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AYR » Topics » 2009 Lease Expirations and Lease Placement of Acquired Aircraft

These excerpts taken from the AYR 10-K filed Mar 2, 2009.
2008 Lease Expirations and Lease Placement of Acquired Aircraft
 
  •   Scheduled lease expirations — placements.  For our 16 owned aircraft with leases originally having lease expirations in 2008, as of December 31, 2008 we had executed leases or renewals, with respect to 14 of these aircraft and sold two aircraft as discussed below. For these 14 aircraft, the weighted average lease term for the new leases or renewals is more than six years with monthly lease rates that are approximately 12% higher than the previous lease rentals.
 
  •   Scheduled lease expirations — sales.  The remaining two aircraft with leases originally scheduled to expire in 2008 were sold upon return from the existing lessee in the third quarter of 2008.
 
  •   Aircraft acquisitions — placements.  In 2007, we purchased three off-lease Boeing Model 747-400 aircraft and signed an agreement to convert them to freighter configuration. The freighter conversion process for the first aircraft was completed and it was delivered to a lessee at the end of the first quarter of 2008. The freighter conversion process for the second aircraft was completed and it was delivered to a lessee in the fourth quarter of 2008. We canceled the freighter conversion agreement for the third aircraft and sold that aircraft in the fourth quarter of 2008. Also, during 2008, we acquired two off-lease aircraft and acquired a third aircraft in satisfaction of a debt instrument. All three aircraft were placed on lease.
 
  •   Repossessions — placements.  In 2008, we repossessed 12 aircraft following default or insolvency by a customer. As of February 20, 2009, all but one of these aircraft had been delivered or committed for lease, or has a signed letter of intent for lease, to new customers. We estimate for these 12 aircraft that the new lease will have a weighted average lease term of approximately 4.6 years with monthly lease rates that will be approximately 18% lower than the previous lease rates. We also expect, with regard to the seven aircraft repossessed from Sterling A/S:
 
  •   The revenue downtime will be approximately $7 million, with $1 million in the fourth quarter of 2008 and the remaining $6 million in 2009, mainly in the first quarter.
 
  •   Transition costs will total approximately $14 million, with approximately $9 million to be capitalized as improvements to the aircraft and the remaining $5 million being expenses, with the majority of this expected in the first quarter of 2009.
 
2009 Lease Expirations and Lease Placement of Acquired Aircraft
 
  •   Scheduled lease expirations — placements.  For our 20 owned aircraft originally having lease expirations in 2009, we had executed lease renewals, or commitments to lease or renew, with respect to 16 aircraft, we have a letter of intent for lease with respect to three aircraft and are actively marketing the remaining aircraft. We estimate that for these 16 aircraft, the weighted average lease term for the new leases or renewals will be approximately six years with monthly lease rates that are approximately 12 percent higher than the previous rentals. Four of these aircraft will be converted from passenger to freighter aircraft upon lease expiration and, upon completion of the conversion process, will be placed on lease with an operator in Asia.


8

Table of Contents

 
  •   Aircraft acquisitions — placements.  We currently have no commitment to acquire any aircraft in 2009.
 
  •   Repossessions — placements.  In 2009, we will be placing one of the aircraft repossessed in 2008 which, as of February 20, 2009, we continue to market for lease or sale. We also expect to complete a consensual early termination of leases for three aircraft which we have committed to lease to other customers.
 
2008
Lease Expirations and Lease Placement of Acquired
Aircraft


 














































  •  
Scheduled lease expirations —
placements.  For our 16 owned aircraft with leases
originally having lease expirations in 2008, as of
December 31, 2008 we had executed leases or renewals, with
respect to 14 of these aircraft and sold two aircraft as
discussed below. For these 14 aircraft, the weighted average
lease term for the new leases or renewals is more than six years
with monthly lease rates that are approximately 12% higher than
the previous lease rentals.
 
  •  
Scheduled lease expirations —
sales.  The remaining two aircraft with leases
originally scheduled to expire in 2008 were sold upon return
from the existing lessee in the third quarter of 2008.
 
  •  
Aircraft acquisitions —
placements.  In 2007, we purchased three off-lease
Boeing Model
747-400
aircraft and signed an agreement to convert them to freighter
configuration. The freighter conversion process for the first
aircraft was completed and it was delivered to a lessee at the
end of the first quarter of 2008. The freighter conversion
process for the second aircraft was completed and it was
delivered to a lessee in the fourth quarter of 2008. We canceled
the freighter conversion agreement for the third aircraft and
sold that aircraft in the fourth quarter of 2008. Also, during
2008, we acquired two off-lease aircraft and acquired a third
aircraft in satisfaction of a debt instrument. All three
aircraft were placed on lease.
 
  •  
Repossessions — placements.  In 2008,
we repossessed 12 aircraft following default or insolvency by a
customer. As of February 20, 2009, all but one of these aircraft
had been delivered or committed for lease, or has a signed
letter of intent for lease, to new customers. We estimate for
these 12 aircraft that the new lease will have a weighted
average lease term of approximately 4.6 years with monthly
lease rates that will be approximately 18% lower than the
previous lease rates. We also expect, with regard to the seven
aircraft repossessed from Sterling A/S:


 


























  •  
The revenue downtime will be approximately $7 million, with
$1 million in the fourth quarter of 2008 and the remaining
$6 million in 2009, mainly in the first quarter.
 
  •  
Transition costs will total approximately $14 million, with
approximately $9 million to be capitalized as improvements
to the aircraft and the remaining $5 million being
expenses, with the majority of this expected in the first
quarter of 2009.


 




2009
Lease Expirations and Lease Placement of Acquired
Aircraft


 
















  •  
Scheduled lease expirations —
placements.  For our 20 owned aircraft originally
having lease expirations in 2009, we had executed lease
renewals, or commitments to lease or renew, with respect to 16
aircraft, we have a letter of intent for lease with respect to
three aircraft and are actively marketing the remaining
aircraft. We estimate that for these 16 aircraft, the weighted
average lease term for the new leases or renewals will be
approximately six years with monthly lease rates that are
approximately 12 percent higher than the previous rentals.
Four of these aircraft will be converted from passenger to
freighter aircraft upon lease expiration and, upon completion of
the conversion process, will be placed on lease with an operator
in Asia.





8




Table of Contents





 


























  •  
Aircraft acquisitions —
placements.  We currently have no commitment to
acquire any aircraft in 2009.
 
  •  
Repossessions — placements.  In 2009,
we will be placing one of the aircraft repossessed in 2008
which, as of February 20, 2009, we continue to market for
lease or sale. We also expect to complete a consensual early
termination of leases for three aircraft which we have committed
to lease to other customers.


 




This excerpt taken from the AYR 10-Q filed Nov 17, 2008.
2009 Lease Expirations and Lease Placement of Acquired Aircraft
 
  •  Scheduled lease expirations — placements.  For our 20 owned aircraft originally having lease expiries in 2009, we have executed lease renewals, or commitments to lease or renew, on 16 aircraft and are actively marketing the remaining aircraft. We estimate that for these 16 aircraft, the weighted average lease term for the new leases or renewals will be approximately six years with monthly lease rates that will be approximately five to ten percent higher than the previous rentals.
 
  •  Aircraft acquisitions — placements.  We currently have no commitment to acquire off-lease aircraft in 2009.
 

EXCERPTS ON THIS PAGE:

10-K (4 sections)
Mar 2, 2009
10-Q
Nov 17, 2008

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