Dutch aircraft leasor buys ILFC for US$5b

[TOULOUSE] AerCap Holdings NV agreed to buy International Lease Finance Corp (ILFC) from American International Group Inc (AIG) for US$5 billion to create an aircraft lessor rivalling General Electric Co's (GE) Gecas unit for size.

AerCap will pay US insurer AIG US$3 billion in cash and the balance in stock, taking control of a 40-year-old business that helped create a leasing industry now accounting for 40 per cent of the US$100 billion spent globally on new airliners each year.

Combining with ILFC, already the second-largest leasing company, more than triples the AerCap fleet to almost 1,400 planes, about 300 short of the GE total. AerCap, which secured the deal after Chinese bidders missed deadlines, also gains early delivery slots for the latest Boeing Co 787s and Airbus SAS A320neos and A350s, for which it can charge top rental fees.