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GE-AerCap Deal Creates Issues For Boeing And Airbus

 |  March 9, 2021

Aircraft-leasing companies already account for half the world’s jetliner fleet, and a deal that would combine the two largest players is expected to have knock-on effects for airlines and the two dominant plane makers, Boeing and Airbus.

On Tuesday, March 9, AerCap Holdings NV stated it was in discussions with General Electric about its GE Capital Aviation Services leasing unit, reported The Wall Street Journal.  A deal would create a leasing company with more than 2,000 planes and another 500 on order, renting to hundreds of carriers. 

The Wall Street Journal reported Sunday that AerCap was in talks to combine with Gecas in a deal worth more than US$30 billion.

The creation of a new industry giant figures to do two things. It could mean airlines get better deals on planes, as a larger leasing company can wrangle lower prices from Airbus and Boeing. It could also intensify long-simmering competition between lessors and plane makers trying to secure orders from carriers as they look beyond the pandemic-driven travel downturn that has left thousands of planes parked.

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