What's coming out of the American airlines bankruptcy, what capacity they will share and they will share some, will be obsolete aircraft to go to the desert and don’t have any displacement effect on us or our peers. I view the bankruptcy as insignificant in our prospects. There may be some deal opportunities that come as they look to refinance some things coming out of bankruptcy, but in the short term none of the equipment that’s coming out is going to affect our market and we have no direct exposure.
But the U.S. airlines in some respect are a little bit like the European flag carriers. They don’t -- the Europeans do a little bit more in the way of leasing. Air France for example, which has a fine credit, as a policy matter leases a quarter and a third of its fleet, for fleet flexibility reasons. And so I think the market share of the pie is going to grow. For of all this illustrates the long-term growth trends here are significant but I will come back to the near-term.
What the top chart shows is the share of the pie that lessors have. And it’s gone from very small to about a third. And my sense is that you will see us getting close to about 50:50 in terms of the airlines and aircraft lessors ownership. So it’s a bigger share of the pie and it’s a growing pie that grows with the global GDP. And what happens, you know airlines are particularly volatility set of customers from a financial performance perspective, it’s a low margin business with high capital cost and very high economic cyclicality, sensitivity.
Lessors though, if you look at the chart at the bottom, have a different profile. And it’s true for other suppliers to airlines. Just because the airline is having a hard time doesn’t mean that we necessarily do. When airlines go bust and we have reasonable aircraft involved, we can move it. And we have managed through that and I will take you through that in a few minutes in term of how we have managed through the downturns.Read the rest of this transcript for free on seekingalpha.com