Nicolas Finazzo: Elbit, we’ve been in contact with Elbit. They’ve got their own contingency plans in place for events like this, but it’s not I guess the tragic part of this is they’ve never experienced this in the recent — in recent times. But they’ve got their contingency plans in place. They are currently manufacturing product for us. We expect to get product delivered here. Imminently they’ve got products sitting on the shelf for us, and we want it. so. So they’re continuing to manufacture and deliver. Now there’s no way for me to be able to guess, happen in all the eventualities and I don’t think it’s even appropriate for me to comment on that. But at this point, we’re not seeing any effect on our ability to get product, but who knows.
Michael Ciarmoli: Okay.
Nicolas Finazzo: Who knows depends on what [indiscernible] in Israel.
Michael Ciarmoli: Yes. No, of course. Got it. All right. Good stuff, guys. I’ll jump back in the queue.
Nicolas Finazzo: Okay.
Operator: The next question comes from Jack Ayers from TD Cowen. Please go ahead.
Jack Ayers: Hey, guys. This is Jack on for Gautam. Thanks for the question here. Hey, yes, just kind of honing in here on the Q4 guide and I know you mentioned you’re kind of just baking in that one sort of asset sale in Q4. I just wanted to see kind of how customer sort of campaigns are going. I know, you’ve talked in the past that you are having active discussion. So maybe, like, at first glance, it seems like there’s more downside or sort of more risk to a push out. But could there be incremental upside, if demand sort of strengthens here? Like do you have the ability to basically monetize those 10 in inventory you’ve got or the magnitude you can do in Q4.
Nicolas Finazzo: So we identified there are 18 individual pieces of flight equipment that went and so I think I’m answering your question that we have scheduled — actually planned and scheduled to close between now and the end of the year. So all of those have dates associated with them have delivery conditions. And we’re working towards putting that equipment in the hands of our buyers who have to go through their own due diligence process and inspection. We have taken into account the time that we have remaining and are confident that if everybody does what they’re supposed to do, we’ll get those assets delivered this year. Some of them invariably will fall out of this year. And they’ll — they won’t close this year for who knows what reason.
We had a closing in one of the quarters where the customer that was going to send us the money is bank closed on the last day of the quarter when we were kind of close. And we closed ended up — we end up closing the first business day, the second of the next quarter. So we don’t anticipate anything like that this quarter. And when identified 18, that doesn’t take into account additional assets that keep popping up as opportunities to sell in the near-term. I mean, even before the end of the year. So it may — we may end up closing on 18, we may end up closing on more than 18, we may end up closing on less than 18. What we’re telling you is that we’ve got 18 schedule to close this year. What’s the probability of some of those will move out?
I think that the probability is some of those will move out. How many, I can’t tell. Will we replace that with others? The probability is yes. How many? I can’t tell.
Jack Ayers: Okay. Yes, I was kind of asking just specifically the 757 [indiscernible].
Martin Garmendia: I’m sorry, the 757 is under — has been under contract. We had a delivery issue with one of the engines. We thought it would be delivered already. We’ve rectified the delivery issue on the engine, giving them a substitute engine. And they’re in the final phase of the acceptance of the aircraft.
Jack Ayers: Okay, got it. So is that incremental to the one you’ve already got under contract? I guess like …
Nicolas Finazzo: No, that is the one, yes. Guidance only has 1 757 P2F sale.
Jack Ayers: Okay. So, okay, no that’s helpful. And are there any other campaigns because I think you’ve got those, I guess now 10 remaining 757s? Like is there any chance those discussions are progressing well, or with any color, there would be helpful.
Nicolas Finazzo: So we’ve got — we are negotiating with one to two aircraft today. One is available and next one is not, but it’s close to delivery, to be leased. And then we have the prospect with the customer that’s taking the aircraft this quarter, that they want a second aircraft, but they’re not going to talk about that until they get their first aircraft in operation. Beyond that, we don’t have anything that’s pending. We have discussions with multiple customers, but we have nothing pending, where I can point to and say, okay, we’ve got that accounts for potentially leading 7 of the aircraft uncommitted. But at this point, I would tell you that, it’s 8 aircraft on committed. And well — no, it’s 10 aircraft on committed with discussions on 2 more leaving 8 aircraft that we have yet to find homes for. And we’re working on, but we don’t have customers like that [indiscernible]
Martin Garmendia: Yes just to get a little color that fourth quarter there will be — there’s — before deliveries of the 757. So those aren’t available right now. They’re being delivered in this floor into deliveries from cargo conversion.
Nicolas Finazzo: Yes. That will become available.
Martin Garmendia: Yes.
Jack Ayers: Okay, got it. Yes, from your third-party supplier, okay. That makes sense. And then just one last one on AerAware. Just conviction there with the FAA and whether a government shutdown, and in any case here in the next couple of weeks could have any impact on potential timing there. Any color would be helpful. Thanks.
Nicolas Finazzo: So we’ve already been told by the certification branch that they will be shut down if the government shuts down. So I can only speculate that based on the last time, there was a government shutdown. Government can only hold out a couple of weeks. So if that happens, and that’s an another 9 days if the happens on the 17th and that net lasts all the way through the end of November. It still leaves December for them to finish up the paperwork and issue the STC. But that would clearly delay it until December and potentially longer if well, I can’t imagine the government will say shut down longer than that. But then we get into the unfortunate part which is once you get into December, you’ve got FAA guys taking vacation, you got two holidays between then, certainly Christmas and New Year. And — yes, I mean, I’m just hoping we’re not caught up in that as we’re just so close at this point. With our [indiscernible] are like, who knows?
Jack Ayers: Yes, I hear you. Okay. That’s it for me. Thanks, guys.
Nicolas Finazzo: All right. You’re welcome.
Operator: We have a follow-up question from Bert Subin from Stifel.
Bert Subin: Hey, thanks for the follow-up. Just on the AerAware front, I guess just two real quick questions. Nick, is there any sort of possibility in your mind right now the way things stand that you think there’s an STC approval or granting in 2023? And then aside from the STC question, can you give any color about how conversations are going with the future customers of those kicked off? Are you waiting for STC?
Nicolas Finazzo: Okay. That’s the first question. Possibility of STC approval in ’23. Possible, I’ve identified what we’re going through at this point. It’s out of our control how long the FAA takes to respond to the — to respond to the revisions that we sent back to them, you’d think that they could — when they’re asking us to make a minor change, they could look at it in a couple of days and get back to us. In some cases, they have and some cases, the guy is on vacation, the guy is sick, he’s not in, he’s too busy. We’re dealing with that and I’m not complaining about the FAA, because they’ve been — really they have been great to work with in this complex program. So I can’t tell you that, I have any reason to believe that we will get this certified in ’23?
