakhmanov, Chairman of Centrum Holding, highlighted the operational benefits of the new additions:

“We are delighted to partner with AerCap, the global leader in aviation leasing. The addition of the Airbus A321neos to our fleet will strengthen our operational capabilities and support our expanding international network, including the upcoming launch of routes to Europe. We look forward to a successful partnership with AerCap.”

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AirPro News Analysis: The Rise of the Tashkent Hub

At AirPro News, we view this transaction as a strong indicator of Uzbekistan’s rapid emergence as a central aviation hub. The specific choice of the A321neo suggests a strategy focused on “long and thin” routes, sectors that require the range of a widebody but may not yet support the passenger volume required to fill one.

Based on industry data regarding the A321neo’s performance, these aircraft are capable of ranges exceeding 4,000 nautical miles (approx. 7,400 km) when equipped with auxiliary center tanks. From Tashkent, this range circle encompasses major European capitals such as London, Paris, and Frankfurt, as well as key Asian markets like Seoul, Tokyo, and Singapore.

The delivery timeline of late 2027 coincides with ongoing infrastructure investments in the region. With the Uzbek government pursuing “open skies” policies and modernizing airport infrastructure, carriers like Centrum Air are positioning themselves to capture transit traffic between East and West, replicating the successful hub models seen elsewhere in the Middle East and Turkey.

Frequently Asked Questions

Who is the lessor in this agreement?
The lessor is AerCap Holdings N.V. (NYSE: AER), which is currently the largest aviation leasing company in the world.

When will the aircraft be delivered?
According to the lease agreement, the two Airbus A321neo aircraft are scheduled for delivery in the fourth quarter of 2027.

What is the relationship between My Freighter and Centrum Air?
My Freighter is the parent company and holds the Air Operator Certificate (AOC). Centrum Air is the passenger subsidiary and brand that will physically operate the new aircraft.

Why is this deal significant for AerCap?
This deal represents AerCap’s entry into the Uzbek market, securing My Freighter as its first customer in the country.

Sources

• AerCap Press Release