Carriage House’s Will Cleary on $FTAI

Host Andrew Walker speaks with Will Cleary of Carriage House Fund about FTAI Aviation and its rapidly expanding jet engine aftermarket platform. Will explains how FTAI transformed from a traditional aircraft leasing company into a vertically integrated provider of engine maintenance, repair, and module swaps for commercial airlines. The discussion examines the economics of engine maintenance, why FTAI’s model reduces costs and turnaround times for airlines, and how its growing ecosystem of engines and modules creates competitive advantages. They also address the Muddy Waters short report, valuation considerations, and FTAI’s new power initiative converting retired jet engines into turbines for data centers.

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[00:00:00] Andrew introduces guest Will Cleary

[00:03:35] Overview of FTAI business model

[00:04:05] Vertical integration into engine maintenance

[00:05:58] Aviation engine supply shortage context

[00:07:05] Why module swap model works

[00:09:32] Cost savings from engine module swaps

[00:13:58] Network effects in module ecosystem

[00:17:15] Adoption by larger airline operators

[00:18:41] Strategic capital initiative explained

[00:22:35] Risks of off-balance sheet financing

[00:25:51] Muddy Waters short report discussion

[00:30:23] Evaluating short seller claims

[00:32:06] Growth outlook and valuation debate

[00:37:09] Framework for valuing FTAI

[00:41:21] Data center power turbine initiative

[00:43:20] Economics of repurposed jet engines

[00:47:05] Potential index inclusion and visibility

[00:48:17] Management ownership and alignment

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Production and editing by The Podcast Consultant - https://thepodcastconsultant.com/