CIT Buys 10 Airbus A350s

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On Thursday, aircraft lessor CIT Group (NYSE: CIT  ) announced it has placed an order with Airbus for the delivery of 10 A350 XWB aircraft.

Deliveries are set to begin in 2019 and, when all planes are in their hangars, will increase CIT's twin-aisle fleet size by 10%, to 110 aircraft. The order also appears to maintain CIT's preference for Airbus aircraft over Boeing (NYSE: BA  ) . Prior to this order, 78 of the 147 planes on the lessor's order book were Airbuses. Post-order, 88 out of 157 planes -- 56% -- will come from the Boeing rival.

Financial terms of the deal were not disclosed but, based on Airbus's published 2012 average list prices  for the plane, the deal should be worth approximately $2.5 billion at list price. Actual sales prices in the market tend toward steep discounts, however. Data provided on website, for example, tend to suggest an actual sale price closer to $174 million, or $1.7 billion for the 10 planes, in all.


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Rich Smith

I love things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well. Follow me on Twitter or Facebook for the most important developments in defense & aerospace news, and other great stories besides.

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Related Tickers

11/27/2015 1:02 PM
BA $146.95 Down -0.48 +0.00%
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