Quebec fund CEO says investment could grow in new GE aircraft entity


UPDATE 1-Quebec fund CEO says investment could grow in new GE aircraft entity

(Adds comment from interview pension fund CEO)
    By Allison LampertMONTREAL, June 19 (Reuters) - Caisse de depot et placement
du Quebec's chief executive said on Monday his Canadian fund's
$2 billion investment with GE Capital Aviation in a new aircraft
leasing entity could increase over time.
    Quebec's largest pension fund is putting up 90 percent of
the equity for the entity, which will be operated by the
commercial aircraft financing and leasing business of GE. <GE.N>
    "This platform, at $2 billion today, has the potential over
time to be meaningfully larger than $2 billion," Caisse Chief
Executive Michael Sabia said in a phone interview.
    The new entity will focus on the market for high-tech,
fuel-efficient narrow-bodies, he said. GE Capital Aviation
Services, or GECAS, already owns or services a fleet of over
1,950 aircraft.
    Sabia said the entity, to be called Einn Volant Aircraft
Leasing, or EVAL, was looking at fuel-efficient narrow-bodies,
or single-aisle planes, because those planes "move most quickly
and most easily among the airlines of the world."
    That market includes Airbus's <AIR.PA> A320neo and Boeing
Co's <BA.N> 737 MAX, along with Canadian plane-and-train-maker
Bombardier Inc's <BBDb.TO> CSeries. Any decision about the
financing of a specific aircraft would be a function of airline
demand, Sabia said.
    He added that the Caisse's 30 percent stake in Bombardier's
rail division was "completely separate" from the pension fund's
$2 billion investment over four years in the entity with GE.
    "The focus of this platform is working with airlines," Sabia
said. "Our openness to financing specific aircraft has
everything to do with what the airlines buy."

 (Reporting By Allison Lampert; Editing by Chris Reese and Peter
 ((; 514-796-4212; Reuters


This article appears in: Stocks , Politics
Referenced Symbols: AIR , BA , GE

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