Leasing companies respond to improving outlook
SYDNEY (Centre for Asia Pacific Aviation) - CIT Group Inc is the latest aircraft leasing company to announce a large fleet order, for five A350-800s and 24 A320 family aircraft valued at USD2.2 billion.
CIT Commercial Finance Vice Chairman, Rick Wolfert, stated the company sees “significant improvement” in the outlook for the international commercial aerospace sector, with demand for new aircraft strong and growing, and rental rates “rebounding nicely”. The company is eyeing opportunities in the Middle East and Asia, where strong economic growth and increasing liberalisation are boosting traffic growth.
- In the past few months, the following lessors have announced aircraft orders:
- Singapore Aircraft Leasing Enterprise finalised an order for up to 40 B737NGs;
- GECAS has ordered 40 A319/A320s, ten A350s, 20 B737NGs and 20 Embraer 190/195s;
- ILFC has ordered 20 B737NGs and eight B777s;
- Pegasus Aviation Finance has ordered six B737-800s.
Late last month, Boeing upgraded its earnings guidance and confirmed it expects to deliver 320 aircraft in 2005, rising to 395 in 2006 (up from a previous expectation of 375-385). All delivery slots for 2005 are sold out and 87% are sold for 2006.
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