March 11, 2021 | aviation

GE aircraft leasing unit approves $30 billion Irish tie-up


LONDON: General Electric on Wednesday said it had agreed to a $30 billion tie-up of its aircraft leasing unit with Irish peer AerCap amid the downturn in air travel caused by the coronavirus pandemic.
GE chairman and CEO Lawrence Culp said the creation of “an industry-leading aviation lessor” gives GE “cash and a meaningful stake in the stronger combined company” as the aviation industry undergoes recovery.
GE will have a 46 per cent stake in the new company.
A transaction is the latest move by GE to remake itself under Culp, who was named chief executive in 2018 amid a deep slump in the industrial giant.
Its aircraft leasing unit GECAS has more than 1,650 aircraft of different sizes, while AerCap owns, manages or has ordered more than 1,300 aircraft.
GE said that it plans to focus on its industrial core of power, renewable energy, aviation and healthcare. It plans to reduce debt by $30 billion, using proceeds from the transaction and existing cash sources, bringing its total reduction in debt since the end of 2018 to more than $70 billion.

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