AL - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Air Lease Q4 2020 Earnings Conference Call. At this time all participant lines are in a listen-only mode. [Operator Instructions]. Please be advised that today’s conference is being recorded. [Operator Instructions]. to Liz conference Relations. DePalma, like speaker to now Mary today Head would hand over the your I of Investor you, ma’am. ahead please Thank go

Mary Liz DePalma

fourth President Thanks by is Chief the President; on our earnings Mary and Lease Chief This DePalma, Earlier webcast quarter and and listen-only Plueger, will to webcast and year website. and our joined year-end conference Executive XXXX section our XXXX Liz Justin. the and our www.airleasecorp.com. this results. for Executive in today, mode. time am this At being our and quarter John afternoon A is recorded to copy end be available This and fourth Executive today, release Házy, Officer. all of Greg and Air published call. available of our earnings participants call at Monday, is our I Hello everyone, February Steve Officer replay are Vice this website Investors Corporation's XXXX, Financial Willis, we welcome Chairman; on call XX,

forward-looking certain results the regarding Air risk future or or may This of Please could differ begin, statements statements events. expense in statements revenues, of we future Commission that information XXXX. to Private meaning expense Securities to of within filings that involve as Reform are and description estimates Lease estimates certain our statements your materially refer limitation note cause information please any performance future and including operating uncertainties the any for operations update with represent factors our results results. only that Exchange and this compensation February conference the detailed actual forward-looking XX, other Litigation to assumes light Securities the company's in new includes no future more answers and and to of and to for as These performance, and obligation speak Corporation our affect without today, a projections from income Before expenses, stock-based items. Act. statements call, management's These expectations. risks questions

Investors certain diluted taxes In during adjusted adjusted measures, equity as share using measures the be found can before earnings to taxes, XX-K net President, in over both release Executive utilizing permitted. we conference A call now adjusted as John in for of the and them section per reconciliation is to before are non-GAAP GAAP not recording of the and turn our at income of be issued website found pretax earnings measures and return well and Officer income call these release this description like Chief income addition, to our Plueger. our such measures. and non-GAAP I of we would This corresponding the Unauthorized as our Press can be call today. definition on reasons the financial will www.airleasecorp.com.

John Plueger

the the impacts and with team Good tirelessly of COVID-XX the months everyone working to XX XXXX our industry of Liz. us. ALC forward. of an thank joining The past for the the on, amazingly you move Mary Thanks met aviation personally people millions difficult business for year for and afternoon the ahead world, was pandemic. dealing challenges

our to of platform aviation the commercial thanks business more space strength ongoing our the business While endured, has team's to ever than our no fundamental in the evident stress is today and immune the industry model, before. is efforts

full and first for billion in this our the the total again year billion $X exceeded line assets For the we with surpassed revenues year. XXXX year once $XX in time prior

down XX.X% $XXX of year-over-year. revenues our quarter fourth the were For million

year, $X.X full our of fleet fourth and quarter which investments respectively. as the impacts were are below down Despite our we were impacted $X.XX share lessees year approximately this reduction a well on earnings growth expectations cash have both diluted recognition XX.X% XXXX, at and the planned certain the sales of XX.X% beginning of for addition lease Our for recognized, per the $X.XX earnings our aircraft and basis in of slowdown by revenues in from restructurings. major and rental not in aircraft to and billion revenue activity,

than cash XX.X% from equally saw an rate what in the in agreed QX. To-date the we in slightly remain collections of have up million. utilization the lessees, totaling $XXX to Our quarter, in with accommodations deferrals healthy fourth quarter, at our of approximately lease with fourth XX% strong XX% quarter, third higher with XX% we

of $XX total deferrals however, repaid is million the we've the XX% as is already been $XXX total or to the the today. to That balance of have and those less of million have remaining end date which repaid, million, represents than that already been that available quarter. all at of granted $XXX of net our liquidity Importantly deferrals net fourth X% our stands at say

you expect many interested know to going are I accommodations. what forward incremental of know to relates it as we Now lease

summer airline We the and for from now season holds. endure summer challenging on start industry. a airlines and the expect other to be requests of what deferrals XXXX the based ultimately How further what year season remain trend to will the the

bottom the cross place. winter in travel travel is we has vaccines, virus While by border this and line remain that restrictions are domestic curtailed encouraged even all resurgence the

reason, requests restructurings lease quarter. this restructurings last we lease received have this lease but and impact have to For for some we deferrals, which as may entered include also began The well. quarter and not have additional into only extensions see

continue longevity order customers pandemic broader are shift all potentially by and airlines most seeing likely many the available throughout utilized return and we will the well replacement are reliable trends and as airline largely aircraft; we and accelerate cycle that and the one, towards encouraged including the bode leasing the on three, the await industry that’s buying for our book, for a that continues. travel, versus two, focus have fleet for plan youngest, efficient we recovery air capital grow As as them; our a of an of help operating

fleet sustainability and Driven As I've now placed for been than by placements saying our strong term decisions more driving trends, XX% those at aircraft remain on book delivering through order through ‘XX. quarter-after-quarter, ever. long ‘XX and are our lease needs leases initiatives of XX% environmental

our As book XX opportunities. fourth it XX we $X.X will of relates In to leases XXXX lease terminations, owned billion have additional to capital most expiring leases aircraft, our to only beginning of we see in expect deployment out transactions we of aircraft, last fleet extended. those and also via our acquired young order aircraft mentioned delivered our XXX be the quarter, only of from with and XX including and but may transactions we respect transactions approach I total young opportunities are aircrafts Through each sale-leaseback that buying purchase aircraft, aircraft. placed that put sale-leaseback many sale-leaseback out of which aircraft airline. capital use we right. quarter a transactions the new our point to not order these we to single-aisle our lead an time eye allowed from to us fruition our returns with to of book on horizon, It's this the how in be this for accretive of a at and seek to when are our execute larger nature and this opportunities the goal We quantify disciplined form to Sale-leaseback like airline. to on very different and today that or up business, are our beneficial term. difficult us to our to with do finding may near come keep opportunities the deals best of was

of As you will table our see including aircrafts taking year, XXX in in delivery commitment the XX-K, XX, our XX indicate contracts aircraft. this purchase

fact Airlines earlier just in since both grounding, Canada. first month, Sunwing In of XXX-X aircraft the to took two we this delivery our delivery new

Airbus delivery are delays some on XXX However, Boeing deferrals to or on more delivering issues of reintroduction have our slow tariffs or still caused recent our and limited governmental deliveries XXX delays Boeing, by remaining the AXXX family, which other due aircraft. restrictions, the Europe, manufacturing the delays aircraft travel into by on at

delivery happened experience For these industry compared what schedule as material contracted. reasons believe technically downside, it's to to and continue changes will to our circumstances, during the we actual XXXX, other

call, in this our his Greg and on on we in as every earnings updated you do further keep course, delivery comment will and Of quarter remarks. expectations we'll current our filings

In in addition, in ongoing the and the how with with we environment trade presidential the change administration and the U.S. monitoring especially China U.S., Europe are dialogue closely evolving. is

Europe comments tariffs aircraft Specifically, suspension we level encouraged United importation in high the or States. of and elimination that are would by both on suggest the the of

towards As we program buyers aircraft be aircraft and targeted from seeing this of XXXX, our the do resumption enter significantly half a interest a sales will variety more increased of we year. of the second anticipate which we year, are

aircraft on management our front. good growing that are Additionally, further we on making plan business progress and

look will in marketplace did As opportunities in act we to continue the for XXXX, accordingly. upon we them and

strong grade composite our to to issued of inside cost billion those funds. continue access is X.X%, have successfully investment a XXXX cost which In of of weighted than at unsecured $X.X of senior We notes began. notes $XXX any three the year, market average notes, More billion we $X capital lowest the rate of its markets. represents which accessed of on coupon of we COVID million the mid-January raising unsecured again were pandemic senior ALCs at year issued after a notes. interest In X.X%, of this to-date of

today. the believe of future issuances, billion us ALC long see to place. industry I'm where as we to While weekend day and into in get to meetings, able of partner $X.X the place than of our and every is of once places a new the explore that it would and leasing term we them away is without for community, position as our far the to family proceed help XXXX to airline solid of friends, again opportunistic shape attend are I us to pleased remain maneuver to remainder the worse or end work transport We liquidity people the the business relates industry back as footing customers the who on a want with world XXXX. they a airline be a it say

airline sectors the and for industry. and eagerness services us financial from demand, people travel. what out the of executives are heard us, all confidence outlook To fundamental and focused long keep once of give traffic You've pent-up the to hospitality the air us get of and remain in drivers speak term again these airline,

the people all looking to with to Steve. integral Házy And turn so me and for has We connectivity to the forward of movement become goods towards are commentary. the working an industry that, recovery let over of which additional call and worldwide. of Steve

Steve Házy

John. much Thanks very

dose course proven As the balance and and grade of pandemic business investment began I hospitalizations differentiated in tested the the in fall the year vaccine, than then what per first and $X to fewer OEMs. has the lead XXXX, us Lease I an Corporation as our airline business the receiving to growth sheet further distribution to and one in new once and more was by The the is for least again procedures that greater years, know, that stay and Despite early have not right that that the and travel This of throughout helping surging increased XX confidence this United mostly hope be getting reduce said, issues we has resurgence people ultimately new platform ALC fewer XX have strategy our $X left travel. those vaccination we the importantly our you between join own have and and deliveries, States officially countries aircraft last following John business at billion delayed With to the spring, of with virus is and agile liquidity while our think masks. since in virus month, the year, last your was the vaccine have XXXX That for therefore resilient. many greater for it the to months aircraft now management More cases take the at our consumer and and vaccine. vaccine, curtailed individual world impact very world deliveries effort. seeing will the the began virus. on around of did and and administering important working we do airplanes, in was wearing worldwide preparing than COVID-XX new are there our In substantial manage were continued forget begun production of we including at progress pre-flight when early by best and were endured no billion Air more of the still of testing positive team to safe, to obviously with and manufacturers, in XXXX pandemic. beyond. restrictions XXXX,

there restrictions we and there restriction, travel saw if limited rates if for the been and we forward. more drivers rise lessors I’ve ultimately time This about in travel. discretionary travel, industry new effort infection regions vaccination plans, public there receive business the of traveling is rapid if we the ability face open of in for cases much wide-body a and people likely to last recovery. over is that across travel removed, come last to us would aircraft, that travel over most where very demand people For period less shows were passenger of business instance, and are borders, travel see the remain that between is The perhaps the of freely will that were most as the dynamics manufacturers are and airline, a Where with travel. progressively summer, have only then not to few agree of over interactions back equally and move believe questions colleagues to no time continents. many evolution I restrictions states safe between believes ways people going important working, I and face. my travel, replacement months will travel as saw

they is That other Microsoft connectivity nor to interaction that the decades, Over two the will not business based in-person travel. phases on to be travel of features purpose the said, and rollout growth Skype, and the expect travel, region. for past it not-unreasonable in replace Teams the air the has of country Zoom, by of FaceTime, air have return hindered travel, enabled destination and virtual likely the seemed

and travel role, XXXX As that business sales an securing the XX% would individual not the for business and which the in It example, done business roles, at existing this was of sectors in a the supporting surprising customers. first returns. study sector of to market showed economic to to late are impact client region return business or velocity country me if composition travel. travel Similarly, the the be

industrial as were study that quickly prior and and travel this rebound For the indicated in sectors COVID-XX early such holds to the travel machinery more than during instance, China equipment construction, within and and region If States. business quickly to a recovery, returned countries country based more then to certain the places Asia likely business economic in return to broader industrial than other travel for composition, true like Pacific on throughout Europe United others.

internationally, As a operating Asia reminder, with XX% aircraft Europe. markets our largest of and our two being are

for them aircraft. to Asia this and haul airline quite revenues of gauging quickly travel greatly our cargo operations international operations. we're our to adapt long it this capacity lower allowing will utilized and to than AXXX’s, regard, particularly troubled customers, for yields experience the as to wide-body many our airlines today. sustain ALC continuous for alone. belly been relates all industry aircrafts the with cargo, by transport such business most segment, model and know the particularly Airlines to quickly airline aircraft in adapted readapted cargo had boosted it we cargo and amount reduce well factors, able with their From not increase The demand that based of load As configuration. of XXX’s world and in and XXX-XXXER’s in to did in need for within their and we or the of XXXX on passenger that the wide-body aircraft, wide-bodies more what size airline airlines the modern have cargo conversations customers, business be The had down

Boeing may AXXX fly AXXX, Airbus a now Airbus LR. XX, an even they XXX, an an AXXX-XXX, flying of or instead AXXXneo So

largest networks If operations. you be from the year compare of per to will the see in in may departure number from intercontinental a the average intercontinental now, XXXX what we likely a of one decline seats differences

where a again. passenger most we may see wide-body service the reasons, largest, shift, see older, never For these landscape aircraft, of

Additionally, both production wide-body curtailed rates. and Airbus have Boeing substantially

will announced demand not eventual they will Boeing the international travel, trader. cargo that plus lead In global producing These wide-body factors, and XXX-X improved recovery currently space. in the equation aircraft or fact, has of an Airbus supply discontinue wide-body is the new any to Intercontinental

travel ground Had have during stronger passenger of contingency we foreseeable many ‘when all The and will grounded a to crisis. believe unprecedented the industry. themselves, help dynamics in to tell by airlines expect to will the and of market?’ were for asked finance year in Most Airbus sheet during hit taken drop factors can delays still in amounts many the credit leasing to I of balance that external Despite of many being have Never they sudden we XX% different role. pressure a and the on the years see transportation, no massive the the have stronger would of of all in the will crisis the be question, plans Finally, as coming traffic. contingency deliveries been the how turn of air lessors, manufactures, large margin had airline I fact a leased. that two world one, the the aircraft revenue plans the most no lessors the aircraft taking in halt. a for manufacturers airlines lessors ratings not industry service with XX% After will fleet But XX% support companies leasing pandemic, place deck, the you XXXX days, airlines of It changed change the for increase experiencing have and to an between side interesting the the companies to evolved. seen the in process of due be nearly XX% reduction with than by before of airline quantities dynamic industry thirds an future. today. the certainly on for to a government have it airline airlines, airlines drop commercial

and So deliveries Corporation finance to said, going of and forward remain we yet we will at point more in rise as optimistic, near industry days are provide to financial need XX% we will them to Greg to that And now see certainly on occasion. court. or through the they going We the that long-term, to future. there to expect lessors airline aircraft and better a turn more by the detail aircraft we succeed over stand call get vigilance is ready that, John all ahead, new with providing Lease the I results. will aircraft where Air our

Greg Willis

the Thank everyone. In million total generated afternoon $XXX activities. the in Total This other revenues ALC million decreased XXXX, you, and of to million, due revenues Steve, and was primarily aircraft $XXX rental following fourth XX.X% compared trading of sales approximately factors. to $X including the of the prior decline as fourth approximately by year. and good quarter revenues quarter of

were revenues, lease the in to from to approximately stronger being similar to $XX assured. due in unable quarter, First, of last $XX down collections expected. receivables than was third collections million rental quarter, modestly we lessees record these from This reasonably not were million as

cash to cash restructuring be restructuring. will note to last do period when lessees us that [inaudible]. We they lessees during all the emerge collectability these and we rental majority to thus cash revenue. a as basis deem hopeful to these I improve. that remain been keep we of you our receivables of the will the receiving package, lessee that our the to no and numbers payments as we form desire As exceed recognizing only see from have revert that payments longer in of we expressed will quarter, lease them our are security have remember And from that assured received from and want continue reasonably can from

meaningful we very despite passenger going this a the predict health. difficult collections see more is how of Although in trend from financial cash improvement our positive and airline traffic will forward lessees, basis it trend until to

continued to into with customers. have we Second, airline our agreements enter restructuring

to provide rental airline reduction, As deferral is primary accommodation discussed granted lessees, repaid that we temporary months. whereby the within of typically in is the a which past, our a form XX the agreement, is

remuneration not our in for entered agreements we was have a However, of rate we as approximately circumstances our in whereby restructuring lease these a to we an we typically to attached million. the lease fourth typically That said, lease will select and by into as agreement, are lease that these deferrals, extensions lease revenue quarter and of other forms one way Similar exchange result estimate extension. rental agreement for impacted $XX offset. reduce restructuring negatively

cash represent remained rate impacts quarter that should accounting that basis total and collection our fourth lease and than it between for noted the restructurings, strong of less utilization lease at rate and lease Although X% be and of XXXX their respectively. revenues, XX.X% XX% very

equity as highlighted sold in no quarter which $XX challenging generating margins term we Despite and to generate our compared as of III the were returns operating quarter, lease peer aircraft Lastly, portfolio are and aircraft with XX fourth we transactions. environment, continue to age previously relatively fourth healthy related average remaining XXXX on remaining of gains, Thunderbolt the constant. a sold metrics primarily where in we to key million leading

debt in cost of in our in offset expense of driven Turning an increase rise growth to a funds. year-over-year, and by composite balances, due by to the our expenses, fleet primarily interest our position, partially our increased the average decline liquidity

I back Coming same is our the basis, deferred we $XXX including liquidity million representing below repayments, revenues. first accommodations period incurred agreements, million product our well a our SG&A the Our quarter growth accommodations very position, past, reiterate deferral The and in $XX while Depreciation composite year, liquidity million company's fourth in want XX% approximately net $XX X.X% our of of quarters. lower granted highest related to fourth a quarter. net incremental since in last remain relative the XXXX. the granted end had low during $X.X X.X% to today. last rate to of our our million deferrals, balance transactional relative last X.X% during $XX remains history manageable to of of call our and from decrease roughly the the fleet, the track the which half in to two is of operating believe to decreased is and the expenses relative On at we at billion to of and the down that continues as total XXXX.

I’ve what past, well taking balance delivery billion shared designed As delivered in what the we our originally and $X aircraft in annually, support is to anticipate in sheet investment which XXXX above was we of in XXXX.

aircraft have Turning expect deliver XXXX, as XX expectations investment XXXX. low increase take the aircraft investment. delivery billion, representing modest given to a we our from delays for though approximately as billion we aircraft, only commitments representing it of But to could aircrafts, to be $X continued $X.X currently in XX

$XXX anticipating of first quarter. in today we of are deliveries million approximately these As the

long earlier, for highlighted are the and aircraft executing profitable expecting sense on term. order or John investment over As we ALC our actually that opportunities are makes outside book

our to as opportunistic continue these thoughts to I capital more transactions to go seek that a want forward. fleet to out minutes note, of around few the like allocation. reiterate will our we We support growth spend On

to have best our we use framework for the capital. regarding well-balanced of We which decisions analyze continue a

number aircraft one. can founding so so efficient and young has inception aircraft modern grow comprised Lease well maintain aircraft remains leasing we priority this that create invested fuel strong since shareholder our grow metrics. pleased that been sustainable are This that today. to most we and that have while we we maintaining fleet long fit the since way over to $XX Our our of do continue term and strategy believe business, to fundamentally billion Air We priority most a profitably value in fleet in-demand,

dividend $XXX million, as of policy shares we We have our of buyback share our any maintained repurchased authorization although not have and today.

investors. to on additional to continue opportunities between OEMs evaluate with returning the placing the sale barking additional orders and and balance excess leaseback We opportunities of capital

look As deployment long always, opportunities options. capital for the evaluating our to to returns all we shareholders by of generate term best

has on financing, edge like which competition. would significant a to briefly Lastly, our provided I touch over us

We ratio We with to total in form are to on billion of as and at primary to have sheet, we due primarily times with liquidity an $XX.X $X.X utilizing dedicated position debt of year-end. grade unsecured approximately over elevated have investment assets maintaining unnumbered X.X cash. equity year the the the debt past GAAP a financing year, maintained balance a our billion basis, ended in

sheet debt-to-equity in cash to we our $XXX of record ratio X.X balance net in In approximately maintain Our and low continue strong senior times. unsecured January position. coupon million was X.XX%. on mature of we that a our liquidity XXXX XXXX issued notes In

for $XXX with of the the the In levels credit size elevated increased our aviation And our Liz the maintaining line We bringing we unsecured addition, by market session. billion. of until recovers. revolver million, anticipate that, $X.X I'll question-and-answer revolving broader of back Mary at liquidity turn call over to

Mary Liz DePalma

Greg. management's you, This remarks. Thank concludes

participant question turn I each line one open their now the time and Q&A. operator ask one the to we call the follow-up. over for to session, to question-and-answer would the the limit like up the For to

Operator

going Orenbuch Instructions] to with [Operator And come you. Thank our question is Crédit Suisse. from first Moshe

now Your open. line is

Moshe Orenbuch

return one made to know you role. stronger of you I lessors kind of the Great, wanted about that the taking comments thanks. And a to Steve, on

the as said and clearly going manifest you know they help and half are there Lease things Air you that's You could shareholders? more financing know due-deliveries. in know ways than you that to of other itself which Are its

Steve Házy

an and deliveries X number debt have we'd we significant Boeing ‘XX. ‘XX, number had to in deliveries actually the later ‘XX, to have would Because our taken those following: have progress the ‘XX, reduce reduce Lease defer that an airline the saying ‘XX, payments our Air airline, we into on, have of and of that years, all and a to taken like Airbus earlier positions the and as airline approached in OEMs ‘We Yeah, airline, we’d like have CapEx in ‘XX, of airlines ‘XX airline have us the that the as we directly. fill

a later on.’ composition an take lease from we’d direct So dramatic rather those the order that orders it’s and operating the pay. Air Lease, the lower shift the airline off-balance lease in sheet, where in our has creates aircrafts. a funds we cost plans aircrafts also what It the airline can recognizes than to the airline ratio all Now are and on the significantly that lease situation of

effect, have we profit it these airlines over direct can aircrafts. finance to going in pay on the forward, have they strong point savings their view leases very from a still buy would So is what though a of even to dramatic margin

Particularly, of basket, our shift of the in appetite right direct lot airlines So the orders kind our We're terms order of but filling sale and of this both using and sort gaps in of lessors, now we're is our with XXXX XXXX. is focus through to back come. Lease to backfill from less, slots, the on Air requests these more for in spring which seismic a shift the their seeing leases. XXXX towards lease years and opportunities, getting

Moshe Orenbuch

Thank And amount you was the you. Greg, in the effect, deferrals of release essentially that in noted flattish. the kind

tracks airlines do the as mentioned summer looking requests. we are XXXX, you kind the there are at How you think you As look you know that travel into season, that themselves balance through additional XXXX? of of the out obviously go and some

Greg Willis

– excuse to about at basis, comments through came bring the QX the on are to $XXX where a I million additional think of million. clarify, the January to $XXX or roughly me, net of in first of part end us we request on

like forward going how depends I recovery as to it goes, on think what the right. it looks really

of also take airlines As going you're and and more you with restrictions will place, to more depend with I think see happens bookings the border what on vaccine. rollout the confidence. It see

cash on good – quarter, the more improvement as saw seem I basis last and too were to really payers I it's to So they almost they that lead airlines you wave soon were to too from we they say. in know more paying than the it's out, like plans see ‘all-clear’ that them it's themselves. but we really until know the really because soon airlines could sign, fall other you and category to know improvement the won't have

Moshe Orenbuch

you. Thank

Operator

And Cowen. And question from Becker from next you. our thank Helane comes

now Your line open. is

Helane Becker

time. Thank very Hi very Thanks much operator. everybody! for much you the

you other when that in airlines beyond their talked to their backfill, airlines about does one own that orders the event that that clarify to orders Moshe, XXXX? that giving just and your using So – imply your deferrals to go point, deferring answer

John Plueger

was financial I deferrals, talking not No, delivery deferrals. about

Helane Becker

Okay, helpful, you. thank that's

Sorry confusion. for my

John Plueger

‘XX, Yeah, come Airbus book. as I pay aircraft and back the to rate determine. talking they order use want aircraft airlines we that and purchase ‘XX looking their about ‘XX, own from the leased that our will What is market our was are from in to defer Boeing to orders direct

Helane Becker

thank just Gotcha, an other okay, you. kind of then that And sense, off-beat question, my one. makes

[inaudible] any thinking aircrafts, of talking some announced its it's last with United Aviation, aimed decade? seven at know of or lot You and the foreign years in before investment I've heard Archer manufacturers the you week half got type like are to away, recently the or know the you order the a and and point delivery of those in be placing about but about for second orders four maybe week I for to – know in

John Plueger

answer me let me let that Helane. Helane,

manufacturers. etc., know that process the on future. recently the the XXX-X’s long more course is in butter hydrogen So as quite or talking a horizon. technology alternate a the focused as the the electric sooner much the use used generation – the has aircraft, mainline in at bio on engines. AXXXneo, fuel to or electric Boeing us the term sustainable X’s obvious on But future goals of AXXX about of a hybrid technology probably on hand look, wide-bodies announced of seems and with seemed we – are a the and hydrogen use single fuels that be technology. always could other aisles, in bread greater emphasis probably the probably more in to and be or particular distant current fuels Airbus well and quite is you It

your say your question question orders, talked specifically about You come how out with you're and would have So orders what? for we to specific what of be the offering. program

I'd and the the globally thing point and technologies that there. how common technologies like but these presumably operating all or supported So out main in conceptual and to orders, to no, not the technology, answer to field the be in airlines different is definitely going being power with propulsive plants all that's all used discussions are one is these discussions

and lot are to the things know how you addressed think it's what talk five that's years. leap the So, the they airline greater are to that's speculate intellectually about possible, it next in one industry these a to one not academically been is I degree thing XX is, but in to a thing determine operations supportable realistically fleet over

Helane Becker

you. Got

second… The

John Plueger

mean the in will mobility, urban Helane, the bounds. Rotocrafter leaps we about and your think for planes, smaller technology grow question I planes smaller the

as economical those investor, lives hard the remain So very be, to better active will lessor, an and project as of would for an they aircraft technologies assets useful come us along. new what once it's

financial carefully, that are a amounts small, but thousands hybrids thousands dent So these of in mobility to we’d to unit urban our electric make literally and involved performance. dollar we're that even also watch buy to and so going have the very per other

Helane Becker

very Okay, Thank gentlemen. much helpful. that's very you all

John Plueger

very You're welcome. Thanks.

Operator

question thank from Bank And you. next Epstein comes our Ron And of America.

open. Your line is now

Ron Epstein

Could Yes, choose. hey your I K afternoon the of gives you little noticed delivery that you might plus of about cancel upwards in some XXX’s. Good slots option if a and to talking were XX the you wait months XXX talk guys. be so about man. that you your

if where So could guys some what on about you and are color you do give we thinking us there. stand XXX’s

John Plueger

fix that by authorities the greater know aviation greater agreeable is risen that seemed Well, yet due going going to see a and that and transpired it's mushroomed first It findings just the of and as inspection XXX’s Ron, all of have definitive all on issues difficult have there's the that the to on is clear non-conformity production to have levels you today. a to the this no But yet that imagined. aircrafts to – don't threat work forward, us than a propose I the In issues, course safety. do has basis. on words that been think to other on is have have any of I we're lot think are of dragging ‘Use-as-is’ longer determine and there engineering of etc., the goal tolerances, machining will

delivered In fact, end the XXX October. a to I don't of anyone since think Boeing has

have that and month Having a XX are several on have we delivery. already aircrafts XX past coming up aircrafts, some number some the of are past point and So their the decision know waiting have, yes, customers months. that said if same to cancellation we XX as is largely our that, right if give that and than driven we you greater it's months that customer them of by

will to do. with customers So MAX, we say, based we're want working we've those upon customers done to those suffice impacted with the as take action what it and

we get an hope could months and I definitively it’s We fuel know start. mean would story. was on an to don't things still I waiting from we're certainly look, for end and don't Boeing So that months. knew for and also will the say on track quickly. say wish it very there things unfolding Company. when to I more definition just months just things and We back that

Ron Epstein

post and maybe you size Got to other it, the shifting customers And going see how know that have, from pandemic, you the market it. got that hearing spectrum, for AXXX’s adjustment end to platform the aircraft to you then more the are that? that for the given guys What you expect of forward? does demand look would on

John Plueger

AXXX oldest at seeing are Ron. looking question their Yes, We're AXXX’s. replacing that operators no

of older EXXX. airlines EXXX looking might an XXX-XXX’s; out would who We’re at some or convert that airlines have

So we interest XXX. in are in seeing XX last in months the the a pick-up

will looking market in XXX it’s timing. airlines instead of we XXX deliveries and are those And signed course to of due are starts it are continents feel seeing activity airline year be already multiple be modestly, aircraft agreement the seat and then out we've not and and seat of in appropriate aircraft yes, announced that a a we very operating latter until next Our going when the first a at across lot part lot but segments. certain of

they good seen and acquired their is of MD-XX’s oldest, and know know AXXX’s Air Delta replace XX you example Northwest aircrafts XXX’s. some of through replacing AXXX’s. be think the with that, oldest merger some you where will with I a MD-XX’s from of AXXX’s We've and their their France their

Montreal to start So only number look, maybe four limited. air traffics slow is can in of it month. produce because five It’s got the off they or a a aircrafts like

available But a the really we XXXX, to I more terms a think and Delta we're seating the definitely production which airlines deliveries have is our it's mobile so want. right slots spot picking I got what going of market. the But going, majority replacement in when carriers are like and hit up, U.S. we momentum market in XXXX JetBlue. of than growth is vast and the they've Now think and

of have every planes Ron we years literally to fact, replacing campaign that hitting In XX are XX is age.

Ron Epstein

you. Thank Great!

John Plueger

You’re welcome.

Operator

O'Brien our next from from Catherine you. Thank And Sachs. comes question Goldman

Your open. is now line

Katie Buda

is O’Brian. This Hi! Katie Buda Catherine for on

lease your placing from on as inverse holding as a in order you holding note, from direct financings? or book, market back incremental aircraft at on aircraft of terms rate terms [ph] aircraft of you In environment lease back the for levels. on placing the sale operating usually additional all related on And leases pre-quoted would, those far out diverged have are given current terms

John Plueger

and for all we part changed philosophy is then answer part. on first the really try answer me let at replacements Well, haven't of I’ll second to aircraft. The and go the our

for on available own place one each more our to the inventory have in stands some desire airplanes you alongside its today. forward some will, evaluate we the and store than ability know keep if we keep have You aircrafts to to campaigns,

we on take we really merits So much suffice to to change has we not. hold its and been own take each say back each or so-call those, campaign of no how there

of You question? to remind me second know and There's determiner are commercial of rates but that just all. really lease they've you terms big change at certainly market always the And can no your actually part again, a been been. that,

Katie Buda

on-sale diverged leases all direct financings? turns lease Have operating on from those at

John Plueger

the Diverge, well what length of leases? you know the terms,

Katie Buda

Yes.

John Plueger

airlines book, from deliveries. order Well, I to know would own you taking their towards some face aircraft differing seeing in Steve's comments earlier, say that movement our are of a we the

sale probably And not only so you there the I of the now to to in based operating know specific marketplace. our are we on book still is commercial leaseback right has stay, terms in that say order when think of say upon compared getting the as think you lease premium supply/demand, safe I but a a terms airlines, divergence, it's a placing the of the needs platform terms

grown said lessors in are so leasebacks, with the stronger having that, much having for Although a position. the demand sale

and lease improved, if puts have longer lessors to forth. rate have So are price willing no any improved, factors an just almost rates that airline anything, those lease pay

say our know a operating I a would our on broadly So that enjoy directly aircraft. we of portfolio on you premium ordered bit still lease

Katie Buda

with Lease years Understood, I And current then your over just next that's what order do changes year of XXXX potentially delays due OEM or and to still of from future closer customer? any one the comfortable to follow-up. and be couple flexibility kind you in request for Air its verse deferrals adjust and the likely this Are book have helpful. more size had you of will for

Steve Házy

Well, situation. you dynamic it's know a

not company, in and concrete are when we order to order having Our we ourselves XXXX, a flexible book. the books started pride fixed since

a have and as how dollar that generally of so amount And is plan choices a look years, going deliveries to certain forward. within CapEx we of dollar at it the in given amount composition we of the we lot

of long they leeway quantities that aircraft are we to XX we us what the notice, anywhere of subtypes months from advance in and give the As a order. as OEMs XX lot give

the have So and we the the customer time, our adjust airline have then the order that composition to for and fleet delivery adaptation see two same XXXX to in would AXXX satisfy make meet if we and for an LR’s, airline we that our example, demands. rather flexibility at AXXXneo

Katie Buda

Got it, thank you.

Steve Házy

You're welcome.

Operator

Thank comes from next DeVries Barclays. question you. And our Mark from

open. now is line Your

Mark DeVries

retirements Yeah, and early around kind are in the of an for equilibrium seeing thanks. broader made the you're to for on given increasing the we specific production dynamics and get appreciated was your but of new Steve, with hoping industry imbalance where what wide-bodies, you supply/demand seats. comments global avian finding like and demand thoughts the or delays kind I the

Steve Házy

XXX see the say many in of decrease is passenger the to reason months, AXXX-XXX, AXXX-XXX. wide-body last, Yeah, back into if the aircraft, for aircrafts landscape of primary of the XX available a of dramatic all the and retirement which you literally going that you a the seats, The are AXXX’s, come of number the total elimination airplanes retirement not look engine of seats at airlines the like a grounding service. lot passenger and are total offering in or XXX% four then the

the aggregate the that if AXXX wide-body on look is probably come XX% have you the scale XXX, [ph], everything whole out. seats of more seats that’s of wide-body So, if number than a we out at from latitude phenomenal, wide-body the of sector global total upwards come

like a to companies cargo Secondly, on there's going wave to begin convert China, converted new in see going that's the it's now being of program Prime freighter, AXXX’s, ER’s conversion, Amazon whether XXX, also of oldest there's a it’s and Air cargo. will on in XXX a you converting Europe. lot for gain momentum are that in AXXX’s the XXX-XXX

then aircraft active and achieve off into and of conversion It combination an multiple the equilibrium roles freighter going are aircraft, lively out role of a we to. you them have wide-body the largest helping have of all to that referred things also puts program cargo types. them passenger those we retirement and this and takes So

the wide-body is the has marketplace level and really wide-body working point hope of in that we aisle, retirements of will be and of where pace the ‘XX by normalcy outstripped things between back and supply that the So in single sector efficiently I some that we’ll find middle the to reach very comforting actually the demand, to market.

Mark DeVries

follow-up. And then just helpful. Okay, that's one

this Just this can in you’ve this is of OEMs highlight any community other on you leases sale favorable on call, prices your lease of of the know having you that on it's because for leverage impact kind going know the that negotiating the you forward, increasing increased just business expectations or you of the terms returns whether more negotiate? with kind the leasing backs or realize given importance

John Plueger

Mark question I is think the broad answer to time. your yes, over

XXXX, that serve currently another’s larger a view talking industries problems we returned a that and – – by XX% and to companies mentioned with deliveries we other airline of lessors and our larger Airbus larger that Avenue. percentage forward, aircraft lessors difficulties remarks were taking been leasing taking industry all all the impacted space, in with and – yes, were a the to about. did great the and in larger all But prepared other percentage the going the that we've Now and of

a the the they years our the no, taking because once has recovery, to know for that continuing next does we we did profound trend that to hopefully start that pandemic two definitely and reasons, going beyond however the margins over long years unfolds impact forward, improving large get into one, market start over many, term come. up believe such you So for for end an shares three well – as that lessors many see or and those

well. So I think it bodes

we well I'm year know I I it does get term. back definitely but the next bode an an long margins, think improvement or etc., to but to pre-COVID don't for forecasting, if levels improvement two. You know over not overall

Mark DeVries

Okay.

Greg Willis

the that's expense And because interest expense are the to the us, If the in is interest factor other costs our to cost factor largest that structure. the big cost two influence that will depreciation low, capital. relatively rates components future remain and obviously a of

have we we I steady have our as rate any major, appetite demand, don't airlines recovery planes, interest in the robust long to lease factors in as changes see as as the rate So a catastrophic a long from rising environment.

Mark DeVries

you. Makes thank sense,

Greg Willis

welcome. You’re

Operator

Stephens. question from next thank comes Vincent And from And our Caintic you.

Your now open. line is

Vincent Caintic

afternoon. good for Thanks my thanks, question. Okay, taking

what And pipeline? you could to if wondering greater the and pretty just lease for of the wondering were that if maybe sales economics, appetite the It attractive the could placements that interesting get of just wondering in detail. just you sale lease able as the maybe to recently, you talk about that. then about appetite if I on new get was deal be for question aircraft that about I seems was pipeline, was I’m talk did First that. in you more more back at part also talk you’d backs then

Steve Házy

want to you that? take John,

John Plueger

my just again, very by certainly Yeah, you sale whereby Vincent, looking – I as a themselves we're doing we as you very transaction we open under a much quite we're leaseback technically all we indicated with we’ve that have examples in of for aircraft pointed in XXXX, well that believe speaking will our probably We talked protracted demonstrated order tariffs, continue know in contract, know basis so that XXXX, it's if know to manufacturing simultaneous you about, those co-located especially the as time out, XXXX. may do that, so book. is the opportunities we're remarks the present get disciplined delays XXX it XXXX reasons in from deliveries already in in materialize, the to yes, for you whether towards to that more not or bias can X’s you etc. will or that our know the you we XXX-X’s placement European much But

us likelihood rush to opportunities, contractually be emphasize, So, seen and you floodgates will a CapEx that sale proportional the would of we're much these there, will the but very approach again, know very disciplined to know knowing for be it's haven't what's that not just looking you you leasebacks. our I

You’ve XXXX. seen us in a that basis specific will very continue for and targeted absolutely

Vincent Caintic

sounds aviation of question – maybe sounds and great, calm think broad voice – you. positive. you're Okay, but in the my a just The thank it a bit you've is and more it I read it's next spending industry been that question, from you're always a like

aviation so You sounds and net maybe wondering looking of the think if the low and in sort I’m global for slow of terms what out kind and deferrals there’s recovery cycle? of and here, it opportunities if know that you. Thank next this you we’re past you cycle, is terms aviation year, down the more the are are like even watching for in of just of

Steve Házy

airlines in to given in XXX we're time. more Well, talking than any point

different to like in to words, quarantines, that rules going We their multiple booking is watching if we're are cancel the and makes countries are flight, and bookings; government family key look better. or it that on prior a cancellation. in on the their starting go little In to a be advance to that regulations they overnight. are literally a testing looks changing these going to fly watching on and real they ratios June other to But departure restrictions are seem fly to Europe, the

across sense So ways comments, won't of progressive in to expect I adapt of light just do the calm, have and political customers think and greater But greater mean, think the to to our as ones talking we watch public a over We feel I we're to world, hope – the of and who normalcy. airline my it I from have will be to all recovery, a our a In continents, gather the but can all business delivery so travel meaningful tunnel. sense that are uniform at end going that the travelers by recovery you be measurable. our really environment. leaders go post-vaccine third still I and fourth seeing we quarter

the belt meantime keep in fastened. seat So we our

John Plueger

know would on are Yeah, Vincent season know. I you add the really eyes summer you think focused I most

of a benchmark, lines, a For a the when generated. real that's real cash a lot – it's northern hemisphere time it's typically is

testing sense things therefore are And there, think how Steve depend right XXXX bit, about will out largely all breath holding in summer the airport, know we're still been indicating jet restrictions all to our things over but the summer know at vaccine you the its and I to think passports actually and will broadest right way, instantaneous reading lot tests. season under how development, unfolds. These you such, this the season. So a and things negative be the are things the really a of but geared upon like go still is I at you've

Vincent Caintic

Great! thank helpful, you. Very

Operator

next comes our question you. from And Baker Jamie Thank JPMorgan. from

open. Your now is line

Jamie Baker

here, so me. new can everybody. you afternoon headset good A I hear Hey, hope

John Plueger

can we hear you. Yeah,

Steve Házy

James! Hi

Jamie Baker

Great, great.

XXX the of was better event going course know XX%, of the think year a are up again. the term, you to IR duopoly noted I be at upset level Steve, single for that of and you know the So Dublin inclusive in to of rumors this lack market Airbus middle the a you that market, percolating getting

way, ask should it did of importantly, or So middle to it to what let as Air effort. Boeing me do this relates the what do Boeing market more the want Lease resurrecting

Steve Házy

segments; with make one invest comes two of Boeing is, the has market, think tough very ultimate and void it R&D, to down second, segment XXX; of decisions which look, do very, the particularly Airbus fills the plus some where and the and that the I between think the then about And LR that XXX replacement some in XXX to they I the today Airbus XLR Well of a category, void. seat Boeing exists AXXX XXX. that the product and does the in now recognize and both that that have

across you that sheet Now, know than better been seriously the balance damaged. airline’s globe the have us

government form much loans more CapEx some government other taken until guaranteed that the outlook conservative a or for can loan years So have think I airlines do XX non-debt posture ago, that of ball, or these but of some today say they that? airlines middle equity market to would have would they XX that signed a are have repay security. they've XXX’s they up a three or convert debt crystal I or out don't into in

balance XXXX are know they than airlines So different as were sheet you today shape I think the ’XX. in much and a

most the then can in definitive not large invest entering as it two today an sure for OEM So need to aircraft, And said, probably make II. I XXX just upon multi-billion the was. when commitment that you sized that that both right because a the can sizes, we're categories. a that know There's yet, embark size. that decision dollar mid-market invest years company something XXX, the is Boeing XXX there's much and replacement than long to ability expecting scale, in Boeing or World are ‘XX secondly, make to term the or commitment and a we And as War since the wants in there's different how ’XX. make future but there’s airlines I'm difficult is point at then that

John Plueger

Jamie, let add. me just

fix any a gone the progress, house Boeing has Boeing impacting You give time a new their we make as Air what the do? need does – specific rest of order. us, We get tremendously house of answer. a them to its the get delays The Lease want we well to process. is delivery, want right, certainly to have XXX to house specifically its continue as in you are Boeing asked, to very Let me through about truth aircraft. in remainder they the of manufacturing while difficult lot and blunt made interest the have talking first before to

Jamie Baker

I John, that follow-up. a appreciate and Understood.

them recommit operator. you at Lease in pretty know being Looking Boeing played know an all role it the significant Alaska seems Air deal, you helping a that to

like can was feels problem, I any know partnership think in Mark and were you simple and aircraft stories most little you a about an but and remarks. Alaska business, is know or it any think know a you investors leasing much more know the as of commoditized you on share you just transactions? this Steve I deal touched that wondering, other particular similar know you war that his earlier prepared bit example of

John Plueger

Air DNA of Well DNA just fleet is Lease planning. Air financing look, planes. The of Lease not is the

those a one; Alaska of very with and solution the as Alaska passenger new understanding agreed than back, lease that a a Lease a and this of Air that think them in to you and that XXX-X’s, two, really Lease you on are than Boeing say capacity order. they to the condition work next at airline some will another for with AXXX tough had there case the as with comfortable for were configurations America, AXXX Virgin they on be would XX And the least the intimate decade, the Alaska, between a replacing. which higher I come well, and the the And the Virgin know that years. the configurations. two-class partnership acquired it the were in deals Most are AXXX even is is But perhaps all inherited in fleet know I AXXX’s lease different AXXX America, that Alaska fleet standard three-way was difference. they outright, makes we Air have negotiations think aircrafts acquire would process, from to which greater it's completely multi-year they of they ones leased number and and that Alaska of number owned to number So

it a was really effort. So strong

all any know into You it get Boeing not war and together. MAX to months delayed than want had of pandemic us we had that None the don't had that Alaska not during an to took transaction, Jamie put for orders was when of but period already easy delivered. some FAA. were I stop and the more recertified we had stories, And the XX it would idea production by be MAX the the MAX. that and

put that but enough for we in that for Lease, customers perhaps Air that's dealing of AXXX’s Lease Company. yet will Alaska new a Alaska persevere win-win world So through Air and with complex a Airbus. unknowns, the redeploy of in we’re Boeing bring and we had together, a and some even deal would confidence all those And

there’s So element some ultimately to reconfiguring case interesting transaction airline’s study to going of an it's a fleet the that quite book is that written, when be composition.

Jamie Baker

take care. appreciate really That's Mark I your thoughts and great. Thanks gentlemen, topics. on these

John Plueger

you, Jamie. Thank

Operator

Deutsche next you. Thank Patel from our from Bank. And question comes Koosh

now line is open. Your

Koosh Patel

about Hey, good sense around the but I on program. about the how sales think sales asset guys. a should I disposal appreciate to afternoon all we wanted managed on asset the margin get the commentary platforms,

for now pressure. there's a pressure. for download the one there would market other the which on to upward suggest investors, assets to and hand number hand seem appetite the right faces aircraft you of indicate storage good assets On some and mentioned in a be challenges would the the record seems just assets, passenger of But

the So something us you some just in wanted bit in I little or I did there. closer XXXX help just million see to something program $XXX XXXX secondly, get are bit. a you assets of thinking could we had want the – Is you know out-front? $X quantify a your then to to the you closer it thoughts And maybe if to billion

John Plueger

Sure, start. I’ll

Steve Házy

Greg, to that? answer want do you

John Plueger

renewed – aircrafts reference The interested despite some part. are the our interest a on your we're off look, more start to a first are the is me reason ground, let we aircraft No, flying. being getting the why and seeing lot

rates aircraft are You’ve seen our very high. utilization very,

fleet and would a young to want the creates and say people to that. compelling advantage buyers of I scenario So more investment that – want take flying fleet, that,

will if sales we that because better a they right and in indicated they and the aircraft if exercise half through in and that that's profitable time, go my of best to interest second us we of of opposed we remarks, because very that So overall They these we think the be I means at you to levels the period year programs also our at probably will and as respectable our holding sell environment that for there company be are mentioned believe prepared they towards for – gains. looking we is as frequently. are this the do will, will shareholders, restore our aircraft,

So last and prior or environment we it's sell I in the win whether we I gain and same level year, discipline foresee make. think gains ripe, analysis that the can't the same of of not the except would is of percentage or the apply level or year, the will that

really So half you'll in what as to I to pause transpires see but in I much much, to more say more year, be the volume, of idea to just hard it's that the to say likely the you XXXX. whatever except of volume, and should it really, saw an of suffice the give hesitate than second we say and higher

John Plueger

really add are both have touch. slow, over Right, aircraft from to a them, to be don't that the Boeing to age is need the have remain I mean play. at will in If also many that's We is we sell usually category we years variable to really and think that sold airplanes just mean and just I four. aircraft will. sell that because to lower. I just thing things many is, John, be if Airbus. the think one buying our of look don't that clearly X about average age of you Hey to of big that, amount a much

in sales thing to I market. well think see market the in think the other I keep starting which bodes for the is we're that AVS resurgence to that mind,

I think levels get overall you're there environment. financings at because just pre-COVID, see rate wouldn't are they seeing you that

think of point, think I and but are buyers these because as John's leases. the airplanes and are that some math very a much it’s with to buyers helping looking make that I for work for, the some like on quality really I the of that's we lessees, fact but see, they the they of have young to a well, are long high lot wait

Koosh Patel

a lot thanks Great, guys.

John Plueger

welcome. You’re

Operator

you. thank at And next our And Ross question Davy. Harvey comes from

open. now is line Your

Ross Harvey

you your come whether leverage that the that want buybacks I’m and On thanks announced to you coming appear the transact related comment see $XXX QX. you the being in Yeah, can for share level X.X a not in on the at times. to Is maybe don't time. million shares program on at to do quarters? or wondering it's down

Greg Willis

our I'll this Greg. nothing is take leverage It currently. This where do one. to has with is

haven't for back stock capital from started that and way. to and so. to is plenty into, of to it it net say, remarks there's where been best kind cash our are elevated dividend, along I on net leaseback buying acquire raising is we But think the suffice availability to as the we the the willing transactions. to leverage the is We times, won't opportunities of sale buying in mentioned that. have us level deploy doing regularly we what and But of disclosed uses the running are or or due us to basis, at decisions my stock a as we do to had the X.X do back I really just trust of in what and OEMs you position making course liquidity at are are we so we prepared the right math

Ross Harvey

the lot And and fleet. risk restructuring your date a wondering, on know I aircraft in that sense. section that, makes notwithstanding mean the it’s dow the balance. your the wide-body obviously tech maybe levels Greg, accounting mentioned there the on of one some rate lessees you disclosing, current lease and is the supply/demand engagement improvement reviews impairment that any That your that repaying random a I’m follow-up wide-body that in [ph] cash just of just values. Steve or of and

John Plueger

the we’ve note in only think in prior the I industry. airline important on calls, I major not Yeah, a is that its exposure think of our we’ve seen noted had X% and we've that bankruptcies cash fleet basis to

name think our in fewer think lot well have our we far fleet, peers carriers names, but relative to individual Not I of a done from perspective. credit look to if a I So we've you very fleet. bankrupt at our

flows impairment it that well, through doesn't we have I as surprise that it's think So a position, a flow Under it’s GAAP there's to sheet. all-in-all old year fleet. balance four strong of lot you look think important pretty and and that me undiscounted in an I on cash us of expect, as lens would our the we cash a support to charges, airplanes taken but the we're values haven't

Ross Harvey

for the time. Thanks Great!

Operator

And Bank question of a from have you. up we America. Thank follow Epstein from Ron

now Your open. line is

Ron Epstein

over When of are any deliveries? – a more there you at out potentially quarters, Yeah, detailed customers you the and next are four that look not couple just taking risk maybe questions. that

Steve Házy

we plane a going that take an a this – is to contractual airline don't Well, new I commitment that take year, have Ron this has we have it. any at mean to indication point not not

really summer summer crystal not reasonable this degree go trying to don't John the going the look the happen. recovery – is in to ball, a I'm as you we if into could is at we Now, crucial, as emphasized, have saying of –

saying a airplane rather In You reduced take a I’ll for the this that need we the slightly well you scenario is but to We probability. make could that say, have probably then have from plane a be type but a an in for $XX on more but just higher to and at month, following say, and see come just be say the for months. rates over what us any ALC; year. at If going could to month that is it, a lease stage. the for it concession were words, following supposed our we this you first could current be even of an kind something exceptions, I for subjected a be a not of recovery, to give that described, certainly six That have a small kind it months ‘Steve, the doesn’t up But an lease don't we're then $XXX airplanes airlines there'll they’ll some that there month in, full asking very six number $XXX environment would really really to that of see contract re-neg I'll Greg, John, difficult months airline We’d pay six we'll take of it. months.’ take request we request. airline that we're get I or other outright doubt to a which to maybe a have and mid-year would the

John Plueger

be just straightforward – on gets here. I'm concerned into Ron, tariffs the more Boeing aircraft importation vis-à-vis that Europe. of very today going I’ll the I'm situation tariff more solved

XXX the for looks Poland going delivered. LOT is or Europe is – willingness we factors and that was largest go they X just to good to it XXX, You know second Asia, pretty take whether place the to or you on last Lease have far the give example the any still Air be behind one to the sites year as we’re market an a and that all, Steve to handicapper supposed in XXX-X hasn’t deliveries, had on our across airline's has but so so to know you

the from actually these the more importer I'm the and situation customer – than because receptivity of a technically airlines am these is to or ability the none know so So I concerned you from tariff take, are airline’s airline I that the going company know days it knows risk. is tax no take we import going directly the it, we and to take on that to and assessed airlines Boeing and think nor

factor this what for both temporarily, until get those or the the in permanently So bigger side, need things that tariffs sides to next whether of frankly, and quick the especially. is over year, governments, happens at EU it's look sorted I to place months eliminate That's both to the tariffs, whatever. it's with European several bigger or the actually with a actually a on and U.S. are out both the risk

Steve Házy

at various pointing programs to the and the had so but fingers airline both they're the are Boeing no want subsidies be leasing various because these other, ones. not that's Airbus airline sides impediment that Yeah, the perpetrators of. and each Europe, and things companies of sides that pay the victims. and subsidies accusing assistance in aircraft an each their because duty, They of biggest the XX% kinds not is the are Ron are guilty cannot going two delivering those various in and to It other government to was

barrier the see commercially export not that only is Europe. tariff So a the John it’s right, It's to of be we these where problem. the could aircrafts to

Ron Epstein

just on cash about I however percentage are more you on your tough think to got want some cash and customers, do now? think think then about accounting? who it. What Malaysian, I one and pretty is not or for cash collections on accounting how and maybe frame example mean, they how about who like we it? they're shape. in you is Because Good, I What mean, is in revenue, do you’ve accounting detail.

John Plueger

are Malaysia is totally Greg, problem paying there's no it. with answer us, But Malaysia. you can they up-to-date,

Greg Willis

roughly disclosed in You of know subject the accounting. fleet cash we we X% our is have about to – there's K

you reorganization. As expect, most of some of those are customers form in

are of All-in competitors, have our underwriting part a You large you of we restructuring, right of have remarks, packages, to our cash requirements of but on the prepared revenue. remember, maybe some X% with now plus good look lot it's so at mentioned cash than focus if I security our X%. in basis so than less it’s only as a my reserves criteria runaway customers, more that and a having we

been I as very we've we think navigating best could. situation tough So a

Ron Epstein

Got it.

Okay, you guys. thank

John Plueger

Thanks Ron.

Operator

And would to the turn over Mary now closing like remarks. I Liz DePalma thank to back for you. call

Mary Liz DePalma

forward That you again Okay, concludes of our after for speaking everyone. quarter. well the you to call today. thank conclusion with We first look the

so you much. thank Justin,

now line. disconnect You the can

Operator

conference gentlemen, for this you Thank concludes call. participating. Ladies and today's

You disconnect. may now

Air Lease (AL) 23 Feb 212020 Q4 Earnings call transcript