Avolon Holdings acquires CIT Group for $10.38 Billion

Dublin-based aircraft lessor Avolon Holdings has closed on its acquisition of the aircraft leasing business of CITGroup, the companies announced on Tuesday. The $10.38 billion deal, negotiations for which the sides first disclosed in December, effectively triples Avalon’s size, making it the third largest aircraft leasing company in the world with a combined fleet of 868 aircraft worth $43 billion.

A wholly owned, indirect subsidiary of China’s Bohai Capital Holding Company, Avalon now serves 149 customers in 62 countries. By the end of last year the combined business owned 551 aircraft averaging 4.7 years of age, making it the youngest owned, in-service fleet among the world’s top three aircraft leasing companies.

Meanwhile, total orders and commitments for 301 airplanes include 282 new-technology models, namely 196 Airbus A320neos, A330neos and A350s, 61 Boeing 737 Max narrowbodies and 25 Boeing 787 Dreamliners.

“We have acquired an excellent franchise with a stellar reputation in the market,” said Avolon CEO Dómhnal Slattery. “Our immediate priority is to integrate the businesses under the Avolon brand.

“We would also like to acknowledge the contribution of [CIT Transportation Finance president] Jeff Knittel and [CITAerospace president] Tony Diaz in building the CIT aircraft leasing franchise and wish them well in their future endeavors.”