AerCap CEO does not expect wave of aircraft finance M&A

The head of the world’s largest aircraft leasing company, AerCap, does not expect a significant number of mergers or acquisitions in the sector despite pressure on the owners of two of his largest rivals: GECAS and Avolon. CE Aengus Kelly said Monday that the draw of consistently stable returns would make owners of major aircraft leasing firms very reluctant to sell. “M&A is a continual theme. But do I think there will be much of it? No,” Kelly said. “Sellers that have been in this business a long time are very reluctant to take out an asset that has generated such stable returns historically.” He said he did not expect to see an attractive acquisition opportunity in the sector unless there was significant stress specific to one of the owners. Asked specifically about rivals GECAS and Avolon, Kelly said it was “impossible to say” what might happen, with both businesses showing consistent profitability.<br/>