MAX KINGSLEY-JONES / PARIS
Lessor shows "significant" interest in ultra-large airliner
US leasing giant GE Capital Aviation Services (GECAS) is in talks to become the next lessor to join the Airbus A380 programme, either through deals to finance existing orders or by placing its own commitments.
GECAS had been among the early potential A380 customers, but its initial interest was never firmed up, leaving International Lease Finance (ILFC) as the only leasing company to order the A380.
"We have an interest in the A380 which I expect will be significant now," says GECAS president Henry Hubschman. He says that talks have been held with Airbus about the A380, and if it offered "a deal that made sense then we could do something with them".
Hubschman says the lessor is separately in discussions with existing A380 customers about various financing options for aircraft already on order.
"We have held talks with several A380 customers about financing," says Hubschman, adding that, although the discussions are preliminary, "I would expect to start in-depth talks and these things can come together quickly". Options under consideration for on-order A380s include sale and leaseback operating lease deals, longer-term financial leases or debt financing.
GECAS met three A380 launch airlines during last week's Paris air show to discuss financing deals, one of which is known to have been Emirates. The Dubai-based airline's chief director Tim Clark says that, following last week's A380 deal that took its orderbook to 43 aircraft (plus two ILFC leases), it is looking at various options for controlling its capacity expansion, one of which could involve sale and leaseback deals. "We're talking to GECAS," he says.
GECAS traditionally orders and finances aircraft powered by General Electric or CFM International engines, suggesting the lessor would only be interested in doing deals with A380 customers that have selected the GE-Pratt & Whitney Engine Alliance GP7200, rather than the Rolls-Royce Trent 900.
Hubschman declines to comment on whether the lessor would favour GP7200 customers, but observers say that any GECAS involvement in the A380 is likely to provide a boost to the Alliance in the battle to power the 550-seater.
Source: Flight International
