Steven Udvar-Hazy, chairman and CEO of Air Lease Corp., predicts aircraft manufacturers will break the duopoly of Boeing and Airbus in this decade. "We're looking at massive aircraft replacement" for the U.S. market, said Udvar-Hazy. He made his comments at a panel discussion at the International Society of Transport Aircraft Trading Asia in Singapore.
Aircraft-leasing luminary Steven Udvar-Hazy, CEO of Air Lease, said upgraded versions of Airbus and Boeing jets -- planes that have been re-engined in industry parlance -- are of limited value to operators of the aircraft. The benefits are mainly environmental and for public relations, he said. Boeing and Airbus, however, said airlines are requesting re-engined craft, especially single-aisle planes.
Steven Udvar-Hazy's Air Lease ordered 51 narrow-body aircraft from Airbus -- 31 A320s and 20 A321-20s -- for a list price of $4.43 billion. More news is expected from the man who arguably developed the aircraft-leasing industry. Udvar-Hazy, former chief of International Lease Finance, is expected to announce another multibillion-dollar deal to buy 50 150-seat 737s from Boeing. "He is nothing short of an icon in this industry," said Tom Captain of Deloitte. "As an icon, everyone will be watching him and what he does."
Steven Udvar-Hazy, former head of International Lease Finance, is in the process of raising several billion dollars for his business, sources said. He is tapping investors for equity commitments of about $1 billion and debt financing that ranges from $1.5 billion to $2 billion, the sources said. Analysts said the aircraft-leasing business is in a state of flux, making this a good time to be an entrant.
Steven Udvar-Hazy, former head of American International Group's International Lease Finance, said he is raising capital for an aircraft lessor, Air Lease, he is creating with former ILFC colleague John Plueger. "We're in a quiet period so I can't talk, but it won't be much longer," Udvar-Hazy said. The company will be "huge," he said.