RE:RE:RE:RE:National Bank Maintain Outperform Rating Ahead of Q4 Results Timing of the Falko acquisition has been good and bad... depends on one's timeline.
Covid has been the worst crises to hit the aviation sector since its inception. The surviving entities will reap the rewards of those that defaulted and disappeared into oblivion. But, not before much pain, thankfully which we are almost through, for those left standing.
Airline travel demand continues to increase and soon will surpass pre-pandemic levels on a daily basis. The strategic moves made by Chorus during the pandemic will eventually be looked upon as milestone achievements. This doesn't happen over night. But, we're getting there.
Position, patience, profit. Never fails.
Mephistopheles3 wrote: Right, Falko was a complete change in their business model and how they finance the acquisition of aircraft. Chorus would borrow tons of debt and just buy the planes and lease out.
With Falko, they were doing funds and getting together investors as well as contributing their own money into it.. which allows them to leverage and they earn management fees on the total fund in addition to performance fees if they earn the investors of the funds good returns. This also means they can acquire airplanes with far less leverage than they did previously.
They've been talking about this specific fund for a while now and the craziness of 2022 delayed things a bit.. but there's probably lots of private equity dry powder out there ready to deploy capital and a Falko fund would be a good use of their money.