Air Lease's New Preferred: A Safer Alternative

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About: Air Lease Corporation (AL), AL.PA
by: Jenks Jumps
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Jenks Jumps
Growth at reasonable price, long-term horizon, value
Summary

Lion Air and Ethiopian Airlines experienced crashes involving Boeing's 737 MAX 8 model aircraft in October 2018 and March 2019, respectively. The MAX models are now grounded.

There already is, will be, and should be financial consequences resulting from these two tragedies. The debate will be which party should rightly bear such consequences.

Albeit unknowingly, Air Lease has provided a safer alternative that should prove immune to cash flow disruptions and subsequent share price fluctuations resulting from the consequences of the grounding.

When tragedy strikes, analysts and experts often scramble to determine the financial impact - who could lose and who may profit. This hardly suggests tragic losses can simply be priced. Rather, I would propose they