The large airplane leasing unit of bailed-out insurer American International Group Inc. filed for an initial public offering on Friday, aiming to spin off into a separate company.

ILFC Holdings Inc., a newly formed holding company that is a subsidiary of AIG, said in a regulatory filing it will own 100 percent of International Lease Finance Corp. before the offering takes place.

AIG, which bought ILFC in 1990, will receive the proceeds of the stock sale. The filing listed a figure of US$100 million to be raised in the sale but that number can change as plans solidify for the actual IPO.

The New York-based insurer has been selling off subsidiaries to raise money to pay back taxpayers portions of the US$182 billion bailout package it received from the U.S. government during the financial crisis that began in 2008. The IPO filing states the Treasury Department still owns about 77 percent of AIG's common stock.

ILFC has seen a number of changes in the past two years, including a management shake-up that saw former Airbus executive Henri Courpron named president and chief executive in May 2010 and other top executives replaced. It has raised more than US$14 billion by selling new debt, extended bank loans and sold some of its aircraft.

The company leases more than 1,000 aircraft to airlines and other customers in more than 80 countries, including AeroMexico, Air France, China Southern Airlines, Emirates Airline and Virgin Atlantic Airways. Last month, it announced plans to acquire airplane engine management unit Aero Turbine Inc., from AerCap Holdings NV for US$228 million plus the assumption of about US$298.6 million in debt. That deal is expected to close by the end of the year.

In midday trading, AIG shares fell 78 cents, or 3.2 percent, to US$23.99 as the broader market slipped on concerns about the economy following a weak employment report.