ILFC has filed to launch an IPO for up to 20% of it's equity while the closing date for bids on the RBS Aviation unit has passed. A variety of potential bidders have been mentioned for RBSA, including Terra Firma (whose AWAS leasing business is headquartered in Dublin) and Macquarie (which also has a key leasing division in Ireland). Chinese lessors have also been highlighted. ILFC would be the largest aircraft leasing company on the stock market, and an IPO would follow the successful launch of ALC earlier this year and greatly amplify the presence of aircraft leasing on world stock markets.

ILFC is planning to launch an IPO for up to 20 per cent of its equity

These industry changes flag the various sources of equity finance being provided to the sector. AWAS is a private equity based business, Macquarie is an investment bank with ample reserves to develop it's aircraft leasing interests while ILFC is clearly targeting public equity for it's future needs. How all these intermingle will be important to airlines and aircraft financiers.

Amid the ongoing turmoil in bank markets funding sources are likely to become even more critical for aircraft operators in the near term. Indeed Milestone, a business jet/helicopter leasing specialist, recently noted that demand for it's services was growing as conventional banks pull back their commitments to aviation finance as they continue to manage capital preservation during the financial crisis.

The progress of both ILFC and RBS will be key highlights for the industry during Q4 and will give us some insights to where the keenest interest in providing finance towards the sector is emanating from.