GE Partners With PIMCO to Seize Opportunities in Aircraft Leasing

The coronavirus pandemic has created major risks for aircraft leasing companies. Air travel demand evaporated earlier this year, putting many airlines at risk of defaulting on their aircraft leases. Depending on how long the travel downturn lasts, the resulting losses could strain the leasing companies' balance sheets.

Yet at the same time, many airlines will be in no position to buy new aircraft in the years ahead. That will make leasing more attractive as they look to replace older aircraft and (eventually) return to growth.

General Electric (NYSE: GE), owner of GECAS, one of the two largest aircraft leasing companies in the world, has a plan to address that expected need. Earlier this week, GECAS announced a new partnership with investment manager PIMCO to create a $3 billion aircraft leasing platform.

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Source Fool.com