1600 Pennsylvania Avenue. What are markets anticipating? Interest rates, Inflation risk, Global unrest, Trade barriers, Government spending, a new Democratic nominee, or a second Trump presidency? Will there be a pro-business climate after the election, less regulation, more drilling, continued tax cuts, and lower interest rates? Recall the 2017 Tax Cuts and Jobs Act cut the corporate tax […]
The Federal Aviation Administration (“FAA”) grants authority to operate scheduled air service in the form of Federal Aviation Regulations (“FAR”). Air carriers authorized to operate under Part 121 are generally large, U.S.-based airlines, regional air carriers, and all cargo operators. Most would consider the General Aviation (“GA”) category to include only light, small-engine private aircraft but even […]
Year to date Rail carloads through the end of April totaled 3.63 million, down 4.8% from last year. Total carloads have fallen year over year in each of the first four months of this year. Excluding coal however, total carloads are up 2% over April 2023 and have risen year over year in each of the last […]
The U.S. economy expanded 2.5% in 2023 (3.4% in Q4). While growth slowed to 1.6% in 2024’s Q1[1] the International Monetary Fund expects U.S. GDP to expand 2.7% in 2024, up from their October forecast of 1.5%. Global economic output (in the face of geopolitical strife) is expected to expand by 3.2% in 2024 (up from an […]
Moving pieces. Third Quarter U.S. GDP growth was revised down to 4.9% from November’s 5.2% second estimate. The National Association for Business Economics is expecting 2024 GDP growth to slow to 1% with a recession risk in the next 12 months under 50%. As inflation slows and with a “soft landing” in sight, the Fed […]
Rail traffic volumes remain challenged while Air Carriers face capacity constraints as they attempt to meet the rebound in domestic and international flights. United reported solid domestic and record-breaking international performance with third-quarter revenues up 12.5% year over year. The company set a record for the highest-ever daily average of revenue passengers carried in a quarter […]
Equipment and crew availability affect service levels for both Aero and Rail. Both Rail shippers and the flying public are interested in consistent, reliable service. Rail transit times from pick-up to the last mile are particularly important. The Surface Transportation Board (“STB”), responding to Shipper Rail service complaints, issued a Notice of Proposed Rulemaking (Ex Pate No. […]
Most Aircraft operating leases provide that the lessee is responsible for maintaining leased aircraft to required industry standards. To ensure flight safety the FAA issues Airworthiness Directives (ADs) and aircraft manufacturers issue Service Bulletins (SBs). ADs are legally enforceable regulations meant to correct unsafe conditions. Airframes, engines, avionics, and other aircraft components (landing gear, auxiliary […]
Pent up demand from pandemic lockdowns. Government stimulus ($5 Trillion). The Fed’s past abnormally low interest rate policy. These are the causes of the current distortions in economic activity. U.S. annual Core consumer price inflation remains high, 5.3%[1]. Wage growth continues. American Airlines pilots agreed to a new contract that boosts pay by 21% in […]
Locomotives, typically classified as 50-year assets, are primarily electrically driven. Despite the common label as ‘diesels,’ they are better described as ‘hybrid-electric’ vehicles. This is because their diesel engine powers an alternator which generates the electricity required to operate the electric traction motors mounted on the locomotive’s axles. As reported by the American Association of […]
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Rail Uptick Defies Slowing GDP, While Aero OutperformsJuly 1, 2025 - 9:30 pmRail Uptick Defies Slowing GDP, While Aero Outperforms
Tariffs and Trade Shift MarketsJune 6, 2025 - 9:29 pmTariffs and trade shifts are affecting markets. Learn how aero and rail have reacted to these tumultuous times. Call RESIDCO.
Market Disruptions Bolster Aero & Rail InvestmentMay 5, 2025 - 3:40 pmA weaker dollar and Treasury market volatility has made hard asset Aero and Rail investment more attractive. Call RESIDCO.