AerCap in Talks to Buy GE's Aircraft-leasing Biz

Ireland-based AerCap has confirmed the news of it being in talks with multinational conglomerate General Electric (GE) to procure the latter’s aircraft-leasing business.

It has been reported that AerCap is intending to acquire GE’s aircraft-leasing business for an estimated value of over $30 billion
Known as GE Capital Aviation Services (GECAS), the business is one of the leading passenger aircraft leasing companies.

Despite confirming the ongoing discussion, AerCap has revealed that the outcome of the discussions is yet to be determined and there are chances of the deal not materialising, according to reports.

The company states, “No further statements will be made by the issuers or the company regarding this matter until the time of the conclusion of those discussions.”

As per to a regulatory filing, AerCap has assets worth $42bn and owned 939 aircraft and managed 105 airplanes. Furthermore, it also ordered 286 aircraft, that includes the Airbus A320neo and Boeing 737 Max.

Until the end of last year, Gecas had $35.9bn in assets with 1,650 aircraft owned, serviced or on order.

Given the size of the two companies in the sector, the proposed merger is expected to be scrutinised by antitrust authorities, other regulators and business partners, reveals the reports.

Intelligence antitrust analyst Aitor Ortiz says, “A potential combination of number one and two in any market is usually reason enough for regulators to scrutinise a deal, but it doesn’t necessarily mean that regulators won’t approve it or that significant concessions will be required. The fact that the airline industry is facing turbulence right now may be considered.”