GE Aircraft Leasing Business Likely to Be Sold to Ireland's AirCap

[Image source= EPA Yonhap News]

[Asia Economy Reporter Park Byung-hee] General Electric (GE) is set to sell its aircraft leasing business to Ireland's AerCap. AerCap is the world's largest company in the aircraft leasing sector, and this acquisition is expected to further increase its influence in the market.

According to major foreign media on the 7th (local time), the merger and acquisition (M&A) deal in which GE will sell GE Capital Aviation Services (GEcas) to AerCap is expected to be officially announced as early as the 8th. The sale price is expected to exceed $30 billion. Last year, Bloomberg reported that private equity firm Apollo Global Management was considering purchasing Gecas for up to $40 billion.

Over the past five years, GE has accelerated restructuring by consecutively selling assets. It sold its bio business for $21 billion and also sold its stake in Baker Hughes.

GE accumulated massive debt as former CEO Jack Welch aggressively pursued mergers and acquisitions. His successors Jeffrey Immelt, John Flannery, and Larry Culp have been struggling to reduce the debt accumulated through M&A, and foreign media have commented that GE, once called an empire, is now being dismantled.

Last year, the aviation business suffered a severe blow due to COVID-19. However, with COVID-19 vaccinations being administered worldwide recently, there is growing optimism that the aviation industry will recover. Aircraft leasing companies have raised $14.9 billion in the bond market this year, showing renewed interest from investors.

AerCap became the world's largest aircraft leasing company after acquiring International Lease Finance Corporation (ILFC) for $7.6 billion in 2013. Last year, it also secured a 15.9% stake in Norwegian Air Shuttle, becoming a major shareholder.

This content was produced with the assistance of AI translation services.