But Will Have Added Autonomy
International Lease Finance Corporation (ILFC), the world's
largest aircraft leasing and remarketing company, will remain a
core holding of American International Group, Inc. (AIG). Robert B.
Willumstad, AIG Chairman and Chief Executive Officer, and Steven F.
Udvar-Hazy, ILFC Chairman and Chief Executive Officer, agreed that
ILFC should remain part of AIG following a just-concluded business
review.
Following his June 15 election as Chief Executive Officer of
AIG, Willumstad announced that he would conduct a comprehensive
review of AIG's businesses. "Steve Udvar-Hazy and I concluded that
a review of ILFC should be a priority so there will not be
uncertainty about this important business," he said. "After
reviewing an analysis of ILFC's business and the value of AIG as a
corporate parent, we both concluded that ILFC should be part of the
AIG portfolio.
"ILFC is the leading company in its business and it is in the
best interests of both AIG and ILFC for ILFC to be a part of AIG,"
Willumstad added. "AIG will continue to work with ILFC's leadership
on ways to enhance ILFC's business to the benefit of both
organizations. ILFC is well positioned with a strong management
team, sound customer base, geographic diversification and a
market-leading portfolio of aircraft."
As ANN reported, Udvar-Hazy suggested last
month his highly-profitable company could spilt from the insurance
group, due to AIG's staggering financial slump. AIG posted a record
$7.8 billion quarterly loss earlier this year, due to losses
stemming from insured properties obtained through subprime
mortgages, that have since gone into default.
According to the Wall Street Journal, under terms of the
agreement for ILFC to stick by AIG the aircraft lessor will have
additional freedoms to conduct its own business affairs. Perhaps
most importantly, ILFC employee compensation rates will also be
tied to how their company performs... and not how AIG does.
"The discussion and strategic review of our business which we
had with Bob Willumstad has resulted in an understanding of the
benefits that each of our organizations provides the other,"
Udvar-Hazy said. "As a result of its relationship with AIG, ILFC
can capitalize on attractive business opportunities when others
cannot. Together, we have identified opportunities to improve the
global competitiveness of ILFC, which we believe will generate
additional value both to AIG and ILFC."