Possible aircraft leasing merger

DUBLIN based aircraft leasing companies RBS Aviation Capital and AWAS could be merged in a €4.5 billion deal.

Entrepreneur Guy Hands is planning a return to dealmaking with a £4bn (€4.5bn) bid for the aircraft financing division of Royal Bank of Scotland, The Sunday Times said.

The newspaper, without citing sources, said Hands wanted to combine RBS Aviation Capital with AWAS, a plane leasing firm owned by his investment fund Terra Firma.

If he is successful, the combined firm would become a clear third in the global market for hiring out planes behind General Electric and ILFC, which is part of US insurer AIG.

Hands is trying to rebuild his reputation after a failed investment in music group EMI, which passed to the control of Citigroup in February after Terra Firma defaulted on a loan.

Sources with knowledge of the matter told Reuters in June RBS was considering a fresh attempt to sell RBS Aviation Capital after shelving a previous attempt in 2010.

Terra Firma and RBS Aviation Capital were not available for comment.

AWAS (which recently celebrated its 25th year), owns a portfolio of more than 200 modern aircraft with a further 100 plus aircraft on order from Airbus and Boeing, including a number of next generation aircraft. The aircraft portfolio is on lease to over 90 airline customers in 44 countries. The AWAS fleet features a full range of the most popular aircraft types which includes both narrow-bodied and wide-body aircraft.

RBS, which has a 90 strong team based in Dublin, London, New York, Hong Kong, Shanghai, Toulouse, Beijing, Singapore and Tokyo, serves 100 airline customers in 38 countries.