Skip to comments.Chinese group buys AIG aircraft firm for up to $4.8 billion
Posted on 12/10/2012 12:07:04 PM PST by Brandonmark
American International Group Inc (AIG.N) will sell nearly all of aircraft leasing business ILFC (ILFC.N) to a Chinese consortium for up to $4.8 billion, in a deal that gives the fastest growing aviation market easier and cheaper access to planes.
But the sale is at a far cheaper price than AIG sought and will lead to a substantial loss, the insurer's price for getting out of its last major non-core asset following the U.S. government bailout of the company in the financial crisis.
Chinese firms have previously shown interest in aircraft leasing, and the deal would give China access to a global network of about 200 airlines in 80 countries. China is already ILFC's largest market with 180 planes operating there, giving it 35 percent market share.
"It's the biggest deal we have in the aircraft leasing world and it's very ambitious," said Paul Sheridan, head of Asia at aviation consultancy firm Ascend Advisor. "We believe there are not enough aircraft on order in China at the moment. It will help Chinese airlines get more aircraft."
The world's two largest plane makers -- Airbus, owned by aerospace group EADS (EAD.PA), and U.S. rival Boeing (BA.N) -- have predicted demand for $4.5 trillion worth of passenger jets over the next two decades, with about two-thirds of new planes sold in the Asia-Pacific region, and China as the biggest single market in value terms.
(Excerpt) Read more at reuters.com ...
How could this possibly NOT compromise our security? But who cares anyway.. 80% of the people in our current government are socialists/communists/Marxists/Fascists and should NOT under any circumstances have security clearances, PERIOD. We flew the coup long ago..
Ooops. I meant “coop”.