The american international group has agreed to sell its big aircraft leasing unit, the international lease finance corporation, to a competing business, aercap holdings of. Different types of aircraft are explored, highlighting their purposes, as well as when and why airline operators choose specific models over others. Get breaking news and analysis on international lease finance corporation ilfc stock, price quote and chart, trading and investing tools. The company leased aircraft to major airlines worldwide, including aeromexico, air canada, korean air, air franceklm and emirates. International lease finance corporation the company, ilfc, management, we, our, us primarily acquires new commercial jet aircraft from the boeing company, or boeing, and airbus s. Ilfc international lease finance corporation home facebook. International lease finance corporation ilfc is a global market leader in the leasing and remarketing of commercial aircraft. Strategies for managing capital costs in a turbulent industry vasigh, bijan, taleghani, reza, jenkins, darryl on. Aercap to acquire ilfc from aig news equipment finance. With nearly 1,000 owned and managed aircraft and commitments to purchase. Textfitch affirms international lease finance corps ratings 5 min read dec 10 fitch ratings has affirmed international lease finance corporations ilfc issuer default rating idr at bb. Ascend online as of 121410 and cit forecasted ni as of. On the other, there are a number of headwinds in the aircraft finance.
Aercap chief executive aengus kelly said the dutchbased companys priority would be to digest ilfc and manage its large portfolio, which includes an order book for nextgeneration aircraft. A significant number of companies involved in aircraft leasing are. International lease finance corporation ilfc stock analysis. Several interested parties are lining up to purchase a portfolio of usd3. Appetite to finance aircraft remains, but the amount of. Aercap to acquire international lease finance corporation. Operating out of a small century city office, the company only lists a fax number in the phone book. The master of science in aviation finance degree gives students knowledge about operations, along with the portfolio of expertise and skills they need to manage the financial risk, monetary policies, and economic strategies used by commercial firms and regulators in the global air transportation industry. In december 20, aig announced its intention to enter into an agreement under which it would sell its 100 percent interest in international lease. Credit facility in favor of an aircraft purchaser to finance a portion of the significant progress payments e. Near the top of the list of noncore assets to divest was aigs aircraftleasing subsidiary international lease finance corp ilfc. Andrew littlejohns is a partner in freshfields asset finance group in london. Ilfc signals aircraft charges under stress tests marketwatch.
International lease finance corp ilfc, a massive aircraft leasing business aig bought from steven udvarhazy in 1990. The book details the industrys foundational concepts, including aviation law and regulation, airline credit analysis, maintenance reserves, insurance, transaction. It was the worlds largest aircraft lessor by value, though ilfcs rival, general electrics gecas unit, had more aircraft. Aercap provides aircraft to a global network of 200 airline customers in 80 countries. Business acquisition aercap case study mccann fitzgerald. Waha capital trades 40% of its aircraft portfolio, 50% of aerventure and cash in exchange for 29. With nearly 1,000 owned and managed aircraft and commitments to purchase approximately 330 new highdemand, fuelefficient aircraft, ilfc is the worlds largest independent aircraft lessor. On 14 may 2014, aercap announced that it completed the acquisition of international lease finance corporation ilfc, previously a wholly owned. International airfinance corporation iafc is a leading global aircraft leasing company with a client base of major international airlines and institutional investors. The aviation industry is facing the toughest downturn in its history. Aercap is the global leader in aircraft leasing, providing a global network of airline customers with comprehensive fleet solutions and access to the most modern, fuelefficient aircraft. Dec 17, 20 ilfc is a valuable business, and aig has always taken great pride in ilfcs reputation for innovation, its pioneering role in aircraft leasing, its industryleading team of employees, and its. May 14, 2014 ilfc, which pioneered the aircraft leasing business under founder steven udvarhazy, is the last major unit to be sold by aig following the u. On the other, there are a number of headwinds in the aircraft finance market which may make these orders more difficult to finance, and potentially, more expensive.
Iafc has been a pioneer in introducing innovative islamic financing solutions to the aviation industry, strategically positioning itself to provide unique products and services in. He joined freshfields in 1983, and has specialised since then in aircraft finance. Gecas ilfc rbs aercap boc fly acg awas aircastle source. International lease finance corporation ilfc lessor. In december 20, aig announced its intention to enter into an agreement under which it would sell its 100 percent interest in international lease finance corporation ilfc, a noncore asset, to aercap holdings n. Overview of the aircraft leasing industry laurence vigeantlanglois, phd. The deal created the worlds second largest aircraft lessor and largest independent one by both fleet size and fleet value.
Aercap will acquire all of international lease finance corp. There are numerous instances successful and not of privately funded companies involved in aircraft leasing and also examples of aircraft leasing businesses within larger companies which are public companies. Ilfc is a valuable business, and aig has always taken great pride in ilfcs reputation for innovation, its pioneering role in aircraft leasing, its industryleading team of employees, and its. We offer new and used commercial aircraft on operating lease from our existing fleet and our order book of boeing, airbus, and embraer aircraft.
Dec 16, 20 aercap will acquire all of international lease finance corp. We also provide aircraft owners, financiers and investors with all asset services necessary to manage an. International lease finance corporation ilfc stock. The company was founded in 2010 in the wake of credit crisis by steven udvarhazy, the founder of international lease finance corporation and the visionary father of the modern commercial. International lease finance corporation ilfc lessor profile. Aercap in no rush to order new jets after buying ilfc. Ilfc, the aircraft leasing unit of bailedout insurer american international group, said on wednesday it was selling the aircraft, mostly 737s and a320s, for below their book.
Stephen mcgairl is a partner of freshfields with over 20 years experience of international aircraft transactions. Founded in 1973, ilfc was one of the worlds largest aircraft lessors by value. Lease finance corporation ilfc and ge commercial aviation services gecas. Hazy and international lease finance corporation ilfc, which were both established in the 1970s, formed the bedrock of the industry. In addition, the book also covers important factors, such as maintenance reserve development, modeling financial returns for leased aircraft, and appraising aircraft values. A significant number of companies involved in aircraft leasing are privately funded and consequently public financial information is limited, this article focused on the results of. International lease finance corporation ilfc is a global market leader in the leasing and remarketing of. Aircraft finance refers to financing for the purchase and operation of aircraft. Ilfc, which pioneered the aircraftleasing business under founder steven udvarhazy, is the last major unit to be sold by aig following the u. The book offers a comprehensive overview of the multifaceted matters that arise in the process of financing commercial aircraft.
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