Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  General Electric Company    GE

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

GE Plans $2 Billion Joint Venture to Build Its Jet-Leasing Business

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/19/2017 | 11:45am CEST
By Doug Cameron 

General Electric Co. plans to resume growing its big aircraft-leasing business, ordering more jets and sealing a $2 billion joint venture that will allow it to do additional business with fast-growing airlines in Asia.

The company's GE Capital Aviation Services unit will order more Airbus SE and Boeing Co. jets at this week's Paris Air Show to add to its fleet of 1,270 owned aircraft and partner with Canada's Caisse de dépôt et placement du Québec in a new venture to acquire narrow-body jets for renting to airlines.

Gecas, as the business is known, is the world's largest jet lessor but has shrunk over the past two years by selling aircraft just as rivals including AerCap Holdings NV and China's Bohai Leasing have significantly expanded their operations.

Rising aircraft delivery rates have attracted new investors to the industry, notably from Asia, but Gecas Chief Executive Alec Burger said there was now an opportunity for the unit to target "modest growth" and expand its existing order book of 318 aircraft.

"We're in an industry where there's more capital and planes than management teams [to handle them]," Mr. Burger said in an interview on the eve of the air show.

While Gecas has shrunk its assets to around $41 billion, it is also increasingly important for GE's cash flow as the conglomerate sold finance assets such as banks and consumer lending after the financial crisis, attracting increased scrutiny from mainstream investors.

"In our conversations with investors, we find Gecas is generally misunderstood and underappreciated," said Barclays analysts in a note to clients last week.

Mr. Burger, a GE veteran, previously oversaw the reduction of the company's big real estate portfolio, prompting speculation he would then shrink the aircraft business. Gecas promptly sold dozens of aircraft and slowed new orders, but Mr. Burger said this reflected attractive sale prices and regulatory constraints as GE reduced its wider broader finance portfolio.

The unit is now the largest in GE Capital and supports the company's larger aircraft engine and services portfolio. Some 85% of its aircraft fleet are powered by GE engines, with much of the repair work steered back to the company.

Caisse de dépôt, an infrastructure specialist, has been examining a move into aircraft leasing for several years because of the attractive yields on offer, said Chief Executive Michael Sabia.

The surge of new money entering the industry has since intensified competition for deals such as sale leasebacks, where lessors acquire aircraft from airlines and then rent them back to the carrier.

"Short-term pressures are probably there," said Mr. Sabia, adding that the Canadian firm was entering the business for the long haul.

The planned joint venture will acquire narrow-body aircraft, the most popular segment of the market, and some deals could be split with existing Gecas operations.

Mr. Burger said this would allow Gecas to take advantage of opportunities in China, India and elsewhere in Asia without breaching existing airline and country risk limits.

Write to Doug Cameron at doug.cameron@wsj.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on GENERAL ELECTRIC COMPANY
08/18 GENERAL ELECTRIC : FG Concessions Narrow Gauge Railway Lines to GE
08/18 GENERAL ELECTRIC : MILITARY $25,956 Federal Contract Awarded to G.E. Aviation
08/18 GENERAL ELECTRIC : UNILAG students get soft skills training
08/17 GENERAL ELECTRIC : Patent Issued for Interleaved Soft Switching Boost Converter ..
08/17 GENERAL ELECTRIC : Patent Issued for Turbine Rotor and Blade Assembly with Multi..
08/17 EXCLUSIVE : SEC officials' holdings, legal work, pose potential conflicts
08/17 GENERAL ELECTRIC : GE's Jon Freedman Named to Board of Directors of the WateReus..
08/17 GENERAL ELECTRIC : GE’s Jon Freedman Named to Board of Directors of the Wa..
08/17 CURRENT, POWERED BY GE : Helps Home Depot Expand Rooftop Solar Energy to 30 East..
08/17 GENERAL ELECTRIC : MILITARY $28,904 Federal Contract Awarded to G.E. Aviation
More news
News from SeekingAlpha
06:07a Goodbye American Express, Hello Synchrony Financial
08/18 Top Gain Dow Dogs Are General Electric, IBM, & Pfizer Per Broker August Targe..
08/18 GE to supply turbines for Australia's largest wind farm
08/18 WALL STREET BREAKFAST : AT&T On The Brink Of A Mega Deal
08/18 Tracking David Winters' Wintergreen Advisers Portfolio - Q2 2017 Update
Financials ($)
Sales 2017 125 806 M
EBIT 2017 16 564 M
Net income 2017 12 050 M
Debt 2017 73 584 M
Yield 2017 3,78%
P/E ratio 2017 18,29
P/E ratio 2018 15,21
EV / Sales 2017 2,27x
EV / Sales 2018 1,98x
Capitalization 212 553 M
Chart GENERAL ELECTRIC COMPANY
Duration : Period :
General Electric Company Technical Analysis Chart | GE | US3696041033 | 4-Traders
Technical analysis trends GENERAL ELECTRIC COMPANY
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 17
Average target price 29,3 $
Spread / Average Target 19%
EPS Revisions
Managers
NameTitle
John L. Flannery Chief Executive Officer & Director
Jeffrey R. Immelt Chairman
Daniel Janki Treasurer & Senior VP-Global Operations
Jeffrey S. Bornstein Vice Chairman & Chief Financial Officer
Jim Fowler Chief Information Officer
Sector and Competitors
1st jan.Capitalization (M$)
GENERAL ELECTRIC COMPANY-22.31%212 553
3M13.98%122 546
SIEMENS-4.71%111 600
HONEYWELL INTERNATIONAL17.26%103 323
DUPONT10.60%70 171
JARDINE STRATEGIC HOLDINGS LIMITED27.40%48 516