I view AER as a big lessor of aircraft. A somewhat different business with maybe different dynamics than the typical passenger airline.
I'm of the view the aircraft leasing business does well until it doesn't. I'm not worried yet about a recession. (Maybe I should be.) I hold shares of AER and AL.
AL is a smaller company; its executive chairman is Mr. Udvar-Hazy, who essentially developed the aircraft leasing business and built up his previous company, before selling it I believe (giving him a personal worth, somthing like $4B). Then starting this smaller company.
I also have a few shares of ATSG, which leases aircraft, but also has a large component that rents planes and has ancillary services - provides material handling, provides pilots, etc. ATSG has done ok, assuming I remember correctly, during times of conflict when the US gov't needs more planes/pilots than it has to shuttle people, supplies, armaments, food/equipment etc. If mideast conflict widens, ATSG might be sourced again as a supplier to US gov.
Holding on to my position in WLFC, which leases aircraft engines. Every few years the controlling Willis family makes an offer to buy the stock. Never a binding offer, the stock rises and eventually drops back. Eventually, it will happen, is my bet. Meanwhile, a profitable, cheap stock. |
