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Udvar-Hazy Leaves AIG Aircraft Unit

Posted on 05 Feb 2010

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The founder of AIG's leasing unit, Steven Udvar-Hazy, has stepped down as its CEO. John Plueger, president of International Lease Finance Corporation (ILFC), is succeeding Udvar-Hazy as acting CEO.

AIG has been struggling to sell the unit for the past year after the collapse of AIG closed off many of ILFC's traditional sources of funding and the unit was deemed a non-core business.

Last week, UK newspaper The Financial Times reported that AIG had scrapped plans to sell the unit it acquired in 1990 after it had realised it would not make a big profit from the sale.

However, Robert Benmosche, CEO of AIG, hinted that a future sale may still be on the cards.

“We anticipate selling some ILFC assets in the future,” AIG CEO Robert Benmosche said in the statement. “We continue to review other options, including accessing the capital markets through secured debt financing.”

ILFC has a fleet of nearly 1,000 aircraft and is a top customer for Airbus and Boeing. While it is still profitable, ILFC has debt of about $30bn and relies on its parent for extra funding.