AIG Leasing Unit Considers Split

NEW YORK -- American International Group Inc.'s troubles are prompting one of the insurer's most-profitable units -- an airplane-leasing giant run by one of AIG's largest shareholders -- to consider seeking a split from the company, according to people familiar with the matter, according to the Wall Street Journal.

Officials at powerhouse International Lease Finance Corp. have grown increasingly concerned that the company will be weakened by its parent's financial woes, these people say. The world's largest buyer of commercial aircraft, ILFC leases large numbers of planes to air carriers, and AIG's problems could make it more difficult for ILFC to compete in the increasingly crowded airplane-leasing industry, according to the Journal.

Last Thursday, AIG reported a $7.8 billion first-quarter loss, largely the result of a sharp decline in the value of financial instruments tied to subprime mortgages, the Journal reported.

-- NYSSCPA.org News Staff

Posted on 5/12/08