The European Union has officially given its approval for AerCap’s merger with GECAS. The transaction marks part of an ongoing consolidation in the leasing market in the wake of Covid-19. 

“The transaction is therefore unlikely to give rise to serious competition concerns in the markets for aircraft and aircraft engine leasing,” European Commission said.

The approval is unconditional, meaning that AerCap will not have to reduce its fleet size or make concessions as feared. Now, the $30 billion acquisition of GECAS can go through with one of the most significant hurdles out of the way. Nevertheless, there are still steps remaining before closing.

The merger between the two largest lessors will have an impact on the market. The combined fleet size of AerCap will rise to nearly 2,100 aircraft. It is far ahead of number two, Avolon, which operates a fleet of 837 aircraft in total.

The merger is set to be completed by the end of 2021.