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As the Paris air show kicks off today at a very very hyper speed the carriers placed their orders for the next to Boeing and Airbus jets.
We -- -- a company that owns the -- -- is the name of this company.
If you haven't heard of them they leased Airbus and Boeing planes all around the globe to other airlines rock -- shell.
Aircastle CEO it's not the Paris air show he's right here in the first on Fox Business interview and our studios.
Why tell me -- not at the Paris air show -- this is could be your big moment there.
Paris air show is a big -- a big show every year were lots of new orders are made.
The manufacturers -- sitting pretty because they've got backlogs to go years and years into the future.
We're focused on putting in my work today.
Most viewers you'll see are probably going to be for aircraft that won't -- until the back half a decade.
You have been watching the Paris air show news flashes that of course if you wore the headline writer.
For the industry rack whatever it might be -- -- a journalism term -- but what do you think that headline would be.
Wide bodies -- the big the big order of business today.
-- new models coming out the air shows a great platform for unveiling them and a lot of orders are going with that.
What are you going to bring him that you take these planes -- the new lease them out.
Two of course everybody from Swissair.
To Chinese -- companies to US Airways to delta.
Right now the that the trend is very strongly in our favor airlines -- -- more of their aircraft and -- have before.
We have lower cost -- have a buying them out right that's right.
Airlines today account for a smaller share of of their own fleets in terms of ownership leasing companies more -- This year Boeing and Airbus a blooper over a hundred billion dollars of airplanes and it's gonna grow year by year by year as -- orders keep on increasing.
What what's been great for us is we've been able to tap into very very efficient debt markets -- costs -- desk floors -- the airlines we have a brand new shareholder.
Well the apprentice shareholders a Japanese company.
And this Japanese company called -- model of -- is is a company that does exactly what because now they become your largest shareholder first of all what do they do and why did you do that.
-- being he is one of the Japanese trading companies are blue chip company with a 150 your background.
Over the years they've helped Japanese exporters exporter -- world.
And to bring in resources into Japan.
They are truly global long term oriented players just exactly the kind of shareholder -- -- -- -- for our company right which when will this deal be accretive.
-- out -- appropriate question at this it is we think with the -- indeed increased equity that will be getting within a month or so will be able to play that well and you'll be EPS accretive in year.
Oh within -- here -- good news now let me get to the airlines what are they doing right what are they doing wrong.
Now it feels that they have shaken out a lot of the excess capacity they are running like real businesses.
Yes they do charge for every little thing but how do you feel about how they're running themselves.
In the US it's improved a lot but there's always to go around the world.
The -- -- came out of the global airline industry conference in Cape Town last week was that the profit margin on a flight went from a drink to a sandwich.
So it's a very little margin of difference are and what what's what's important to notice that this a very capital intensive is the same time.
So companies like us it can raise capital efficiently manage yes it's officially can do very well well in the end if you have to choose because you're buying both Airbus and of course -- Which what you like right now.
We're investment company the price matters so we like both if the price is right -- who was a better press right now it's it's it's really question of deal's specifics.
So this year we expect to invest close to billion dollars may be more.
I think the -- will probably be pretty balanced.
What will what will be more important is that -- -- Airbus or Boeing will kind of airplanes we see better value in the wide bodies because we think they'll be lasting longer.
There is I think a production level issue with the narrow bodies and we see good die in the middle of the market in terms of middle -- aircraft we've always been good player.
Well if if the numbers say anything you've got a hundred Boeing and about 54 Airbus right now.
There you are the long answer how to get to see -- thank you very much thank you by the way I should mention that your stock up 33%.
Over the past year not bad in a 21% is still undervalued.
Just like at CEO good to see you thank thank you.
How Broadway Show -- Eric Cassell CEO closing bell over.
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