So, there’s really nothing much different here. It’s unfortunate that these findings are coming out, but the answer is no. On an overall go forward basis that the Pratt &Whitney gear turbofan engine also enjoys an excellent fuel burn and in fact a slight edge over its competitors.
Gregory Willis: Also Jamie, just you know because we have done so many A320 and A321 deals in the last six-seven years, we’re not really seeing any lease rate differentials of any magnitude greater than say 1% one way or the other between the lead powered airplanes and the GTF powered airplanes and they’re neck and neck in terms of lease rates.
Jamie Baker: Got it. Thanks for the commentary, gentleman. Take care.
Steven Hazy: Thanks, Jamie.
Operator: And your next question comes from the line of Helane Becker with TD Cowen. Your line is open.
Tom Fitzgerald: Oh, hi, this is Tom Fitzgerald on for Helane Becker. Thanks so much for the time and the questions. Just two quick ones from me. Just curious within that Asia pocket of your lessees, I just noticed that China leg down pretty noticeably as a percentage of NBV. And I’m just wondering if there’s a floor level that you’re managing to or kind of a place where kind of Asia ex-China going up maybe to the mid 30s and China going down to maybe mid-single digits. Just curious on that. And then just as a follow up just wondering if you, on the lease, on the sales pipeline, if you have any, from where you sit right now, if you have any comments on, if it’s more equally weighted in the back half or you think more activity in the third quarter versus the fourth quarter? Thanks very much again.
John Plueger: Yes, let me let me tackle China first. I think the best way to view our China exposure is to go back four or five years when our balance sheet was smaller. We benefited greatly from the robust development in China we placed a lot of aircraft. But you know, China made its initial orders. We were a big part of that. But over the next four to five years, those aircraft were delivering and there was less activity and then we had the pandemic rise, when the pandemic arose and of course the MAX is not flying in China. There are virtually very few to any RFP’s issued by China. But from the very beginning it was our desire, at one point I think our China exposure was 21%. We realized that was too high. So before Russia invaded Ukraine, before the pandemic started, we already started a programmatic exercise of moderating more our China growth.
And so now with the size of our balance sheet compared and with the lack of activity in the last couple of years into China, we’ve naturally progressed to about 7.8%. As to your sales question, I think I made the comment that we do see sales variability quarter-to-quarter and this really has to do more with how long it takes to close. You mentioned, China earlier, we do have some sales of aircraft that are on leased to China. Those typically just take longer, those airlines take longer to respond. So, there will be variability. I really can’t say at this juncture whether the third quarter will be lighter or heavier in regards to sales, but we are confident in the $1 billion to $2 billion figure for the year and overall aircraft sales.
Operator: And our next question comes from the line of Catherine O’Brien with Goldman Sachs. Your line is open.
Jack Fowler: Hi, this is Jack on for Katie. I was hoping to dig in on the sales activity a bit more in the quarter. I know this quarter sales margin came closer to the lower end of the historical range of 8% to 10%. I was wondering if anything unique here outside of the majority of the sales being wide body and going forward for the future quarters, is it possible to see above the 8% or 10% given the lack of aircraft supply? Thanks.
John Plueger: Yes, I think you’re right. I think, I mentioned it this, Greg. I mentioned in my prepared remarks that we have a very strong pipeline of aircraft and we thought and we think that’s going to ultimately result in a margin towards the higher end of our historical range close to that 10% number. With regards to our gain percentage this quarter, it has to do with just the variability of what aircraft came in and closed. And again I mentioned we had majority of which were wide body aircraft this quarter. But I think all-in-all these are all very strong numbers demonstrating the value of our fleet. It’s also a cross section of our fleet we sold to.
