In terms of contribution next year, I mean, I think the V2500 should add $25 million of EBITDA easily with some upside. So we’re still early on and as I mentioned, we got a couple of large deals that could swing it one way or another, but it’s off and running and I think very well received and great timing because of the need for that engine.
Operator: Thank you. Our next question comes from Giuliano Bologna with Compass Point. Your line is open.
Giuliano Bologna: All right, congratulations on another great quarter. For my first question, I’m curious why you think you’re seeing accelerated acceptance in the aerospace area?
Joe Adams: Well, I think people that have used it have experienced the fact that they’ve saved time and money and they have a great amount of flexibility and they often come back afterwards and say, I wish I had known about this before. I mean, why wouldn’t I want to do this? And so that once people experience, the ease with which they can avoid a shop visit, which is usually very painful for people. No one I’ve talked to in the airline industry ever has told me after a shop visit, that was a great experience. So they all have scars, and I think what we provide is the easy button, and it’s caught on. And then word of mouth also helps because once one airline does it and they go to conferences and they have people in their engineering departments of other airlines, they tell them, you should look at this and it worked really well. All of that just keeps building the momentum.
Giuliano Bologna: That’s great. And then, an inevitable question. Can you give us an update on the PMA initiative and program?
Joe Adams: Sure. So great progress continues. We’re very happy with the development and what we’ve seen in the test results, which actually speaks to the performance of those underlying parts when they’re in operation, which is critical and very important. So all good on that. Obviously, on the timing side, the FAA runs a very rigorous process. It’s been an extremely successful program for them, PMA. They’ve never had any safety issues, but they are extremely careful and thorough. So it’s inherently very difficult to predict when the actual completion of those approval processes are received. But we’re very excited and we definitely are 100% sure it’s worth the wait.
Giuliano Bologna: That’s very helpful. And then one last one. Are you still seeing discounts for off-lease assets? It looks like you bought a lot of off-lease assets in the fourth quarter.
Joe Adams: Yes. As I mentioned, if you have an asset that needs maintenance, you immediately — if it’s off lease and it needs maintenance, you’ve narrowed the field of buyers down to like a handful of people. And so that’s — that dynamic has not yet changed. And I’m not sure it will. I think people are still, most of the people we see in the marketplace with capital to invest are looking for assets that are on lease that don’t need maintenance. So that’s really where we — and as I said, we can fix anything. And we relish fixing things because that’s how you add value.
Giuliano Bologna: Okay. That’s very helpful. Thank you so much and I will jump back into the queue.
Operator: Thank you. Our next question comes from Frank Galanti with Stifel. Your line is open.
Frank Galanti: Great. Thank you for taking my questions. I wanted to talk about sort of FTAI Aviation competitive positioning in the module swap business. So first on the V2500, do you see not having PMA — first party PMA? If you sort of talk about that dynamic relative to the CFM56. And then from a broader perspective, it’s my understanding that you can get module swaps from other people, other MROs, other airlines with MROs to do module swaps and that this is sort of not a new function. And so from my perspective, it feels like PMA is the sort of competitive advantage here. And I don’t see that or the modularity on the V2500s relative to the CFM56. Sort of my perception of it, can you sort of talk about where I’m misunderstanding that or those dynamics?
Joe Adams: Sure. Well, there’s a couple of concepts in there that are mixed together, but there is PMA available for the V2500. So that’s an option for us to be able to utilize PMA. We don’t have the same arrangement where we develop the PMA, so we would be more of a consumer on a commercial basis with the manufacturers if we decided to use that. So that’s an opportunity for cost savings on the V2500. There are other opportunities such as use serviceable material that we have a good line of sight to be able to utilize. There are some repairs that we are working on and our engineering team is working on. There are favorable agreements that we’ve struck with some of the maintenance shops. And so when you add it all up, and it’s not the same playbook exactly as a CFM56, but it’s the same process of going through the cost of shop visiting and figuring out where you can take out costs and where you can do things smarter and better.
