The future of ILFC - Your thoughts?

[NickN]

With the current turmoil in the US and the near collapse of AIG - ILFC's owner, what do you guys think may become of the worlds largest airliner leasing company?

As it stands at present the US Fed Reserve has loaned AIG $85 Billion to prop them up and prevent a catastrophic collapse. In exchange the Fed has taken security over all AIG assets, which includes ILFC and the aircraft on lease PLUS an 80% controlling stake in AIG.

I personally feel that ILFC is one of the best performing AIG assets and selling the company may not be beneficial to AIG in the long term as the income it produces will aid the repayment of the loan to the federal reserve. Selling ILFC at this stage may provide a short term lump sum to repay some of the Fed loan but in the long term would come at the sacrifice of the stable ongoing income.

[Rhys Xanthis]

Looking at their press releases, quite a few of ILFC's customers are from Asia.

What the aviation market has going for it is demand that will still increase, despite the decreasing world demand...their is just so much demand to be had from places like India...India alone could probably prop up ILFC with leasing orders.

I dont think its all doom & gloom..even with high fuel prices too, airlines are chasing after more fuel efficient aircraft, and in terms of affording to buy them, leasing can be a very good option for small airlines.

I think the future is still pretty good, although orders have definetly dried up.

[David Ramsay]

From Airwise News (http://news.airwise.com/story/view/1221641000.html)

September 17, 2008

The chairman of American International Group's profitable aircraft leasing arm is expected to lead an effort to buy back the unit, the Wall Street Journal said on Wednesday, citing people familiar with the situation.

Steven Udvar-Hazy, chairman of International Lease Finance Corporation (ILFC), and other ILFC officials have been in round-the-clock discussions with potential investors since late on Sunday, the Journal said.

The talks involved many options ranging from an outright purchase to the potential buying the bulk of the leasing company's assets, the newspaper said.

Udvar-Hazy and other senior executives at ILFC have concluded that it would be virtually impossible for the leasing company to remain competitive as long as it is part of AIG, the newspaper said.

ILFC officials have not approached AIG with any proposals, in part because it was not clear what AIG's fate would be, the Journal said.

US authorities on Tuesday put together an emergency USD$85 billion rescue of AIG to stave off a possible bankruptcy.

The government would require the insurance company to dispose of some "non-core" assets, such as ILFC, the Journal said.

(Reuters)