Cites Increased Demand From Airlines

International Lease Finance Corp. (ILFC), Airbus and Boeing's biggest customer, said it will increase aircraft orders between 20 percent and 30 percent within the next 12 months to 18 months, Chief Executive Officer Steven Udvar-Hazy said in an interview in Kuala Lumpur on Monday. The boost is due to increasing demand from airlines to replace older models.

"We are seeing a significant replacement demand and fleet modernization demand in the next five years," Udvar-Hazy (pictured right) said.

The aircraft leasing company, a unit of American International Group, has about 1,000 jets placed with airlines around the world and an additional 168 on order. Demand is growing, particularly in the Asia-Pacific region, according to Airbus, and airlines globally may buy 24,300 planes worth $2.8 trillion over the next two decades.

According to Bloomberg News, two people familiar with the situation said last week AIG plans to sell ILFC. A group of investors, including Onex and Greenbriar Equity Group, has been selected as the preferred bidder.

The private-equity firms are negotiating to acquire Los Angeles-based ILFC and want to keep the company intact, said the sources, who asked not to be namer because talks are private. Onex and Greenbriar plan to keep ILFC founder and chief executive Udvar-Hazy to run the firm, said one of the people.

"We're marching ahead to meet a transaction. We're highly confident there will be a favorable transaction for all constituents," Udvar-Hazy said. He declined to comment on the preferred bidders and said the size of the deal will be "several billions of dollars." The deal may be completed by year-end, he said.

FMI: http://www.ilfc.com/