ILFC will remain a core holding of parent company American International Group (AIG), the world’s biggest insurer by assets, following a recently concluded business review.
Steven Udvar-Hazy, ILFC chairman and CEO, and newly elected AIG CEO Robert Willumstad agreed that ILFC should remain part of AIG, according to a company statement.
Willumstad says: ““ILFC is the leading company in its business and it is in the best interests of both AIG and ILFC for ILFC to be a part of AIG. AIG will continue to work with ILFC’s leadership on ways to enhance ILFC’s business to the benefit of both organizations. ILFC is well positioned with a strong management team, sound customer base, geographic diversification and a market-leading portfolio of aircraft.”
Following his 15 June election to the post of CEO, Willumstad announced he would conduct a comprehensive review of AIG’s businesses.
On 18 June, ILFC chairman and CEO Steven Udvar-Hazy told CAO: “AIG has a new leadership team in the past 48 hours, so we are obviously re-examining our own capex plans and tactical direction in the near term.”
Udvar-Hazy first announced in an interview in February with CAO that the lessor was considering alternatives to secure its future. He did not rule out some form of separation from its parent AIG due to losses from insuring certain financial instruments.
Udvar-Hazy says: “The discussion and strategic review of our business which we had with Bob Willumstad has resulted in an understanding of the benefits that each of our organizations provides the other. As a result of its relationship with AIG, ILFC can capitalize on attractive business opportunities when others cannot. Together, we have identified opportunities to improve the global competitiveness of ILFC, which we believe will generate additional value both to AIG and ILFC.”
Separately, ILFC has indicated it is considering ordering 150 narrowbodies from both Airbus and Boeing at next month’s Farnborough Air Show.
ILFC chief operating officer John Plueger is quoted by Bloomberg news as saying the lessor is looking at the order to meet demand from airlines that cannot afford to buy aircraft amid tough market conditions.
“A stressed marketplace provides us with a lot of opportunities, maybe buying some airplanes at reduced cost,” Plueger is quoted as saying.