Narrow-Body Aircraft Demand Drives Leasing Sector Higher: a Wall Street Transcript Interview with Helane Becker of Dahlman Rose & Co.

Wall Street Transcript

67 WALL STREET, New York - January 24, 2013 - The Wall Street Transcript has just published its Staffing, Outsourcing and Rental & Leasing Services Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Workforce Flexibility Requirements - Growth in Temporary Staffing Demand - Secular Trend Toward Temporary Staffing - Strong Demand For IT Staffing - Growth in Equipment Leasing Adoption Rates - Consolidation Potential in Fragmented Industry

Companies include: Textainer Group Holdings Limit (TGH), TAL International Group, Inc. (TAL), CAI International Inc. (CAP), Aircastle LTD (AYR), AerCap Holdings N.V. (AER), Babcock & Brown Air Limited (FLY) and many others.

In the following excerpt from the Staffing, Outsourcing and Rental & Leasing Services Report, an expert in airline leasing equity research discusses the outlook for these sectors for investors:

TWST: Let's move over to the aircraft side. What's going on there?

Ms. Becker: The aircraft leasing industry tends to mirror or trade with the airline industry. Even though most of the clients for the aircraft leasing companies are not U.S. airlines; most of the clients are worldwide airlines, especially airlines in Asia that are growing very rapidly. The industry has had a pretty good couple of years. We have four publicly traded companies there as well: Air Lease (AL), Aircastle (AYR), AerCap (AER) and Fly (FLY).

There is kind of a lot of choice for investors who might want to participate in the industry, and with airlines around the world growing, there has been demand for aircraft. Most of the aircraft leasing companies tend to specialize in narrow-body aircraft because there are more customers for narrow-body aircraft than there are for every other aircraft type. In the event an aircraft is repossessed, there are more customers for a late model narrow-body aircraft than for any other type of aircraft. In addition, ILFC was just sold to a China-based leasing company, which is very exciting for them. We were looking forward to having another company because they're the largest, but the industry is well-run.

TWST: With the growth that we're seeing overseas, is that net demand or is it just shifted demand?

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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