Avolon nears deal to buy CIT's aircraft leasing unit: sources

Avolon Holdings, part of China's acquisitive HNA Group, is nearing a deal to buy the aircraft leasing assets of US lender CIT Group for between $3b and $4b, people familiar with the matter said. Asian lessors, led by cash-rich Chinese banks, are spending billions of dollars to expand in the $228 billion global aircraft leasing sector that offers long-term revenue in dollars and accounts for some 40% of the world's airline fleet. With the purchase, Avolon would add about 470 owned, managed and on-order aircraft to its fleet of 440-plus planes. This would make it the world's third biggest lessor behind AerCap Holdings and General Electric's GE Capital Aviation Services, which still dominate the sector. An announcement could come as early as this week, said the people. They added that negotiations were at an advanced stage but a final deal has not been agreed.<br/>