Paul Lewis/WASHINGTON DC
The CIT Group has signalled its intent to compete as a major international aircraft lessor with its first direct purchase of 30 Airbus Industrie A320 and A330s. The portfolio is expected to be supplemented shortly with a similar size order for new Boeing Next Generation 737s.
CIT has signed a firm order for 25 A320 series aircraft and five A330-200s. The deal, first reported in Flight International (20-26 January) includes options on a further five A330s. The first three narrowbodies are due for delivery late next year, with the rest scheduled to follow between 2001 and 2004.
The deal gives the New Jersey-based company the option to select the A319 and stretched A321 in addition to the A320 and convert the A330-200s to the larger -300 version. The company has also expressed interest in the proposed new A318 derivative. The Airbus deal does "not negate" a pending order for around twenty 737NGs, says an official.
CIT is understood to have picked the International Aero Engine V2500 to power 15 of the A320s. The CFM56-5 will power the rest. The A330 powerplant choice has been divided between the Rolls-Royce Trent 700, for three jets and four options, and the Pratt & Whitney PW4168 for the two other aircraft and one option.
None of the aircraft have been placed, but CIT says it is in discussion with several airlines. The selection of Trent 700s for the A330s has led to speculation that the aircraft could be targeted at Middle East operators such as Emirates and Gulf Air. There is also still active demand in Europe for leased A320s.
CIT has previously confined its activities to the second hand market, with a portfolio of over 200 aircraft. The purchase of new jets is being interpreted as a move by the publicly listed company to boost its earnings growth by moving beyond simple back-to-back leases to being a major lessor. "They've jumped in with both feet, but brings with it a major cultural change," says a rival leasing executive.
Source: Flight International
