NEW YORK's CIT Group has placed an order for thirty-eight 737s, and a further options on seven more, at a total list price of US$3.2 billion in a push to grow the business after a recovery from 2009.
The order - the largest ever for this aircraft - involves delivery of twenty-three 737-800s and fifteen of the larger 737-900ERs from 2014 to 2017, which will allows Boeing time to re-engineer its existing 737 or go ahead with plans to work on a new replacement aircraft.
The large order is a reflection of the transportation unit's strategy to build on improving airline conditions and the growing number of leasing companies joining the market said its president Jeff Knittel of the company that already owns and finances 300 aircraft.
"In an environment where efficiency is important, new aircraft obviously help," said Mr Knittel, according to Bloomberg. "Airlines are looking to drive down their overall operating costs and airplanes like the 737 allow them to do that."
Despite a slowing market, aircraft leasing companies are returning to the market and rivals General Electric Co (GE) made large orders with Boeing and Airbus last summer, along with other lessors.
The size of the recent order is a signal that CIT is still a player in a crowded sector, said Andy Golub, with Ascend, an aviation consultancy interested in initial public offerings and follow-on finance. "They all want to get big quick," he told Dow Jones.
Since the employment of John Thain as chief executive, formerly head of Merrill Lynch, CIT has sold assets following its parent companies aircraft arms American International Group Inc (AIG) and Royal Bank of Scotland Group PLC (RBS.LN) sale at the height of the financial crisis.
A Fortune 500 company, CIT Group Inc is a global commercial finance firm providing financial products and advisory services from more than 200 offices in 50 countries. CIT is a leading participant in financing equipment and transportation.
(Source:www.schednet.com)
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