Irish aircraft leasing company AerCap said Tuesday it is in "ongoing" discussions with General Electric on a transaction amid the ongoing downturn in air travel during the coronavirus pandemic.

AerCap confirmed media reports about a possible combination with GE's aircraft-leasing business, but said discussions "had yet to be determined," according to a securities filing.

"There can be no guarantee that an agreement will be reached or on the terms of any agreement," AerCap said.

The Wall Street Journal reported the talks Sunday, saying a transaction could be valued at more than $30 billion but that the structure of the arrangement could not be determined.

GE has declined to comment.

General Electric is in talks with AerCap on a possible transaction to combine their aircraft leasing businesses, AerCap said
General Electric is in talks with AerCap on a possible transaction to combine their aircraft leasing businesses, AerCap said AFP / SEBASTIEN BOZON

A merger of the companies would create a giant in the aircraft leasing industry, with fleets heavy on planes made by both Airbus and Boeing. The air travel industry remains depressed, although travel is expected to pick up as vaccinations become more widespread.

GECAS has more than 1,650 aircraft of different sizes, while AerCap owns, manages or has ordered more than 1,300 aircraft.

AerCap reported a profit of $1.1 billion in 2019, but lost $299 million in 2020. Similarly, GECAS notched more than $1 billion in profits in 2019, but lost $786 million last year.

A transaction would be the latest move by GE to remake itself under Larry Culp, who was named chief executive in 2018 amid a deep slump in the industrial giant.

Culp has sold off assets, cut costs and reduced debt in an effort to improve performance and win back favor from Wall Street.

Culp said in January that the company was well positioned and that "momentum is growing across our businesses."