Category Archives: GECAS

AerCap completes the GECAS transaction

AerCap Holdings N.V. has announced its major business transactions during the full year and fourth quarter 2021:

Completed the GECAS transaction on November 1, 2021, making AerCap the worldwide industry leader across all areas of aviation leasing: aircraft, engines and helicopters.
In December 2021, AerCap received an MSCI ESG Rating of “A,” an improvement from our previous ESG rating of “BBB.”

Full Year 2021 Transactions

Raised long-term funding of approximately $30.5 billion, including $24 billion in the fourth quarter to finance the GECAS acquisition.
Signed 311 lease agreements.
Completed 65 purchases.
Executed 62 sale transactions.

Fourth Quarter 2021 Transactions

Signed 158 lease agreements, including 19 widebody aircraft and 92 narrowbody aircraft, 27 engines and 20 helicopters.
Completed 42 purchases for 29 aircraft (including 16 Airbus A320neo Family aircraft, 1 Airbus A220 aircraft and 5 Boeing 737 MAX aircraft for AerCap’s owned aircraft portfolio and 7 aircraft for AerCap’s managed aircraft portfolio), 5 engines and 8 helicopters.
Executed 30 sale transactions for 23 aircraft (including 5 Airbus A320 Family aircraft, 2 Airbus A320neo Family aircraft, 5 Boeing 737NGs, 4 Boeing 757s, 2 Boeing 737 MAX aircraft and 1 Boeing 767-300ER from AerCap’s owned aircraft portfolio and 4 aircraft from AerCap’s managed aircraft portfolio), 4 engines and 3 helicopters.

The full year and fourth quarter numbers include transactions of the combined company for the period after closing of the GECAS acquisition on November 1, 2021. Transactions prior to closing are only included for AerCap on a stand-alone basis.

AerCap completes the acquisition of GECAS from General Electric

AerCap Holdings N.V., the global leader in aircraft leasing, has announced that it has completed its acquisition of the GE Capital Aviation Services business (GECAS) from General Electric.

The acquisition positions AerCap as the worldwide industry leader across all areas of aviation leasing: aircraft, engines and helicopters. The combined company will serve approximately 300 customers around the world and will be the largest customer of Airbus and Boeing.

AerCap now has a portfolio of over 2,000 aircraft, over 900 engines and over 300 helicopters, as well as an order book of approximately 450 of the most fuel-efficient and technologically advanced aircraft in the world. The aircraft fleet represents approximately 90% of the assets of the combined company. New technology aircraft are expected to make up 75% of the aircraft fleet by 2024.

Transaction Highlights

Under the terms of the transaction agreement, General Electric received 111.5 million newly issued AerCap shares, approximately $23 billion of cash and $1 billion of AerCap notes. General Electric now owns approximately 46% of AerCap’s outstanding shares.

In connection with the transaction, Jennifer VanBelle has joined the Board of Directors of AerCap, bringing the number of members serving on AerCap’s Board of Directors to 10.

IAI and GECAS begin first Boeing 777-300ER SF passenger to freighter conversion

Israel Aerospace Industries (IAI) has begun the structural modification phase in the conversion of the first Boeing 777-300ERSF, in partnership with GE Capital Aviation Services (GECAS). The beginning of the conversion marks the end of the development process and the start of the structural and systems modification phase. The conversion process will take approximately 130 days, at the end of which the passenger aircraft will be turned into a freighter aircraft.

The development process is complicated and highlights IAI engineers’ extensive experience in aviation, with their envisioned goal of creating a cargo conversion aircraft that will have the high quality and capabilities providing clients with the optimal solution. The passenger-to-freighter conversion includes changing the structure, which involves installing a new cargo door, replacing and strengthening the aircraft floor, installing reinforcements near the cargo opening, and modifying electrical systems to enable safe and convenient operation. In addition, the process will include receiving certification for the converted aircraft by the Civil Aviation Authority of Israel (CAAI), the Federal Aviation Administration (FAA), among others.

Over the past few years, there has been an increased demand for cargo jets due to a rise in e-commerce, which has peaked during the COVID-19 pandemic, specifically for the Boeing 767 model. As of today, all the slots for converting the Boeing 767 are filled until 2022. IAI is the leading conversion center for cargo jets, and among its customers are market leaders including as Amazon, DHL, UPS and others.

AerCap to acquire GE Capital Aviation Services (GECAS)

AerCap Holdings N.V., the global leader in aircraft leasing, announced today that it has entered into a definitive agreement with General Electric (GE) under which AerCap will acquire 100% of GE Capital Aviation Services (GECAS), a GE business.

The combined company will be an industry leader across all areas of aviation leasing, with over 2,000 owned and managed aircraft, over 900 owned and managed engines, over 300 owned helicopters and approximately 300 customers around the world.

Kalitta Air to lease three 777-300ER SF aircraft

GECAS Cargo announced an agreement with Kalitta Air for three Boeing 777-300ERSF aircraft. With this agreement, Kalitta will be the first operator of the new passenger-to-freighter type, adding to their already sizable all-cargo fleet when these aircraft deliver in 2023.

Dubbed “The Big Twin,” the 777-300ERSF will be the largest ever twin-engine freighter. As announced a year ago, the conversion program is jointly funded by GECAS and Israel Aerospace Industries (IAI), with GECAS delivering the prototype aircraft to undergo conversion in June of this year. Setting a new benchmark for cargo operators, The Big Twin will be powered by GE90 engines, the world’s most powerful in-service engine.

With twenty years of providing scheduled and on-demand charter service in the United States and around the world, Kalitta Air currently operates a fleet of more than three dozen cargo planes, including 747-400F, 767-300SF and 777F.

“Providing air express delivery all around the world for virtually any type of freight, the addition of these three 777-300ERSF freighters will help us meet the needs of our customers,” shared Conrad Kalitta, owner of Kalitta Air.

“We are delighted to continue our 15-year relationship with Kalitta Air and proud they’ve become the launch customer with the 777-300ERSF freighter for its future air cargo operations,” said Rich Greener, SVP and Manager Cargo of GECAS, adding “The 777-300ERSF shares extensive commonality with the production 777-200LRF. That’s a benefit to any operator looking to bring a new type into their fleet.”

The Big Twin will also offer 25% more capacity and it is anticipated that The Big Twin will achieve up to 21% lower fuel-burn per tonne than the current 4-engine freighters with the GE90. This was designed specifically for the longer-range Boeing 777 series, providing up to 115,000 lbs. of thrust. In addition to producing the sole-source engine for the 777 variants, GE Aviation will support MRO engine and power-by-the-hour services to ensure continued performance throughout the lifecycle of the converted freighters.

Amazon partners with GECAS to lease an additional fifteen 737-800 converted freighters

Amazon continues to invest in ways to provide fast, free shipping for customers. Today, at the International Paris Air Show, the company announced a partnership with GE Capital Aviation Services (GECAS) to lease an additional fifteen Boeing 737-800 cargo aircraft. These fifteen aircraft will be in addition to the five Boeing 737-800’s already leased from GECAS and announced earlier this year. The aircraft will fly in the United States out of the more than 20 air gateways in the Amazon Air network.

“These new aircraft create additional capacity for Amazon Air, building on the investment in our Prime Free One-Day program,” said Dave Clark, Senior Vice President of Worldwide Operations at Amazon. “By 2021, Amazon Air will have a portfolio of 70 aircraft flying in our dedicated air network.”

“We’re delighted to support Amazon Air’s dedicated air network,” said Richard Greener, GECAS Cargo’s Senior Vice President. “The capability of the 737-800 freighter will further Amazon’s ability to provide reliable and regional delivery to its customers for years to come.”

Amazon Air’s operation launched in 2016 supporting package delivery to the rapidly growing number of customers who love fast delivery, affordable prices and vast selection. With advanced algorithms and software used for capacity and route planning, the Amazon Air operation can transport hundreds of thousands of packages per day. Amazon will open new air facilities this year at Fort Worth Alliance Airport, Wilmington Air Park, and Chicago Rockford International Airport. The main Air Hub at the Cincinnati/Northern Kentucky International Airport will open in 2021. Since its launch, Amazon’s air cargo operation has invested millions of dollars and created thousands of new jobs at locations across the U.S.

Amazon has launched several initiatives to ensure fast delivery speeds and supply chain capacity for its customers, including its Delivery Service Partner program, Amazon Flex, the company’s mobile application that allows individuals to sign-up, be vetted and begin delivering for Amazon, a dedicated network of over 10,000 trailers to increase trucking capacity and, now, the expanded fleet of cargo aircraft. These efforts join Amazon’s robust worldwide network of more than 185 fulfillment centers where the company uses high-end algorithms, robotics, machine learning and other technological innovations to increase delivery speeds for customers. Amazon is now bringing the same technological expertise to efforts in the transportation space to increase shipping capacity for customers.

Launching the 737-800 passenger-to-freighter conversion program in 2016 and delivering the inaugural Boeing Converted Freighter (BCF) less than one year ago, GECAS has plans to convert at least 50 of this type, providing the capacity for the growing need for cargo air transport. The aircraft are equipped with a rigid cargo barrier and have 12 main deck pallet positions. The aircraft have a maximum structural payload of 23,500 kg (51,800lb) and a maximum range of over 2,100 nautical miles.

GECAS orders 10 737-800 Boeing Converted Freighters, adds 15 options

GE Capital Aviation Services (GECAS) signed an agreement with Boeing at the Paris Air Show exercising 10 purchase rights to firm orders and adding 15 more purchase rights for the 737-800 Boeing Converted Freighter (BCF).

The 737-800BCF, which is making its air show debut at Le Bourget this week, is Boeing’s newest freighter product. The company converts Next-Generation 737 passenger airplanes into cargo jets that are capable of carrying more payload – up to 23.9 tonnes (52,800 lbs) – and flying farther – 2,000 nautical miles (3,750 km) – than previous standard-body freighters.

Today’s order is the third time that GECAS has purchased Boeing’s newest freighter since the program was announced in 2016. GECAS, the commercial aircraft leasing and financing arm of General Electric [NYSE: GE], now has 65 orders and options for the 737-800BCF.

Boeing delivered the first in-service 737-800BCF to GECAS leasing customer West Atlantic AB last year. Boeing has delivered 14 737-800BCFs to date.

Photo: GECAS.

GECAS orders 20 + 15 options Boeing 737-80BCFs

GECAS and Boeing have announced an agreement for 35 Boeing 737-800 Boeing Converted Freighters. This includes 20 firm orders and 15 options.

GECAS’ 737-800BCF order book grows from 15 to 50, enabling GECAS to serve the growing express air cargo market.

Boeing also made this announcement:

Boeing and GE Capital Aviation Services (GECAS) announced today that they have reached an agreement for 35 additional 737-800 Boeing Converted Freighters at the 2018 Farnborough International Airshow.

The deal, which includes 20 firm orders and an option for 15 more, would take GECAS’ 737-800BCF order book from 15 to 50 and enable GECAS to serve the growing express air cargo market.

The commercial aircraft leasing and financing arm of General Electric is the launch customer of the new 737-800BCF. It took delivery of the first converted jet in April and leased it to a Swedish cargo carrier (below).

Above Copyright Photo: West Atlantic Cargo Airlines (UK) Boeing 737-86N WL (BCF) G-NPTA (msn 32740) LGG (Ton Jochems). Image: 942806.

This agreement, which is subject to GECAS board approval, would take the total commitments for the 737-800BCF program to 80 from more than half a dozen customers.

The 737-800BCF carries more payload – up to 23.9 tonnes (52,800 lbs) and flies farther – 2,000 nautical miles (3,750 km) than 737 Classic freighters. The converted jet also offers operators newer technology, better fuel efficiency and reliability than previous standard-body freighters.

Existing 737-800 passenger airplanes are modified at multiple facilities, including Boeing Shanghai Aviation Services Co. Ltd., and Taikoo (Shandong) Aircraft Engineering Co. Ltd., also known as STAECO, in China. Modifications include installing a large main-deck cargo door, a cargo-handling system and accommodations for up to four non-flying crew members or passengers.

Image: GECAS.

GECAS takes delivery of its 394th – and last – Next-Generation Boeing 737

GECAS issued this statement:

Culminating a 20-year history of new orders for the type, GECAS has received its 394^th and final skyline order of Boeing’s Next Generation 737. Just over a month prior to Boeing delivering its first 737 MAX to GECAS in January, the lessor took delivery of its final skyline NG order last week.

GECAS 7378NG

With an initial order placed in 1996, GECAS’ NG orderbook accounts for roughly one of every 15 NGs delivered to date. Surpassing other lessor’s skyline orders for the type, GECAS’ placements of NG’s have been leased to 64 operators across 32 countries. Exclusively powered by CFM-56 engines, the narrowbody has served the airline industry for decades and is ideally suited for both commercial passenger and cargo aircraft.

In addition to new orders, GECAS has also provided new aircraft lease financing on an additional ~270 737NGs to customers around the world.

GECAS currently has 170 737 MAX airplanes on order, with the first delivery scheduled for January 2018.

Image: Boeing.

West Atlantic to lease four 737-800 Boeing Converted Freighters from GECAS

West Atlantic Airlines, a European dedicated cargo airline specializing in mail and express freight, has agreed to lease four Boeing 737-800 Freighters from GE Capital Aviation Services (GECAS). The airline will be the first operator to take delivery of the Boeing standard-body converted freighter. GECAS launched the program and provided the prototype aircraft to Boeing in 2016.

The first aircraft is currently undergoing the conversion at Boeing’s modification facility in Shanghai, with subsequent aircraft delivering in 2018 and 2019. This order will provide additional capacity to West Atlantic’s existing fleet of more than 50 freighters.

With 55 years of operating experience and detailed knowledge of the requirements of the express package and mail industries, West Atlantic is a proven supplier of custom-made capacity solutions throughout the EMEA region.

“GECAS is proud to provide these 737-800 converted freighters to West Atlantic,” stated Richard Greener, GECAS’ SVP & Manager Cargo, noting “transitioning into the Next Generation 737 is a logical step as West Atlantic defines its future fleet requirements.”

The 737-800 Boeing Converted Freighter will be equipped with CFM56-7B engines, and carries up to 23.9 tonnes of cargo with 12 main deck positions over 2,000 nautical miles and is an exceptionally cost-effective standard-body freighter.

Image: GECAS.