....and I was starting to get nervous with winner on board.
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Bang on the money mate. Note 14 at the foot of page 21 is also very interesting. AIR is one of only a small handful of international airlines with an investment grade rating, (I believe C.L. mentioned there were only 7) and got a credit rating upgrade this year. As a result they can lease aircraft at an incredibly low rate in the international markets. Fixed interest rates on those leases ranged from 0.7% - 3.4%. Expensive debt isn't it :D
Yep. They'll have so much cash flow this year I reckon they just write a cheque in due course and pay those bondholders out and save $10.35m a year in interest costs.
I'm forecasting an average annual gross dividend rate of 12% inclusive of special dividend(s) for the next few years so buying the shares compared to the bonds is a no brainier as far as I'm concerned.
I was going to mention that $10m but thought you would like to tell us how much
Cash keeps rolling in eh
Sure does mate and this year's capex is lower than last year. Something not a lot of people know is the new Dreamliner's require no heavy maintenance for the first nine year's of their life. You could say they're the perfect cash cow...errr, should that be cash bird. At the 2014 annual meeting C.L. said they'd built the airline with its young, (and getting younger), and efficient aircraft fleet to be profitable at $120 barrel oil...its just "a little" below that :) Last financial year they had three of these new aircraft for most of the year and this year six so with the new forecast at this year's meeting shareholders are starting to get an inkling into the cash flow benefits of this new aircraft...six more to come with another six options on top of that !
No argument from me mate. I'm on record with the (outrageous as it may sound) prediction that AIR is a $5+ stock in a few years and with gross divvies incl special(s) we're being paid extremely handsomely to wait.
When you get high growth, high dividends, an exciting and interesting industry and the highest standards of management and governance you get something you rarely see in life, an excited accountant :)
Couta1 - mate you've gone quiet. You on holiday enjoying your profits ? I might shout myself the afternoon off. I think I've earned it.