Feature: Fewer investors interested in JOLs

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The Japanese operating lease (JOL) has been popular since the first deal closed in 1999. Since then hundreds of aircraft have been financed using this structure, with equity investors looking for depreciation benefits.
While in recent years equity investors have provided multiple billions of dollars for the purchase of aircraft, 2009 was more depressed than the last recession.
Last year was slower than 2005 in large part to do with the unavailability of debt and the ability to raise equity in Japan, says Robert Melson, partner, K&L Gates. Debt was not only more difficult to access but also more expensive. Also, there were fewer equity investors, and those still in the market for tax products were more difficult to identify.
Regional aircraft and narrowbodies were more popular than widebodies because they do not require as much debt. One source says that while it......

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