Leasing firm CIT orders 30 Boeing planes

Leasing firm CIT orders 30 Boeing planes

Boeing said on Wednesday that US plane leasing firm CIT Aerospace had ordered 30 of its new, medium-haul 737 MAX aircraft in a deal worth $3 billion (2.2 billion euros) at catalogue prices.

Boeing said on Wednesday that US plane leasing firm CIT Aerospace had ordered 30 of its new, medium-haul 737 MAX aircraft in a deal worth $3 billion (2.2 billion euros) at catalogue prices.

The announcement complements an already solid order book for the US aviation giant at the Paris Air Show, which kicked off Monday against a background of high-profile competition between Boeing and its arch-rival Airbus.

The US plane manufacturer has already announced billions of dollars in deals as well as the launch of a long version of its next-generation Dreamliner 787, but it is still trailing behind Airbus in new plane orders.

So far, Boeing has racked up $29.2 billion in firm orders or purchase agreements, against $36 billion for the European aircraft manufacturer.

Jeff Knittel, head of CIT's transportation finance division, told reporters that the 30 planes were due to enter into service from 2019.

"The Boeing MAX provides the fuel burn improvement and lower seat mile cost that our customers demand to run their airlines with optimal efficiency," he added.

The 737 MAX is a modernised version of Boeing's older 737 and has yet to come into service. It is part of a new generation of planes emerging onto the market which consume less fuel and enable airlines to reduce costs.

This new generation also includes Airbus's A320neo, and in the long-haul sector, the much-publicised A350 and Boeing's Dreamliner family.

Analysts say Boeing's message at the Paris Air Show is that it is firmly back in the running after a slew of recent technical problems forced the grounding of the entire Dreamliner fleet worldwide for three months.

But so far, Airbus is in the lead in plane orders, particularly with a high-profile deal worth $8 billion for 20 of its double-decker A380 superjumbos.

Other smaller competitors have made a mark at the air show -- the world's biggest -- with ATR, a joint venture between European aerospace giant EADS and Italy's Finmeccanica, announcing one of its biggest orders this week.

Leasing firm Nordic Aviation Capital (NAC) signed up on Tuesday for 35 ATR-600 aircraft built by the firm, with an option on 55 in a deal worth $2.1 billion, ATR said.

Brazil's Embraer has also come up trumps with the launch of a new family of regional jets and 100 orders, with 215 other intentions to purchase the aircraft.

But the Paris air show, in its 50th edition this year, is not just about commercial battles, with the long-awaited A400M military transport plane taking to the skies as well as Russia's Su-35 fighter jet.

CIT owns or finances a fleet of around 350 commercial aircraft, and has operating lease and financing agreements in place for 128 Boeing planes.

The group also ordered Airbus's next-generation A350 earlier this year.

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