||GE CAPITAL AVIATION SERVICES
||+1 (203) 357-3776
||+1 (203) 316-7865
Click below for data links:
GEF-2011-02-WORLD APL LEASING-A
GEF-2011-02-WORLD APL LEASING-B
GEF-2011-02-WORLD APL LEASING-C
GEF-2011-02-WORLD APL LEASING-D
GEF-2011-02-WORLD APL LEASING-E
GEF-2011-02-WORLD APL LEASING-F
GEF-2011-02-WORLD APL LEASING-G
FORMED IN 1965. FULL NAME: GE CAPITAL AVIATION SERVICES (GECAS). JET AIRPLANE LEASING GROUP.
201 HIGH RIDGE ROAD
STAMFORD, CONNECTICUT, CT 06927, USA
USA (United States of America) was established in 1776, it covers an area of 9,363,123 sq km, its population is 280 million, its capital city is Washington DC, and its official language is English.
JANUARY 2002: (GECAS) (GEF) WILL CONVERT 10 767-200/-300 AIRPLANES TO FREIGHTER CONFIGURATION BY ISRAELI AIRCRAFT INDUSTRIES (IAI). 1ST AIRPLANE IS TO BE COMPLETED BY MID 2004. CANCELS 1 ORDER 767-300ER.
APRIL 2002: (GECAS) (GEF) CANCELS ITS ORDER FOR 50 FAIRCHILD DORNIER 728 REGIONAL JETS PLUS 100 OPTIONS WHICH WERE A TOTAL LIST VALUE OF $1.5 MILLION. THIS FOLLOWS THE RECENT FILING OF INSOLVENCY BY FAIRCHILD DORNIER.
July 2002: 2ND QUARTER = +$117 MILLION (+$155 MILLION).
October 2002: GE Aircraft Engines (GEC) lays off -2,888 jobs (-10%) with -1,000 immediate cuts and -1,200 to -1,800 cut next year.
January 2003: USA Bankruptcy judge OK'd (GE) Capital's (GEF) plan to receive 5% stake in US Airways (USA) Group in exchange for $710 million in financing.
(GE) 2002 = +$14.1 billion:, including (GEC) Aircraft Engines +$2.06 billion (+$2.15 billion), & (GECAS) (GEF) +$429 million (+$475 million).
July 2003: 2nd Quarter = +$126 million (+$121 million). 1st 6 Months = +$261 million (+$219 million).
August 2003: (GECAS) (GEF) announced it will lease 3 737-300F freighters to Bluebird Cargo (BLS) based in Iceland. The airplanes are being converted by Israel Aircraft Industries (IAI) from passenger to cargo configuration and will be delivered beginning in April 2004.
Bluebird Cargo (BLS) operates 737-300F freighter airplanes for freight forwarders and integrators on a scheduled and chartered basis.
(GECAS) (GEF) has 30 orders A318's.
August 2003: (GECAS) (GEF) announced it has leased 2 737-800 airplanes to Shenzhen Airlines (SHZ), of China. In addition to these 2 airplanes, (GEF) leases 4 737-700 airplanes to Shenzhen (SHZ).
Shenzhen Airlines (SHZ) is one of fastest growing regional air carriers in the Peoples Republic of China, with scheduled domestic service to >20 destinations.
2 737-800's (28639, B-5049; 28643, B-5050), (GEF) leased to (SHZ).
October 2003: (GECAS) (GEF) announced it accepted delivery of its 1st new 777 airplane, which will go into service at Alitalia Airlines (ALI) this month. The airplane delivered is the 1st of 18 777s on order from (GEF). (GEF) placed its original order for the wide body 777 models in June 2000. 14 of the airplanes are under contract for lease to Emirates (EAD). The remaining 4 are under contract for lease to Alitalia (ALI).
November 2003: (GECAS) (GEF) announced it will lease a converted MD-11F freighter to (EVA) Air of Taiwan. The airplane is currently leased to (EVA) as a passenger airplane. Beginning in April 2004, it will be converted by Boeing (TBC) to carry cargo and is expected to enter service as a freighter in August 2004.
In addition to the MD-11F, (GEF) currently leases 2 A330-200s to (EVA) Air. (EVA) is scheduled to take delivery of an additional 6 new A330-200 airplanes through the spring of 2005 that will be leased from (GEF).
(GEF) provides a variety of airplane financing and lease options to airfreight operators around the world, and currently maintains a fleet of approximately 65 owned and managed freighters. Its freighter conversion program with Israel Aircraft Industries (IAI) is converting 737 Classics to freighter and quick-change (QC) configuration, and 767 airplanes to freighters.
Founded in 1989, (EVA) Air is Taiwan’s second largest airline serving both long haul and regional markets from its hub in Taipei. The airline operates passenger flights to 33 international destinations and cargo services to 17 destinations in Asia, India, the Persian Gulf, Europe and the USA.
December 2003: (GECAS) (GEF) announced it will lease 3 A330-200 airplanes to Qatar Airways (QTA). The 1st 2 airplanes enter service at Qatar Airways (QTA) in January and February 2004. The 3rd is a new airplane scheduled for delivery in June 2005.
(QTA) already leases an A320 from (GEF) and will take delivery of 2 new A330-200 airplanes on lease from (GEF) in the summer of 2004.
(QTA) is 1 of the fastest growing airlines in the world currently flying to 46 destinations worldwide. Within the coming 2 years, the number of destinations served by (QTA) is projected to rise to 60. (QTA) presently operates 26 Airbus (EDS) airplanes and is 1 of the launch customers of the A380 'super jumbo'. (QTA) recently signed a USA$ 5.1 billion order for 34 additional Airbus (EDS) airplanes in a deal that will increase the fleet to 52 by 2008.
January 2004: (GEF) announced it is leasing two new 737-800 airplanes to Shanghai Airlines (SHA), China. The 1st airplane was delivered to (SHA) and the 2nd will be delivered in March 2004. In addition, (GEF) announced it will lease two Bombardier CRJ-200 regional jets to (SHA). The airplanes are currently on lease with another airline customer and will be delivered to (SHA) in June and December of 2004. (SHA) is 1 of the largest regional air carriers in China with approximately 120 domestic routes and scheduled flights to Vietnam.
Since 1988, (GEF) has placed >130 airplanes on lease in China with 17 different airlines.
February 2004: See attached link to "Leasing Survey 2004," which shows (CSV) ranked 1st of the top 40 airplane leasing companies with 36 turboprops, 274 regional jets, 994 narrow bodies and 159 wide bodies.
Canceled 2 orders A318's & 6 orders A321's, replacing them with 7 orders A319's & 1 order A320.
May 2004: (GE) Commercial Finance agreed to acquire the Commercial Finance Services portfolio ($2 Billion assets; including business airplanes, ships, and manufacturing equipment) of Boeing Capital (TBC) for above net asset value; Boeing (TBC) expects the deal to generate >$1.7 Billion net cash. (TBC) will have portfolio worth $10 Billion and (GE) Commercial Finance $222 Billion.
Kitty Hawk (KHC) announced it has signed a contract to lease 7 737-300SF airplanes from (GECAS) (GEF). (KHC) will be the North American launch customer for the 737-300SF, the freighter version of one of the best-selling and most popular commercial passenger airplanes of all time. The 1st airplane will be delivered to (KHC) in November, with the balance of the order delivered through 2005. The lease term for the new airplanes will be 10 years, with extension options at the end of that term. Work to convert the passenger 737-300s to SF models (freighters) will be performed by 1 of the premier passenger to cargo aircraft conversion companies in the world, Israel Aircraft Industries (IAI), Bedek Division. For the present time, (KHC) will continue to operate all of its 20 727F airplanes, though some of those airplanes will be retired in the years ahead. “This is a significant step toward enhancing the (KHC) fleet and preparing our company for the future,” said Robert Zoller Kitty Hawk (KHC)’s President & (CEO). “The 737-300SF will be a tremendous addition - it is a very fuel efficient, environmentally friendly airplane, capable of achieving federal Stage 4 noise regulations and possessing a modern digital technology flight deck. As such, the 737-300SF will provide lower operating and maintenance costs for our company. This obviously expands our fleet and reaffirms our commitment to growing our company in a way that makes good, solid economic sense. We are honored to be working closely with industry leaders (GEF) and (IAI).” As a recognized leader in air cargo customer service, (KHC) is the premier provider of guaranteed, mission-critical, scheduled overnight air freight transportation to approximately 60 cities across North America including, Alaska, Hawaii, Toronto, Canada and San Juan, Puerto Rico. With >30 years experience in the aviation and air freight industries, (KHC) plays a key connecting role in the global supply chain. (KHC) serves the logistics needs of >1,500 freight forwarders, integrated carriers and major airlines with its fleet of 727 freighter airplanes (and soon, new 737-300SF airplanes), its ground truck-network as well as its 239,000 square-foot cargo warehouse, USA Customs clearance and sort facility at its Fort Wayne, Indiana hub.
August 2004: (GECAS) (GEF) introduced a new airplane component management service to help airlines finance and manage their rotable and repairable spare parts. To provide the new service (GEF) purchased "LogisTech," a privately held aviation inventory management firm.
May 2005: SkyEurope Airlines (SKP), Central Europe’s 1st low-cost low-fare airline, announced it will lease 12 new 737-700s from (GEF). The airplanes will be delivered in 2006 and 2007. (SKP)’s 1st new 737-700s will enter the fleet in February 2006. The airplanes will be powered by (CFM56-7B) engines and equipped with fuel-saving winglets supplied by Aviation Partners Boeing (APB). The cabin will be configured with 149 leather seats. “After an intensive competition and detailed analysis, an attractive proposal from Boeing (TBC) and our own experience operating the 737, we concluded the Next-Generation 737 is the best airplane to take us along our demanding growth plan,” said Christian Mandl, (SKP) (CEO) & co-Founder.
Boeing (TBC) forecasts that Central European countries will require about 570 new airplanes worth about USA$30.6 billion during the next 20 years. Single-aisle airplanes in the 100- to 150-seat market, such as the 737, will account for 72%. 9% will be twin-aisle airplanes, with the remainder being regional jets. “We are thrilled to expand our relationship with (SKP) by leasing next-generation 737s to a low-cost carrier in the fast growing Central European region,” said Declan Hartnett Senior VP & Region Manager Europe for (GEF).
June 2005: (GE) Commercial Aviation (GEC) Services opened new offices in Mexico City, New Delhi, Sao Paulo, Shanghai, & Toronto.
At Paris Air Show, (GECAS) (GEF) announced $1.1 Billion, 20 orders 737NG's (CFM56), plus an unidentified customer from last year, with 12 orders 737NG's. Later, Letter of Intent (LOI), 40 orders A319/A320/A321's, 10 orders (2010) A350's, subject to the launch of the program which is foreseen in September 2005. Covers the 737-800 with the option to convert to the larger 737-900 version. 20 orders Embraer E170/E190's.
(GEF) announced that it is leasing 1 A320 and 3 A319 airplanes to United Eagle Airlines (UEG) based in Chengdu. The A320 is in service with (UEG). The 3 A319s will be delivered to (UEG) later this year upon re-delivery from an airline in the USA. “We are delighted to add a new customer in (UEG) to our roster of airline clients in China,” said Ms Li Liu (GEF) Senior VP Marketing. “We continue to redeploy a number of our leased airplanes into countries like China that have strong traffic growth.”
In 2005, (GEF) has leases or lease commitments for >80 airplanes with 12 different airline customers in China. In addition to leasing airplanes in China, (GEF) completed the largest engine leasing transaction in China in 2004, and provides pilot (FC) training to several airlines there. (GEF) maintains offices in Beijing, Hong Kong, and Shanghai.
July 2005: (GECAS) (GEF) announced that it is leasing 3 A320 narrow body airplanes to Spring Air (CQH), a new low-cost carrier (LCC) based in Shanghai. 2 of the airplanes were formerly leased to other carriers. The 3rd is managed by (GECAS) (GEF) on behalf of another party. "The demand for air travel in China should enable low-cost carriers like (CQH) to prosper, and we are thrilled to be participating in the airline’s launch and future growth," said Norman Liu (GEF) Executive VP Commercial Operations.
October 2005: (GE) Commercial Aviation Services (GEF) will lease 2 ex-US Airways (USA) A320-200's (2029; 2077), to India's Air Deccan (DCC) for delivery in January 2006. (GECAS) announced an agreement to lease 2 A320s to (DCC), one of India’s established low-cost airlines. They are part of an early return agreement reached with US Airways (USA) in May 2005. “We continue to redeploy airplanes with low-cost carriers in India and other regions where the demand for narrow body aircraft remains strong,” said Tejpreet S Chopra VP Marketing, (GEF). “Including (DCC), we lease airplanes to 27 different low-cost carriers around the world, making it 1 of the fastest-growing segments of our business.” Captain G R Gopinath Managing Director (DCC) said, “The 2 A320s will take our fleet size up to 22. Procurement of these 2 airplanes will enable us to fast-forward our expansion plans with increased penetration in the domestic Metro network.” In addition to leased airplanes, (GEF) provides commercial pilot (FC) training to (DCC) through its (GE) Commercial Aviation Training (GECAT) unit. (DCC) pilots (FC) are undertaking conversion training at (GECAT)’s London training centers. (GECAT) has longstanding ties to Indian carriers and has approval from the Indian (DGCA) to conduct training courses using its team of (JAA) Qualified Type Rated Instructors and Examiners. Since its inception in August 2003, (DCC) has carried >2 million passengers, covering 37 destinations. (DCC) has >146 flights a day, with a fleet size of 5 A320’s (180 seater), 13 ATR 42’s (48 seater) and 2 ATR 72’s (72 seater). (DCC) is a business unit of Deccan Aviation, India’s Largest Charter Company in the private sector.
Airbus (EDS) received formal approval from its shareholders, (EADS) and (BAE) Systems, for industrial launch of the A350 on the basis of 140 "firm order commitments" from nine customers,1 of which is unidentified. In Washington, Airbus (EDS) (COO) Charles Champion said the company is "confident" it will reach 200 commitments by year end, while Executive VP Procurement, Henri Courpron said that all 200 will be firmed within the same time frame. As previously announced, the airplane will be offered in 2 versions, the A350-800 seating 258 in a 3-class configuration with a range of 8,800 nm, and the A350-900 seating 316 with a range of 7,500 nm. The A350-800 will enter service in mid-2010, while the larger A350-900 arrives later in the year. Also, Rolls-Royce (RRC) announced that it finally had reached agreement with Airbus (EDS) to supply a new variant of its (Trent) engine series for the A350. The (Trent 1700) will be available for A350 deliveries from mid-2011. The airframe will launch with a version of the (GEnx). To date, (GEC) has captured all firm orders from identified customers, a total of 130 shipsets, plus 32 options. Courpron said the delay in bringing (RR) into the program was owing to both technical and commercial considerations: "We wanted to make sure we knew what (RR) had to offer." Implying that the delay was partly due to the engine-maker's negotiating position, he said "it was not a coincidence" that (RR) came aboard at virtually the same time Airbus (EDS) received authorization to build the jet. "We felt very comfortable going the whole way with just (GEC)," he added. "We sold 140 of them without (RR)."
The current customer list comprises Air Europa (ARE) (10), (ALAFCO) (12), (CIT) (TCI) (5), (GECAS) (GEF) (10), Kingfisher Airlines (KFH) (5), Qatar Airways (QTA) (60), TAM (TPR) (8), US Airways (USA) (20) and an unidentified customer (10).
The (Trent 1700) will offer a thrust rating of 75,000 lb and will run for the 1st time in mid-2009. The 4-digit nomenclature is a departure for (RR). A spokesperson told this website that the "1700" is a reference to the mid-70,000-lb thrust rating, not an homage to the (Trent 700) that powers the A350's closest sibling, the A330. "We have strong, market-leading or sole-source positions with the (Trent) on the A330, latest A340s and the A380, and we are equally confident that the (Trent 1700) will establish itself successfully on the A350," (RRC) President Civil Aerospace Mike Terrett said.
February 2006: (GE) Commercial Aviation Services (GECAS) (GEF) announced it will lease 4 new 737 airplanes to Excel Airways (SBE), a charter airline based in the UK. 2 737-800s are scheduled for delivery in the 2nd quarter in 2007. 2 Next-Generation 737-900ER (Extended Range) airplanes are scheduled for delivery in 2008. (SBE) will use these new airplanes to fly to destinations in Southern Europe and the Middle East. (SBE) is a leading UK charter airline providing services to 47 charter destinations in Europe, the Middle East, Asia, and North America from 12 airports in the UK. Excel Airways Group has approximately 1,600 employees in its operations. (SBE) has been chosen the best charter airline in the world for 2004 and 2005.
Xiamen Airlines (XIA) announced it will lease 5 new 737-800s from (GEF). Established 21 years ago, (XIA) is the first local airline company in China. Its 2 shareholders are China Southern Airlines Company Limited (GUN) and Xiamen C & D Corporation Limited with 60% and 40% shares, respectively. (XIA) currently operates an all-Boeing (TBC) fleet of 25 737s and 9 757-200s on >100 domestic and international routes with Xiamen, Jinjiang, Wuyishan, Hangzhou, and Nanchang as its main hubs.
March 2006: Based on an "Airline Business" magazine survey of airplane leasing companies, (GECAS) (GEF) has a fleet of 1,301 airplanes valued at $23,986 million and is ranked 1st of the top 50 airplane leasing companies (see attached data).
(GEF) provides a wide range of fleet, financing and productivity solutions to the commercial aviation industry. (GEF) has >200 airline customers covering >60 countries.
(GEF) is a subsidiary of the General Electric (GE) Company. This lessor offers 737's, 767's, 777's, A320's, A330's, as well as Bombardier & Embraer regional jets.
As Boeing (TBC) trumpets the early success of its 787 Dreamliner program, the pressure on Airbus (EDS) to counter its rival's offering continues to grow. (ILFC) (ILF) Chairman & (CEO) Steven Udvar-Hazy, whose company ordered 12 A350s in November, surprised an audience at the International Society of Transport Aircraft Trading conference in Orlando by calling on Airbus (EDS) to abandon its current A350 design plans, which are based partially on the A330, and build an all-new airplane with a new fuselage and new wing that can compete with the technologically advanced 787. "Airbus (EDS) is at a crossroads," Udvar-Hazy was reported as saying, adding that a commitment to redesign the A350 and perhaps overhaul its entire mid-size wide body product line would cost Airbus (EDS) $8 - $10 billion and must be made by July's Farnborough Air Show. (GEF) President & (CEO), Henry Hubschman said he agreed with Udvar-Hazy, according to press reports.
(ILFC) (ILF) and (GEF) are among those who have demonstrated a short-term commitment to the A350. (ILF) placed its order at the Dubai Air Show, at which time Airbus (EDS) had received orders for 155 airplanes from 11 customers. "The A350's innovative features combined with operational commonality with existing Airbus (EDS) fleets [make] it an attractive asset to invest in for the future. It complements our portfolio of Airbus (EDS) airplanes in which the A330 and its single-aisle family are the cornerstones," Udvar-Hazy said at the time. (GEF) signed a letter of intent for 10 A350s in Paris last summer. Hubschman said the lessor placed the order because of the "significant advantages of the airplane" and added he expected "strong demand from different operators for an early slot." He noted at the time that he had some potential customers in mind and that (GEF) had "no intention to commit to the 787."
Boeing (TBC)'s 787 program head, Mike Bair, said that (TBC) has 30 offers out to airlines for 500 787 Dreamliners on top of the 28 customers who already have committed to 386 airplanes. The tide seems to have changed as the 787 claims market share. Industry sources have suggested that the (GEF) & (ILF) orders contain caveats requiring Airbus (EDS) to meet certain order and customer milestones. Key launch customer, Qatar Airways (QTA), who announced a commitment in Paris to order 60 A350 family airplanes, still has not inked the deal and some suggest that its order is conditional on Emirates Airlines (EAD) signing up as well.
Sources in London said that Udvar-Hazy's comments in Orlando may have been promoted by those within (EDS), who desire an all-new airplane to combat not only the 787 Dreamliner, but the 777, which eclipsed the A340 family last year. In January, (EDS) (CEO), Gustav Humbert acknowledged to media, (TBC)'s efforts in the wide body segment, but cautioned that while "we are not happy with the situation, we should not panic. One year does not make a trend."
(GEF) and (TBC) announced an order for 30 firm and 30 option 737NGs, a deal worth approximately $4 billion at list prices. (GEF) will take delivery of the 30 firm airplanes from 2008 through 2010. It has ordered 68 737s in the past 2 years (GEF) and its customer carriers will take delivery of 30 this year and has >200 737NGs out on lease to >30 airlines around the world. "It is a very popular airplane model and we quickly leased all of the planes we ordered last year, so we needed more to satisfy our customers' demand," (GEF) President & (CEO), Henry Hubschman said. Included in the order is the 737-900ER. (GEF) is the 1st leasing company to order the 737-900ER, which seats up to 215 in a single-class configuration and is 9 ft longer than the 737-800. It will take its 1st 737-900ER in the 1st half of 2007.
May 2006: (GE) Commercial Aviation Service (GEF) President & (CEO), Henry Hubschman cited a "disconnect" between air traffic and capacity growth, with the former expected to rise at a rate of +4.5% annually compared to an average increase in the number of airplane seats of +5.5% over the next 5 years. Speaking to the Aero Club of Washington, Hubschman said, "I would argue that the [airplane] orders are too large. We wish they would moderate a bit, but we don't control that." While acknowledging that he is a pessimist by nature, he said, "Certainly by 2009 and potentially by 2008, there is a risk of an overcapacity-driven recession" in the airline industry. Observing that Airbus (EDS) and Boeing (TBC) ultimately hold the key to maintaining production stability, he joked, "One would think that in a duopoly situation they could figure it out better," a remark that drew chuckles from representatives from both Original Equipment Manufacturer (OEM)s in attendance. Overall, however, the chief of the world's largest airplane leasing and finance company, expressed optimism about long-term demand for transport airplanes owing to huge demand in China, Eastern Europe, India and Russia. For example, Hubschman noted that in the USA, the ratio of commercial airplane to 1 million people is 22.3, whereas in Eastern Europe the ratio is 2.9. "If you do the math for the populations of China, India, Russia, Brazil and Eastern Europe, these countries will need thousands of airplanes to have similar airplane/population ratios to the USA. If you take only 10%, we are looking at >6,000 airplanes," he added.
The spate of airline bankruptcies around the globe and the challenges they have presented to the leasing and finance sector will impact the way commercial transports are financed in the future, says (GEF) President and (CEO), Henry Hubschman. Commenting on lessons learned from the ongoing bankruptcy re-organizations in the USA, Hubschman noted, "We don't do leveraged leases anymore. Period. We're [also] more cautious about doing single-investor leases." He added, "We have not been harmed that much when someone breaks an operating lease." Turning to other parts of the globe, Hubschman believes that "adoption of the Cape Town Treaty is critical Leasing is dependent much more than selling on the rule of law being applied in all countries." The treaty, which took effect March 1 in countries that ratified it, provides an international legal framework intended to protect the interests of airplane financiers and lessors in cross-border airplane financing. He singled out the situation with Varig (VAR) in Brazil as a case in point. "We have no airplanes at (VAR), [but] when I hear that an airline can keep airplanes in bankruptcy, without paying for them" In terms of market opportunities, he sees a "huge upside for the global aviation industry in freighter replacement." Of the world's 1,700 freighters, around 400 are 35 years old or more, he said. Replacement with younger airplanes will accelerate if fuel prices remain at current levels. Switching a 3-crew, 3-engine 727F with a 2-pilot, (CFM56)-powered 737F results in total trip costs being cut "nearly in half" from approximately $8,200 to $4,900, he stated.
August 2006: Keith Helming, (CFO), left to become (CFO) at AerCap Group (DEA).
January 2007: (GE) (GEC) said it will acquire Smiths Aerospace for $4.8 billion in cash, combining its airplane engine business with Smiths' broad array of avionics equipment and components, under terms of a blockbuster agreement announced by the companies. "The acquisition will broaden (GEC)'s offerings for aviation customers by adding Smiths' innovative flight management systems, electrical power management, mechanical actuation systems and airborne platform computing systems to (GEC)'s commercial and military airplane engines and related services," (GEC) said.
(GEC) pointed out that Smiths Aerospace, which has >11,000 employees and generated $2.4 billion in revenue last year, is providing components and systems for many of the same airplane types for which (GEC) is supplying engines, including the 737, 787, A320 and A380. On the 787, for example, Smiths is developing the Common Core System, essentially the nervous system for the airplane. If the transaction closes, (GEC) will have half of the engine business, plus a major share of the systems on the 787. The transaction still needs to gain the approval of Smiths' shareholders and both USA and European Union (EU) regulatory authorities. (GEC)'s attempt to acquire Honeywell (SGC) was rejected by the (EU) in 2001. The companies also said they will launch a separate joint venture that will bring together (GEC) Security's Homeland Protection and Smiths Detection, giving the two companies a more significant footprint in the security detection equipment business, including airline security. The security detection Joint Venture (JV) will be 36%-owned by (GEC) with Smiths holding 64%. A definitive agreement is expected to be signed in the 2nd quarter, (GEC) said. But it is the acquisition of Smiths Aerospace that appears likely to have the greatest impact on commercial aviation. "(GEC) and Smiths fit together well because our product offerings are complementary, and because we have similar customers and deep domain expertise in this industry," (GEC) Chairman & (CEO), Jeff Immelt said. "(GEC) is growing about +10% a year and this acquisition gives us a technology growth platform that will be accretive to our net income and will deliver immediate and future value for our investors." (GEC) had >$13 billion in revenue last year. Smiths said it plans to return £2.1 billion/$4.1 billion to shareholders once the sale closes.
Boeing (TBC) said that (GE) Commercial Aviation Services (GECAS) (GEF) booked a 39-airplane order in 2006, valued at $5.34 billion, comprising 7 777-300ERs, 8 777Fs and 24 737-800s. The airplanes will begin delivering next year and continue through 2010. The order boosts (GEF)'s 2006 order book with (TBC) to 69. (GEF) President & (CEO), Henry Hubschman said the lessor already has "customers lined up for many of these airplanes. We have nearly finished leasing all of the next-generation 737 airplanes we previously ordered in 2006, so these additional airplanes will help us meet our customers' demand."
The (GE90-115B) will power the 777-300ERs, while the 777Fs will use the (GE90-110B1L).
February 2007: (STAR) Capital Partners, an independent investment fund manager based in London, said it has reached agreements to acquire a majority stake in General Electric Commercial Aviation (GEF) Training and to purchase the entire share capital of (SAS) Flight Academy and plans to combine the businesses in a deal valued at more than $275 million. (SAS) said the sale of (SAS) Flight Academy has a "transaction value and positive effect on net debt" of +SEK750 million/+$106.8 million, while the capital gain will be approximately +SEK380 million. The transactions are expected to be completed "in the next few weeks," (STAR) said. (GEF) will retain an equity stake of just <20% in the combined company and has signed a marketing alliance agreement "to assist in future development plans" of the merged business. (GEF) (COO) Brian Simpson was named (CEO) of the new entity and "will be supported by" (SAS) Flight Academy (CEO) Olof Barve in a to-be-named executive role. (STAR) said the pro forma combined revenue of the new company would have been $110 million for 2006. "The expected shortfall of qualified pilots (FC), combined with a continued drive by airlines to focus on their core businesses by outsourcing key support services makes established, well run pilot (FC) training operations like (GEF) and Flight Academy all the more critical going forward," STAR Investment Director Paul Gough said. (GEF) noted that the combined business "now becomes one of the leading independent flight training operators globally and the largest such entity in Europe." (SAS) said the sale, which follows the November divestment of its 65% holding in the Rezidor Hotel Group, is another move aimed at focusing "on core business."
Brian Rowe, a giant in the history of jet engines and a man closely associated with the rise of General Electric (GE) into the leadership position it currently enjoys in the jet engine business, died February 22 following surgery. He was 75. Rowe led (GE)-Aviation from 1979 to 1993, serving as the division's president and (CEO) as well as a corporate Senior VP. At the time he took the helm, (GE) was 3rd in the civil engine business; by the time he retired, it had become the leader, a position it holds today, having also grown to become the leading engine overhaul services provider. Rowe was born in London in 1931 and was working on engines before he was 18 with de Havilland Engine Company. After achieving a BS degree in Mechanical Engineering, he joined (GE) in 1957 in Lynn, Massachusetts. In 1968, he took over as General Manager of the (CF6) project department. He was elected VP & General Manager, Commercial Engine Projects Division in 1972, VP & General Manager Airline Programs Division in 1974, and VP & General Manager Aircraft Engineering Division in 1976. While running (GE)-Aviation, Rowe launched the (CF34), now the dominant engine in the regional jet market; the (CF6-80C2), in service on the 747-400, 767, A310-300, A300-600R and MD-11, and the (GE90), the world's largest and most powerful jet engine and the one that made possible the launch of the 777. He also was closely associated with the (CFM56) program, (GE)'s joint effort with Snecma, that found its most successful application on the 737 family. That engine has surpassed the (JT8D) as the world's best-selling commercial powerplant and effectively ended Pratt & Whitney's dominance in the commercial engine business. Although Rowe retired as Chairman of GE-Aviation (GEC) in early 1995, he remained active in the company as Chairman Emeritus and kept an office at the Evendale, Ohio, plant.
March 2007: GECAS (GEF) and Lynxs Holdings of Texas have formed a 50/50 joint venture, Lynxs Group, to develop, finance and manage new air cargo facilities. (GEF) holds an option to expand its stake over the next five years. The companies did not announce potential sites.
(GEC) has ruled out a variant of the Engine Alliance (GP7000) power plant, which powers the A380, for the A350 XWB-1000. A (GE) spokesperson said that "it is not being considered." The engine, a joint venture of (GE) and Pratt & Whitney (P&W), is currently offered only on the A380. The A350 XWB-1000 is to be powered by a (Trent 1000) at 95,000 lbs thrust. There had been brief discussions between (GE) and Airbus (EDS) on a possible 105,000-lbs (GEnx) derivative, but those talks lapsed. Meanwhile, the status of existing orders for the (GEnx)-powered A350 XWB-800/-900 remains up in the air, with (GE) stating that "we are still doing technical studies but are not close to a business agreement." 6 customers for the original A350 Air Europa (10), US Airways (20), (ALAFCO) (12), (GECAS) (10), (TAM) (10) and Qatar Airways (60) ordered the (GEnx) and most analysts considered it a formality that new agreements will be concluded. But according to a spokesperson, "(GE) does not have a deal with Airbus (EDS) on any A350 model and previous contracts we had, are for an airplane that doesn't exist."
April 2007: (GE)'s 1st-quarter financial results revealed strong performances from the company's aviation units. (GE) Aviation (GEC) enjoyed a +17% year-over-year rise in net earnings to +$755 million on a +16% increase in revenue to $3.51 billion. It was the most profitable segment in (GE)'s Infrastructure division. (GE) Aviation Financial Services' profit jumped +88% to +$338 million on a +34% climb in revenue to $1.25 billion. The overall company's 3-month profit grew +8% to $4.51 billion.
May 2007: (GE) Aviation (GEC) announced that it completed the $4.8 billion all-cash acquisition of Smiths Aerospace, giving the engine-maker its long-sought role in aviation components and systems. (GEC)'s proposed merger with Honeywell (SGC) was blocked by (EU) regulators in 2001. Smiths supplies flight management systems, electrical power management, mechanical actuation systems and airborne platform computing systems. It is developing the Common Core for the 787 Dreamliner, which has been described as the Dreamliner's central nervous system and is also on the A380 and the Joint Strike Fighter. "Smiths Aerospace is a natural expansion of our Aviation business," said (GEC) President & (CEO) Scott Donnelly. "Both businesses have a strong commitment to technology and innovative products and services, and we have a similar customer base. The acquisition brings additional technology growth platforms to (GEC) and allows us to further help our customers meet their needs." Smiths Aerospace, which was part of Smiths Group, has >11,000 employees and had $2.4 billion in revenues in 2006. The combined (GEC) and Smiths Aerospace revenues in 2006 were $15.6 billion.
June 2007: At this month's Paris Air Show, (GEF) signed for 60 A320 family airplanes. It also placed an order for 6 777Fs valued at $1.4 billion, bringing the total number of 777Fs it has on order to 14. "The 777 has proven itself to be a strong performer in the passenger market and we believe this will also apply in the cargo segment," President & (CEO) Henry Hubschman said. (GEF) has taken delivery of 15 777s and has +10 additional passenger versions on order.
Overall, Boeing (TBC) said it has taken orders for 78 777Fs worth $18.5 billion, with the 1st slated for delivery in the 2008 1st quarter. The freighter will have a revenue payload capability of 229,000 lbs/104 tonnes and a range of 4,885 nm.
(GEF) confirmed 3 E190 orders valued at $103.5 million.
July 2007: (GE) Commercial Aviation Services (GEF) completed acquisition of a majority stake in regional airport development and consulting firm AviaSolutions.
November 2007: At the 10th Dubai Air Show, Dubai Aerospace Enterprise (DAZ) Capital unveiled two deals that continued to kick-start its leasing venture. The 1st involved buying 8 Emirates Airlines (EAD) A330-200s and leasing them back to the airline. The 2nd, worth $1 billion, covered the purchase of 10 737 and 10 A320 leases from (GECAS) (GEF) and incorporates 11 customers from 10 countries. Dubai Air Show organizers said the (EAD) buy is valued at $500 million. (DAZ) Group (CEO), Bob Johnson told media, "(DAZ) Capital has become an airplane leasing and finance provider, that has made the world sit up and take note. We are tangibly fulfilling our aim of rapidly building a world class global aerospace, manufacturing and services enterprise." (GEF) (CEO), Henry Hubschman added, "(DAZ) continues to evolve and transform the aviation sector in Dubai and we are pleased to contribute to this ambitious plan. As 1 of 6 divisions, (DAZ) Capital can offer something, few others can match, and we're delighted to support their aims to become one of the largest airplane leasing companies in the Middle East."
December 2007: (GE) Commercial Aviation Services (GECAS) (GEF) announced that it has ordered 53 737-800s and 2 777-300ERs collectively valued at $4.5 billion. The massive order includes an exercise of existing options. "This additional order with Boeing (TBC) will allow (GEF) to help our customers around the world benefit from leading-edge operational efficiency," President & (CEO), Henry Hubschman said. "(GEF), already the world's largest owner of 737s, continues to add to its portfolio with 309 total Next Generation 737 orders," (TBC) President & (CEO), Scott Carson said. He noted that (TBC) has received 129 orders for 777s so far in 2007.
(GEF) has a fleet of 1,450 owned airplanes that it leases to >230 airlines in some 70 countries, and it manages nearly 300 additional airplanes owned by others.
March 2008: (GE) Aviation (GEC) began a scrap reclamation program with Turkish Airlines (THY) as launch partner to recycle hardware containing rhenium. The program calls for customers to return scrap (HPT) blades made from nickel super alloys containing rhenium to (GEC). "The program will help them with their environmental efforts as well as help reduce the costs associated with material disposal. For (GEC), it will help us reduce our need for rhenium, which is a rare and costly element," VP Supply Chain Scott Ernest said. The material is to be cleaned and melted for reuse. Work will be carried out by (THY) subsidiary Turkish Technic.
November 2008: China received a boost to its airplane manufacturing ambitions as (GECAS) (GEF) announced an order for 5 firm and 20 option (ARJ21-700)s. The airplanes will be powered by (GE)'s (CF34-10A) and are scheduled to begin delivering to the lessor in 2013. (GEF) is the 1st Western customer to order the 90-seater, which now has sold 206 units. Commercial Aircraft Corporation of China (CACC) Chairman, Zhang Qingwei said the commitment also marks the largest so far. It is worth up to approximately $800 million if all options are filled.
The 1st ARJ21-700 which rolled out 11 months ago, made its inaugural flight this month (SEE ATTACHED PHOTO - - "GEF-ARJ21-700-NOV08.") The regional jet reached an altitude of 9,000 feet during the 1 hour flight. Engineering flight tests will continue through 2009. 3 additional airplanes will be added to the flight test program next year to support certification and service entry in 2010.
According to (GEF), (CACC) sees a potential market for 850 ARJ21s over the next 20 years, which (GEF) said would be worth >$4 billion in engine revenue.
Meanwhile, Chinese Vice Minister Industry & Information Miao Wei confirmed that the country's large commercial airplane, designed to compete with the A320 and 737, is expected to enter the market between 2016 and 2020. He said the (CACC), a joint venture between AVIC I and AVIC II, will conclude preparation work by the end of next year, start production between 2010 and 2015, and enter the market sometime over the ensuing 4 years. The evaluation of potential sizes, market outlook, customer support, certification and other parameters is "going very well," he said. (CACC) Managing Director, Jin Zhuanglong noted that the company is in close contact with foreign suppliers regarding engine selection, equipment and production materials. Jin also revealed that Beijing has opened discussions with Russia regarding cooperation on a large commercial airplane program.
December 2008: (GE) Capital estimates a pre-tax exposure of $300 to $550 million for megalessor (GECAS) (GEF), owing to the anticipated traffic downturn in 2009. In an investor presentation this week, (GE) Capital estimated that a -1% to -2% decline in global airline traffic would result in the smaller exposure, while the "downside case" assumes a -3% decline in (RPK)s traffic and the liquidation of 2 airlines, resulting in the higher figure. (GEF) represents 7% of (GE) Capital's assets. Its airplane portfolio is worth $47 billion and it has earned $6 billion since 2001, according to the parent.
February 2009: (GE) Commercial Aviation Services (GEF) delivered 1 new 777 to Emirates (EAD), 1 new 737-800 to Xiamen Airlines (XIA), and 1 new A320 to Bulgaria Air (LZB).
March 2009: Are the world’s 2 largest airplane leasing firms ((ILFC) (ILF) and (GECAS) (GEF)) in trouble because of problems at their parent companies? Both, as "Dow Jones" describes, have relied heavily on the strong credit ratings of their owners (AIG) and General Electric (GE), respectively. A good rating meant they
could borrow at cheaper interest rates than most airlines, a critical advantage when buying expensive airplanes. In (AIG)’s case, it’s trying to sell (ILF) to repay government loans, but finding buyers with enough capital right now is difficult. (GE) is in better shape but may lose its (AAA) credit rating. According to "Dow Jones," leasing now accounts for half the airplane market, doubling as a percentage of the total market over the past decade.
June 2009: (GE) Capital Aviation Services (GEF) announced the promotion of Norman Liu, 51, to President & (CEO). Liu will take over executive management of the business from Henry Hubschman, 61, who will take on the new role of Chairman of (GECAS) (GEF). Changes are effective July 1. Liu is a 22-year veteran of (GEF) including 14 years at (GECAS), where he most recently served as Executive VP Commercial Operations. Hubschman joined (GEF) in 1997 and oversaw the growth of assets from $10 billion to >$46 billion during his tenure.
Boeing (TBC) commenced flight testing of a 737-900ER fitted with a modified engine nozzle in preparation for the arrival of the upgraded (CFM56-7B) "Evolution" engine next year.
(SEE - - "GEF-NEW CFM56-7B-AUG09.")
September 2009: AerCap Holdings N V (DEA) and Genesis Lease Limited announced that their Boards of Directors have approved a definitive agreement under which (DEA) and Genesis will merge in an all share-for-share transaction. Under the terms of the amalgamation agreement, Genesis shareholders will receive one (DEA) ordinary share for every Genesis common share they own.
Genesis is a global commercial airplane company that is headquartered in Shannon, Ireland. Genesis acquires and leases modern, operationally efficient passenger and cargo jet airplanes to a diverse group of airlines throughout the world.
Genesis will become a wholly-owned subsidiary of (DEA). (DEA)'s (CEO), Klaus Heinemann and (CFO) Keith Helming will lead the combined company, which will retain the name AerCap (DEA). 3 directors from Genesis will be nominated for election to the Board of Directors of (DEA) at an extraordinary general meeting of (DEA) shareholders to be called and held shortly after the consummation of the transaction.
Based on Genesis' balance sheet, the transaction has a value of $1.75 billion and, based on the closing stock price for (DEA) ordinary shares on Thursday, September 17, 2009, the share-for-share consideration has a value of $8.81 per Genesis (ADS) (each (ADS) representing one Genesis common share). The 1-for-1 exchange ratio represents an average premium to Genesis shareholders of 45% based on the daily closing prices of Genesis (ADS) and (DEA) ordinary shares during the 30 day trading period from July 31, 2009 to September 11, 2009. Upon closing of the transaction, Genesis shareholders are expected to own approximately 29% of the combined company. The transaction is subject to approval by Genesis shareholders, satisfaction of customary closing conditions and receipt of any necessary regulatory approvals. The transaction is expected to close in the 4th quarter of 2009.
(DEA)'s (CEO) Klaus Heinemann commented, "The merger of Genesis and (DEA) enhances the cash generation of the combined company in the current environment to pursue our growth objectives and capitalize on opportunities as the market recovers. Like (DEA), Genesis boasts the most modern, fuel-efficient and in-high-demand jets that are fully financed and on lease to a diverse operator base, including many new customers not currently in the (DEA) portfolio. The similarity of our respective airplane portfolios, combined with (DEA)'s substantial order book, make this an attractive transaction for all stakeholders.
Following this transaction, (DEA) will become the leading independent franchise within the global airplane leasing sector, with 116 airline customers in 50 countries and a lease portfolio currently valued at $6 billion, with another 83 airplanes on order or under purchase contract."
John McMahon, Chairman & (CEO) of Genesis added, "Genesis' board and management are committed to enhancing shareholder value. This transaction, through the solid profitability and strong cash flows of Genesis, combined with (DEA)'s scale and order book, which is nearly all placed, provides our shareholders with a significant and immediate premium to recent stock trading levels and positions them to participate in enhanced earnings and business growth in the future."
As part of the agreement, (GE) Capital Aviation Services (GECAS) (GEF), which has acted as servicer for Genesis' portfolio, will continue to provide most asset management services for the Genesis fleet in the near term. (GEF) has, however, agreed with (DEA) a means to terminate early the (GEF) services at (DEA)'s option. Additionally, (DEA) has signed a letter of intent (LOI) to purchase 13 airplanes from (GEF). The purchase of two airplanes is expected to occur by the end of September 2009 and the purchase of the remaining airplanes is expected to take place after and is subject to the closing of the transaction.
The combined company will have a total fleet of 358 commercial airplanes and 83 engines that are either owned, on order, under contract or letter of intent (LOI), or managed. The average age of its owned airplane fleet is 6.6 years.
The International Bureau of Aviation (IBA) said that Royal Bank of Scotland (RBS) reportedly is considering disposing of its $8 billion airplane leasing business, with Goldman Sachs being appointed as the sole adviser. According to the (IBA), (RBS) Aviation Capital (CGP) is the world's 4th-largest airplane lessor.
October 2009: (GECAS) (GEF), which vies with (ILFC) (ILF) for the title of world’s largest airplane leasing company, earned a $191 million segment profit on $1.150 billion in revenue during the 3rd quarter, which translates to a 17% margin. Not bad at all compared to the kind of margins airlines generally make, but nonetheless worse than its own result a year ago. During the 3rd quarter (Q3) of 2008, (GEF) earned a +$285 million segment profit on $1.265 billion in revenue, good for a 23% margin. Similarly, margin for the 1st 9 months of this year fell to 21% from 26% a year ago. The figures were released by parent company, General Electric (GE), which detailed results for each of its major businesses. Its definition of “segment profit” is, more or less, net profit ex-special items.
November 2009: (GE) Aviation (GEC) reported a slight dip in nine-month revenue, to just below $14 million for the period to the end of September, but profits were up +18%. to $2.87 billion. At sister company (GECAS) (GEF), the world's largest civil airplane lessor by fleet size, profits fell -22% to $746 million for the nine-month period, including a -33% drop in the 3rd quarter. (GECAS) (GEF)'s total assets were up +1% to $50 billion, but its airplane leasing assets have yet to be disclosed.
December 2009: (GECAS) (GEF) announced the sale of 15 airplanes valued at some $830 million and currently on lease with various airlines to China Development Bank (CDB) subsidiary, (CDB) Leasing. (CDB) President, Wang Chong said the transaction "will greatly expand our international presence." It signed a financing deal with Embraer this month
July 2010: (GECAS) (GEF) ordered 60 A320s and 40 737-800NGs at the Farnborough Air Show, signaling an end to the orders drought.
Boeing (TBC) valued its order at approximately $3 billion "at average list prices" while (CFM) valued the engine order to power the 737s at $560 million and said deliveries begin in 2013.
Airbus (EDS) did not provide a value or delivery date for its portion of the order but (CFM) valued (GECAS) (GEF)'s selection of the (CFM56-5B) to power the A320s at $840 million with deliveries starting in 2012. Customers for the (GEF) A320s taking delivery after 2012 will have the option of choosing sharklet-equipped versions.
Boeing Executive VP & Commercial Airplanes President & (CEO) Jim Albaugh told media that the company is looking actively at a further rate increase for the 737. “We have teams talking to the supply chain about another increase,” he said. Boeing (TBC) recently increased the rate from 31.5 to 35 a month, with insiders suggesting a final rate of 37 is on the radar.
Airbus (EDS) President & (CEO) Tom Enders told media that the (GEF) order is “a further demonstration of the strong demand for the A320 family and underlines its attractiveness to leasing companies, who are returning to the market with full steam.”
November 2010: (COMAC) (CCC) announced at the China International Aviation and Aerospace Exhibition in Zhuhai that 4 Chinese airlines and 2 leasing companies have placed orders and commitments for up to 100 C919s. The airlines comprise Air China (BEJ), China Southern Airlines (GUN), China Eastern Airlines (CEA), Hainan Airlines (HNA); the lessors are (GE) Capital Aviation Services (GECAS) (GEF) and China Development Bank Leasing Company.
The orders, the 1st for the 150 to 170 seat transport, also mark the formal launch of (CFM) International's (LEAP-X1C), which was selected as the exclusive western powerplant for the airplane last year.
(COMAC) (CCC) Chairman Zhang Qingwei noted “the big order['s] would lay a solid marketing base for the smooth development of C919 production,” which is scheduled to make its 1st flight in 2014 and enter service in 2016. "We are obviously honored by the strong show of support from China's major airlines evidenced by these launch orders," said (CFMI) President & (CEO) Eric Bachelet. (CFM) said it is on schedule to freeze the (LEAP-X) design by the end of 2011 with the 1st full (LEAP-X) engine going to test in early 2013.
(CEA) Chairman, Liu Shaoyong said (CEA) would take 20 C919s. It is reported that each of the other 3 airlines are taking a similar number, while (CDB) Leasing Company has reportedly ordered 10.
Separately, (GECAS) (GEF) said it signed a letter of intent (LOI) covering 5 firm C919s and 5 options.
Commenting on the order and rising competition from (COMAC) (CCC), Airbus (EDS) China President Laurence Barron told reporters at the show that, “The Chinese market is quite big and has enough room for different types of airplanes. Even if the competition hadn’t taken place in China, it would take place in Japan, Russia, and Canada, especially in the 100- to 200-seat airplane market. So when we face this competition, we deal with it.” He also said, “It is not enough just to have government support. Customers care about safety, reliability and financial performance. So if the airplane is a good one, it will sell.”
Boeing (TBC) continues to evaluate the possible time line for launching a successor to the 737, VP & General Manager 737 Program, Beverly Wyse said at the Zhuhai Air Show November 17. “We haven’t made a firm decision yet but we are considering it,” said Wyse. “Right now, we are in the phase of communicating with our customers and gathering information from them on this issue.” (TBC) is seeking a +25% improvement in fuel efficiency over existing types a new airplane would replace in the 100 to 200 seat size range.
(TBC) forecast earlier this month that China will need 3,090 new single-aisle airplanes in the next 20 years, which will account for 71% of total deliveries.
Confronted with the emergence of (COMAC) (CCC)'s C919, which just received 100 C919 orders at Zhuhai, Wyse said she is confident about Boeing (TBC)’s prospect in the Chinese market. “We fully respect China’s intention to enter the single-aisle airplane market and welcome this competition (which has been] really powerful for our industry as it continues to cause people to invest in their products and make the products more efficient,” she noted.
(GE) Aviation (GEC) and China's (HNA) Group, parent of Hainan Airlines (HNA), signed a Memo of Understanding (MOU) at the Zhuhai Air Show to form a Maintenance Repair & Overhaul (MRO) joint venture (JV) for (GE)'s (CF34-10A) and (CF-34-10E) engines for the ARJ-21 and Embraer E190/E195 regional jets, respectively. The facility will be located in Tianjin province and operated by the (HNA) Group "with technical support and materials from (GE)," (GEC) said.
A Shanghai-based joint-venture (JV) company will gradually take over the civil avionics businesses of General Electric (GE) and Avic.
Establishment of the joint company can now go ahead, following the signing of an agreement of the Shanghai municipal and Shandong provincial governments to invest in the Chinese side. “This will be the main commercial avionics business of Avic and General Electric (GE),” Avic VP, Zhang Xinguo said after the signing ceremony at Airshow China in Zhuhai, Guangdong.
Roger Seager, General Manager of Commercial Aircraft Programs at (GE) says, “This will be (GE)’s store front. Our commercial avionics will be headquartered here in China, at the joint venture (JV).” Since the Chinese side will collectively own half of the joint company, Avic’s effective interest will be less than 50%. The government investors, knowing little about avionics, can be expected to let Avic and (GE) run it, however. The 1st task for the joint company will be to develop avionics for the Comac (CCC) C919 airliner, the catalyst for its creation.
(GE) has already begun work on a suite of advanced modular avionics that will form the basis of the C919 system. The second task of the joint company will be to take those modules and develop avionic systems for other airplanes. Both sides will separately continue to build their existing products (which, in Avic’s case, do not enjoy large sales volumes) while the new business gradually expands to take over their whole avionics activities. The partners will continue to make components separately. Within the reorganized Avic, the joint company falls under Avic Avionics, part of what was previously called Avic Systems. The rest of the former Avic Systems will specialized in electrical and mechanical systems under a different name.
Western suppliers to the C919 program have been required to work with
Chinese partners. Several, including (GE), have chosen to set up joint businesses that will address the wider market beyond the C919.
December 2010: (GECAS) (GEF) will open new offices in Accra and Cape Town "to expand and strengthen relationships with its airline customers in Africa." It also announced it leased 4 737-800s to South African Airways (SAA); one A320 to Senegal Airlines (SNG); and 1 737-400 to Buraq Airlines (BUQ).
January 2011: (GECAS) (GEF) announced delivery of a new A320 airplane to Saudi Arabian Airlines (SVA). It is the 12th of 15 A320s leased to (SVA) from (GEF)’s existing order book with Airbus (EDS). Delivery of the airplanes commenced in November 2009.
(GEF) ordered 12 additional long-range A330-300 airplanes. (GEF) said the new commitment brings the total number of A330s ordered by (GEF) to 32. “This order adds to our existing portfolio of A330 airplanes,” said (GECAS) (GEF) President & (CEO) Norman Liu, who noted that “a key part of our strategy is to expand our wide body product offerings to satisfy customer demand.”
February 2011: SEE ATTACHED "AIRLINE BUSINESS" MAGAZINE ARTICLE ON WORLD AIRPLANE LEASING, WHICH SHOWS (GE) CAPITAL AVIATION SERVICES (GECAS) (GEF) AS #1 - - "GEF-2011-02-WORLD APL LEASING-A/B/C/D/E/F."
(GECAS) (GEF) signed a purchase and leaseback transaction for 2 new A330-200s and 4 new A320s. The airplanes are part of AVIANCA (AVI) - TACA (TAC)’s existing order book with Airbus (EDS). 2 of the A320s will be operated by (TACA) (TAC), the remainder will be operated by Avianca (AVI). Additionally, (GEF) has leased 10 A318s to Avianca (AVI).
March 2011: Air Berlin (BER) announced an agreement with (GE) Capital Aviation Services (GEF) for the financing of 12 new airplanes, comprising 5 A320s, 3 A321s and 4 737-800s, all equipped with (CFM) engines. This sale-and-leaseback transaction, worth $1 billion at list prices, is covering deliveries due in the 1st 3 quarters of 2012.
Boeing (TBC) and (GE) Capital Aviation Services (GEF) finalized an order for 10 (GE90-115B)-powered 777-300ERs valued at approximately $2.8 billion at list prices. (GEF) has ordered 53 777s, including 41 777-300ERs.
(SWS) won a contract from (GECAS) (GEF) to perform "C" maintenance checks this year at its main base in Zurich. The number of "C" checks completed at SR Technics (SWS)’s Zurich facility rose +36% year-over-year to 49 in 2010 versus 36 in 2009, it said.
April 2011: (GECAS) (GEF) signed a sale/leaseback agreement with Pegasus Airlines (PGS) covering the delivery of 4 new 737-800s slated to arrive this month.
May 2011: (GECAS) (GEF) announced it will deliver a total of 20 new leased airplanes to China this year, representing an investment of $7 billion in the country. It will deliver 11 new 737s, 2 new 777Fs, and seven new A320s in 2011, representing a +10% increase of its leased portfolio in China, it said.
June 2011: Boeing announced an agreement at the Paris Air Show that (GE) Capital Aviation Services (GECAS) (GEF) will purchase 2 747-8F Freighters and 8 777-300ERs (extended range). The 747-8F Freighter is a new model for the (GEF) portfolio of airplanes.
The 747-8F Freighters will be powered with (GE)’s (GEnx-2B) engines.
(GEF) and European turboprop manufacturer ATR announced a new order for 15 ATR 72-600s, plus 15 options. The deal is valued at approximately US$680 million at list prices, including options. This is a 1st-time ATR order for (GECAS) (GEF).
July 2011: Kenya Airways (KEN) signed a letter of intent (LOI) with (GECAS) (GEF) for the lease of 2 new 777-300ERs as part of its long-term expansion plan.
(GEF) receives its 400th Boeing (TBC) airplane, a 737-800 to be leased to Xiamen Airlines (XIA). To date, (GEF) has ordered 485 airplanes from (TBC). (GEF) placed their 1st order with (TBC) on August 30, 1995 for 2 767-300ER (Extended Range) airplanes. Since that 1st order, their fleet has grown to include several models of the 737, 747, 757, 767 and 777 families.
October 2011: Embraer (EMB) said (GE) Capital Aviation Services (GECAS) (GEF) has inked a contract for 6 Embraer E190s, plus 6 options, with the right to convert to the E195. The total value of the deal is $256.8 million at list prices. Delivery will begin in the 2012 4th quarter. (EMB) said this new contract expands on the agreement for 2 E190s announced at the Paris Air Show in June.
(GEF) has 93 E-jets of all models on lease with 15 airlines around the world, and its portfolio now comes to 101 E-jets.
(GEF) President & (CEO), Norm Liu said, “We continue to see strong demand for Embraer (EMB)’s E-jets, as carriers of all types from around the world expand their point-to-point services. We have built a large base in the regional sector and we will continue to grow with these customers.”
December 2011: (GE) Capital Aviation Services (GECAS) (GEF) and ATR announced an order for two additional ATR 72-600 turboprop airplanes, and 2 options.
This is a follow-on to (GEF)’s 1st-ever ATR order placed in June at the Paris Air Show and brings the total number of ATRs ordered by (GECAS) (GEF) to 17 with 17 options. (GEF) will begin to take delivery of the new airplanes in late 2012.
(GEF) has leased 3 of its newly ordered ATR 72-600s to Brazilian regional carrier (TRIP) Linhas Aéreas (TRP) and has signed with Jet Airways (JPL) in India for another 5 units.
“About half of all commercial air routes are <500 nm and turboprops like the ATR 72-600 perform very well on these stage lengths, especially when fuel costs are high,” said Todd Freeman Senior VP Regional Aircraft Programs at (GEF). “This adjustment to our earlier order gives us additional product to meet the forecasted demand.”
The ATR 72-600 joins (GEF)’s current portfolio of >1,750 owned and managed airplanes including narrow body, wide body and regional airplanes. ATR’s new ‘600-series’ will offer airline operators improvements in performance and passenger comfort, technology enhancements such as a new avionics suite, and very high standard of commonality with ATR’s current product.
January 2012: In the 4th quarter (GECAS) (GEF) the world's largest airplane lessor, earned a $315 million profit on $1.3 billion in revenues. For all of 2011, (GEF) earned +$1.2 billion profit on $5.3 million in revenue.
May 2012: (GECAS) (GEF) delivered 1 new A330-300 to (KLM) Royal Dutch Airlines, 1 new 737-900ER to Jet Airways (JPL) and 3 Embraer E170s to AirFrance (AFA) subsidiary, Régional Compagnie Aérienne Européenne.
July 2012: (GECAS) (GEF) will lease 10 new 737-800 airplanes to China Southern Airlines (GUN), scheduled for delivery in 2014.
(GEF) announced delivery of a leased 737-300SF freighter to a new customer, Northern Air Cargo (NAC). The 737-300SF will be used to upgrade and expand (NAC)’s fleet.
Privately held (NAC), based in Anchorage, Alaska, operates scheduled freight service to destinations in Alaska and the Pacific NW as well as charter freight service to other locations throughout North America. (NAC) operates a fleet of 5 cargo airplanes.
(GEF) has >100 freighter airplanes in its portfolio, including 737Fs and 737QCs, 747Fs, 767Fs, 777Fs and MD-11Fs. (GEF) freighter airplanes are leased to 29 different operators worldwide.
(GEF) ordered 75 737 MAX-8s and 25 737-800s. It previously had ordered 390 737NGs (341 delivered).
August 2012: (GE) Capital Aviation Services Limited (GEF) announced it will lease 2 A320-200 airplanes to a new customer, Tyrolean Airways. Tyrolean Airways is responsible for operating all Austrian Airlines (AUL) flights. The A320-200 are scheduled for delivery in early 2013 and will expand the existing fleet to around 80 airplanes.
September 2012: (GE) Capital Aviation Services (GEF) leased 9 A319s to Las Vegas-based, Allegiant Air (WJE). All 9 A319s are powered by (CFM56-5B) engines and are scheduled for delivery to (WJE) beginning in November through 2015.
(GEF) delivered two leased A320s to BH Air (BGH), 1 new A320 to Middle East Airlines (MEA) and will lease 9 (CFM56-5B)-powered A319s to Allegiant Air (WJE), with 1st delivery scheduled on November 12 and the rest through 2015.
October 2012: (GECAS) (GEF) has finalized a firm order for 85 737s, which includes 75 737 MAX 8s and 10 737-800s. The order, 1st announced as a commitment at the Farnborough Airshow, allows for up to 15 additional 737-800s. The deal is worth $6 billion at list prices. (GEF) said earlier it plans to take the 737-800s from 2015 and the 737 MAX 8s from 2018.
(GEF) opened a distribution warehouse in Singapore for its asset management services business.
(GEF) announced delivery of a leased 737-300F to Swiftair (SWF) to expand (SWF)’s fleet. (SWF) operates cargo flights in Europe, North Africa and the Middle East with a fleet of >30 airplanes.
(GEF) has >100 freighter airplanes in its portfolio, including 737Fs and 737QCs, 747Fs, 767Fs, 777Fs and MD-11Fs. (GEF) freighter airplanes are leased to 29 different operators worldwide.
November 2012: The Commercial Aircraft Corporation of China (COMAC) (CCC) has won 50 orders for the 150-seat C919 at the Zhuhai Air Show. The orders comprise 20 from Hebei Airlines (NTE), 20 from Joy Air (JOY) and 10 from (GECAS) (GEF).
In addition, (COMAC) also signed a memorandum of understanding (MOU) with USA-based defunct Eastern Air Lines for future sales of the airplanes to the USA. "Reuters" is reporting “sporadic reports of efforts to relaunch the airline, whose forked logo was seen on display as a backdrop to the signing ceremony.”
The International Airlines Group (IAG) and Ryanair (RYR) have also signed (MOU)s for the C919.
To date, (COMAC) has received 380 orders for the C919. The C919 entered the final design definition phase last year. Detailed design will be completed this year and the 1st flight is scheduled for 2014. Type certification is expected by 2016, followed by 1st delivery. By 2020, (COMAC) expects to produce 150 C919s annually.
According to the most recent market forecast released by (COMAC) at the Zhuhai Air Show, China will need 4,960 airplanes by 2031 in which 3,405 will be narrow body airplanes.
December 2012: (GE) Capital Aviation Services Limited (GECAS) (GEF), announced it will lease 5 new A320 airplanes and 2 new A321 airplanes to Juneyao Airlines (JYA) to expand (JYA)’s fleet.
(GEF) delivered the 1st 2 A320s in September and October. The remaining A320s are scheduled for delivery in 2013 and the 2 A321s are scheduled for delivery in 2014. All 7 airplanes come from (GEF)’s existing order book with Airbus (EDS).
(GE) Capital Aviation Services Limited (GECAS) (GEF) announced it will lease 2 new 737-800 airplanes to new customer, Transavia France (TVF). Delivery of the 737-800 is scheduled for early 2013 and will expand (TVF)’s fleet.
(TVF) operates a fleet of 10 737-800s to >30 destinations.
April 2013: (GE) Capital Aviation Services Limited (GECAS) (GEF) announced it will lease 2 A320s to new customer Aer Lingus (ARL).
The flag carrier of Ireland, (ARL) operates an all-Airbus fleet of 43 airplanes to >80 destinations worldwide.
June 2013: Boeing (TBC) officially launched the Boeing 787-10 at the Paris Air Show. (TBC) is going ahead with the development of the 787-10 on the back of firm commitments for 102 from 5 different customers. The 1st 787-10 is to be delivered in 2018.
Among the customers launching the program are Air Lease Corporation (ALE) (30 airplanes), United Airlines (UAL) (20), British Airways (BAB) (12), Singapore Airlines (SIA) (30) and GECAS (GEF) (10). All of the orders are new commitments except ten of the 20 (UAL) airplanes, which have been rolled over from a previous 787 order and converted into the larger version.
The 787-10 is a 18 ft stretch of the 787-9, allowing room for around +40 additional seats. Boeing (TBC) says it will offer room for around 300 - 330 passengers. The 787-10 will have a range of 7,000 naut mi. “The 787-10 will be the most efficient jetliner in history,” Boeing Commercial Airplanes (BCA) President & (CEO), Ray Conner said at the launch event in Paris. “The 787-10 is +25% more efficient than airplanes of its size today and >10% better than anything being offered by the competition for the future.”
According to Boeing (TBC), final assembly and flight tests of the 787-10 are both to begin in 2017 with 1st delivery scheduled for 2018. “The 787-10 will be one of the most powerful wide-body airplanes for decades ahead,” (ALE) Chairman/(CEO) Steven Udvar-Hazy said. In his opinion, the 787-10 will benefit from operational and development experience gained on the 787-8 and the 787-9.
Boeing managed to overcome Hazy’s initial concerns about range by increasing it to 7,000 naut mi. Hazy said that was addressed by introducing a slightly higher maximum take-off weight (MTOW) of 553,000 pounds. Some reinforcements in the wing to body attachment area and on the landing gear were needed to accommodate the increased weight. Engine thrust will also be slightly higher than originally planned. “The range covers 97% of the wide-body city pairs of the world,” Hazy pointed out. Its range will be around 1,500 naut mi more than the 787-9.
The (ALE) (CEO) believes that a lot of 777-200s and Airbus A340s will be replaced by the 787-10. (ALE) is also working with Boeing (TBC) on the 777X, but it is still too early for a launch decision according to Hazy. “It is still under design refinement,” Hazy stated.
July 2013: (GE) Capital Aviation Services Limited (GECAS) (GEF), announced delivery of a leased A320 to new customer Tianjin Airlines (GCR) to expand the carrier’s fleet. Tianjin Airlines (GCR) operates a fleet of >75 airplanes to some 60 destinations in China.
(GECAS) (GEF) was the 1st commercial airplane lessor in China and currently leases airplanes to 23 different Chinese customers, including (GCR). (GECAS) (GEF) maintains a strong local presence with established offices in Beijing, Hong Kong, and Shanghai.
August 2013: (GE) Capital Aviation Services (GECAS) (GEF) has delivered 2 new 737-800s to Pegasus Airlines (PGS) following a purchase-and-leaseback transaction.
September 2013: (GE) Capital Aviation Services (GECAS) (GEF) has finalized an order for 10 787-10 Dreamliners. The order, valued at $2.9 billion at list prices, was originally announced during the 2013 Paris Air Show in June.
October 2013: (GE) Capital Aviation Services Limited (GECAS) (GEF), announced an agreement to lease 4 new 737-800 MAX airplanes to Travel Service (TSF). 2 of the new airplanes are scheduled for delivery in early 2018 and 2 in early 2019. The airplanes are the 1st leased from (GEF)’s order of 75 Boeing 737 MAX models already announced.
November 2013: (GE) Capital Aviation Services (GEF) has promoted Stephane Daillencourt as Executive VP Aviation Financing Operations.
(GE) Capital Aviation Services (GECAS) has ordered 5 ATR 72-600s, and optioned 5 more, in a deal valued at $241 million at list prices.
December 2013: (GE) Capital Aviation Services Limited (GECAS) (GEF) announced delivery of a new leased A330 airplane to China Airlines (CHI) to help modernize its fleet. This is the 1st of 2 A330s that will be leased to (CHI). The 2nd is scheduled for delivery in 2014. The airplanes come from (GECAS)’ existing orderbook with Airbus.
In addition to these new deliveries, in December 2012, (GEF) announced it will lease 4 777-300ERs to China Airlines (CHI) with deliveries scheduled to begin in 2014. (GEF) currently leases 8 E190s to Mandarin Airlines (MDN), a subsidiary of China Airlines (CHI).
Founded in 1959, China Airlines (CHI) is a full-service flag carrier of Taiwan, operating a fleet of 75 regional and international airplanes to >110 destinations in 29 countries across Asia and to Oceania, Europe, and the USA.
(GE) Capital Aviation Services Limited (GECAS) (GEF) announced it signed a lease agreement with South Korean low-cost carrier (LCC) Jeju Air (JJA) for 2 737-800s. The airplanes are scheduled for delivery in 2014 to expand (JJA)’s fleet.
January 2014: Boeing (TBC) and (GE) Capital Aviation Services (GECAS) (GEF) announced an order for 40 737s. The order, valued at US$3.9 billion at list prices, consists of 20 737 MAX 8s and 20 Next-Generation 737-800s.
"We ordered more 737 MAX 8s and Next-Generation 737-800s because demand continues to grow as our airline customers require more fuel-efficient airplanes to compete in the marketplace," said Norman Liu, President & (CEO), (GEF).
The follow-on order increases the (GEF) order book for the 737 MAX to 95 airplanes and the Next-Generation 737 to 387 airplanes, the most for both models by any company in the leasing industry. To date, 32 customers have ordered 1,763 MAX airplanes.
With today's announcement, (GECAS) has ordered 638 airplanes directly from Boeing, which includes 737s, 747s, 757s, 767s, 777s and 787s. To date, (GECAS) has taken delivery of 459 of the airplanes.
November 2014: China lessor, Cheung Kong Holdings has announced it will pay a $2.02 billion in four transactions for 60 airplanes in an effort to enter the rapidly growing Asian airplane leasing market.
The four deals include purchasing 21 airplanes worth $816 million from (GECAS) (GEF), 10 airplanes valued at $492 million from (BOC) Aviation (SIL), and 14 airplanes worth $584.2 million from Jackson Square Aviation. Cheung Kong will also form a joint venture (JV) with the airplane leasing unit of Japan’s Mitsubishi Corporation to buy 60% stakes of 15 airplanes for an investment of $132 million.
The transactions are in line with the company’s strategy to further develop its airplane ownership and leasing business, the lessor said. It also noted the airplane leasing business can bring long-term stable revenue for the company.
Cheung Kong Holdings is owned by Li Ka-shing, known as Asia’s richest man.
In August, Cheung Kong confirmed the company was in talks to buy airplanes from private equity firm, Terra Firma-owned lessor, (AWAS) Aviation Capital (AWW), in a deal worth about $5 billion.
January 2015: Boeing (TBC) delivered a new 737-800 and a 777-300ER to (GE) Capital Aviation Services (GEF).
June 2015: News Item A-1: (GE) Capital Aviation Services (GECAS) (GEF) appointed Todd Freeman as Senior VP & Regional Manager for the Middle East, Africa and Russia/(CIS), effective June 1. He will be based in Dubai and oversee 5 regional sales offices that serve >50 airline customers and manage >300 leased airplanes.
News Item A-2: (GE) Capital Aviation Services Limited (GECAS) (GEF) has completed a purchase-and-leaseback transaction with Lion Group subsidiary, PT Batik Air Indonesia (BTK) for 4 new Airbus A320s. (GEC) delivered the 1st A320-200 earlier this month; the remaining 3 A320-200s will deliver throughout the rest of 2015.
July 2015: News Item A-1: (GE) Capital Aviation Services (GECAS) (GEF) appointed John Ludden as Executive VP & General Counsel. He succeeds David Lloyd who retired from (GEF) after 22 years.
News Item A-2: (GEF) has delivered the 1st of 2 leased Boeing 737-700s to (VRG) Linhas Aéreas. The 2nd airplane is scheduled for delivery later this month.
News Item A-3: (GE) Capital Aviation Services (GECAS) (GEF) has delivered the 1st of 3 Boeing 767-300ERs to EuroAtlantic Airways (MAE) to expand (MAE)’s fleet. The remaining 2 airplanes are scheduled for delivery later this year.
October 2015: News Item A-1: "(GECAS) Appoints New President & (CEO)" by (ATW) Linda Blachly, October 27, 2015.
(GE) Capital Aviation Services (GECAS) (GEF) has appointed Alec Burger as President & (CEO), effective January 1, 2016. He succeeds Norman C T Liu, who will stay on as Chairman of (GECAS) (GEF) until late 2016, when he will retire.
“Alec has tremendous commercial skills, including a keen external focus and a track record of building strong customer relationships,” (GE) Capital, Chairman & (CEO) Keith Sherin said. “He’s a terrific leader known for driving growth, developing talented teams and has a proven record of building (GE) Capital’s businesses across the globe. His structured finance skills and global mindset will serve him well in his new role at (GECAS).”
Burger is a 25-year (GE) veteran, including 15 years at (GE) Capital Real Estate, where he formerly served as President & (CEO). Burger joined Real Estate in 2000 as VP Business Development, where he led a number of major strategic real estate acquisitions. In 2002 he was named Managing Director of (GE) Capital Real Estate’s UK unit, and in 2007 became VP North America.
As Chairman, (GECAS) (GEF) said Liu will provide strategic counsel and long-term planning support to Burger and the (GE) Capital board of directors. “Under Liu’s leadership as (CEO) over the past 7 years, the (GECAS) (GEF) team has consistently delivered strong financial results, with annual revenues of >$5 billion and net income of >$1 billion on average on nearly $50 billion of assets. He also developed the company’s strong product capabilities in syndicated debt/asset sales, regional/cargo aircraft, engine leasing/airframe parts, aircraft evaluation/aviation consulting and helicopters.” Prior to (GECAS) (GEF), Liu held senior roles with (GE) Capital in (M&A) and capital markets.
December 2017: (GE) Capital Aviation Services (GECAS) (GEF) announced its Regional Aircraft Group delivered 2 new leased Bombardier (BMB) Dash 8-Q400 NextGen turboprop aircraft to low-cost carrier, Nok Air (NKA) under a purchase-and-leaseback transaction.
News Item A-3: (GE) Capital Aviation Services (GECAS) (GEF) delivered a leased Airbus A330-200 airplane to Lufthansa (DLH). The airplane is the 1st of up to 7 leased A330-200s scheduled for delivery to (DLH) through 2017 as part of (DHL)’s fleet expansion.
November 2015: (GE) Capital Aviation Services (GECAS) (GEF) has agreed to lease 2 new Boeing 737 MAXs to China’s Okay Airlines (OKA) for delivery in 2018.
January 2016: News Item A-1: "Thailand’s Kan Air Looks to Lease Regional Jets" by (ATW) Jeremy Torr, January 6, 2016.
Thailand-based regional carrier, Kannithi Aviation (Kan Air) is looking to expand its fleet with either Airbus A320 or Sukhoi Superjet 100 (SSJ100) aircraft.
The carrier has been in talks with SSJ100 manufacturer, United Aircraft Corporation, parent of Sukhoi Civil Aircraft Company (SSJ), and lessor (GE) Capital Aviation Services (GECAS) (GEF) to lease single-aisle regional jets (either 3 SSJ100s or 2 A320s).
Kan Air (CEO) Somphong Sooksanguan said earlier this year he would continue to expand routes and services across the region.
Kan Air would be the 3rd Asian commercial operation to operate the Sukhoi aircraft. Lao Central Airlines (LCA) operates 1 SSJ100 Superjet, and Indonesia-based Sky Aviation (SKI) took delivery of 3 Superjets in 2013, although it is not currently operating them.
The deal would be a boost for the region’s Russian manufacturer as sales of the Superjet have failed to ramp up as originally planned. (UAC) has reduced target sales over the next 15 years by >200 aircraft and is also looking to cut manufacturing costs significantly.
Kan Air, which took delivery of an additional leased ATR 72-500 in March 2015, flies to 8 regional destinations out of its base at Chiang Mai in the north of Thailand using a mixed fleet of ATR, Cessna and Beechcraft aircraft.
News Item A-2: (GE) Capital Aviation Services (GECAS) (GEF) delivered a leased Airbus A320 to low-cost carrier (LCC) VivaColombia (VVC).
News Item A-3: (GE) Capital Aviation Services (GEF) has named Rich Greener as Senior VP Cargo Programs.
May 2016: (GE) Capital Aviation Services (GECAS) (GEF) delivered a leased Boeing 737-800 airplanes to its new Thai airline customer NewGen Airways to expand the carrier’s fleet. A 2nd leased 737-800 is scheduled for delivery later this month.
NewGen Airways, based in Bangkok, operates scheduled and charter services to destinations in China with a fleet of 6 airplanes.
July 2016: "Bohai Financial to Acquire Leased Aircraft from (GE)'s (GECAS)" by Meg Shen & Lee Chyen Yee, "Reuters" July 01, 2016.
Two of Chinese aircraft lessor Bohai Financial's subsidiaries have agreed to buy 45 leased aircraft worth US$2 billion from General Electric's (GECAS).
The deal, to be conducted by Bohai's units Avolon Aerospace Leasing Ltd and Hong Kong Aviation Capital Ltd, will further boost Bohai Financial's foothold in the global aircraft leasing market.
Western firms such as AerCap (DEA) Holdings and General Electric's (GECAS) (GEF) still dominate the US$228 billion global aircraft leasing industry, but Asian firms have broken into the big league in recent years.
Chinese aviation and shipping conglomerate (HNA), which is also the controlling shareholder of Bohai Financial, is a leading contender for USA lender, the (CIT) Group (TCI) Inc's aviation assets, the sources said in May.
October 2016: News Item A-1: "Avolon Acquisitions Boost 3Q Statistics" by (ATW) Alan Dron firstname.lastname@example.org, October 28, 2016.
Ireland-based lessor Avolon (AZV) recorded a +67% increase in its fleet of owned, managed and committed airliners for (3Q) 2016 compared to the same period a year ago.
The number of airplanes rose from 258 to 432. The past quarter has seen Avolon (AZV) (recently acquired by Chinese company Bohai Leasing) take on 45 airplanes from the portfolio of fellow-lessor (GECAS) (GEF) for $2 billion.
The last 3 months have also seen it make a $10 billion purchase of (CIT) Group (SIL)’s leasing business, which will add a further 400-plus airplanes to its fleet when the deal is finalized.
In a (3Q) trading update, Avolon (AZV) said it delivered 31 airplanes over the past 3 months, including 22 from the (GECAS) (GEF) portfolio, to 19 customers.
The company sold 11 airplanes, 7 from its owned fleet and 4 from its managed fleet. Letters of intent were executed for sale of a further 13 airplanes.
(AZV) added that it had increased secured and unsecured committed debt facilities by >$1 billion in the period, strengthening its balance sheet and providing additional liquidity to accelerate growth. Also secured was a commitment for $8.5 billion of debt finance, underwritten by Morgan Stanley and (UBS), for the acquisition of the (CIT) Group business.
Avolon (AZV) said 23 airplanes from the (GECAS) (GEF) portfolio are scheduled to be delivered in (4Q).
The average age of (AZV)’s owned fleet is 3.2 years, with an average remaining lease term of 7.5 years at the end of 33. Its customer base increased to 84 airlines in 40 countries.
News Item A-2: (GE) Aviation opened its digital collaboration center in Austin with launch customer Qantas Airways (QAN). Through the partnership, data scientists, software developers and architects from (GEF) and (QAN) will work together to distill some of the 10 billion data points produced by the aviation sector annually into solutions that can achieve greater fleet intelligence and operational insights.
News Item A-3: (GE) Capital Aviation Services (GEF) has placed its 1st 737-800NG passenger-to-freighter converted airplanes with the (ASL) Aviation Group.
News Item A-4: (GE) Capital Aviation Services (GECAS) (GEF) has delivered a new, leased Airbus A320neo to Avianca Brasil (ONE) to expand and modernize (ONE)’s fleet. (GECAS) said the aircraft is the 1st in the Americas powered by (CFM) International (LEAP-1A) engines.
December 2016: News Item A-1: (S7) Airlines (SBR) agreed to lease 17 used Embraer E170s from (GE) Capital Aviation Services (GEF). The 1st aircraft will be delivered in the spring.
January 2017: (GE) Capital Aviation Services (GECAS) (GEF) announced January 4 that it booked an order in December 2016 for 75 Boeing 737 MAX 8s. The order is valued at $8.25 billion at list prices.
The new order increases (GEF)’s order book for 737 MAX 8 airplanes to 170, the largest number of bookings for the model by any leasing company. (GECAS) (GEF) President & (CEO) Alec Burger said the (CFM) International (LEAP-1B) engines on these airplanes “deliver outstanding productivity and reliability in the single-aisle market.” The (LEAP-1B) is the sole-source engine for the 737 MAX, which is scheduled to enter service in mid-2017 with launch customer Southwest Airlines (SWA).
The (GEF) deal brings Boeing’s order total for 737 MAX airplanes to 3,419. As of November, the rival Airbus A320neo (another re-engined narrow body) had received about 4,800 orders from 88 customers.
June 2017: Lessor (GECAS) (GEF) was among the 1st to sign up for the new Boeing 737 MAX 10, launched at the Paris Air Show.
July 2017: News Item A-1: West Atlantic Airlines (AAG) has agreed to lease 4 Boeing 737-800F freighters from (GE) Capital Aviation Services (GEF). (AAG), the European cargo carrier will be the 1st operator to take delivery of the Boeing standard-body converted freighter. The 1st aircraft is undergoing the conversion at Boeing’s modification facility in Shanghai, with subsequent airplanes delivering in 2018 and 2019.
News Item A-2: Lufthansa Technik (DLH) (LTK) Aero Alzey was licensed by (GE) Aviation (GEF) to provide (CF34) maintenance.
December 2017: (GECAS) (GEF) took delivery of its 394th, and last, Boeing 737NG. It currently has 170 737 MAXs on order.
January 2018: (GECAS) (GEF) appointed Declan Kelly as Chief Commercial Officer (CCO).
April 2018: News Item A-1: "Vietjet (VJE) Signed US$7.3 Billion Deal with French Firms for Airplanes and Engines" by Mai Nguyen, "Reuters" March 27, 2018.
Vietnam's Vietjet Aviation (VJE) on March 27 signed deals worth a combined US$7.3 billion with Safran - (CFM) and (GE) Capital Aviation Services (GECAS) (GEF) France to lease and purchase planes and engines and supply maintenance services.
(VJE), the budget airline signed a US$6.5 billion memorandum of understanding for engine purchase and maintenance services with Safran - (CFM) and a US$800 million contract with (GECAS) (GEF) France for buying and leasing 6 Airbus A321neo planes.
(VJE) is among Vietnam's biggest and fastest-growing airlines. Its 2017 pre-tax profit is estimated to have surged 75.9% annually.
"This agreement recognizes the strategic partnership between (VJE) and Safran - (CFM)," (VJE)'s Vice General Director Dinh Viet Phuong said.
The deals were signed during Vietnamese general secretary Nguyen Phu Trong's visit to France.
The statement said Safran - (CFM) will provide 321 engines for (VJE) and offer maintenance and technical service, training, research, and management for (VJE).
(VJE) operates 56 Airbus planes and conducts 385 flights daily within Vietnam and overseas, with dozens more planes in the pipeline with both Airbus and Boeing.
This month (VJE) signed a memorandum of understanding worth US$609 million with Investec Bank (PLC) to finance the purchase of 5 Airbus A321 aircraft.
Click below for photos:
GEF-737 MAX - 2012-10
GEF-737 MAX 8 - 2017-01.jpg
102 737 (CFM56-3), 10 ST (DAZ) 2007-11.
1 737-3Q3 (CFM56-3) (24131, N241MT), RF (SAP) 2005-07.
1 737-36N (CFM56-3) (28555, B-2687).
1 737-301 (CFM56-3) (23930, N585US), RF (USA).
2 737-700 (CFM56-7B), TO (VRG) LINHAS AEREAS (2015-07).
2 737-76N (CFM56-7B) (28654, N743AL; 32582, N744AL), RF (ALO).
32 ORDERS 737NG (CFM56-7B):
53 ORDERS 737-800 (CFM56-7B):
25 ORDERS 737-800 (CFM56-7B):
4 ORDERS 737-800F (CFM56-7B) FOR WEST ATLANTIC AIRLINES (AAG) (2017-07).
394 737NG (CFM56-7B), INCL 737-900ER.
75 ORDERS (2018-02) 737 MAX-8 (LEAP-1B):
95 ORDERS 737 MAX 10:
7 747 (GE).
2 ORDERS 747-8F (GEnx-2B) FREIGHTER:
1 +25 ORDERS 767-300E (GE) LSD 2015-07.
1 +17 ORDERS 777-300ER (GE90-115B):
14 ORDERS 777F (GE90-110B1L), FREIGHTER:
10 ORDERS (2018-02) 787-10:
1 MD-83 (49943, N943MT).
3 DC-10 (GE).
60 ORDERS A320 FAMILY AIRPLANES:
28 ORDERS A318 (CFM56-5B), 107 PAX, 2 CLASS:
9 ORDERS A319 (CFM56).
31 A320 (CFM56-5B/P). +78 ORDERS. 10 ST (DAZ) 2007-11.
1 A320-214 (0936, N101UW), RF (USA).
1 A320neo (LEAP-1A), LST AVIANCA BRAZIL (ONE) 2016-10.
10 ORDERS A321 (CFM56).
1 A321-211 (1219, EC-IMA), RF (LTE) 2005-07.
46/10 ORDERS A319/A320/A321 (CFM56).
16 ORDERS (1/02) A330-200 (CF6-80E1, 72K LB THRUST):
32 ORDERS A330-300:
10 ORDERS (2010) A350-800/-900:
5/20 ORDERS (2013) ARJ21-700 (CF34-10A), 90Y:
28 CANADAIR CRJ-200:
2 CRJ200 (7553, N706BR; 7652, N671BR; 7572, N677BR), RF (BLR).
50/100 ORDERS EMBRAER E170 (CF-34), OPTS POSS E190.
3 ORDERS E190.
00/000 ORDERS FAIRCHILD DORNIER 728JET (CF-34), OPTS MAY BE
928JET'S. ORDERS/OPTIONS CANCELED 2002-04 FOR 50/100.
50/100 ORDERS BOMBARDIER CANADAIR RJ'S:
15 ORDERS CRJ200 (7527, N970EV; 7599, N975EV; 7601, N976EV; 7720, N977EV; 7723, N978EV; 7759, N980EV;7768, N981EV).
25 ORDERS CRJ-700.
10 ORDERS CRJ-900 (SUBJECT TO LAUNCH).
5/5 ORDERS COMAC (CCC) C919 (LEAP-X):
20/20 ORDERS ATR 72-600:
Click below for photos:
GEF-1-Alec Burger - 2015-10.jpg
KEITH SHERIN, (GE) CAPITAL CHAIRMAN & (CEO).
NORMAN LIU, CHAIRMAN (GE) CAPITAL AVIATION SERVICES (GEF) (2015-06).
Norman C T Liu, former President & (CEO) of (GE) Capital Aviation Services (GEF) will stay on as Chairman of (GECAS) until late 2016, when he will retire.
HENRY HUBSCHMAN, CHAIRMAN (GE) CAPITAL AVIATION SERVICES (GECAS) (GEF) (2009-06), RETIRED.
ALEC BURGER, PRESIDENT & CHIEF EXECUTIVE OFFICER (CEO) (GE) CAPITAL AVIATION SERVICES (GECAS) (GEF) (2016-01).
Alec is a 25-year (GE) veteran, including 15 years at (GE) Capital Real Estate, where he formerly served as President & (CEO). Alec joined Real Estate in 2000 as VP Business Development, where he led a number of major strategic real estate acquisitions. In 2002 he was named Managing Director of (GE) Capital Real Estate’s UK unit, and in 2007 became VP North America.
“Alec has tremendous commercial skills, including a keen external focus and a track record of building strong customer relationships,” (GE) Capital Chairman & (CEO), Keith Sherin said. “He’s a terrific leader known for driving growth, developing talented teams and has a proven record of building (GE) Capital’s businesses across the globe. His structured finance skills and global mindset will serve him well in his new role at (GECAS).”
Alec succeeds Norman C T Liu, who will stay on as Chairman of (GECAS) (GEC) until late 2016, when he will retire.
DAVID CALHOUN, (CEO) (GE) AIRCRAFT ENGINES (GEC).
SCOTT DONNELLY, PRESIDENT & (CEO) (GE) AVIATION (GEC).
MS STEPHANE DAILLENCOURT, EXECUTIVE VP AVIATION FINANCING OPERATIONS (2013-11).
NIGEL ANDREWS, EXECUTIVE VP.
MICHAEL KRIEDBERG, EXECUTIVE VP.
JOHN LUDDEN, EXECUTIVE VP & GENERAL COUNSEL (2015-07).
John succeeds David Lloyd who retired from (GEF) after 22 years.
DECLAN KELLY, CHIEF COMMERCIAL OFFICER (CCO) (2018-01).
BRIAN HAYDEN, SENIOR VP & MANAGING DIRECTOR TECHNICAL.
SEAN FLANNERY, SENIOR VP TECHNICAL.
TOM BARTON, CHIEF INSPECTOR & SENIOR VP QUALITY ASSURANCE (SNNYGEI) (email@example.com).
JIM MARMION, SENIOR VP POWERPLANT.
RICH GREENER, SENIOR VP CARGO SYSTEMS (2016-01).
MS MARGARET HICKEY, SENIOR VP MATERIALS.
MS LI LIU, SENIOR VP MARKETING.
DECLAN HARTNETT, SENIOR VP & REGION MANAGER, EUROPE.
TODD FREEMAN, SENIOR VP & REGIONAL MANAGER, THE MIDDLE EAST, AFRICA & RUSSIA/(CIS), BASED IN DUBAI (2015-06).
CAPTAIN PAUL PLAISTED, VP FLIGHT OPERATIONS (SNNYGEI) (firstname.lastname@example.org) (email@example.com).
TAJPREET CHOPRA, VP MARKETING.
AIDAN O'CONNELL, HEAD CENTRAL SERVICES.
MS CRISTINA SEDA-HOELLE, (GE) (LEAP) MANUFACTURING PROGRAM DIRECTOR.
ROBIN MOORE, MANAGER TECHNICAL INFORMATION SERVICES.
BRIAN SUTCLIFFE, (GECAS) BOEING RESIDENT REPRESENTATIVE (MY GOOD UK FRIEND) DIED 2007-12.
MAURICE CRONIN, REGULATORY AFFAIRS CERTIFICATION CONSULTANT.