Monday, September 23, 2013

Seeking Alpha: Air Transport Group Looking To Post Meaningfully Higher Cash Flow

Done correctly, equipment leasing can be a lucrative business. General Electric's (GE) GE Capital has done quite well for itself leasing everything from jet engines to rail cars to shipping containers, and passenger jet lessors Aircastle (AYR) and AerCap Holdings (AER) have likewise performed quite well over the past year and reasonably well over the last five.

Air Transport Group (ATSG) isn't a straight-up leasing company, as about 80% of the company's external revenue comes from ACMI (aircraft, crew, maintenance, insurance) operations, but the stock has nevertheless been quite strong both over the past year and since a 2008/2009 crisis threatened the company's survival. With the company looking to generate business for under-utilized assets in an improving economy and taking a new, disciplined approach to further capex, Air Transport Group should be looking at a period of improving margins and cash flows.

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Air Transport Group Looking To Post Meaningfully Higher Cash Flow

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