Friday, November 30, 2012

AerCap Says It Settles Suit With GE Over Brazil Airline

AerCap Holdings NV (AER) said it settled a lawsuit against units of General Electric Co. (GE) over servicing agreements relating to leases with the defunct Brazilian airline Transbrasil SA Lineas Areas.

AerCap said in a statement today that it has settled the lawsuit and withdrawn the complaint. Details of the agreement are confidential, Schiphol, Netherlands-based AerCap said.

AerCap’s Irish unit sued GE Capital Corp. and GE Capital Aviation Services in New York State Supreme Court in Manhattan in February, accusing the units of Fairfield, Connecticut-based General Electric of failing to inform the aircraft-leasing company about a court case involving Transbrasil.

“Information exchanged since the initiation of AerCap’s lawsuit has satisfied AerCap that GECAS did not commit fraud and otherwise has a reasonable basis for the position that it did not breach the standard of care owed under the servicing agreements,” AerCap said. “GECAS was the servicer of aircraft owned by AerCap and leased to Transbrasil. The GECAS servicing relationship with AerCap ended in 2001.”

The airline had sued GE and AerCap in February 2001 to void promissory notes issued in 1999 in connection with the leases of two engines and an aircraft, according to the complaint filed in New York. GE lost an appeal of a 2007 judgment entered against AerCap and other defendants, and Transbrasil asked Brazilian courts to enforce the judgment, according to the complaint.

The settlement couldn’t be immediately confirmed in court records. Daniel Whitney, a spokesman for GE Capital Aviation Services, didn’t immediately respond to a voice-mail message seeking comment on AerCap’s statement.

The case is AerCap Ireland Ltd. v. General Electric Capital Corp., 650341/2012, New York State Supreme Court (Manhattan).

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