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AIG aircraft leasing unit gets help from the government

The American International Group (AIG) aircraft-leasing unit will receive $5 billion from the Federal Reserve to prepare it for its eventual selling.

The Federal Reserve and the US Treasury has pledged over $ 180 billion of bailout money to AIG since September. The two government arms are helping AIG sell some of its divisions to payoff the company’s outstanding loan balance.

The loan is intended to reassure buyers that the International Lease Finance Corp. (ILFC) is sustainable outside of the AIG umbrella. The division is the largest customer of Airbus and Boeing.

The ILFC is also scheduled to receive four 777s and 12 single-aisle 737-800s from Boeing by the end of this year.
 
According to the ILFC, it needs more than $10 billion to meet its commitments in 2009. Last March, the Federal Reserve agreed to finance the division to facilitate its sale. On the prowl are three rival investors in the market, including private equity firms.