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AYR » Topics » The variability of supply and demand for aircraft could depress lease rates for our aircraft, which would have an adverse effect on our financial results and growth prospects and on our ability to meet our debt obligations and to pay dividends on our comm

These excerpts taken from the AYR 10-K filed Mar 2, 2009.
The variability of supply and demand for aircraft could depress lease rates for our aircraft, which would have an adverse effect on our financial results and growth prospects and on our ability to meet our debt obligations and to pay dividends on our common shares.
 
The aircraft leasing and sales industry has experienced periods of aircraft oversupply and undersupply. The oversupply of a specific type of aircraft in the market is likely to depress aircraft lease rates for, and the value of, that type of aircraft.


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Table of Contents

The supply and demand for aircraft is affected by various cyclical and non-cyclical factors that are not under our control, including:
 
  •   passenger and air cargo demand;
 
  •   fuel costs and general economic conditions affecting our lessees’ operations;
 
  •   geopolitical events, including war, prolonged armed conflict and acts of terrorism;
 
  •   outbreaks of communicable diseases and natural disasters;
 
  •   governmental regulation;
 
  •   interest rates;
 
  •   foreign exchange rates;
 
  •   airline restructurings and bankruptcies;
 
  •   the availability of credit;
 
  •   changes in control of, or restructurings of, other aircraft leasing companies which may result in, among other things, a significant volume of asset sales, resulting in downward pressure on aircraft values;
 
  •   manufacturer production levels and technological innovation;
 
  •   retirement and obsolescence of aircraft models;
 
  •   manufacturers merging or exiting the industry or ceasing to produce aircraft types;
 
  •   reintroduction into service of aircraft previously in storage; and
 
  •   airport and air traffic control infrastructure constraints.
 
These factors may produce sharp decreases or increases in aircraft values and lease rates, which would impact our cost of acquiring aircraft, which may cause us to fail loan to value tests in our financings, and which may result in lease defaults and also prevent the aircraft from being re-leased or sold on favorable terms. This would have an adverse effect on our financial results and growth prospects and on our ability to meet our debt obligations and to pay dividends on our common shares.
 
The
variability of supply and demand for aircraft could depress
lease rates for our aircraft, which would have an adverse effect
on our financial results and growth prospects and on our ability
to meet our debt obligations and to pay dividends on our common
shares.


 



The aircraft leasing and sales industry has experienced periods
of aircraft oversupply and undersupply. The oversupply of a
specific type of aircraft in the market is likely to depress
aircraft lease rates for, and the value of, that type of
aircraft.





16




Table of Contents






The supply and demand for aircraft is affected by various
cyclical and non-cyclical factors that are not under our
control, including:


 




























































































































































  •  
passenger and air cargo demand;
 
  •  
fuel costs and general economic conditions affecting our
lessees’ operations;
 
  •  
geopolitical events, including war, prolonged armed conflict and
acts of terrorism;
 
  •  
outbreaks of communicable diseases and natural disasters;
 
  •  
governmental regulation;
 
  •  
interest rates;
 
  •  
foreign exchange rates;
 
  •  
airline restructurings and bankruptcies;
 
  •  
the availability of credit;
 
  •  
changes in control of, or restructurings of, other aircraft
leasing companies which may result in, among other things, a
significant volume of asset sales, resulting in downward
pressure on aircraft values;
 
  •  
manufacturer production levels and technological innovation;
 
  •  
retirement and obsolescence of aircraft models;
 
  •  
manufacturers merging or exiting the industry or ceasing to
produce aircraft types;
 
  •  
reintroduction into service of aircraft previously in
storage; and
 
  •  
airport and air traffic control infrastructure constraints.


 



These factors may produce sharp decreases or increases in
aircraft values and lease rates, which would impact our cost of
acquiring aircraft, which may cause us to fail loan to value
tests in our financings, and which may result in lease defaults
and also prevent the aircraft from being re-leased or sold on
favorable terms. This would have an adverse effect on our
financial results and growth prospects and on our ability to
meet our debt obligations and to pay dividends on our common
shares.


 




This excerpt taken from the AYR 10-Q filed Nov 17, 2008.
The variability of supply and demand for aircraft could depress lease rates for our aircraft, which would have an adverse effect on our financial results and growth prospects and on our ability to meet our debt obligations and to pay dividends on our common shares.
 
The aircraft leasing and sales industry has experienced periods of aircraft oversupply and undersupply. The oversupply of a specific type of aircraft in the market is likely to depress aircraft lease rates for and the value of that type of aircraft.
 
The supply and demand for aircraft is affected by various cyclical and non-cyclical factors that are not under our control, including:
 
  •   passenger and air cargo demand;
 
  •   fuel costs and general economic conditions affecting our lessees’ operations;
 
  •   geopolitical events, including war, prolonged armed conflict and acts of terrorism;
 
  •   outbreaks of communicable diseases and natural disasters;
 
  •   governmental regulation;
 
  •   interest rates;
 
  •   foreign exchange rates;
 
  •   airline restructurings and bankruptcies;
 
  •   the availability of credit;
 
  •   changes in control of, or restructurings of, other aircraft leasing companies which may result in, among other things, significant asset sales;
 
  •   manufacturer production levels and technological innovation;
 
  •   retirement and obsolescence of aircraft models;
 
  •   manufacturers merging or exiting the industry or ceasing to produce aircraft types;
 
  •   reintroduction into service of aircraft previously in storage; and
 
  •   airport and air traffic control infrastructure constraints.


59

Table of Contents

 
These factors may produce sharp decreases or increases in aircraft values and lease rates, which would impact our cost of acquiring aircraft, which may cause us to fail loan to value tests in our financings, and which may result in lease defaults and also prevent the aircraft from being re-leased or, if desired, sold on favorable terms. This would have an adverse effect on our financial results and growth prospects and on our ability to meet our debt obligations and to pay dividends on our common shares.
 

EXCERPTS ON THIS PAGE:

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

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