Aircraft leasing market going up (and down) – Suppliers Share Wrap

Aircraft leasing companies filled both ends of The Centre’s suppliers share wrap today. Regional lessor, Aircastle, and private lessor, Air Partner, both gained 5% yesterday.

Aircastle stock continued its seesaw ride over the past fortnight, although the shares have gained 21.8% since 21-Dec-2009. Air Partner’s increase arrests a month-long slump for the company’s stock price. After a modest recovery through 2H2009, the shares are now approaching a nine month low.

Also reporting strong gains was Babcock & Brown Air, which was up 2.6%.

At the other end of the scale, Genesis Lease and Aercap saw their share prices fall 2.4% and 1.4% respectively. The two companies were due to complete their all-stock merger in late 2009 or early 2010, but no announcement about the transaction has been forthcoming.

The uncertainty over the fate of several of the largest leasing players appears likely to be settled this year. Allco’s leasing arm was finally sold to HNA Group early this year, with HNA Group reportedly looking to expand its leasing business beyond Allco.

However, the fate of ILFC is less clear. The company has received a USD12 billion bid from Allied Aviation Services, based on US Government backed loans, and the possibility of CEO, Steven Udvar-Hazy, purchasing a segment of ILFC's portfolio still remains.

Selected Aviation suppliers’ daily share price movements (% change): 11-Jan-2010