The Financial Times is reporting that struggling American International Group may no longer sell off its International Lease Finance Corporation (ILFC) aircraft leasing subsidiary, amid other reports that its influential CEO and founder, Steven Udvar-Hazy is to leave the company.
Citing sources close to the situation, the British newspaper claims AIG has realised that it will not reap a big profit from selling the leasing unit. A number of private equity firms are understood to have submitted bids for the company, which is the second largest aircraft leasing firm in the world and one of the biggest customers of Airbus and Boeing.
Reports claim that AIG’s decision to hold on to ILFC in the short term could lead Udvar-Hazy to leave the company as he has been involved with a consortium trying to buy the aircraft leasing company. Udvar-Hazy was recently replaced as ILFC’s chairman, with former Northwest Airlines CEO Doug Steenland stepping into the position.
AIG is currently majority owned by the US goverment which bailed out the troubled insurer as part of measures to restore financial stability during the global financial crisis.