Elbit has its own lead time issues. They’re a build-to-order company as we are, but we’re kind of getting ahead of it and making sure that we’ve got enough installed kits to prime the pump and start getting airplanes capable of flying with the AerAware system installed. Elbit, when it gets an order, a large order, it will gear up its supply chain, which is just typical the way these large OEMs do that supply this type of equipment. They’ll gear up their supply chain as fast as they can. It’s a big company, I don’t know, $8 billion, $9 billion, I don’t know exactly what the number is. but it’s a multi-billion-dollar company that has the capability and experience to gear up their supply chain. That may or may not have anything to do with our ability to sell our portion of the kit, because we’ve got to get the kits installed in the airplane first.
And in the case of a large order, airlines are telling us, well, they don’t really want to have a small group of these airplanes flying with the system installed. They don’t want to start flying it until they have half their pilots, all their pilots trained and half their aircraft equipped. So, from an Elbit point of view, that could take a while to gear up their supply chain. With respect to a smaller group of airplanes than an airline, somebody that has 10, 20, 30, 40, even less than 100, that could come relatively quickly on our part. We could satisfy that whole order. We have ordered kits. We mentioned earlier that we ordered $33 million worth of kits from Elbit this year, which we expect to take delivery of if the demand is there for this year.
Again, it’s going to put pressure on Elbit to produce the kits. and we’ve been assured that they can meet the orders that we place with them and all we got to do is get the orders. So, I don’t know if that answers your question. but for a small order, we can start delivering this year. How many? 10, 20, 30. I think you need to think in that order of magnitude.
Pete Osterland: thanks a lot. It’s a very helpful color. I’ll pass it along here.
Nicolas Finazzo: Okay. You’re welcome.
Operator: [Operator Instructions] Our next question comes from Gautam Khanna with TD Cowen and company. Please go ahead.
Gautam Khanna: Yes. I was wondering if the EBITDA cut this year apples to apples. Can we just add that to whatever the base level was going to be next year, because of the timing of P2F conversions i.e., it’s just a push out. And so we’ll have a disproportionately soft ’23 and a disproportionately strong ’24, excluding AerAware.
Nicolas Finazzo: I think, as we noted, as we’re looking at a soft freighter market, we need to reevaluate whether we’ll have the opportunities to sell those P2F as full whole assets or if the most advantageous avenue will be to put those aircrafts on lease. And as you know, obviously that has a different financial impact in the short-term overall. So, we’re still evaluating that. So, it’s not a direct shift from one period to the other. But what I can say, based on our value that we bought these assets are, even we put them on lease, there’ll be lucrative leases higher than the industry 1% monthly lease rate factor. So, if we have to go down the lease path, that will still be a profitable avenue for us, but it might generate a different result in the fiscal year.
Gautam Khanna: Can you quantify the EBITDA monetization not happening this year [indiscernible] aircraft.
