This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Aircastle CEO Presents At Deutsche Bank 2nd Annual Aircraft Financing & Leasing Conference (Transcript)

Stocks in this article: AYR

There’s things to buy, but we have defined that capital and we want to make sure we’re doing the best with it. So what are we buying and where do we see value, particularly in our own context? We like wide bodies, we actually think that they have a good value. There isn’t the supply side pressure in our view versus the narrow bodies. I’m really worried about that, and we also think that there is residual value pressure down the road from the new technology. Better credits, less competition, relatively speaking, and a better ability to finance. We’re looking at targeting ROEs that are basically in the mid-teens or more, as much as possible, within reason, and we do risk adjust.

Middle-aged aircraft. There’s always been a new car, showroom effect in terms of value, but more so now than ever, and there are very few people playing in this space, particularly as the bank market contracts. I’ll make a few comments about that later. Less competition, good airplanes, good demand, but we’re finding very little competition there. There we’re probably looking at financing aircraft with unencumbered bonds, unsecured bonds, so there’s nobody telling us, I don’t like this airplane or this maintenance is third rate, or [inaudible]. It’s our cash, and when we come into a situation where we’re cash buyers, it’s pretty powerful. We haven’t seen Mike competing with us in most of his deals.

We like the freight market. We’re a leader in this niche. The freight market’s under pressure today, so from a new business perspective, it’s not a situation where I’d take placement risk. In fact, I wouldn’t take placement risk on anything right now, new or used, big or small, passenger or freight. But there are better credits there, and there are good sale lease-back opportunities. Freight market I think will come back, it’s just a matter of time. It’s a little bit more volatile sector, but it’s more cyclically sensitive, but a lot less event risk sensitive, so if there’s, God forbid, a 9/11 or a flu pandemic, the boxes don’t get scared of getting on an airplane like passengers do. So we do think it’s an important part of what we do, and it’s something that sets us apart.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs