4. Investments

On May 25, 2011, we entered into an agreement with Mitsui & Co., Ltd. to participate in a joint venture formed as a Dublin-based Irish limited company – Willis Mitsui & Company Engine Support Limited ("WMES") for the purpose of acquiring and leasing IAE V2500-A5 and General Electric CF34-10E jet engines. Each partner holds a fifty percent interest in the joint venture. The initial capital contribution by the Company for its investment in WMES was $8.0 million. The Company provided the initial lease portfolio by transferring seven V2500 engines to the joint venture in June 2011. In addition, the Company made $1.0 million and $1.9 million capital contributions to WMES in the three months ended September 30, 2011 and three months ended March 31, 2012, respectively, for the purchase of four engines, increasing the number of engines in the lease portfolio to eleven. The $10.9 million of capital contributions has been partially offset by $3.6 million, resulting in a net investment of $7.2 million. The $3.6 million reduction in investment represents 50% of the $7.2 million gain related to the sale by the Company of the seven engines to WMES. WMES executed a loan agreement with JA Mitsui Leasing, Ltd., establishing a credit facility of up to $120.0 million for the purposes of acquiring the initial engines as well as providing funding for future engine acquisitions. The availability of funding for future engine purchases under the loan agreement expired on March 31, 2012. WMES is negotiating an extension of the loan agreement. Our investment in the joint venture is $7.4 million as of March 31, 2012.

We hold a fifty percent membership interest in a joint venture, WOLF A340, LLC, a Delaware limited liability company, ("WOLF"). On December 30, 2005, WOLF completed the purchase of two Airbus A340-313 aircraft from Boeing Aircraft Holding Company for a purchase price of $96.0 million. The purchase was funded by four term notes with one financial institution totaling $76.8 million, with interest payable at LIBOR plus 1.0% to 2.5% and maturing in 2013. These aircraft are currently on lease to Emirates until 2013. Our investment in the joint venture is $10.0 million and $9.7 million as of March 31, 2012 and 2011, respectively.


Three Months Ended March 31, 2012 (in thousands)	WOLF			WMES		Total
Investment in joint ventures as of December 31, 2011	$	9,863		$	5,376	$	15,239
Investment		—			1,868		1,868
Earnings from joint ventures		234			163		397
Distribution		(139	)		—		(139	)

Investment in joint ventures as of March 31, 2012	$	9,958		$	7,407	$	17,365