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AIG'S INTERNATIONAL LEASE FINANCE CORP. RESPONDS TO REPORTS ON IMPACT OF CANCELLATION OF GPA GROUP INITIAL PUBLIC OFFERING

AIG'S INTERNATIONAL LEASE FINANCE CORP. RESPONDS TO REPORTS ON IMPACT OF
 CANCELLATION OF GPA GROUP INITIAL PUBLIC OFFERING
 LOS ANGELES, June 18 /PRNewswire/ -- International Lease Finance Corporation (ILFC), a subsidiary of American International Group, Inc. (NYSE: AIG), has issued a statement in response to reports today on the impact of the cancellation of an initial public offering planned by GPA Group p.l.c.
 According to Steven Udvar-Hazy, president and chief executive officer of ILFC, "Developments at GPA Group, including the reported cancellation or postponement of their public stock offering, will have absolutely no impact on ILFC. ILFC's financial condition, recent financial performance and aircraft lease placement position are all extremely strong.
 "ILFC's aircraft acquisition strategy has been very conservative, the wisdom of which has been borne out in the current recession and aircraft industry slump. These developments have not affected our acquisition program, since airline demand has been sufficient to keep every one of our 174 aircraft leased out, all deliveries for 1992 committed, and 85 percent of our 1993 deliveries committed. In fact, within the past month, ILFC has extended several aircraft leases at higher lease rates.
 "A large portion of the surplus aircraft today consist of un- airworthy inventory on the books of their owners at artificially high values. ILFC owns no such aircraft. A modest industry recovery should rapidly absorb all of the most desirable, Stage 3 aircraft. Market lease rates appear to have reached the bottom, and ILFC has begun to experience modest, but definite increases in leasing demand. In the near future, we expect to announce the lease placement of a large number of Boeing 737 and 757 aircraft to various U.S. and foreign airlines.
 "As we have stated often in the past, ILFC's strategy focuses on medium-term operating leases to scheduled airlines around the world. We have the youngest and most modern such fleet of aircraft in the world, and our diversified customer base is also a considerable asset.
 "ILFC's financial performance remains strong, with the highest credit ratings among operating lessors. Our first quarter was a record one and business remains very good. Our strong balance sheet, a modern $6 billion aircraft portfolio, the lowest cost of funds in the industry, modest overhead and strong earnings have enabled us to weather the storm that has taken its toll on others in our industry."
 ILFC is a wholly-owned subsidiary of AIG, which is the leading U.S.- based international insurance organization and the nation's largest underwriter of commercial and industrial coverages. At March 31, 1992, AIG's consolidated assets stood at $71 billion and its shareholders' equity was $11.7 billion, the largest of any U.S. stock insurance organization.
 -0- 6/18/92
 /CONTACT: Steven Udvar-Hazy President of ILFC, 310-788-1999, or John T. Wooster Vice President of Communications of AIG, 212-770-3146/
 (AIG) CO: International Lease Finance Corporation; American International
 Group, Inc.; GPA Group p.l.c. ST: New York, California IN: INS SU: OFR


LR -- NY084 -- 1703 06/18/92 17:45 EDT
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Publication:PR Newswire
Date:Jun 18, 1992
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