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Air Lease (AL) Signs Contract With New Italian Carrier ITA

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Air Lease Corporation (AL - Free Report) announced that it will lease 31 Airbus planes to Italy’s new national carrier ITA.

ITA will take to the skies from Oct 15, replacing the bankrupt Alitalia. The deal with Air Lease is part of ITA’s fleet-building exercise ahead of its launch.

Per the deal, Air Lease will give Alitalia’s successor (on long-term lease) 15 A220s, two A320neos, nine A321neos and five A330-900neos from its orderbook with Airbus. The first of the 31 jets will be delivered to ITA in the second half of 2022. The deliveries will continue until early 2025.

Air Lease’s executive chairman Steven F. Udvar-Házy was thrilled about the partnership with ITA. He was quoted saying “Air Lease Corporation is pleased and proud to be the launch Lessor for ITA to supply the new airline 31 new Airbus jet aircraft, including the most modern A220 and A320/321neo family jets, as well the latest environmentally friendly widebody aircraft on long-term operating leases from ALC’s orderbook. These transactions will allow ITA to operate the most technologically advanced new aircraft to cover ITA’s European and Intercontinental route network with great efficiency."

The deal with Air Lease apart, ITA inked a memorandum of understanding with the European plane maker Airbus to buy 28 new jets. These include 10 Airbus A330neo planes for long-haul flights, seven Airbus A220 family regional jets and 11 Airbus A320neo family aircraft.

Zacks Rank & Stocks to Consider

Air Lease currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the Zacks  Transportation  sector are Schneider National, Inc. (SNDR - Free Report) , C.H. Robinson Worldwide, Inc. (CHRW - Free Report) and TFI International Inc. (TFII - Free Report) , all currently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term expected earnings per share (three to five years) growth rate for Schneider National, C.H. Robinson and TFI International is pegged at 17.9%, 9% and 31.6%, respectively.