How Tax Law Changes Affect Investment Planning Recent tax law changes provide an opportunity for rethinking investment planning. Consider how you might optimally structure investment in air and rail transportation equipment in today’s tax environment. Planning offers advantages when a solid understanding of the various ‘decision contexts’ that give rise to tax opportunities are understood. […]
Changing Legal Landscape With a highly developed, liquid, and efficient secondary equipment market, strong corporate governance, and stable legal institutions, the U.S. has traditionally provided foreign investors with a stable and welcoming market. Prior to the recently passed Tax Cuts and Jobs Act (“TCJA”, the “Act”), there was a tendency to lend into the US […]
U.S. Economic Expansion Revenues among the leading airline groups rose more than 10% last year and operating profits remain at historic highs. The economic indicators that make up the Conference Board Leading Economic Index were up .2% in May suggesting we may be approaching a ‘late growth stage’ of the current cycle. Most U.S. economic […]
Transportation plays a fundamental role in global market integration. The traffic flows of trading nations affect the structure and location of manufacturing facilities, the frequency of trips, distances travelled, transport modes, and equipment selected. Aviation Traffic Global air cargo traffic is up. The heads of air cargo surveyed by IATA remain positive in their outlook […]
Rail freight transportation has grown over time with the expansion of the population and economic activity in the U.S. The markets are dynamic. Freight demand is driven primarily by the geographic distribution of the population and the level of economic activity (consumer spending and online ordering have made UPS the largest single rail customer). The […]
Farnborough Airshow 2018 The 2018 Farnborough Airshow is an aviation industry networking hub connecting over 1,500 exhibiting companies and 73,000 trade visitors. Held every two years, this year the Farnborough Airshow takes place between Monday, July 16, through Sunday, July 22. As global GDP has grown, the demand for passenger and air cargo traffic has […]
Transportation equipment investment is a long-term play. While the Conference Board’s index of leading economic indicators suggests the U.S. economy will enjoy solid growth through the end of this year, there are areas where headwinds and complexity exist. China and America’s Trade The Trump Administration imposed 25% tariffs on $50 billion of Chinese goods “that […]
A Growing American Economy The U.S. economy is heading into the second half of 2018 with strong momentum. Nonfarm payrolls are beating expectations. Manufacturing and construction indexes are accelerating. Economists are expecting growth through the end of the year between 3.6% and 4.8%. Economic activity, passenger, and both domestic and global air and rail freight […]
Global Economic Forecast Investment forecasts are driven by models built on expected levels of economic activity. Shifting international dynamics and the impact of the U.S. Administration’s economic policies are driving changes. While oil prices remained below $50 for most of 2017, recent volatility reminds us there is uncertainty as to their future direction. OPEC has […]
Investment in air and rail assets involves complex disciplines. These include financing, legal, bankruptcy, jurisdictional analysis, documentation skills, insurance knowledge, residual collateral value expertise, tax structuring, accounting (under the new lease accounting rules), and an understanding of the after-tax cash economics of loan vs. tax lease pricing. Secured lending is a credit risk and collateral […]
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Growing Aero and Rail InvestmentsMarch 19, 2025 - 8:09 amBoeing delivered 45 jets in January[1]. That’s 19 more than Airbus’ January deliveries. COMAC and Embraer each delivered three aircraft in January 2025. Airbus plans to deliver 820 commercial aircraft in 2025, 7% more than in 2024 (Boeing delivered 348 in 2024). Boeing’s 737 deliveries remain capped at 38 aircraft per month. The newly appointed […]
2025 Core Themes for Aero and Rail InvestmentFebruary 5, 2025 - 9:27 pmStrong GDP growth, sticky inflation, and a soft landing–core themes for aero and rail investment. The economy’s performance in 2025 will drive the Fed’s future interest rate decisions. Higher ticket revenues and lower energy prices (jet fuel is expected to be less expensive in 2025) will benefit air carriers. The International Air Transport Association estimates the […]
Looking Forward to 2025 Aero and Rail InvestmentJanuary 7, 2025 - 7:37 pmNovember’s jobs report exceeded expectations (payrolls increased by 227,000[1]) yet the Fed lowered its benchmark interest rate December 18th by a quarter of a percentage point (to between 4.25% and 4.5%). Fed Chairman Powell’s recap: “I think we’re in a good place, but I think from here it’s a new phase and we’re going to […]