CIT Group aviation plans take off

CIT Group has signalled plans to split off its commercial aircraft leasing business, with the announcement that it has filed an initial Form 10 Registration Statement with the US Securities and Exchange Commission.

As previously stated, CIT continues to pursue a dual track process to separate its commercial aircraft leasing business. Both tracks are progressing and CIT expects to complete the separation by the end of 2016. The initial Form 10 Registration Statement was filed under the name of C2 Aviation Capital, Inc.

CIT Aerospace has recently announced a clutch of deals, including delivery of a new Airbus A321-200 to Beijing Capital Airlines, a Chinese airline headquartered in Beijing, and delivery of a new Airbus A321-211 to Air Canada, which will be operated by Air Canada rouge, Air Canada’s leisure airline. It has also supplied two Boeing 737-800s to Enter Air, a Polish charter airline.

Separately, CIT Group has reached a definitive agreement to sell its Canadian equipment finance and corporate finance businesses (CIT Canada), with more than $700 million in assets, to Laurentian Bank of Canada. In addition, approximately 140 employees of CIT Canada will join the Laurentian Bank team.

“This transaction represents another milestone for us as we continue to exit our international businesses and focus on growing our core commercial franchises,” said Ellen Alemany, chairwoman and chief executive officer. “We remain focused on our strategy to become a national middle market bank and serve our customers with an integrated set of financing and deposit products.”

CIT Canada and Laurentian Bank of Canada will continue to operate separately until the closing of the transaction, which is expected in the fourth quarter of 2016, subject to the necessary regulatory approvals.