Doric Nimrod 3 Discussion Threads

[grahamg8] 12/4/2024 07:59

Sorry got distracted. My point being that we have definite evidence that Emirates are re-leasing planes, just not the DNA ones yet. So it is all down to the negotiations and the agreed deal. I doubt we would get a choice however other than if there was a re-lease. Then we presumably roll into new terms or redeem/sell up. If no deal then DNA end up with the planes, but that doesn't seem likely given Emirates stated keenness to keep them in the air long term.

[grahamg8] 12/4/2024 07:52

The B777 aren't. EDX and EDY are DNA2.

[nat7] 11/4/2024 20:50

Are they DNA3 planes ?

[grahamg8] 11/4/2024 18:32

Or sales for that matter. The quarterly factsheet threw in an interesting extra in that 25 x B777-300ER's had their lease extended. Whereas DNA have so far sold all their lease expired planes to Emirates. A bit longer to wait before we find out. Next planes are A6 EDX and A6 EDY whose leases end on 1/10/24.

[nat7] 11/4/2024 17:18

Normal quarterly update.
Wonder when we may hear any news on lease extensions...

[casholaa] 04/1/2024 18:00

Thank's Graham, that's golden info.

[grahamg8] 04/1/2024 17:55

Great news, and excellent explanation from Andyandy. DNA: A6-EDC lease ended 16/12/22 (most reports say November 2022)RNS to sell 15/7/22. DNA2: A6-EDP lease end 14/10/23 and A6-EDT end 2/12/23 RNS to sell both 9/10/23.
It's not about when the 'return in half life condition' letter gets sent but when the lease is due to expire. I will leave you to find them out for the remaining planes. It doesn't take much effort.

Emirates want these planes. Expect more 'return in half life letters' for DNA3 and a sale agreement for the DNA2 planes should come in Q3 as the next lease expiry is 1/10/24, possibly as a job lot or several announcements.

[casholaa] 04/1/2024 17:49

Thank you. it will hopefully be a special divi x 2 then?

[andyandyoj] 04/1/2024 17:44

The timeframe is set out in the quarterly reports. That aircraft lease expires (I recall) in August 2025. So one would expect to find out which way it will go sometime around May 2025

[nat7] 04/1/2024 17:22

Ok thanks for explaining
Do you know how long after this announcement Emirates have then said they want to buy?
What was the timeframe for DNA1 and 2 do you know

[andyandyoj] 04/1/2024 17:07

No that’s not what happens. This is a clause from the start that about how they redeliver the planes. There are three options. A. Deliver fully ready to fly (expensive), B in half life condition (which is a minimum of $12m but could be a fair bit more (see where it says “in addition to the normal monetary compensation arrangements”. C they buy the aircraft. Given dna 2 progress and Emirates stated wish to acquire at the right price, C is the most likely option. But they need to state in advance if it were to be returned if it would be A or B above. This is exactly what happened with dna1 and the first two planes of dna2 and then Emirates bought them (for between $25m and $35m).

[casholaa] 04/1/2024 16:50

A special divi would be very nice, should they do that.

[casholaa] 04/1/2024 16:48

( post was erroneous) - deleted.

[andyandyoj] 04/1/2024 16:45

No news really. They did the same on dna2 as a formality but then negotiated a different outcome. This was expected

[crumppot] 04/1/2024 16:42

I couldn't understand what the notice meant.

[nat7] 04/1/2024 16:35

good news or bad news ?

[nat7] 11/10/2023 10:23

quarterly report reads well to me - but what do i know

[andyandyoj] 09/10/2023 07:38

Dna 2 aircraft $35m each. Sets a price indicator

[grahamg8] 19/9/2023 17:21

A little bit of buying seems to go a long way. On the face of it DNA2 @ 16% discount and DNA3 @ 47% premium looks odd. But I cast my trusty slide rule over the dividend and residual value with a straight line discount rate of 10% and it all made sense. The market is valuing the planes at around £21m a pop. With $12m cash for returning in half life condition, and a quick check on e bay I should be able to flog a set of engines and landing gear for £9.2m. This just leaves the airframe valued at £2m and the market seems to have got the share prices just about right. Still waiting for news of A6EDP off lease in just four weeks time. Expect some wild swings in the share price to come anytime soon.

[grahamg8] 16/8/2023 07:21

Ah, fly tipping if you can find a spare bit of desert it would work

[crumppot] 15/8/2023 17:50

Graham..they fly away!

[grahamg8] 15/8/2023 17:17

Except the planes might have a negative value. Try taking one down to your local waste disposal site and see what they have to say.

[smidge21] 14/8/2023 21:40

The quarterly reports will likely give you the info you seek

[crumppot] 14/8/2023 16:20

Does anybody have an idea what the planes will be worth when the leases end, compared to what was paid for them?