Kristine Liwag: Great. Thanks for the color. And maybe following up on the supply chain issues that you mentioned. I mean for some of these suppliers that continue to struggle for a few years now, what’s the long-term solution? What can you do to mitigate their problems so you can actually deliver on the strong demand for bizjets? Are there other solutions, like you need to vertically integrate your supply chain or anything like that to alleviate some of the pressure? What other actions can you take?
Scott Donnelly: Yes, that’s a good question. Look, it’s a mix. I mean, in some cases, we have some smaller suppliers and technologies where they basically kind of were us and we did acquire them and integrated them as part of our business. We have a good track record of doing that in the past around some critical areas, interiors we did. That’s been a home run for us. We just did a deal this past year in the actuation space. Again, a very unique aerospace technology. Most of the volume was ours. It’s a critical supplier and a critical technology for us in the future. And these aren’t big numbers, but it was a great acquisition. And so far, it’s working out really, really well for us. It’s helped to get us back on track. But there’s always going to be some guys out there that are suppliers where we’re a small percentage of their sales.
It’s very capital intensive. It’s a technology that doesn’t make sense for us to vertically integrate that. And so in those cases, we just keep working on those folks. I think those suppliers are all trying to get back up to speed. Obviously, it’s a good business for them. I’d say we don’t have suppliers that I’m aware of that are abstinent or don’t want to perform. It’s a matter of them getting the resources back in place and some tier suppliers getting in place and those are folks that just take a fair bit of work. But I think they will get there. Again, we’ve seen some of them have already recovered. But there’s still a couple of problem children out there that are working on getting there.
Kristine Liwag: Great. Thanks, Scott.
Operator: Your next question comes from the line of Seth Seifman from JPMorgan. Please go ahead.
Seth Seifman: I’ll just stick to one here. Kind of a follow-up on the last question Kristine asked. I think from a mix perspective, while the deliveries in total are still down from 2019, I think the deliveries to NetJets are probably higher. And so as you think about delivery growth from here, do you think about the incremental growth coming more with that top customer or more kind of diversifying the mix a little bit more? And then, I’d also imagine that like the order for latitudes, the NetJets has probably come into a conclusion pretty soon. And whether you think about — how you think about expectations for the next slug of latitudes from them?
Scott Donnelly: Well, so first of all, I don’t know what percent of sales back to 2019, what it was on fractional versus today. But look, I think fractional, when you think about diversification, the sale of a fractional aircraft is a more diversified sale, frankly, than a single jet. Remember that this is not a concentration of a buyer in NetJets. Remember, NetJets is out there selling that aircraft to eight or so people. So every sale that we make to NetJet is a sale from NetJet to a whole bunch of different customers. So it’s quite diversified. So I don’t expect NetJets or any fractional for that matter to track wildly different than the overall market demand. If the market is strong and people are wanting to fly private, you’re going to see this mix of people that choose to do it through a fractional, which is actually a lot more people because, again, they’re buying a fraction of an aircraft, not a whole aircraft.
So when I look at our mix, I think of the mix associated with the NetJet business as being very good mix. That’s a very diversified sale. It’s a very diversified market. And that’s kind of that’s what they do every day. They’re out and working and talking to lots and lots of customers in a broad range of customer base for selling that fraction of an aircraft. And obviously, as you guys know, one of the things we do now is we work very closely with NetJets and looking out roughly about a year that these things come into backlog based on how their sales team is doing out there selling these aircraft. So it’s a great part of our backlog, and it’s a great part of our business. It is as you guys know, it tends to be at a lower margin because it’s kind of a wholesale sale, but they’re the ones that are out there, spend the money on sales forces and reaching out and selling to that large customer population.
So NetJets remains as through other fractionals as a really important part of the business, and it’s a really, really important part of our customer base are these fractional owners. As far as the deal with NetJets, we are in constant discussions in terms of forecasting unit volumes. As you get to where you get towards the end of a particular quantity buy, obviously, we’ll work with NetJets to work on what comes next. But that’s kind of a business arrangement between the two of us, obviously. But the actual forecast and backlog that’s reflected in our numbers is really kind of a rolling one-year process regardless of what the size of the overall arrangement is between ourselves and NetJets on latitude and longitude volumes.
Seth Seifman: Great. That’s very helpful. Thanks, Scott.
Operator: And your last question today comes from the line of Doug Harned from Bernstein. Please go ahead.
Doug Harned: I wanted to go back to the discussion around the size of the backlog as it clearly has grown quite a bit over the years. And when you look at backlog as it slowed sequentially in this quarter? How do you compare the — how do you contrast the demand you’re seeing for new aviation sales to basically the wait time that’s there? In other words, there’s a point where you just flat out are going to lose customers if they have to wait too long. So do you see a constraint on the growth from that at this point?
