A Success Story Amid the Storm
While the fortunes of the international aviation industry continue to sag, Beverly Hills-based International Lease Finance remains on solid footing.
International Lease, an aircraft leasing company, posted a 35% increase in third-quarter operating earnings and is preparing to place a $4-billion order for 90 new aircraft. Contrast that with Ireland-based GPA, the world’s largest aircraft lessor, which is grappling with $2.7 billion in debt and possible insolvency.
International Lease, a subsidiary of American International Group, has 185 aircraft leased to airlines and has existing orders for about 200 more aircraft--60% of which are already leased, said Louis Gonda, International Lease executive vice president.
“We have a pretty solid order book,” Gonda said. “We are pretty unique in the sense that we are running counter to the woes of the industry. We are not feeling any fallout.”
A recent report by Morgan Stanley aerospace analyst Phil Friedman said the conservatively run company stands “in stark contrast to the trials and tribulations of GPA.” International Lease reported third-quarter revenue of $186 million, up 28% from a year earlier.
