Author Topic: AER - AerCap Holdings  (Read 26666 times)

Spekulatius

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Re: AER - AerCap Holdings
« Reply #70 on: July 02, 2019, 06:30:01 AM »
Quote
Compare that to say, buying a stake in one of those single-plane entities that has a single A380 in Dubai

LOL , my brother has stake in one of those with I think anA380 with Singapore airlines. The problem is not with the lease, the problem is that this airplane is a dog and once the lease is over, the residual value may be close to zero. Investors get a return of capital in the high single digits (7-8%) for 10 year or thereabouts term, but the total return very much depends on the residual value of the plane.

The airplane leading companies run the same risk, but are hopefully smarter about what to buy and have more options to salvage value at least in theory.
To be a realist, one has to believe in miracles.


chesko182

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Re: AER - AerCap Holdings
« Reply #71 on: August 29, 2019, 05:56:58 AM »
https://www.genewsroom.com/press-releases/apollo-and-athene-acquire-pk-airfinance-gecas

"Financial details of the transaction were not disclosed, although the $3.6 billion of PK AirFinance financing receivables that were held for sale in the second quarter of 2019 are being sold at a premium to book value in this transaction."

Compare to AER's 0.75X book value, which it self is probably understated (considering they sell their aircraft at 5-10% premium, and they have a very valuable order book)

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