CIT Frustrates Analysts on Air-Leasing Divestiture Plan

Bloomberg reported CIT Group fell in New York trading after incoming CEO Ellen R. Alemany shared the company’s plans to cut costs and increase profitability, while offering scant information on the divestiture of CIT’s aircraft leasing business.

Bloomberg noted that in a call with analysts, Alemany said CIT is still considering potential options in either the sale or spin off of the aircraft leasing business, which is valued at approximately $10 billion. CIT has been contemplating the move since October and hopes to complete a deal before the end of 2016, according to Bloomberg.

Bloomberg quoted an analyst at Drexel Hamilton as saying in a phone interview, “From the outside, it seems like the preparation work to sell or spin off the commercial aircraft leasing business is taking a lot of time.”

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Terry Mulreany
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