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No More Aircraft Leasing for AIG

 (Image source: ilfc.com)

American International Group Inc (NYSE:AIG) is exiting the aircraft leasing business with the sale of its International Lease Finance Corp subsidiary to AerCap Holdings N.V. (NYSE:AER). The deal is worth $5.4 billion, which includes $3 billion cash payments from AerCap and 98,000 shares of AerCap to AIG. In addition, AIG will appoint two directors on AerCap’s board. AIG has long insisted that aircraft leasing is not complimentary with their core insurance business model. International Finance Corp has a customer base in more than 80 different countries. Shares of AerCap have climbed 32 percent on the news of the acquisition. For a period of five years, AerCap will receive a revolving credit line of $1 billion from AIG.