How Will Aircastle Benefit From AerCap, AIG Deal?

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May 14 (Bloomberg) -- Aircastle CEO Ron Wainshal discusses how the company benefits from AerCap’s deal to to buy AIG’s plane-leasing unit on Bloomberg Television’s “In The Loop.” (Source: Bloomberg)

Does it make your life harder?

No, it makes it better.

When we visited about one year ago, the market cap for all the aircraft leasing companies that were public was about $5 million.

Now it is $11 million.

Does that mean there are more companies in the space?

The $11 billion is for the four companies in the space, but there's a lot of investor interest and part of it is because there is a lot more to invest in.

Manufacturers are pumping out about $100 billion worth of aircraft every year, and that is almost twice what it was five years ago.

Are you taking part in the boom?

We have grown a lot in the past two years.

Since we were on the show last year, we have invested about $2 billion, and that is a pretty big part of our growth plan.

M&a could be or may not be part of our strategy, but we are a great originator of transactions.

Are you worried?


companies went from a $4 billion, $5 billion market cap to $11 billion.

Does any of that point to a copy in the leasing market?

-- pop in the leasing market?

The leasing market has more to go.

Airplane travel is basically a gdp driven activity, and as recovery in the u.s. and europe continues, you will see more gdp, more demand for airplanes.

You do tend to have exposure to, say, brazil and china, and there are inflation worries there.

Both of those have actually been pretty good stories, and that has been talk about how china has slowed down, and the growth rate is now only 7% or 8%, which any western country would kill for, and the air traffic is still drawing double digits in growth, so there's still a lot going on.

The great thing about airplanes as they are portable.

If there is a slowdown in one part of the world, our job as a manager of airplanes is to find the best and highest use of the access cash assets and move them . -- assets and move them.

With china, it does not really match up when you see slowdown worries, credit restriction, the emerging middle class still trying to emerge, it does not gel with more plane travel.

Ashley, it does.

The role of the government is quite big.

It is not penetrating the u.s. market -- -- the chinese market like it has in the u.s. and europe -- low-cost carriers.

We look at the best opportunities around the world, and our biggest deal ever was something we did in the last few weeks, a $900 million deal with an airline, the top 1 -- one of the top 10 airlines in the world, and we do not necessarily bid on the same things that aercap or other people might.

We are buying a fleet of 777 aircraft, wide-body, state-of-the-art airplanes, and helping them transition.

So, brazil, is that your favorite place?

Resume is a good place, but i do not a favorite place.

Brazil is strong, china not as bad as people think, recovery in europe.

Thank you.

Great perspective on the aircraft leasing industry, ron wainshal, ceo of aircastle.

Coming up, more than 1000 infrastructure jobs could be -- 100,000 infrastructure jobs could be at risk if congress does not act fast.

We will take a look at what those jobs mean for the economy, and speaking of infrastructure issues, we will take you to california's oldest winery, and tell you why it is in danger of being destroyed.

Say it ain't so.

Stay "in the loop."

This text has been automatically generated. It may not be 100% accurate.


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