Nicolas Finazzo: Sure. So, the three sales that are projected, as Martin mentioned earlier, one of them has already closed in the first quarter. Two more under contract to close this year. We’ve got deposits, we’ve got signed contracts. The airplanes are being basically ready for delivery in the operators livery. So, those airplanes are committed, not to say we won’t sell more, but at this point, it’s unlike the last two years, where we’ve basically had customers that wanted the aircraft and it was our ability to make the sale was based on our ability to produce the aircraft and get it to the customer. So right now, we’re hunting for customers. We’re on a soft freight market. We have not anticipated or projected, I should say, more than the three aircraft we have already under contract.
We’re in those five months left in the year, a little over five months left in the year. Although we are talking to people and not to say that we couldn’t find somebody that will take all the rest of the aircraft. Because we’ve got multiple customers that we’re talking to, that would take one or all of the remaining aircraft. Just don’t have anybody that signed a contract yet and we’re not far enough along for us to have a high level of confidence that we’re going to be able to do that in the balance of this year. As far as availability of aircraft, initially, we thought we would have nine aircraft available this year; one has already been sold that, that would be eight. That’s now — there are a number of the aircrafts that are scheduled to be delivered out of conversion later in the year, in November or December, could push into the next year, and the ones that were scheduled prior to that, could push into the later part of the year.
So, it is possible we’ll have as few as six airplanes in total this year available to sell or lease in this calendar year. Basically, because of how late it is in the year that we expect to get maybe the fifth or the sixth airplane, maybe we’ll end up with seven. But it’s tough when you’re into the Thanksgiving, Christmas, New Year’s period to be able to deliver aircraft to people for a whole variety of reasons. People are getting ready for the holiday boom in freight. The FAA has issues on manpower availability due to vacation scheduling and other jurisdictions as well. So, as we get to the last couple of months of the year, especially middle of November on, it’s just tough to get an airplane delivered if we get one in that timeframe. So that’s again, the reason why a) demand is soft.
So even if I had the demand today, I don’t have the aircraft to deliver, but the demand is soft. That’s going to push into next year. So, what do we expect to see next year? We expect to see opportunity to place these aircrafts, excluding the ones that we’re already talking to, to put on lease potentially more aircraft on lease. If we don’t sell them, we’ll put the balance on lease. There’s also considerations to look for other avenues to move this flight equipment. We don’t have to just move flight equipment as a converted aircraft. We have options. We can buy the conversion kits and defer the deliveries until later. We could sell or lease the engines, do the deliveries when the market recovers. Look, the freight market is you’ve heard the canary in the coal mine analogy.
