Steven Udvar-Hazy, co-founder of International Lease Finance Corporation (ILFC) and one of the most powerful voices in commercial aviation, retired on 5 February after more than 27 years in the leasing business.
ILFC President John Plueger will succeed Udvar-Hazy as acting CEO. The ILFC Board is considering what to do on a long-term basis.
His departure from ILFC has been expected since the mega-lessor was plunged into a financial morass because of the massive scandal at its parent, AIG.
When the US government bailed out AIG and assumed control of 80% of the stock, ILFC effectively became a ward of the state, relying on federal funds to meet debt obligations. Financing airplanes fell to reliance on the ECA for Airbus and ExIm for Boeing airplanes. The ECA imposed humiliating conditions that segregated lease payments and maintenance reserves into restricted accounts.
Hazy tried to put together a deal that would enable him to purchase about 10% of the ILFC portfolio. The long effort came to naught late last year when his bid was rejected.
"On behalf of AIG, I would like to thank Steve for his tireless service to ILFC," said Robert Benmosche, AIG President and Chief Executive Officer. "We are grateful for the work he has done to continue ILFC's leadership in the industry."
In a press release, IFLC said Douglas Steenland, former president and chief executive officer of Northwest Airlines, who became ILFC's non-executive chairman in December, will continue as non-executive chairman. Steenland joined the ILFC board in September and is a member of the AIG board.
Source: Air Transport Intelligence news
