CIT Group reports current financing relationship with Independence Air

Airline Industry Information, Nov 8, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

CIT Group Inc (NYSE: CIT), a provider of commercial and consumer finance solutions, has disclosed its current financing relationship with Independence Air Inc.

Independence Air, with its corporate parent FLYi Inc, has announced that the airline, FLYi and certain of their respective affiliates have filed voluntary petitions for reorganisation under Chapter 11 of the US Bankruptcy Code. CIT said that under the terms of existing lease agreements, Independence Air has operating leases on four recent vintage, CIT-owned aircraft. CIT's total exposure is reportedly approximately USD135m.

CIT said that its management believes, based on its current assessment of lease equipment carrying values and Independence Air's credit exposure, that the Independence Air filing will not have a material adverse impact on the company's financial results.

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