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AerCap inks definitive agreement with General Electric to acquire GECAS

AerCap inks definitive agreement with General Electric to acquire GECAS
  • The deal will give rise to an industry leader across all aviation leasing sectors, including engines, helicopters and aircrafts.
  • The combined company will have better cash flows, earnings and revenues, as well as more customer diversification.

Aircraft leasing industry leader, AerCap Holdings N.V. recently announced its definitive agreement with GE (General Electric), which will allow AerCap to acquire 100% of GE business, GE Capital Aviation Services (GECAS).

The combined company created by the alliance will become an industry leader across all aviation leasing areas, with more than 2,000 managed and owned aircraft, 900 managed and owned engines, nearly 300 customers worldwide, as well as 300 owned helicopters.

AerCap CEO Aengus Kelly has reportedly stated that the company is excited to have the opportunity to unite two aviation leasing leaders. Both GECAS and AerCap have highly experienced teams, strong portfolios, diverse customer bases as well as order books of the most sought-after novel technology assets. He added that this alliance will strengthen the companies’ ability to deliver attractive and innovative solutions for customers, and enhance earnings, profitability and cash flows.

Mr. Kelly also mentioned that the transaction continues AerCap’s robust capital allocation track record. Furthermore, with air travel recovering at a rapid pace, the deal will present a lucrative opportunity that will allow the company to create value for investors over the long term.

H. Lawrence Culp, Jr., CEO and Chairman of GE also commented on the deal, saying that AerCap is the ideal partner for GECAS’s exceptional team. The combination of the complementary franchises is expected to create financial and strategic benefits for both the companies as well as their stakeholders. He also mentioned that the companies could jointly develop an industry-leading lessor in the aviation domain, with the scale, reach and expertise to cater to customers worldwide. Meanwhile, GE will earn both upside and cash in the combined company, with the aviation sector recovering rapidly.

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Nandita Bhardwaj

Nandita holds a management degree with specialization in marketing, and boasts of a short-term experience in the field of recruitment. Following her passion for writing however, she decided to pursue a career in the field of content development. Presently, Nandita pens down news pieces for, spanning the verticals of business, finance, and technology.