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Ron Wainshal, Aircastle CEO, on the business of aircraft leasing companies, plus what’s ahead for the growing company.
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-- is the limit for Aircastle the plane leasing company's first quarter profits beat analysts' estimates.
As airlines run two rents -- -- -- and the company is anticipating future growth is actually gonna.
Take off.
Joining me now from Boston business explicit ahead -- on myself into the -- Aircastle run it's great to have you on the show up.
It's -- -- business and I think many -- viewers don't really know that the leasing business buying and leasing out of aircraft.
There's a profitable business unit has a long time ago.
Aircraft leasing companies have always made money airlines -- We're basically landlord and we deal with -- equipment.
And when airlines wanna grow what he wanted to replace your -- the often turn leasing companies -- -- that more and more.
As.
The beginning of this year almost 40% of the world's leading is least now knows only about 25% we went public in 2000 sales.
They don't wanna buy aircraft that rather lease and it's it's a better deal for them -- -- right with a look at AMR and -- a bankruptcy protection right up let's talk about the actual numbers for you the company.
Net revenue up 8% year over year first quarter earnings that on 24%.
What's going -- Last year we sold profit -- troops for ten million dollar profit almost a bunch of airplanes during the height of the market what's happened since then.
Is the bank markets receded prices have gone down and we see there being a great buying opportunity.
You've got a fifteen cent dividend -- our dividend paying stock as well you've also though issued allotted you know debt.
What are you that what where is that money going to work for -- the corporate bonds to talk about.
For -- in terms of our capital structure it's one -- thinks it's makes us different.
We do have a credit rating we do have access to the bond markets one of the things that makes makes us different than our peers.
And this makes -- different and our customers so were able to tap where the money is vs our our customers -- Our our borrowing is only about two thirds of our capital structure so for finance companies have very low leverage.
And in terms of were using the money.
This year I wouldn't be surprised to see more than 700 million dollars of new investments -- here so we did refinance -- -- term maturity.
We don't have debt returning until 2017.
Now.
Okay okay that's the bonds that you sold.
It's -- imaging US capital markets because a lot of your competitors and this is such a global.
Industry and our viewers may not really -- -- much about it but.
Your your competitors for the most part go to Europe.
For their financing.
We you don't have your relationships in the United States turns out that's a good thing for you because of what's happening in Europe Britain.
Right we've we've tapped -- European banks in the past as well.
But we were seen this earlier on during the financial crisis when all the European banks are kind of shrinking -- going out of business we realize this time -- -- into the US bond market.
You know it.
And one thing that you're about your your aircraft mean you're at your operating in my 35 countries something like I mean -- offering -- several markets around the world.
Is a big market it seems that there's more domestic travel now and the Asian market than there is in the US market -- you tapping into that.
Yet if you look at the acquisitions we've made so far this year which amount to about 400 million dollars counting that.
The deals haven't closed yet almost all that is going in Asia as reflection of where the senator crap in our business changed it.
Let me ask you this overall if you look at the space now in it because Boeing and Airbus investors in those stocks.
Have been bullish.
-- they want to sell aircraft.
You don't want them I'm assuming stop making so many -- you're buying you're about helps somebody like you but your fleet is is -- middle -- if you well -- are you concerned about the -- starting to get a little too old with all these -- the dreamliner coming out -- and that's gonna actually.
Hurt you in some -- It's it's a fact of life to new airplanes -- -- we buy new -- -- in fact -- just closed on the last of our billion dollar order with Airbus back in beginning of April.
Fifteen miners delay any delay in the comparable Airbus -- is actually helped us.
But the way we look at it is that the the technology the airplane is what drives attracted just number one in and it's a matter is -- a good deal or not.
We've been able to keep our -- flying really well 99%.
On -- throughout last year.
9299%.
Throughout the whole financial cycle.
So I think that we're we're pretty good leasing aircraft and also tells you about the demand of our aircraft.
Existing -- well I think isn't -- -- layer on -- tell -- the CEO of Aircastle.
Different business but a dividend paying stock at nine -- on the -- thank you are.
