Hear more from Bertrand during our main stage fan favourite ‘The Ishka Gameshow: Deal or No Deal’.

Société Générale has a well-established aviation finance presence in Europe, but you're representing the APAC side of that business. How different is the aviation lending market in Asia in practice - different borrower profiles, deal structures, risk appetite from local capital - and where do you find the most meaningful divergence from how the same deals would be structured and priced out of Paris or London?

APAC is the biggest aviation market, and remains the global growth engine for aviation finance, with traffic, fleet, and capex growth materially outpacing other regions. There are c.100 scheduled passenger airlines across Asia, with about a third accessing international debt. Europe has about the same number of airlines, but the overall ecosystem (offer/demand for air transport, currency, regulations, State supports) is more unified. In Asia each country has its own story, its own specific, e.g. in terms of enforcement of security and behaviours during Covid, which remain part of the equation when it comes to forging risk appetite views for investors. Defining the Tier 1 carriers in Europe is relatively straightforward, and results in c.10 names who are regular JOL/JOLCO issuers. In Asia it would also lead to 10-20 names, but it gets much more complex to differentiate lower tier 1 with upper Tier 2. Deal structures for airlines are broadly similar, due also to the usual process of issuing open RFP to get the best from global arrangers and bidders. Airlines, leasing companies, OEMs and the overall financial community are a small world.

I tend to think that many Asian airlines here, because of their big orderbook, have an interest for all products that only the leading Tier 1 European carriers would have : They target JOL/JOLCO, bank debt and private credit, EETC or ABS, SLB, tax schemes, mortgage lending, ECA maybe as well as private insurance… many products on which they already know a lot.

Basel IV is often cited as a headwind for bank lending, but the picture is nuanced. In practice, how much is regulatory capital pressure influencing the types of aviation deals Société Générale is prioritising, and which borrower profiles or structures are feeling that most acutely? How is this playing out in terms of the global ‘playing field’?

That’s right, Basel IV narrative is often oversimplified. There are general rules (LGD floor is one), but then still the way banks apply rules remain rather idiosyncratic. Nevertheless, in Aviation as in the banking industry overall, regulations are shaping the ways financial institutions deploy their capital and use their balance sheet. They shape how Aviation deals gets engineered and managed by banks. On the impact of regulations as defining forces, we’ve seen that before. It was the case from 2008 when securitization structures like ABS were redesigned (from insurers, so call “wrappers” who brought the AAA ratings to the senior tranches, to pure IG risk based on the assets).

Since then, “Originate-to-distribute” became core, not optional. For banks, cross selling is also a must. Airlines and lessors, our clients, play a central role in our product pushes. And on their side, they benefit from the variety of financing players, each obeying somehow by its own rules.

At the Ishka Airfinance Tokyo conference you're exploring whether we're moving toward a bank-and-private- credit market rather than a bank-versus-private-credit one - from your seat in Tokyo, do you see Japanese institutional capital as a key part of that collaborative picture, and what would it take to deepen that relationship further?

Japan’s ecosystem for aviation finance is really unique. It has a longstanding history. From manufacturing the assets, operating it, owning it… the Japanese Operating Lease product is here since more than two decades, bringing private credit investors, either directly or through intermediaries. Engaging in private meetings with all types of stakeholders is the best way to forging relationships. And events like the Ishka Tokyo conference is also a great way to expand the scope and deepen collaborations.

Hear more from Shehzad during our main stage panel ‘Aircraft Financing: How Are Airlines Navigating the JOLCO Market?’

Flynas has been one of the fastest-growing LCCs in the Middle East, with a large Airbus orderbook to fulfil. Looking ahead over the next 12 months, what are your key fleet priorities, and what financial tools (SLB, finance lease, insurance backed etc) are most appealing?

Over the next 12 months, airlines across the Middle East especially in Saudi Arabia are generally focusing on supporting aggressive fleet growth through disciplined, flexible financing for their expanding orderbooks. The most appealing structures are those that prioritize competitive pricing, delivery-schedule flexibility, and diversified liquidity to robustly protect corporate balance sheets amid shifting market dynamics.

The JOLCO market has traditionally been dominated by major flag carriers and investment-grade credits. As a Saudi LCC, how do you find Japanese investors respond to Flynas - is there appetite, and how are you approaching that market?

Saudi Arabia’s Vision 2030 target of 330 million passengers provides a powerful backdrop for aviation investment. Japanese appetite is actively evolving beyond legacy flag carriers toward high-growth Middle Eastern airlines, as shown by Emirates’ recent $1 billion-plus A350 JOLCO. By combining this regional growth with highly liquid narrowbody fleets and transparent corporate governance, we offer Japanese equity a resilient, high-performing alternative.

You're joining the panel at the Ishka Airfinance Tokyo conference on how airlines are navigating financing and the JOLCO market - given the geopolitical backdrop in the Middle East, what message do you hope Japanese investors take away from the conversations there?

The main takeaway is that Middle Eastern aviation operates in one of the world's most dynamic growth corridors, backed by massive national tourism and connectivity strategies. While geopolitical risk is a reality, regional airlines are highly resilient, managing disruptions through operational agility and diversified financing. We want Japanese investors to see that well-managed Gulf carriers are incredibly stable, attractive platforms for disciplined capital.

Catch Mark on the panel ‘Aviation Investment: Stronger Appetite for the Smaller Ticket’ Falko are also kindly hosting our post-conference networking drinks reception.

Falko has built a leading position in the small commercial jet and turboprop segment – how have you seen conversations with investors evolve around 70–130 seat aircraft?

The shift has been significant. For much of the past decade, Japanese institutional investor interest in aviation was concentrated at the larger end of the market — widebody and single-aisle assets perceived as more liquid and easier to underwrite. Small commercial aircraft were viewed as niche, and familiarity with limited the segment among investors. That has changed materially, and three things have driven it.

First, the supply dynamics of the segment are now well understood. OEM production of small commercial jets has been limited for years, and unlike the narrowbody segment, there is no meaningful new delivery wave on the horizon. Aircraft like the CRJ900 and E190 continue to be re-leased at healthy rates, reflecting sustained and genuine airline demand for these types.

Second, post-pandemic demand recovery on thin and point-to-point routes has reinforced the commercial importance of these aircraft. They are an integral part of airline networks, serving routes and communities that larger aircraft cannot serve economically.

Third, the structural finance toolkit around small commercial aircraft has matured. JOL and JOLCO structures are increasingly being applied to smaller asset types, and investors who have engaged with the sector understand that the fundamentals translate well. Ticket sizes have been a recurring theme in our conversations in Japan — our aircraft typically sit in the USD 10–25 million asset price range, which is a particularly accessible entry point for single-investor transactions, and one that a number of Japanese investors have found attractive. We have seen considerably more openness towards these asset types as a result. In today's environment, many investors are also placing greater emphasis on operator credit relative to asset type or age — a framing we think is entirely sensible.

Falko completed its inaugural Japanese operating lease transaction in late 2025, placing a CRJ900 with iStrings Aviation Capital. What did that process teach you about Japanese investor appetite for smaller aircraft types, and how has that shaped your thinking about building a deeper presence in the Japanese market?

The iStrings transaction was an important milestone for us, and instructive in ways that went beyond the deal itself. In structure, it was a sale of a CRJ900 from Falko to a Japanese investor, with Falko retained as lease servicer to the airline lessee — a clean JOL structure that gave the investor stable cashflow exposure to the asset, underpinned by our asset management expertise and longstanding relationship with the lessee. What became clear through that process was the importance of lessee credit as a foundation for investor confidence — in the lease cashflow mechanics and our own track record as servicer. That alignment between how Japanese investors assess a transaction and how we think about operator and asset quality ourselves was very encouraging. It also reinforced something we believed going in: appetite for small commercial aircraft among Japanese investors exists, and it needs to be developed carefully. This is not a market where you arrive with a transaction and expect immediate traction. Relationships matter, professionalism and trust are important, and structures need to be designed with genuine care for investor protections. Japanese investors are looking for quality, consistency, and counterparties with whom they can build a long-term working relationship. That is an approach we respect and appreciate, and one that sits comfortably with how we operate.

More recently, we completed our first JOLCO transaction in April 2026, placing an ATR 72-600 in a head lessor structure arranged by Sojitz Corporation. Japanese investors engaged positively with asset in this and our earlier JOL deal. Working with Japanese arrangers through both transactions has given us a clearer sense of how this market thinks and where the points of alignment with Falko's approach lie. The last year has been instrumental in shaping how we approach Japan. Our focus is on a considered pipeline of well-structured transactions with the right partners — ones where we can demonstrate performance and deepen trust progressively. The iStrings and Sojitz transactions have given us a strong, valuable foundation, and we see this as the beginning of a long-term journey in the Japanese market.

Given that Falko has now made its first move into the Japanese market, how has attending Ishka Airfinance Tokyo helped in this journey? And what are the conversations you're most hoping to have this year?

Ishka's Tokyo conference has been a consistent and valuable forum for us. The quality of participants — investors, arrangers, and advisers who are active in the Japanese aviation ecosystem — makes it a targeted and important event in the regional calendar. For a specialist lessor like Falko, that matters. We benefit not from broad visibility but from substantive conversations with the right counterparties. The conference has served a specific function in our Japan strategy: keeping us present and credible in this market between transactions. Building a sustainable presence in Japan does not happen through deals alone. It requires consistent engagement, a willingness to share our thinking on the market, and the patience to let relationships develop at the right pace. Regular participation in this forum is one of the ways we try to demonstrate that commitment.

This year, the conversations we are most looking forward to fall into two areas. The first is JOL and JOLCO structures applied to small commercial aircraft — specifically how these structures work with smaller asset types, where ticket sizes differ from the mainstream but the underlying credit and cashflow fundamentals are equally robust. We see genuine interest from Japanese arrangers in understanding this better, we have the transaction experience and asset expertise to engage on it in depth, and we want to stay up to date on what investors need and understand how we should continue to deepen our growth within this market. The second is expanding the appetite for small commercial jets and turboprops more broadly. The combination of a disciplined supply environment, strong residual values, and sustained airline demand across our markets makes these asset types an interesting and resilient proposition. We hope there is a receptive audience in Japan for these conversations, and we are genuinely looking forward to having it.