Aircastle (AYR)

 

As of December 31, 2008, based on net book value, 27% of our aircraft portfolio was 15 years or older. In general, the costs of operating an aircraft, including maintenance expenditures, increase with the age of the aircraft. Additionally, older aircraft typically are less fuel-efficient than newer aircraft and may be more difficult to re-lease or sell, particularly if, due to airline insolvencies or other distress, older aircraft are competing with newer aircraft in the lease or sale market. Variable expenses like fuel, crew size or aging aircraft corrosion control or inspection or modification programs and related airworthiness directives could make the operation of older aircraft less economically feasible and may result in increased lessee defaults. We may also incur some of these increased maintenance expenses and regulatory costs upon acquisition or releasing of our aircraft. In addition, a number of countries have adopted or may adopt age limits on aircraft imports, which may result in greater difficulty placing affected aircraft on lease or re-lease on favorable terms. Any of these expenses, costs or risks will have a negative impact on our financial results and our ability to pursue additional acquisitions.

 

 

As of December 31, 2008, based on net book value, 27% of
our aircraft portfolio was 15 years or older. In general,
the costs of operating an aircraft, including maintenance
expenditures, increase with the age of the aircraft.
Additionally, older aircraft typically are less fuel-efficient
than newer aircraft and may be more difficult to re-lease or
sell, particularly if, due to airline insolvencies or other
distress, older aircraft are competing with newer aircraft in
the lease or sale market. Variable expenses like fuel, crew size
or aging aircraft corrosion control or inspection or
modification programs and related airworthiness directives could
make the operation of older aircraft less economically feasible
and may result in increased lessee defaults. We may also incur
some of these increased maintenance expenses and regulatory
costs upon acquisition or releasing of our aircraft. In
addition, a number of countries have adopted or may adopt age
limits on aircraft imports, which may result in greater
difficulty placing affected aircraft on lease or re-lease on
favorable terms. Any of these expenses, costs or risks will have
a negative impact on our financial results and our ability to
pursue additional acquisitions.

 

 

As of September 30, 2008, based on net book value, 25% of our aircraft portfolio was 15 years or older. In general, the costs of operating an aircraft, including maintenance expenditures, increase with the age of the aircraft. Also, older aircraft typically are less fuel-efficient than newer aircraft and may