AIG, the stricken US insurer, has sold its 50 per cent stake in London City airport, as it embarks on a disposal of assets in an effort to repay the $85bn US government rescue loan.

It is considering selling more than 15 businesses, including ILFC, its aircraft leasing unit, a stake in a large US reinsurer and billions of dollars in properties. Edward Liddy, AIG chief executive, is expected to announce later this week what other assets could be for sale.