Possible AIG sale due in early Dec-2009, aircraft lessors trade down – Suppliers Share Wrap

An agreement to sell-off parts of American International Group’s (AIG) ILFC aircraft leasing business may be made as early as next week, according to media reports. ILFC CEO Steven Udvar-Házy may reportedly double his planned bid for ILFC from USD2 billion to USD4 billion, with cooperation from Onex, Greenbriar and Canada Pension Plan.

Udvar-Házy is already reportedly in talks with Credit Suisse to arrange a USD2 billion debt facility. Udvar-Házy reportedly plans to mainly purchase the company’s high value widebody aircraft.

ILFC has been up for sale for more than 12 months and is among AIG’s profitable businesses. The company controls more than 1,000 aircraft.

Shares in lessors traded down on Monday, with Air Partner down 4.0%, Genesis Lease down 1.9% and Babcock & Brown Air dropping 1.9%. Going against the trend was Aircastle, which has maintained its positive outlook after reporting profitable results in early Nov-2009.

Selected Aviation suppliers’ daily share price movements (% change): 30-Nov-09