GE acquires Bulk of Aircraft Portfolio from CIT
CIT Group has sold most of its corporate aircraft financial business to GE Commercial Finance. The transaction includes approximately $700 million in loans and $200 million in leases on 380 business jets, turbo props and helicopters. CIT said it will continue to finance fractional aircraft shares and “select corporate aircraft.” The sale is a result of CIT’s “risk-adjusted capital discipline and will allow for the redeployment of capital into higher-returning businesses.” For its part, Danbury, Conn.-based GE Commercial Finance said the acquired assets “expand GE’s corporate aircraft market reach, diversify our customer base and create additional cross-selling opportunities.” According to Paul Bossidy, senior v-p of GE Commercial Finance, “We’re confident we have the necessary scale, resources and commitment to ensure the highest quality of service to these new customers. In addition, we will provide them with an entry into the entire GE company, delivering an extensive range of both financial and non-financial products and services in an effort to address whatever specific business needs they might have.” GE declined to comment on the current value of its corporate aircraft portfolio.