RE:RE:RE:RE:RE:Buying opportunity?CHR CPA revenues really haven't been hit that hard, I mean they are are a leasing operation mainly. I think only their MRO revenues are down that are major? I mean Chorus did turn a profit last quarter when AC is making billion dollar losses past 2 quarters.
They're accounting for their revenues still even if cash isn't collected yet (payment deferred) I'm interested in what kind of benefits management negotiated for Chorus in exchange for payment deferrals and using up of Chorus' credit/financing. They keep saying win win but I don't think they specified what the win was for Chorus... maybe very very long extension of lease?
I'm more interested in seeing the collected lease percentage go up, last quarter it was 28% so 72% in deferral i guess, and from what they said about July it was 38%. If cash collected gets back to about 90+% i'm going assume that they are going to reinstate their dividends. My other big question is what are they going to do with all that cash they are going to collect that has been deferred for these past months? Are they gonna buy more A220s then do a permanent bump up dividends? or are they gonna do something really boring and pay a special dividend?
I pretty much don't care what the price is once the dividends are reinstated back at previous distribution levels. would be around 20% yield for me if they go back to old levels, 20% a year for doing nothing is good enough for me >.> Going to assuming once vaccines are out and widespread mid next year travelling will be back to normal. Everyone I talk to can't wait to travel, and if less people want to travel all the better cuz i can score travel deals, if more people travel all the better because Chorus will be growing again. That's to me is a win win. All I know is I live in Vancouver, and i've exhausted everything i want to see locally for a vacation, and everything within a 10 hour drive (drove to banff) so i've literally run out of places i would like to visit for a vacation that is not a plane ticket away. A lot of other people are like me in my office of varying age between mid twenties to mid sixties, and have had it with the travel lockdown if it's not over by next year. Getting really bad stories from them about travel to local vacation destinations.
Regarding residual value of the planes depreciating while grounded (there's not that many grounded and being remarketed by Chorus) the downtime on those planes that are not getting lease contracts isn't good and the advised timeline for the remarketing is quite lengthly but the silver lining is airbus and boeing both have slashed production (probably on request by Aer Cap the industry giant) and reduced production of new planes makes the older planes more valuable so the resale of the plane after lease or the remarketing won't be as difficult. I'm gonna assume that the supply chains of boeing and airbus aren't that agile and won't be able to respond immediately in an uptick in demand so leasing companies especially those with inventories (planes on ground) will be able to remarket them/sell them more easily and at a higher value.