China in auto power play
It might not shake up the industry just yet, but China's interest in Volvo and Saab is the start of something big in global autos, writes columnist Wei Gu. Commentary
FACTBOX: AIG's jet leasing unit, an aviation titan on the block?
(Reuters) - A collapse in the shares of American International Group has deepened speculation that the U.S. insurer could sell its profitable aircraft leasing arm, International Lease Finance Corp, to shore up its finances.
Here are some details on one of aviation's superpowers.
* Founded in 1973 by Steven Udvar-Hazy, ILFC is the world's second-largest lessor after GE Commercial Aviation Services.
* Has a fleet of 947 owned aircraft worth over $55 billion.
* Makes money by leasing Airbus and Boeing aircraft and selling old aircraft from its fleet. Also offers some loan guarantees for a fee to carriers buying airliners.
* Assets of $47 billion. Revenues of $1.3 billion a quarter from renting aircraft. Profit of $214 million last quarter.
* Standard & Poor's said on Friday it may downgrade ILFC's A+ rating due to a similar stance on parent AIG but said ILFC's business was "performing well".
* ILFC said in August its derivatives included 1.25 billion euros maturing in the fourth quarter, held by a non-subsidiary affiliate benefiting from credit support from AIG.
* Founder Udvar-Hazy was reported in June to be mulling a split from AIG due to the latter's financial situation, but AIG said on June 26 the leasing arm remained a core holding.
* ILFC says 90 percent of its revenues come from outside the United States, so far the world's hardest-hit aviation market.
* It has leased all the aircraft it is due to receive by the end of 2009 and reduced purchases of new aircraft for the following decade to prepare for an industry downturn. Around five U.S. customers have filed for bankruptcy protection this year.
* ILFC has 102 planes on order from Boeing and 53 from Airbus that it has yet to receive.
* Udvar-Hazy has immense sway over developments by both Boeing and Airbus. In 2006, his scathing comments sent Airbus back to the drawing board to redesign its A350 mid-sized jet with a wider, lighter fuselage to match Boeing's 787 Dreamliner. The revamp will cost the European firm an extra 6 billion euros.
* ILFC is the biggest customer for the 787, with 74 on order worth $12 billion. So far it has only ordered 20 of the redesigned Airbus planes, now known as the A350XWB.
* ILFC is among those hit by delays to the 787 and facing still further delays due to a Boeing assembly strike, now in its 10th day. Its 787s are on average 27 months late, ILFC says.
* Udvar-Hazy, a billionaire four times over, is ranked America's 79th richest man by Forbes. In 1999 he gave $60 million to the Smithsonian for the National Air and Space Museum's exhibition centre near Washington's Dulles airport, named after him.
(Sources: ILFC August 7 filing, Airbus, Boeing, forbes.com, Reuters)
(Compiled by Tim Hepher, editing by Will Waterman)
