GE explores options for aircraft leasing unit

A spin-off of the business is also a possibility: Sources

General Electric Co is weighing options for its aircraft leasing operations, including the sale of all or part of the business, as Chief Executive John Flannery searches for new divestitures, according to people familiar with the matter.

GE’s move on GE Capital Aviation Services, the world’s second-largest lessor, follows expressions of interest from some of its competitors, the sources said.

A spin-off of the business is also a possibility, the sources said, cautioning that GE may decide to keep the business.

The move comes at a time when a flood of Chinese funding is shaping the $260 billion-strong aircraft leasing industry as a significant new asset class.

GE declined to comment. The sources asked not to be identified because the deliberations are confidential.

GECAS has a fleet of roughly 1,300 planes worth an estimated $25 billion, ranking behind only US-listed AerCap Holdings NV , which is estimated to have a $30 billion portfolio, according to data from industry consultancy Ascend Flightglobal.