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AerCap confirms Gecas purchase, creating largest aircraft lessor in the world

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Aercap CEO Gus Kelly

Aercap CEO Gus Kelly

Aercap CEO Gus Kelly

Dublin-headquartered aircraft lessor AerCap has confirmed it’s to buy rival Gecas in a deal that will create by far the largest aircraft lessor in the world.

The combined group will have a fleet of about 2,000 owned and managed aircraft.

It will also have more than 900 owned and managed jet engines, more than 300 owned helicopters and about 300 customers around the world.

The two companies are currently the world's biggest aircraft lessors.

Under the terms of the agreement, which has been unanimously approved by the boards of directors of AerCap and GE, GE will receive 111.5m newly issued AerCap shares, $24bn (€20.1bn) of cash and $1bn of AerCap notes and/or cash.

Upon completion of the transaction, GE is expected to own approximately 46pc of the combined company and will be entitled to nominate two directors to the AerCap board of directors.

Gecas has significant operations in Shannon.

Citi and Goldman Sachs have provided AerCap with $24bn of committed financing for the transaction.

“We are excited about this opportunity to bring together two leaders in aviation leasing,” said AerCap chief executive Gus Kelly.

“AerCap and Gecas both have industry-leading teams, attractive portfolios, diversified customer bases and order books of the most in-demand new technology assets,” he added. “This combination will enhance our ability to provide innovative and attractive solutions for our customers and will strengthen our cash flows, earnings and profitability.”

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Mr Kelly said that Gecas is a “highly attractive business”.

“As the recovery in air travel gathers pace, this transaction represents a unique opportunity that we believe will create long-term value for our investors,” he said.

“This business combination will also strengthen our longstanding partnership with GE Aviation, which we look forward to working with closely in the future.”

The combined company will retain the name AerCap, and GECAS will become a business of AerCap.


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