AIG Mess Could Wreck Boeing and Airbus

With $17 billion in new orders on the books, ILFC is the largest purchaser of new Boeings and Airbuses in the world.

ILFC is owned by AIG. A downgrade in AIG's credit rating could force lenders and manufacturers to raise the rates they charge ILFC for purchasing aircraft, which could lead to order cancellations.

Despite being seized by the government, AIG still needs to raise cash desperately, which will require selling some of its assets, and ILFC is at the top of the list. Unfortunately, with the credit market on such shaky ground, the likelihood of a merger with another leasing company, such as GECAS, is very small. Steven Udvar-Hazy, the founder and President of ILFC, is attempting to gather a group of investors to buy the company back, but it is not yet clear who he will be able to recruit.

Boeing stock is down around 8% so far today, while Airbus-owner EADS is down about 2%.

:arrow: Troubles at AIG could bruise aircraft backlogs [Marke****ch]
:arrow: ILFC Chief Is Trying to Buy Company Back From AIG [WSJ]

From what we heard in the UK AIG's been saved by the US government and I'm happy, if it had gone belly up (out of business) it could have effected countless firms and countless people around the world.

I guess it would have been the financial world's 9/11.

On Monday when Lehmans went belly up that was bad. I was upset as i knew a few people who worked there, Merrill Lynch was very lucky and got bought by Bank of America.

Here in the UK LIoyds-TSB is to buy HBOS.

In a nut shell since Monday things aint been good on the financial markets on both sides of the Atlantic.

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From what we heard in the UK AIG's been saved by the US government and I'm happy

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Not if you're a U.S. taxpayer. :roll:

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Originally Posted by flyboy 28

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From what we heard in the UK AIG's been saved by the US government and I'm happy

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Not if you're a U.S. taxpayer. :roll:

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I'm a UK citizen :)