Category Archives: ILFC

AerCap to buy ILFC from AIG

AerCap

AerCap Holdings N.V. (The Netherlands) has announced that it has entered into a definitive agreement with American International Group, Inc. (AIG) under which AerCap will acquire 100% of the common stock of International Lease Finance Corporation (ILFC), a wholly-owned subsidiary of AIG. Under the terms of the agreement, AIG will receive $3.0 billion in cash and 97,560,976 AerCap shares.

ILFC logo

The transaction is expected to close in the second quarter of 2014. The cash portion of the consideration is expected to be funded through a combination of new debt financing and cash of the combined company.

The combined company will retain the name AerCap, and ILFC will become a wholly-owned subsidiary of AerCap. In connection with the transaction, AIG will be entitled to nominate two directors for election to the Board of Directors of AerCap.

Based on the closing stock price of AerCap’s shares on Friday, December 13, 2013, the total consideration has a value of approximately $26 billion including the assumption of the outstanding ILFC net debt of $21 billion. Upon closing of the transaction, AIG will own approximately 46% of the combined company, while the existing AerCap shareholders will own approximately 54% of the combined company. The AIG shares will be subject to a lock-up period which will expire in stages over a 9 to 15 month period, post closing of the transaction. In connection with the acquisition, AIG has entered into agreements with AerCap regarding voting restrictions, standstill provisions and certain registration rights.

As part of the transaction, AIG will provide AerCap with a committed five-year $1.0 billion unsecured revolving credit facility. In connection with the transaction, AerCap and AIG will make an election under Section 338(h)(10) of the Internal Revenue Code that will enable AerCap to step up the tax basis of ILFC’s aircraft and other assets to their fair market value.

AerCap’s CEO Aengus Kelly commented: “AerCap’s acquisition of ILFC will create the leading global franchise in the aircraft leasing industry. This transaction presents a unique strategic opportunity to bring together the outstanding and experienced personnel from both companies and two attractive portfolios of modern aircraft on lease to a highly diversified customer base. Further, we believe AerCap will now have the most attractive order book in the industry. With these combined resources, along with a strong liquidity profile, we will drive high levels of stable long term profitability and cash flows for the benefit of all our stakeholders.”

The acquisition will provide the opportunity to leverage the operating capabilities of both the AerCap and ILFC platforms to drive enhanced shareholder value. The combined portfolio will be concentrated from the outset in modern, fuel efficient aircraft, with over 85% of the fleet by value consisting of A320, A330, Boeing 737NG and Boeing 777 family aircraft. Further, AerCap will benefit from over $25 billion of future aircraft deliveries presently in the combined order book. This represents substantial embedded future growth with attractive aircraft types, and favorable pricing and delivery dates.

Robert H. Benmosche, President and CEO of AIG, said: “ILFC is a valuable business, and AIG has always taken great pride in ILFC’s reputation for innovation, its pioneering role in aircraft leasing, its industry-leading team of employees, and its consistent and successful market leadership. The combination of AerCap’s young fleet of in-demand aircraft and proven portfolio management capabilities with ILFC’s attractive order book and broad marketing reach will continue to lead the industry.”

Henri Courpron, Chief Executive Officer of ILFC, added: “I am very proud of the hard work and leadership demonstrated by the ILFC team over the past four years. It is because of them that we have the best-in-class order book and solid balance sheet, and our company is now poised for this promising combination with AerCap. Becoming the number one lessor in the world is a just reward for all of this work.”

The transaction is subject to approval by AerCap shareholders, receipt of necessary regulatory approvals and satisfaction of other customary closing conditions. Waha Capital, AerCap’s largest shareholder with a current stake of 26%, has agreed to vote in favor of the transaction.

AerCap is one of the world’s leading aircraft leasing companies. AerCap has a portfolio of 373 aircraft owned, managed and under purchase commitments, which represents one of the youngest fleets in the industry. The company is listed on the New York Stock Exchange (AER) and has its headquarters in the Netherlands with offices in Ireland, the United States, China, Singapore and the United Arab Emirates.

AerCap Current Fleet:

AerCap Fleet

International Lease Finance Corporation (ILFC) is a global market leader in the leasing and remarketing of commercial aircraft. With nearly 1,000 owned and managed aircraft and commitments to purchase approximately 330 new high-demand, fuel-efficient aircraft, ILFC is the world’s largest independent aircraft lessor. ILFC has approximately 200 customers in more than 80 countries and provides part-out and engine leasing services through its subsidiary, AeroTurbine. ILFC operates from offices in Los Angeles, Amsterdam, Beijing, Dublin, Miami, Seattle, and Singapore.

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SriLankan Airlines to lease three Airbus A350-900s from ILFC

SriLankan A350-900 (99)(Flt)(Airbus)(LR)

International Lease Finance Corporation (ILFC), a wholly owned subsidiary of American International Group, Inc. (AIG), announced today it has signed a 12-year lease agreement with SriLankan Airlines (Colombo, SriLankan), the national carrier of Sri Lanka, for three A350-900 aircraft. The aircraft will support the airline’s long-haul fleet renewal.

SriLankan has also placed direct orders for four additional A350-900 aircraft with Airbus.

The A350-900s are powered by Rolls-Royce Trent XWB-84 and are part of an operating lease agreement, which has an anticipated delivery timeline between July and September 2016. ILFC currently has two A330-200s and one A340-300 on lease with SriLankan.

Image: Airbus.

SriLankan Airlines: AG Slide Show

ILFC delivers a new Boeing 737-800 to Okay Airways

International Lease Finance Corporation (ILFC) (Los Angeles), a wholly owned subsidiary of American International Group, Inc. (AIG), has announced the delivery of a new Boeing 737-800 to Okay Airways Company Limited (Okay Airways) (OKAir) (Tianjin), which will allow the airline to expand services to meet the growing demand within its flight route network.

The newly-delivered Boeing 737-8Q8 B-5841 (msn 41789) is powered by two CFM 56-7B26E engines and will operate on the airline’s routes linking Tianjin with other major cities in China.

In other news, ILFC has announced today that it has finalized an order for the purchase of 50 E-Jets E2 aircraft from Embraer, including 25 E190-E2 and 25 E195-E2. The order also includes options for an additional 50 aircraft.

Copyright Photo: Paul Doyle. Sister-ship ex-Ryanair Boeing 737-8AS N594MS (msn 33557) became B-5577 on delivery.

OKAir (Okay Airways): AG Slide Show

ILFC to order 25 Embraer E190-E2s, 25 E195-E2s and 50 Airbus A320neo aircraft

ILFC E195-E2 (Flt)(ILFC)(LRW)

International Lease Finance Corporation (ILFC) (Los Angeles), a wholly owned subsidiary of American International Group, Inc. (AIG), announced today that it signed a Letter of Intent (LOI), subject to final agreement, for the purchase of 50 E-Jets E2 aircraft from Embraer, including 25 E190-E2 and 25 E195-E2 (Next Generation). The deal also includes options for an additional 50 aircraft, and marks the introduction of the E-Jets Family to the company’s diverse aircraft fleet.

Deliveries of the new aircraft are expected to begin in January 2018 and complete in 2023. The E-Jets E2 are configured with new aerodynamically advanced wings, new engine, full fly-by-wire flight controls, and advancements in other systems, which will result in double-digit improvements in fuel burn, maintenance costs, emissions, and external noise.

In 2011, Embraer announced that it would focus its attention on developing revamped versions of the E-Jet family, rather than an all-new aircraft. The second generation is known as the “E2” against Bombardier’s CSeries.

Embraer made this announcement today at the Paris Airshow:

Embraer announced the launch of the second generation of its E-Jets family of commercial aircraft, named the E-Jets E2 and comprising three new airplanes – E175-E2, E190-E2, and E195-E2. The E190-E2 is expected to enter service in the first half of 2018. The E195-E2 is slated to enter service in 2019 and the E175-E2 in 2020.

“After more than a decade of success, the E-Jets have become a fixture in commercial airline fleets around the world,” saidFrederico Fleury Curado, Embraer S.A. President and CEO. “The launch of the E2 builds on our vision to offer leading-edge commercial jets with a capacity right-sized for 70 to 130 seats, seamless mainline comfort, and performance for flexible and efficient utilization by regional, low-cost, and network carriers.”

In a typical single-class layout, the E175-E2 was extended by one seat row, compared to the currentgeneration E175, and will seat up to 88 passengers, while the E190-E2 keeps the same size as the E190, of up to 106 seats. The E195-E2, compared to the current E195, has grown three seat rows and will accommodate up to 132 seats.

“Our strategy is to offer all the benefits of a clean-sheet design, but with the reliability of a mature platform and commonality with current generation E-Jets,” said Paulo Cesar Silva, President & CEO, Embraer Commercial Aviation, “We have been continually investing in the E-Jets program, so that our customers can stay competitive with aircraft that have the lowest operating costs and the highest passenger appeal, today and in the future. I’m confident that with our mature global support network, the compelling operating economics, and the benchmark cabins of the airplanes, both existing and prospective customers will recognize the benefits of the E-Jets E2.”

The application of advanced technologies for engines, wings, and avionics distinguishes the E-Jets E2 by providing airlines with maximum efficiency gains and no compromises, while maintaining commonality with current E-Jets. New aerodynamically advanced, high-aspect ratio, distinctively shaped wings, improved systems and avionics, including 4th generation full fly-by-wire flight controls, and Pratt & Whitney’s PurePower™ Geared Turbofan high by-pass ratio engines (PW1700G on the E175-E2, PW1900G on the E190-E2 and E195-E2) will result in double-digit reductions in fuel consumption, emissions, noise and maintenance costs, and increased aircraft availability. The E-Jets E2 will be capable of achieving similar costs per seat of larger re-engined narrowbody aircraft, with significantly lower costs per trip, thus creating new opportunities for lower risk development of new markets and fleet right-sizing by airlines.

Cockpit commonality with current generation E-Jets was a key driver in the design definition for a smooth transition for pilots who will fly the E2. Honeywell’s Primus Epic™ 2 advanced integrated avionics system with large landscape displays, advanced graphics capabilities, and Honeywell’s Next Generation Flight Management System (NGFMS), already in development with current-generation E-Jets, will provide exceptional pilot situational awareness and flexibility for continuous innovation on the flight deck.

Known for its comfortable and roomy cabins, with no middle seats, the E-Jets passenger experience will be further enhanced in the E2 generation. UK design firm Priestmangoode was contracted to jointly develop the aircraft cabin with Embraer. The interiors will establish a new benchmark in cabin design, improve the passenger experience, and deliver a more comfortable and improved environment, tailored to passengers’ needs, while maximizing airlines’ operational efficiency.

Other suppliers and partners for the E-Jets E2 have been announced previously: Liebherr (control systems for flaps and slats), Moog (fly-by-wire), Rockwell Collins (horizontal stabilizer control system), UTC Aerospace Systems (wheels, brakes, APU, electrical system), Intertechnique (engine and APU fuel feed, pressure refueling, fuel transfer, fuel tank inerting and ventilation, and fuel gauging and control), Crane Aerospace & Electronics (electronic control module for landing gear, brake control systems and proximity sensors), Triumph (fuselage segments, rudder and elevators) and Aernnova Aerospace (vertical and horizontal stabilizers).

Embraer estimates its total investments on the new E-Jets E2 models to be US$1.7 billion over the next eight years.

Embraer foresees a demand for 6,400 commercial jets with capacity of up to 130 seats, over the next 20 years. With more than 1,200 E-Jets orders, Embraer has achieved a 42% market share in its segment. Over 950 E-Jets have been delivered to date to 65 customers from 47 countries. Later this year, the 1,000th E-Jet will roll off the assembly line, nine years after the first aircraft entered revenue service.

In other news, ILFC has signed a firm contract for the purchase of 50 additional A320neo Family aircraft. The contract was announced today at the Paris Air Show by ILFC Chief Executive Officer, Henri Courpron and John Leahy, Airbus Chief Operating Officer, Customers.

ILFC was the first lessor to commit to the A320neo Family with a firm order placed in 2011 for 100 aircraft.  With this latest order, ILFC increases its total firm NEO order tally to 150. ILFC will make its engine selection for the aircraft at a later date. Including this latest contract, ILFC remains Airbus’ largest customer, having ordered a combined total of 769 single-aisle and widebody Airbus aircraft.

Images: Embraer.

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ILFC exercises options to purchase 50 incremental Airbus A320neo Family aircraft from Airbus

ILFC logo

International Lease Finance Corporation (ILFC), a wholly owned subsidiary of American International Group, Inc. (AIG), announced today that it has exercised options to purchase 50 incremental A320neo Family aircraft from Airbus that were part of the agreement signed in April 2011 for 100 firm A320neo Family aircraft.

ILFC was the first leasing company to order the Airbus A320neo Family aircraft and has the largest order position among aircraft leasing companies. Deliveries of ILFC’s NEO aircraft are expected to commence in 2015. Officially launched in December 2010, the A320neo Family aircraft incorporate greater fuel-efficiency and eco-friendly technology, providing reductions in engine noise and emissions.

 

American signs a new sale-lease back agreement with ILFC for Boeing aircraft including 15 737-800s and one 777-300 ER

American Airlines (Dallas/Fort Worth) and International Lease Finance Corporation (ILFC) announced today both companies have entered into an agreement for the purchase and leaseback of an additional 15 new Boeing 737-800 and one new 777-300 ER aircraft.

The Boeing 737 aircraft are scheduled for delivery between May 2013 and December 2014. The Boeing 777 widebody aircraft is forecasted to be delivered in the second half of March 2013. ILFC and American had entered into a previous sale-leaseback agreement for 15 Boeing 737-800 Next Generation aircraft in 2011. The final delivery of those aircraft was completed in 2012 and they are operating today.

Copyright Photo: Terry Wade. The pictured Boeing 777-323 ER N717AN (msn 31543) on its final approach at London (Heathrow) was delivered on December 11, 2012 becoming the first of the type for AA.

American Airlines: AG Slide Show

AeroMexico to lease two additional Boeing 787 Dreamliners from ILFC

AeroMexico (Mexico City) will lease two additional new Boeing 787-8 Dreamliners bringing the total leased from ILFC to five 787s.

The addition of these two leased Boeing 787 aircraft to current on-order 787 fleet of five aircraft, two which were ordered directly from Boeing and three previously leased from ILFC, brings the total 787 fleet on-order to seven aircraft.

The new 787s will be deployed on AM’s long-haul routes, ultimately replacing 767 aircraft.

Bottom Copyright Photo: Ton Jochems. Ultimately all of the Boeing 767-200s and 767-300s will be replaced.

AeroMexico Slide Show: CLICK HERE