ILFC to order more jets as airlines replace older models

International Lease Finance Corp. (ILFC), the biggest customer of Boeing and Airbus, said it will increase aircraft orders due to increasing demand from airlines to replace older models.

ILFC plans to increase the number of planes on order by between 20 percent and 30 percent within the next 12 months to 18 months, Chief Executive Officer Steven Udvar-Hazy said in an interview in Kuala Lumpur on Monday.

"We are seeing a significant replacement demand and fleet modernization demand in the next five years," Udvar-Hazy said.

The world's biggest aircraft leasing company, a unit of American International Group, has about 1,000 jets placed with airlines around the world and an additional 168 on order. Airlines globally may buy 24,300 planes worth $2.8 trillion over the next two decades, with demand growing most quickly in the Asia-Pacific region, according to Airbus.

AIG plans to sell ILFC and has picked a group including Onex and Greenbriar Equity Group as the preferred bidder, two people familiar with the situation said last week.

The private-equity firms are negotiating to acquire Los Angeles-based ILFC and keep the company intact, said the people, who asked not to be identified because talks are private. Onex and Greenbriar plan to keep ILFC founder and chief executive Udvar-Hazy to run the firm, said one of the people.

"We're marching ahead to meet a transaction. We're highly confident there will be a favorable transaction for all constituents," Udvar-Hazy said. He declined to comment on the preferred bidders and said the size of the deal will be "several billions of dollars." The deal may be completed by year-end, he said.