American International Group has agreed to sell up to a 90-percent stake in International Lease Finance Corporation (ILFC) to a group of Chinese investors led by Weng Xianding, the chairman of New China Trust Company, AIG announced today.
American International Group
The latest personal scandal to shake the aerospace industry saw former Boeing International president Laurette Koellner unseat Henri Courpron as the seniormost executive officer at International Lease Finance Corp., parent company American International Group (AIG) announced Thursday evening.
Steven Udvar-Hazy’s Air Lease Corporation (ALC) attributes a trade secrets lawsuit filed against it on April 24 by American International Group and its subsidiary, International Lease Finance Corp., to what it characterizes as ILFC’s inability to compete effectively and its perception of Air Lease as a “growing threat.”
Insurance giant AIG appeared closer to proceeding with plans to wind down its exposure to the aircraft leasing business when on September 2 its ILFC unit filed a registration statement with the U.S. Securities and Exchange Commission for a proposed initial public offering.
Buyers of coverage for aircraft, aviation businesses and property have found a silver lining in the recession: relatively stable prices for insurance. Attendees at this year’s Aviation Insurance Association (AIA) conference confirm the news; too much available insurance capacity means that no underwriter has the power to raise prices.
In addition to the costs of acquisition, prospective buyers must consider the costs–especially insurance and taxes–they will incur once they own the aircraft. To that end, aircraft management contracts with well thought-out insurance provisions should be integral to the aircraft acquisition process, said Bill Kingsley, an account executive with the Addison, Texas-based brokerage AirSure.
As worries about the economic health of insurance giant AIG dominated headlines last month, they also sparked concern among business aircraft operators about the state of their insurance coverage.
As Wall Street continues to reel from the events of last month, market turmoil could clip the wings of several major financial institutions’ flight departments.
The economic health of insurance giant AIG has sparked concern among many business aircraft operators who have contacted NBAA with questions about the state of their insurance coverage.
With America on a major terror alert for the commemoration yesterday of the anniversary of the September 11 attacks (U.S. officials raised the warning for the first time to Code Orange, just one tier below the highest level of danger), the focus that would have been placed on security anyway this week took on a new and palpable urgency.
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