In an earlier post I talked about AIG from the perspective of aircraft leasing and insurance, and yesterday the government announced it had loaned AIG another $ 25 Billion in an attempt to keep AIG afloat. This means serious problems not only for AIG, but for some of AIG's customers as well.
It was reported in mid-September that AIG's aircraft leasing arm, International Lease Finance Corporation, had 102 firm Boeing orders through the company. If the credit rating of AIG falls it will mean higher prices for the end users of these aircraft, starting a ripple effect throughout the entier commercial aviation market.
For those of us in general aviation, however, little news has been forthcoming. We have no idea how solid AIG is at the present time, and those policyholders of aircraft policies through AIG may begin to worry about whether or not their aircraft are safely insured and if they can count on AIG's aviation insurance division to be there should a loss occur. This could be yet another effect of the continuing problems at AIG.
If you have your aircraft insured through AIG you might want to consider alternative insurance companies upon renewal of your policy. To date there appears to be no end to the extent of the collapse of the market, and just this morning I heard on the radio that there is some concern that the value of General Motor's stock could fall to $ 0.00! Just think about that - a stock value of zero! Incredible.
President-elect Obama better be able to do more than give great speeches, he needs to be able to come up with a plan to rescue the U.S. economy, and quickly! Perhaps Warren Buffet can loan the market some money and save us all, eh? Then he would own the country lock, stock and barrel. Brrr... what a thought!
Until next time keep your wings straight and level Hersch!
Oh, I have slipped the surly bonds of earth,
And danced the skies on laughter-silvered wings;
Sunward I've climbed, and joined the tumbling mirth
Of sun-split clouds...and done a hundred things
You have not dreamed of...wheeled and soared and swung
High in the sunlit silence. Hov'ring there,
I've chased the shouting wind along, and flung
My eager craft through footless halls of air.
Up, up, the long, delirious burning blue
I've topped the windswept heights with easy grace
Where never lark, nor even eagle flew.
And while with silent, lifting mind I've trod
The high untrespassed sanctity of space...
...put out my hand, and touched the face of God.
by John Gillespie Magee, Jr.