Chinese tycoon expands aviation empire with $10b purchase

China’s HNA Group, controlled by billionaire Chen Feng, agreed to buy the aircraft-leasing business of CIT Group Inc. for $10b in a deal that would create the world’s third-largest rental fleet. HNA’s Avolon Holdings will expand its lineup to 910 aircraft valued at more than $43b, including planes on order, the company said Thursday. The acquisition is scheduled to close in Q1 after regulatory and shareholder approval. “Our strategic objective is to build the No. 1 aircraft-leasing company in the world in terms of size, shape and scale,” said Domhnal Slattery, CEO of Avolon. “This transaction enables that journey,” he said, adding the CIT unit has a “top-class portfolio, great management team, well run and it was really the jewel in the crown of CIT’s non-banking business.” The purchase roughly doubles Avolon’s fleet and vaults it into the ranks of the top aircraft lessors. Founded in 2010, Avolon is betting on rising demand for global air travel and airlines’ desire to replace aging jets, especially in the Asia-Pacific region, where China is poised to become the biggest aviation market within two decades. The deal doubles HNA’s more than $10 billion of acquisitions already announced this year, according to data compiled by Bloomberg, and expands its travel and leisure business spanning airports, airlines and hotels.<br/>