00:00So another big deal on your part. Talk to me about the acquisition. How does it fit into the overall
00:04portfolio?
00:05So this is a good one for us. We are buying about 225 assets and 125 assets on order.
00:14So we're growing our fleet by about 350 assets.
00:18And the great thing about this transaction is that the underwriting of these assets,
00:25the culture of the people is very similar to ours. So we're very comfortable.
00:30And here's a fun fact. One year before we bought AWOS, AWOS sold 84 assets to Macquarie.
00:3880 of these assets are still in this particular book. So it's kind of a coming home party.
00:42OK. But underwriting standards that we really know well.
00:45And so I think for us, it's an excellent fit in terms of underwriting culture,
00:51but also takes us to a scale that is very meaningful.
00:54So let's talk about that scale. This is you. I mean, speaking about acquisitions,
00:57your second large acquisition in the last couple of years, what's the eventual aim?
01:03How big of a size of the market do you want to commence?
01:07So five years ago, when we had 400 assets, I kept on saying that we wanted to get to 800.
01:12And we got to 700 something last year. And now after this closes, we'll be up to a thousand something.
01:18But in those five years, the industry has changed a lot as well.
01:22So we continuously examine what the right scale is. And we've said publicly that scale for us
01:28is where we want to optimize the return on capital to our shareholders.
01:32We think we're kind of there. But the truth is that every time we turn around, that definition gets revisited.
01:40So we're constantly evaluating whether the level at which we're at is right or we need to move to the
01:46next level.
01:47Are you currently in the top five lessers in the world?
01:49Most definitely.
01:50Yeah. What number are you?
01:51I think it depends on how you measure it.
01:53But when this deal closes and when the other SMBC transaction closes, this will put us at the number three
02:01position.
02:02But that, I think, keeps on changing for us. Ranking is less important.
02:06What is really important is whether what we built is relevant to our clients.
02:11Will we be one of the first calls they will make when they need something?
02:14Okay. So it seems you're evaluating an evaluation phase about what you do from here onwards and whether you go
02:22down the route of more acquisitions.
02:24M&A is really part of our DNA, if you look at how we've grown.
02:28So it's not that we will not do it.
02:30I think we have to be mindful that the industry is also going through a transition.
02:34So as we have these assets, but we also sell a lot of them,
02:39M&A will continue to play a very big role in how we keep the fleet fresh.
02:44Okay. And how does this recent acquisition add to your order book from Airbus and Boeing?
02:49Yeah. So it doubles our order book.
02:51We had approximately 100 and now we will have approximately 200.
02:55And we will get both an Airbus order book and a Boeing order book.
02:59So we're very excited about that.
03:00But more importantly, the order book is spread out nicely till 2032.
03:05So it gives us a good footing on those future years.
03:09Any concern about the very well-flagged delivery delays?
03:16I think delays are inevitable at the moment.
03:20There is a fair mechanism in place to make sure that we get compensated for it.
03:24So I think whilst we prefer that there are no delays, I think we're okay with where we are.
03:29But importantly, we're securing future growth.
03:32So 2029, 30, 31, 32, we now have slots in those periods.
03:38Okay. Interesting.
03:39Let me just ask you a broader question about sort of how you see pricing shaping up over the next
03:4512 months.
03:46How do you see the market dynamics in your market?
03:49So there's two dimensions to that.
03:51One is the value of the aircraft.
03:53And I think there is still a shortage for the lack of a better term.
03:57People, airlines need kit.
04:00And that kit is trading at that appropriate demand supply balance, if you will.
04:05Lease rates reflect that.
04:07Lease rates are also quite steady.
04:09Now, if you had asked me this a year ago, I would have said lease rates are still climbing.
04:12If you ask me today, we think lease rates have plateaued or stabilized at that level.
04:17But I think that's a good level.
04:19And the next step here will be what monetary policy does to interest rates.
04:24Yeah. So how do you stand out in this market?
04:26Is it on pricing or is it something else?
04:29Well, pricing, you have to win on all counts.
04:33Yeah.
04:33But what we try to offer is a combination of product and delivery along with price
04:40that represents a very attractive solution to our clients.
04:43So whether they're big clients who need quantum solutions, a billion dollar solution,
04:47or whether they're small clients like carriers in India who need two and three aircraft
04:52to satisfy the secondary and tertiary routes, we do all of that.
04:57How does that translate into demand for this year?
05:00How are you seeing demand from airlines then?
05:02Demand is still pretty strong.
05:04In fact, I would say that everything that we have to offer for 2026 is sold out.
05:09Nearly everything.
05:10And we're now working on 27 transactions.
05:13Wow. Okay.
05:13It's a good place to be.
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