ILFC eyes Embraer 170/190 family
Dateline: Wednesday March 31, 2004

Although megalessor International Lease Finance Corp. has not ordered any aircraft smaller than 100 seats, "the history book on that is not yet finished," Chairman and CEO Steven Udvar-Hazy said Tuesday.

Speaking at ISTAT, Udvar-Hazy said ILFC still is evaluating the market and expressed enthusiasm for the Embraer 170/190 family. Stating that he expects the "new generation of large RJs to outsell the bottom end" of the large aircraft market typified by aircraft such as the 717, 737-600 and A318, he declared, "if that segment takes off, you can be sure ILFC will be a major player."
He also revealed that he was "intimately involved" with JetBlue's decision to place a launch order for the Embraer 190, and even flew JetBlue President and CEO David Neeleman to Brazil in his private jet to take a look at the aircraft. ILFC is "trying to get comfortable with" several issues surrounding RJs, including residual values, durability and whether the lessor can generate sufficient return on equity leasing 70/90-seat jets. Observing that RJs are being used in high-cycle operations, he wondered, "Will they last 25-30 years?"

In a wide-ranging speech, Udvar-Hazy also challenged aircraft manufacturers to reduce the cost of new aircraft. "Every year the price of an airplane goes up and average ticket prices are coming down," he observed, declaring that "the price of a new aircraft has absolutely nothing to do with what the market will pay." He concluded: "It's up to us [financiers and lessors] to break the vicious cycle of escalation."

ILFC is the biggest buyer of Airbus and Boeing aircraft with a firm order book that totaled 438 at year end 2003. Of these, 302 reside with Airbus and 136 with Boeing. Acknowledging the current imbalance between the two makers, Udvar-Hazy said he is "anxiously awaiting what Boeing will do on the 7E7" and could make an order decision this year.

Fonte: ATWOnline