AerCap Holdings, the Dutch aircraft lessor, on Friday said it was set to buy rival Genesis Lease in a deal that could mark the start of a wave of deals in a sector badly hit by the downturn.

The deal will see the two companies combine their respective portfolios of aircraft – 304 at AerCap and 54 at Genesis, based in Ireland – to become the largest publicly listed aircraft leasing company, controlling about 5 per cent of the total leased market. Both groups are listed in New York.