Royal Bank of Scotland Group (RBS) has reportedly put plans to
sell its aviation finance business on hold.

The claim comes a year after RBS, which is principally owned by
the British government, brought in advisors to look at its
strategic options, it was reported.

The unit, which provides aircraft finance services including
debt and operating leases, was designated a non-core business early
in 2009 and appointed Goldman Sachs Group (GS) to weigh up options,
including a sale.

Created after a 2001 acquisition of a small advisory firm, RBS
Aviation Capital is seen as profitable, but the decision to
consider its future falls within a wider effort to get rid of
non-core assets after it was taken under government control,
following record losses and write-offs.

Following the GS review and information gleaned over the last
year, the bank reportedly decided not to sell until market
conditions are better.

Recent improved trading conditions are said to have led
management and RBS to decide it would be in shareholders’ interests
to wait until it can fetch a higher price.

RBS Aviation Capital employs 90 people and serves 100 airline
customers in 38 countries. Total lending and owned assets are about
$12 billion (€9.1 billion), according to the RBS website.

Claire Hack