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Dublin-Based Aircraft Leasing Company AerCap Completes Acquisition Of General Electric's Plane Leasing Unit

Published on Nov 4 2021 8:34 AM in General Industry tagged: Trending Posts / SES / Avolon / Dublin Aerospace / Vertical Aerospace / AerCap / GECAS / General Electic / GE Capital / Safran Engine Services / Shannon Engine Support

Dublin-Based Aircraft Leasing Company AerCap Completes Acquisition Of General Electric's Plane Leasing Unit

Dublin-based aircraft leasing company AerCap has completed the acquisition of General Electric's plane leasing unit.

As reported by The Irish Independent, the deal positions AerCap as a worldwide industry leader across all areas of aviation leasing: aircraft, engines and helicopters.

The combined company will reportedly serve approximately 300 customers and will reportedly be the largest customer of Airbus and Boeing, according to a statement from AerCap.

AerCap reportedly now has a portfolio of over 2,000 aircraft, over 900 engines and 300 plus helicopters, as well as an order book of approximately 450 aircraft. The aircraft fleet reportedly represents approximately 90% of the assets of the combined company.

Under the terms of the deal, General Electric reportedly received 111.5 million newly issued AerCap shares, approximately $23 billion of cash and $1 billion of AerCap notes.

General Electric reportedly now owns approximately 46% of AerCap's outstanding shares.

AerCap CEO Gus Kelly reportedly said, "Completion of this transaction represents an important milestone for AerCap that will generate benefits for our customers, partners, employees and investors for many years to come.

"In GECAS, AerCap has acquired the right business, for the right price, at the right time, as air travel continues to recover from the pandemic and demand for aircraft leasing continues to accelerate."

As part of the deal, Jennifer VanBelle, a senior executive at GE Capital, has reportedly joined the board of directors of AerCap, reportedly bringing the number of members serving on AerCap’s board to 10.

Dublin-based AerCap is listed on the New York Stock Exchange, and has offices in Shannon, Los Angeles, Singapore, Amsterdam, Shanghai, Abu Dhabi, Seattle, Toulouse and other locations around the world.

McCann FitzGerald reportedly advised AerCap throughout its acquisition of GECASs.

AerCap Signs Agreement To Become Partners In Shannon Based Business

Additionally, as also reported by The Irish Independent, AerCap has said that it has signed a 20-year joint venture agreement that has seen it become a joint partner in an engine support business based at Shannon.

AerCap reportedly said that the agreement with Safran Engine Services means that the pair are now 50-50 partners in Shannon Engine Support (SES).

SES, the headquarters of are in Shannon, is reportedly a leading provider of spare engines for CFM International and the largest lessor of CFM56 and Leap engines. Prior to AerCap's acquisition of Gecas, CFM was reportedly a joint venture between GE Aviation and Safran.

Kelly reportedly said, "The SES business is a great fit within the AerCap portfolio, with similar expertise, common assets and a complementary customer base to our wholly owned engine leasing business. This partnership extends our longstanding relationship with Safran, one of the world’s leading aviation companies."

Dublin Aerospace Appoints New Chief Executive

Meanwhile, as reported by The Irish Independent as well, aviation maintenance company Dublin Aerospace has appointed William Flaherty as chief executive of the Dublin Aerospace Group with immediate effect.

Murphy reportedly succeeds Conor McCarthy, who reportedly resumes his position of executive chairman.

Flaherty reportedly joined the company in 2009 as an aircraft mechanic and has reportedly progressed through every level since.

Flaherty reportedly said, "Dublin Aerospace has proved itself to be one of the world's leading providers in aerospace MRO [maintenance, repair and operations] services, and I truly look forward to the next stages in the development of the business as we continue to grow to new heights."

The company, which was founded in 2009, is reportedly currently hiring for a number of positions, including electricians, technicians/mechanics, painters, fitter, document controllers and production planners.

Irish Aviation Tycoon Appointed As Special Advisor To Vertical Aerospace

In other Irish aviation news, as reported by The Irish Times, Irish aviation tycoon Dómhnal Slattery has been appointed as a special adviser to Bristol-based company Vertical Aerospace, which is developing electrically-powered aircraft, seen as a game changer in the quest for zero-emissions aviation.

Slattery, who is the chief executive of aircraft leasing company Avolon, has reportedly been engaged to advise chief executive and chairman of Vertical Stephen Fitzpatrick.

Avolon reportedly recently agreed a $2 billion (€1.6 billion) order for electric aircraft with Vertical. The agreement for 500 zero-emissions vertical take-off and landing (Evtol) planes will reportedly introduce the ultra-short-haul aircraft category to commercial aviation.

Avolon has reportedly established a new company called Avolon-e to be the customer for the new aircraft, which is reportedly known as the VA-X4.

Vertical reportedly also appointed two independent non-executive directors, Kathy Cassidy and Gur Kimchi, to its board.

Fitzpatrick reportedly stated, "I am thrilled to welcome Kathy and Gur to the Vertical board and to be working alongside Dómhnal in his new role as an adviser."

Fitzpatrick reportedly said, "Their collective experience across aviation, technology and the public markets will propel us forward on the next stage of our journey. I'm delighted to be working with them to make zero emissions aviation a reality for all."

Slattery reportedly said that Avolon's confidence in Vertical is evident in "our equity investment in their PIPE and our commitment to the VA-X4 programme with our June order for 500 zero emissions aircraft", and, "Vertical has the largest order book in the sector, it has the vision, the right business model and the right leadership team. I look forward to playing a strong role in its future success."

As reported by The Irish Independent, the appointment of Slattery as a special advisor to Vertical is part of Vertical's planned merger with blank cheque firm Broadstone Acquisition, which is intended to lead to a New York stock market flotation this year.

Avolon's $2 billion (€1.6 billion) deal for electric aircraft with Vertical reportedly also saw Avolon take an equity stake in Vertical. Other investors in Vertical reportedly include Microsoft, Rolls-Royce, Honeywell and American Airlines.

Additionally, Vertical reportedly said that Kathy Cassidy, who is reportedly a former senior vice president of GE and GE Capital, is joining the aircraft company as a non-executive director. Cassidy will reportedly chair its audit committee.

Gur Kimchi is reportedly a co-founder of Amazon's Prime Air.

Avolon is reportedly branching its business out to electric air taxis as well as to the air freighter market, reportedly betting that both sectors will deliver significant growth in coming years. It has reportedly signed agreements with Japan Airlines and Brazilian carrier Gol for eVTOL aircraft.

© 2021 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.

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