The International Air Transport Association (IATA) has reportedly expressed concern over the proposed deal between Ireland-based AerCap and GE Capital Aviation Services (GECAS).

The global airline industry body warned that the transaction will reduce aircraft market competition.

In an interview, IATA Director General Alexandre de Juniac told Reuters: “We understand that the situation of the leasing companies is difficult.

“But combining the two to have a big player (in) a very dominant situation is not good news for us.”

Last week, AerCap confirmed that it is in talks with multinational conglomerate General Electric (GE) to acquire GECAS in a deal exceeding $30bn.

The acquisition includes a $34bn transfer of GECAS’ net assets, including engine leasing and Milestone helicopter leasing businesses to AerCap.

AerCap chief executive Aengus Kelly said that the overall size of the leasing market would leave space for ‘plenty of competition’.

de Juniac was further quoted by the news agency as saying: “It’s never good news to have a supply chain dominated by a single player.

“We hope that it will not mean an increase in leases, which are a very big cost for airlines.”

The transaction is dependent on AerCap shareholder approval, regulatory approvals, and other conditions. It is expected to complete in nine to 12 months.

GE is expected to divest several other assets, including its aviation lending business, once the deal is concluded.