American International Group Inc (NYSE:AIG) was rightfully reined in during the crises, but it seems the company has chosen to be..I don’t know, an insurance company again. Its pick up of ILFC, the company that showed people how to rent-a-jet, was one of the few smart decisions made amongst the shame that no one felt once being labeled “too big to fail.”
AIG finalizes the deal with AerCap
However, it was a great acquisition. Despite fiscal silliness and wholesale graft, American International Group Inc (NYSE:AIG) had a few people whom didn’t buy into a corporate culture seemingly lost at the “insurance company.”
ILFC defined private jet use and leasing under Steven Udvar-Hazy. Hyphens aside, his stewardship defined a newborn industry.
By finalizing the deal, AerCap became the largest independent jet-leasing firm in the world despite AIG’s involvement.
“AerCap is poised to become one of the two premier global aircraft-leasing franchises,” Gary Liebowitz, a New York-based aerospace analyst with Wells Fargo & Co., wrote in a May 7 research note. He rates AerCap as outperform.
Impact on AIG
Net cash proceeds to American International Group Inc (NYSE:AIG) were about $2.4 billion, after the settlement of intercompany loans, and the sale will have a “positive impact on AIG’s liquidity and credit profile,” Chief Executive Officer Robert Benmosche said in the statement. “While the ILFC name will no longer exist, its deep roots and legacy will continue to live on with AerCap.”
ILFC has a staggering $21 billion order backlog. That, on paper, matters at the end of the day.
“With approximately $45 billion of assets coupled with a diverse fleet of 1,300 aircraft and an attractive forward order book, AerCap will be a driving force in the industry,” AerCap CEO Aengus Kelly said in a statement.
It’s true. I hate it, but I’ll say it, well done you Dutch twats.