Amsterdam-based AerCap’s planned acquisition of International Lease Finance Corp. from American International Group stands to return a sense of stability to a business in which the disposition of one of two dominant players hung in doubt for more than a year. It also promises to result in what AerCap CEO Aengus Kelly characterized as “the most attractive order book in the industry,” valued at $25 billion.
International Lease Finance Corporation
American International Group has agreed to sell its 100-percent stake in International Lease Finance Corporation (ILFC) to Netherlands-based aircraft leasing firm AerCap Holdings, the companies announced Monday.
Miami-based Aero Turbine, a subsidiary of the International Lease Finance Corp. (ILFC) that markets engines and aircraft parts, and Lufthansa Technik have announced their intention to enter into a partnership. Under the terms of the agreement AeroTurbine will supply Lufthansa Technik with aircraft and engine components, while Lufthansa Technik will provide technical services and supply AeroTurbine with surplus material for resale.
ILFC, a wholly owned subsidiary of American International Group and one of the world’s largest aircraft lessors, preaches diversification in terms of aircraft and engine purchases, geographical distribution of its fleet and in the forms of leasing and financial programs it employs. Its Airbus A320 orders, which number 769 following additions at last month’s Paris Air Show, perhaps best reflect the company’s philosophy, notwithstanding the calculated risk it took when it signed as the A320neo’s launch customer.
International Lease Finance Corporation (ILFC) has been busy announcing a procession of airframe and engine deals here in Paris. On Tuesday, the company announced it had signed for CFM International Leap-1A engines to power a further 20 Airbus A320neo jetliners. That brought the total backlog to 60 shipsets. With the aircraft scheduled to begin deliveries in 2016, the new order is valued at $510 million.
Lufthansa has firmed up on its order for 100 Airbus A320s and International Lease Finance Corporation (ILFC) has added a further 50 A320neos to its previous order for 100 aircraft.
The German carrier will take a mixed fleet of 35 A320neos (new engine order), 35 A321neos and 30 A320ceos (conventional engine order), with Sharklet wingtips. It says the aircraft will meet future growth and fleet renewal needs and will “contribute significantly to reducing noise and emissions.”
Despite the torrential rain at Le Bourget yesterday, Airbus and Boeing both notched up some key commitments. While the latter edged closer to being able to launch the 787-10X, with interest from Gecas, its rival across the Atlantic also courted the world’s leading lessors, with ILFC ordering even more A320neos; and Doric placing an order for A380s.
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.
Japan’s Sumitomo Mitsui Bank (SMBC) beat more than 30 other bidders to complete the acquisition of RBS Aviation Capital on October 15, demonstrating the growing importance of leasing in new-airliner acquisitions. The bank’s new SMBC Aviation division intends to merge two other leasing companies owned by its shareholders to challenge for the number-three position in the leasing sector, controlling some 331 aircraft.
Fuel efficiency and its effect on the useful life of aging aircraft is a dominant factor in the thinking of aircraft leasing companies, which are increasingly helping credit-squeezed carriers to refresh their fleets. Their presence in the market for airliner acquisition has continued to grow in the last two decades, with operating leases now thought to account for almost 40 percent of total deals today.
- Page 1