{
  "docId": "019dd923-622c-750b-8b97-afb07f54b28c",
  "docSlug": "ae6eb7229943",
  "documentTitle": "FTAI Aviation, Ltd. (FTAI)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Muddy Waters Research",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2025-01-15 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.7777778,
  "pageNumber": 10,
  "pageCount": 64,
  "prevPage": 9,
  "nextPage": 11,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 0,
  "notes": "The slide uses a consultant's testimony to frame the company's business model shift as a deceptive financial engineering scheme.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b97-afb07f54b28c/10",
  "deckHref": "/decks/019dd923-622c-750b-8b97-afb07f54b28c",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b97-afb07f54b28c.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b97-afb07f54b28c#slide-10",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Management perceived that if FTAI were considered to be an MRO, it would trade on a multiple of EBITDA.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-25b4-767c-9bec-9180f92e6c74",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.9,
        "x": 0.05,
        "y": 0.25
      },
      "kind": "paragraph",
      "text": "Our consultant explained that FTAI was a traditional leasing platform that was valued on a P/B basis. Management saw an opportunity by changing the narrative to aerospace. Management perceived that if FTAI were considered to be an MRO, it would trade on a multiple of EBITDA.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "530e4954-334a-489e-b2fb-4f4b5e9aa1cd",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.9,
        "x": 0.05,
        "y": 0.68
      },
      "kind": "paragraph",
      "text": "Last, it bought LLP (life limited parts – spare parts) on the market for feedstock.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "cae62fd2-ebbc-4c4c-a563-0bd0e301fcef",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.9,
        "x": 0.05,
        "y": 0.42
      },
      "kind": "paragraph",
      "text": "To do so FTAI first undertook seemingly cosmetic changes by bolting on limited maintenance and repair capabilities and picking up spare parts and feedstock on the market. It entered into a basic MRO contract with Lockheed and marketed it as the Module Factory.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "daa800ea-2e58-4e2d-8433-4c3d7bb06f1e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.9,
        "x": 0.05,
        "y": 0.58
      },
      "kind": "paragraph",
      "text": "FTAI then entered a consignment agreement with AAR and called it the USM business (used serviceable material - 2nd hand parts).",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f918ee73-1fa8-43e1-b224-dcc63fee9bb6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.1,
        "x": 0.05,
        "y": 0.88
      },
      "kind": "source-note",
      "text": "1 Consultant A.",
      "attrs": {
        "numbered": true
      },
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3a590a17-c151-4e61-b45e-986b54e88f4b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.8,
        "x": 0.05,
        "y": 0.05
      },
      "kind": "title",
      "text": "Our Consultant, A Former FTAI Executive, Relays How the MRO Was Born of a Financial Engineering Scheme",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7381f1d0-88b7-4f09-81d1-c67b32e9e102",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "6a5bf966-34ea-4b63-8fbf-ad8ad5683e48",
      "evidence": "The slide explicitly frames the company's business model as a 'financial engineering scheme' based on consultant testimony.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 20,
      "from": 6,
      "beatId": "2897335b-844f-4613-bd0e-c83e0abf1f5d",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Problem",
      "beatSlug": "overcoming-monster-the-monster",
      "evidence": "The deck exposes contradictions in FTAI's financial reporting",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": "Hook",
      "parentBeatSlug": "hook"
    }
  ],
  "loops": [
    {
      "to": 10,
      "from": 6,
      "name": "Aha Moment",
      "slug": "03-aha-moment",
      "bestFor": "Data-heavy sections, research findings, analytical arguments",
      "matchId": "d0916ca9-68eb-43cb-b7af-1d6d663b3965",
      "evidence": "The deck presents evidence that FTAI's growth is driven by whole engine sales",
      "position": 0,
      "objective": "What is driving FTAI's revenue and EBITDA growth?",
      "structure": "The Problem/Question -> What the Data Shows -> The Insight",
      "confidence": 0.7,
      "description": "Establish a tension, present data, then deliver the insight that changes everything"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}