GE in talks to merge aircraft-leasing business with AerCap Holdings
- Dan Primack, author of Axios Pro Rata
Illustration: Aïda Amer/Axios
General Electric (NYSE: GE) is in advanced talks to merge its aircraft-leasing business with AerCap Holdings (NYSE: AER), as first reported by WSJ.
Why it matters: This would create the world's largest jet-leasing business, valued north of $30 billion, which is certain to invite antitrust scrutiny. It also further streamlines GE, which has been shedding ancillary businesses since Larry Culp took over as CEO in 2018.
Bottom line: "The pandemic has hammered the aviation industry and pushed airlines around the world to cancel new jetliner orders, push back delivery dates and defer lease payments. As middlemen, aircraft leasing firms have suffered too, while also playing a critical financing role to keep deliveries flowing, often with sale-leaseback deals that hand cash to airlines with jet handovers." — Bloomberg