Gecas returns are falling, says analyst
GECAS, the aircraft-leasing unit of GE, has an order book it "cannot currently afford", an analyst at JP Morgan has claimed.
Gecas, the world's biggest lessor, has an operational base at Shannon. GE, under pressure to cut its debt, has been pondering the future of Gecas for over a year. The JP Morgan analyst, Stephen Tusa, said Gecas has churned 48pc of its jet portfolio over four years.
"We don't see a problem with portfolio 'churn' at face value. However, underneath the surface of a highly opaque net income number, we see degradation in core returns, masked by substantial gains that are not being well disclosed, even relative to the past," said Mr Tusa. Gecas declined to comment.