{ "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": 16, "pageCount": 64, "prevPage": 15, "nextPage": 17, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses a direct quote from a consultant to support the thesis of accounting manipulation.", "elementsJson": [ "headline_text", "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b97-afb07f54b28c/16", "deckHref": "/decks/019dd923-622c-750b-8b97-afb07f54b28c", "deckJsonHref": "/decks/019dd923-622c-750b-8b97-afb07f54b28c.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b97-afb07f54b28c#slide-16", "components": [ { "bbox": null, "kind": "callout", "text": "And here's the other thing you have to be very cautious about... when they sell an engine, they're not selling an engine. They're selling [three] modules. So the, The Module Factory numbers are much higher than what real [customer demand for the Factory] is.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-25b4-767c-9bed-3e1d76807046", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.3, "x": 0.04, "y": 0.53 }, "kind": "paragraph", "text": "Later in the same discussion:", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "dd5aa1b0-8039-40f0-a461-007d92f6c4fb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.92, "x": 0.04, "y": 0.19 }, "kind": "paragraph", "text": "A former FTAI executive explained that while he worked for the company it sold whole engines but reported such transactions as the sale of three modules:", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ef256d9c-b9c9-4ec5-a538-b352c4a67dbd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.9, "x": 0.06, "y": 0.61 }, "kind": "quote", "text": "MW: \"How do we know that is still happening at the moment?\"\n\nConsultant: \"Well, I'm no longer there. But I could tell you that was the line of thought when I was there...so what I'm suggesting is that that is still happening...there would be more of those modules [that] would be attributed to engine sales than to true module swaps.\"1", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "96c01ba7-ca62-45b6-aa6c-7f4825a69cd7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.88, "x": 0.06, "y": 0.31 }, "kind": "quote", "text": "\"And here's the other thing you have to be very cautious about... when they sell an engine, they're not selling an engine. They're selling [three] modules. So the, The Module Factory numbers are much higher than what real [customer demand for the Factory] is.\" 1", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d3940a51-a2a2-491a-b530-398a4c71b5f6", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"And here's the other thing you have to be very cautious about... when they sell an engine, they're not selling an engine. They're selling [three] modules. So the, The Module Factory numbers are much higher than what real [customer demand for the Factory] is.\" — Consultant A. \"Well, I'm no longer there. But I could tell you that was the line of thought when I was there...so what I'm suggesting is that that is still happening...there would be more of those modules [that] would be attributed to engine sales than to true module swaps.\" — Consultant A.", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-25b4-767c-9bed-42d5f17eb2c9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.92, "x": 0.04, "y": 0.87 }, "kind": "source-note", "text": "1 Consultant A.\nNote: FTAI and most industry experts consider a CFM56 engine to be a three-module engine (Fan, Core, LPT). Consultant A counts the HPT as an additional module, bringing his total to four; we standardized the figure above.", "attrs": { "numbered": true }, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bbbfd21e-8ca1-472f-b56e-164c987b5a99", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.8, "x": 0.04, "y": 0.04 }, "kind": "title", "text": "Counting Whole Engine Sales as Modules Sales Was FTAI’s Modus Operandi, According to a Former Senior Employee", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ef5ce535-c1ef-4fde-a012-0ed07a85aecc", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "7166d51f-911a-44a2-96c1-318ce4abbcc5", "evidence": "The slide presents testimony to expose potential accounting manipulation.", "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": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }