Bloomberg says GE shares fell because of analyst concerns about helicopter leasing

Bloomberg is reporting that GE shares fell 4% over concerns about Milestone Aviation, following Waypoint Leasing’s filing for Chapter 11.

GE Capital Aviation Services acquired Milestone Aviation, the largest helicopter leasing company and Waypoint Leasing’s biggest competitor, for $1.8 billion in 2014.

John Inch, an analyst at Gordon Haskett, said: “A write-down of its Milestone assets could prove highly material to GE Capital.”

He says that if GE has not written-off the business, Milestone would account for nearly 75% of GE Capital’s reported goodwill of $984 million.

GE told Bloomberg that Milestone is expected to be profitable in both 2018 and 2019 and has a fleet utilisation of 90%.

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