KGAL arranges financing for fifth Airbus A380 via Lufthansa Leasing joint venture

Lufthansa Leasing GmbH (LLG), a joint venture between KGAL GmbH & Co. KG and Deutsche Lufthansa AG, has signed another Japanese operating lease (JOL) for one of Lufthansa’s Airbus A380s.

This means that financing for five of the ten A380s which now form part of the Lufthansa fleet was arranged by the experts from LLG in Grünwald in conjunction with Lufthansa. Some of the aircraft are financed by means of JOL structures, while others are funded using French leases.

JOLs use equity and loans from Japanese corporates. In addition to the Japanese equity partner, the financing deal for the latest aircraft is backed by the Bank of Tokyo-Mitsubishi UFJ Ltd. (BTMU). The financing volume totalled some USD 200 million. Named ‘Peking’, the wide-bodied aircraft has been in operation on Lufthansa routes since 2010. The carrier’s A380 fleet calls daily at Miami, Houston, Johannesburg, Beijing, Singapore and Tokyo.

“The fact that Deutsche Lufthansa has drawn on its shared financing knowledge with KGAL for a fifth A380 is further proof that we have built up a valuable pool of expertise in aircraft financing over the years,’ said Dr Klaus Wolf, Managing Director of KGAL.