AerCap finalise $5 Billion Deal With AIG
AerCap Holdings NV has agreed to buy International Lease Finance Corp. (ILFC) for $5 billion from American International Group (AIG) Inc. to create an aircraft lessor competing General Electric Co.’s Gecas unit for size.
AerCap will pay AIG the U. S. insurer $3 billion in cash and the rest in stock, taking charge of a 40-year-old business that helped to create a leasing industry which now accounts for 40 percent of the $100 billion spent globally on new airliners every year.
Combined with ILFC, already the second-largest leasing company, more than triples the AerCap fleet to almost 1,400 planes, which is about 300 less than the GE total. AerCap, secured the deal as Chinese bidders missed deadlines, achieved early delivery slots for the latest Boeing Co. 787s and Airbus SAS A320neos and A350s, for which it can charge apex rental fees.
Aengus Kelly, chief executive officer at Schiphol, Netherlands-based AerCap said, “We’re creating the industry leader here.” “The order book is the jewel in the crown. Given the associated delays with those planes, especially the 787, the pricing and the delivery slots are unbeatable.”
AerCap leaped by 33 percent, the maximum since January 2009, to $33.17 at the close in New York. New York-based AIG gained 1.1 percent to $50.28.
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