SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Paul Senior who wrote (39850)10/31/2010 11:59:01 AM
From: Walter Bagehot1 Recommendation  Read Replies (1) of 78748
 
Where do you see the value angle in these aircraft lessors?

I follow the industry closely, and see many issues that hold me back from considering them as value, even in a cyclical low for the industry, ranging from:

- Huge order backlogs at manufacturers, largely unabated in this recession (Airbus reduced A320 production by 2 per month, whereas Boeing has only been held back by strike action / 787 production delays)
- Reducing useful economic lives of newer aircraft as compared to the past (3x 777s have already been scrapped and they were launched only in the mid-1990s, and early 90s A320s no longer have a large market)
- The end customers are chronically lossmaking, and leases are frequently renegotiated in C11 proceedings
- Involvement of state-backed entities eg Waha in the Aer deal suggest non-economic reasons for investment

Just curious to debate from an intellectual perspective...
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News