Greetings. Welcome to the AerSale Fourth Quarter Earnings Conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. Operator Instructions: Please note this conference is being recorded. I'll now turn the conference over to your host Christine Padron. You may begin.

Good afternoon. I'd like to welcome everyone to AerSale’s fourth quarter 2020 earnings call. Conducting the call today are Nick Finazzo, Chief Executive Officer and Martin Garmendia, Chief Financial Officer. Before we discuss this quarter's results, we want to remind you that all statements made on this call that do not relate to matters of historical facts should be considered forward-looking statements within the meaning of the federal securities laws, including statements regarding our current expectations for the business and our financial performance. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties, and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results. Factors discussed in the risk factor section of our final prospectus filed with the SEC on February 10, 2021 and our other filings with the Securities and Exchange Commission could cause actual results to differ materially from those indicated by the forward-looking statements on this call. We'll also refer to non-GAAP measures that we view as important in assessing the performance of our business. A reconciliation of those non-GAAP metrics to the nearest GAAP metric can be found in the earnings presentation materials made available on the Investor section of the AerSale website at ir.aersale.com. With that I'll turn the call over to Nick Finazzo.

Thank you, Christine. Good afternoon to everyone on the line and thank you for joining our call today. I’m pleased that today marks our first quarterly update as a public company and I look forward to updating you each quarter on the exciting progress we’re making at AerSale. Before digging into the results for the quarter and business updates I’d like to take a few moments to familiarize new investors with AerSale, and I’ll begin with three attributes about AerSale that position us to create value for our customers and deliver leading shareholder returns. First, we operate a purpose-built, fully integrated, multi-dimensional aviation aftermarket company that enables us to serve as a one-stop shop for our customers. This includes activities like part procurement, full aircraft sales and leasing, MRO, FAA certifications and aircraft storage and decommissioning. This allows us to keep a close pulse on the market, identify asset acquisition opportunities, and deliver a higher overall value to our customers. Second, we generate attractive financial returns as a result of this integrated structure with the flexibility to pivot quickly and execute regardless of the economic backdrop. This was never more pronounced than in 2020 when the global pandemic adversely affected commercial aviation to a degree no one in the industry had ever experienced. Notwithstanding this environment, we were able to pivot quickly to high-demand freighter aircraft, help our customers through our aircraft storage and decommissioning business, identify attractive long-term asset acquisition opportunities and enter 2021 fully positioned to resume our growth trajectory. This was a truly remarkable result and demonstrates the resiliency of our business and workforce. Our integrated structure enables us to serve as a unique partner to airlines and original equipment manufacturers to bring new and innovative products to market in our Engineered Solutions business. Currently, we have three projects in our Engineered Solutions pipeline that include AerSafe, AerTrack and AerAware that collectively represent a significant market opportunity for AerSale. Our greatest opportunity is with AerAware that is now complete, fully operational, and is scheduled for pre-certification testing by the FAA commencing March 23. AerAware incorporates an advanced military-style head wearable display. In other words, a flight vision goggle that provides pilots with enhanced vision, enabling them to see through adverse weather conditions with an overlay of critical flight deck information. We've been developing AerAware over the past 18 months in partnership with Universal Avionics, a subsidiary of Elbit Systems, to deploy existing military aircraft technology to commercial aviation. This relationship underscores the AerSale value proposition. Our teams successfully integrated a military application with advanced technology into a commercial platform from concept to full integration in a working Boeing 737 NG prototype aircraft. We used our engineering knowledge and capabilities with midlife equipment to integrate the technology, conduct flight certifications, and provide demonstration and marketing support to potential key customers. To dig into the specifics of our business, we have two primary operating units, Asset Management Solutions and Technical Operations, which we refer to as TechOps. In our Asset Management segment, we supply used serviceable material, or USM parts, as well as whole aircraft and engines to the marketplace, including highly customized, fully supported leases of aircraft that have achieved above-market lease rates as well as ready-to-install short-term engine leases, which also command a rate premium. At the end of their leases, this flight equipment becomes the feedstock for our USM parts business, providing the final revenue stream and our value extraction methodology. In our TechOps segment, we provide maintenance, repair and overhaul services, oil services and Engineered Solutions. In our MRO services divisions, we perform aircraft heavy maintenance including passenger-to-freighter conversions at our two aircraft MRO facilities in Goodyear, Arizona and Roswell, New Mexico. Further, we overhaul airplane components including landing gear, pneumatics, hydraulics and composite aerostructures at our facilities in Rio Rancho, New Mexico; Memphis, Tennessee; and Miami, Florida. In our Engineered Solutions division, we develop highly specialized products that comply with regulatory mandates and/or enhance the safety of commercial aircraft. As previously noted, we're currently marketing three products: AerSafe and AerTrack, for which we hold supplemental type certificates, or STCs issued by the FAA, and AerAware. Our existing STCs have enjoyed strong margins and all of our STC products will serve a customer base of over 16,000 aircraft. As we review our business results there are a few important things to keep in mind. First, we generally do not utilize year-over-year analysis on a quarterly basis to assess our financial performance, which you'll notice throughout our commentary. The rationale for this is simple. Our asset management acquisition and whole asset sale businesses are cornerstones of our success and account for large transactions at irregular intervals throughout the year. As we discuss our results, we'll make it a point to update our investors on these key transactions for both the current year and prior year periods. More importantly, we believe relevant indicators for our business performance are our asset acquisitions and activities, the outlook for whole asset sales throughout the year, progress on Engineered Solutions STC development and contracts, and the underlying performance of our MRO business. Turning to our results for 2020, we delivered full year revenue of $208.9 million, which compares to full year 2019 revenue of $304.2 million; the decline in total sales stemming from the impact of COVID-19. As the year progressed, our business began to recover nicely, which led us to increase our forecast as we started to realize higher contributions from our freight customers, strong growth in our aircraft storage and MRO business, and even some modest improvements from passenger aircraft customers. For the full year 2020, we reported adjusted EBITDA of $51.9 million, or 24.8% of sales, which compared to full year 2019 adjusted EBITDA of $56.9 million, or 18.7% of sales. As a reminder to investors, adjusted EBITDA results in 2020 included $12.7 million of CARES Act benefits. Looking at trends in our business and beginning with asset management, sales of aircraft and engine parts continued to improve in the fourth quarter, which increased in each sequential quarter since the low set in the second quarter of 2020. We expect activity in these categories to continue to grow as volume across the system gradually increases back to pre-pandemic levels. Aircraft and engine leasing decreased in the fourth quarter, primarily due to the expiration of three Boeing 747 passenger aircraft leases. The engines were removed from these aircraft and the airframes in both conditions are being prepared for the lease pools with the remainder becoming a feedstock for our USM parts business, as we take advantage of strong demand in this platform from prior customers. This reduces our aircraft fleet to just two passenger aircraft and two freighters, both of which have been performing well. Finally for 2020, we had only $3.1 million of whole asset sales, which occurred early in the second quarter as compared to $70.1 million in 2019. This decrease in sales was a direct result of the pandemic and represented the majority of our revenue decline as compared to the prior year. As we look ahead to 2021, we're well positioned with cash on hand and an undrawn, recently up-sized $150 million credit facility to restock aircraft and equipment for our unique style of hybrid aircraft and engine leasing. This is exemplified by our recent purchase of 24 Boeing 757s that we're marketing as freighter conversion aircraft to satisfy heightened demand in this category. The Company has a binding letter of intent to sell 4 aircraft to an international customer, which is expected to close over the next 30 to 90 days. We expect to sell the majority of our Boeing 757 fleet in 2021. To facilitate these deliveries, we expect to convert at least five of these aircraft at our Goodyear hangar over the next year with the first converted aircraft projected to be completed in May. With five aircraft committed to conversion, we are primed to meet the growing demand for Boeing 757 freighters. In our TechOps segments, we continue to experience robust demand for aircraft MRO services and our facilities are running at or near capacity. Volume at our Goodyear and Roswell storage facilities hit record highs in 2020, which resulted from a higher number of grounded aircraft by airlines and leasing companies during the pandemic. We expect the strong volumes to continue through 2021 as we benefit from a full year of storage activities at both of our dry desert storage locations, which includes reactivation work from existing customer aircraft and continued work for additional aircraft entering storage. Looking forward, as these aircraft are brought back into service, we expect our storage revenue to gradually decrease but be offset by reactivation revenue in our aircraft MRO facilities. Moving to our Engineered Solutions business we had modest sales in 2020 due to the unprecedented number of aircraft on the ground. In the fourth quarter, we saw a pickup in demand for our AerSafe products as aircraft repositioned to new markets. In addition, we made significant progress towards obtaining FAA certification of our AerAware product having completed over 60 flight hours with an FAA-designated engineering representative, a DER, test pilot performing our test flights and showcasing the capabilities of this product to potential customers. As mentioned previously, we will begin FAA test flights in less than two weeks, which is a prerequisite to the FAA issuing AerSale an STC for AerAware. Based on feedback from airline test pilots who have flown our Boeing 737 NG prototype aircraft with AerAware installed, we expect to receive a launch order from a potential customer this year. In summary, we're pleased with where we are positioned as we begin 2021, AerSale’s first full year as a public company. Demand in our aircraft MRO facilities is robust, volume is poised to steadily improve for USM parts and the market is offering attractive feedstock opportunities. Added to that, we're enthusiastic about the prospects for our Engineered Solutions STCs, which we expect will be a meaningful growth contributor to our overall sales mix as this division continues to evolve. We exited 2020 with a strong balance sheet and ample financial flexibility to fund our capital allocation priorities. I want to thank all our investors, and we look forward to updating you on our progress throughout the year. Now, I'll turn the call over to Martin for a closer look at the numbers.

Thanks Nick. I will start with an overview of our financial performance before ending with an update on our guidance. Our fourth quarter revenue was $49.4 million, which did not include any whole asset sales. This compares to the fourth quarter 2019 revenue of $120.9 million, which included $57 million of whole asset sales. As Nick mentioned, our business will fluctuate quarter-to-quarter based on whole asset sales during the period and therefore it is important to monitor our progress based on asset purchases and sales over a longer period. As you look ahead to 2021, our most notable asset is a purchase of the 24 Boeing 757s that we announced in September. We are working diligently with our customers to finalize the first of these sales, which we expect to occur in the next few weeks. In addition to asset sales, Used Serviceable Material or USM parts revenue declined as opportunities to buy feedstock did not materialize and demand for existing inventory decreased. Utilization rates on our flight equipment also dropped against the backdrop of the COVID-19 pandemic. The pandemic led to the grounding of a significant portion of the global passenger fleet and lower passenger air travel resulting in decreased demand for USM parts used for maintenance and overall activity in short-term engine leasing. Our TechOps segment offset some of the decline in our Asset Management Solutions volume with total segment revenue up 41% compared to the fourth quarter of 2019 to $32 million. The increase in TechOps revenue was largely driven by aircraft MRO services, as this business benefited from increased storage demand. Our dry desert locations and heavy MRO facilities in New Mexico and Arizona allowed us to monetize on the increased demand for aircraft storage maintenance programs. Looking forward, we expect a substantial quantity of aircraft that are in airport storage to provide us with upside opportunities for reactivation work, heavy maintenance and cargo conversions and also provide us a strategic advantage in identifying feedstock for our Asset Management segment. The revenue split between our Asset Management and TechOps segments was approximately 50:50 in 2020, as the business mix changed as a result of the pandemic. This change in mix demonstrated our ability to respond effectively to changing market dynamics. As the passenger aviation market recovers, we expect both Asset Management and TechOps to grow. Gross margin was 26.6% in the fourth quarter of 2020, which was approximately the same level as the fourth quarter of 2019, as all the measures we took during the year translated into efficiency and cost savings across our business lines. Selling, general and administrative expenses declined 50.5% in the fourth quarter of 2020 to $5.0 million, primarily due to COVID-19 cost savings initiatives. Net income for the fourth quarter of 2020 was $0.6 million compared to $9 million for the fourth quarter of 2019. Cash flow from operating activities was $12.2 million in 2020 compared to $45.5 million in 2019. The main driver of cash utilization in 2020 was net inventory purchases of $55.3 million, primarily related to the Boeing 757 transaction. At year end, AerSale had approximately $29 million of cash on its balance sheet and an undrawn revolver of $110 million, which has now been increased to $150 million. This provides us with ample financial flexibility to fund our asset acquisition priorities in 2021 and beyond. Finally, our guidance update summary. We expect revenue of $340 million to $360 million and adjusted EBITDA of $60 million to $70 million in 2021. This outlook reflects the increase in activity in our Asset Management segment, continued strong demand for our airport MRO services, accelerating demand in cargo and e-commerce markets, and increased requests for passenger-to-freighter conversions and other TechOps products and services. The main growth driver of the Asset Management segment will be the monetization of the Boeing 757 package secured in 2020. Because of the strong demand for cargo conversion aircraft, we project selling the majority of the available aircraft in 2021. For TechOps, in addition to the continued contributions from our storage maintenance and component MRO activities, we also expect to commence sales of our AerAware products in late 2021. Our projected ranges for 2021 consider possible delays in the start of sales for AerAware due to uncertainties regarding the pace of initial production scale-up; the company is diligently working on solutions that will allow us to meet the anticipated demand for this product from our potential launch customer. Lastly, CARES Act loan proceeds of $9.2 million were awarded to the Company in 2021. In summary, our strong financial performance is the result of the multi-dimensional and fully integrated business model we have spent the last decade building. Post-COVID, we made adjustments, but continue to invest in business units that experienced the greatest demand. The diversity of our revenue sources has created a countercyclical hedge enabling AerSale to thrive in a challenging commercial aviation market. We believe we are well configured to outperform our competitors in the upcoming recovery. With that, operator, we are ready to take some questions.

At this time, we will be conducting a question-and-answer session. Operator, the first question comes from Gautam Khanna with Cowen. Please proceed with your question.

Thanks guys. Good afternoon. I was wondering if you could talk a little bit about the 757 turnarounds. So you mentioned the four that might be sold. I would imagine maybe it's Q2, but if you could talk to the rest of the majority that you expect to sell this year. Do you have letters of intent for those? Just kind of how firm is that planning? What gives you that conviction? And if you can maybe talk to the timing, is it going to be Q4 weighted, just based on what needs to be done with them, et cetera?

So, we've got a combination of potential sales ongoing, ready now with probably a minimum of three and as many as four or five customers. So, we’re negotiating with each. We have, as I mentioned, a letter of intent to sell four at this point. We expect those four will be delivered as the buyer is conducting due diligence in preparation for closing. I think those will all close probably over the next 60 days; could go to 90 days. Simultaneously, we're working a letter of intent with another customer that will potentially take as many as 10 aircraft; again their closing would be as fast as we could put the airplane in condition and deliver it. Those aircraft that we don't have to convert we could close on as fast as we could deliver the aircraft with the proper engines and the records all updated. We expect that those aircraft, assuming we finish the LOI that we're close to finishing now, will also close in the second and third quarter and could drag into the fourth quarter. And finally, we have another operator that is interested in three to six, and then another one that's interested in as many as it does. Now, we don't have that many airplanes as I just mentioned, but our expectation is that those additional customers will take aircraft that we're converting. So, we've signed up to buy five cargo kits from Precision that we intend to use to convert the aircraft ourselves. The first aircraft is nearing completion of conversion and will be finished in May, and then we'll roll one in right behind it. There will be a total of five conversions. We expect to be able to deliver three of those because the demand for converted aircraft today is extremely high. We believe we'll have customers for those aircraft as they roll out of the hangar, and we believe we'll have customers for those aircraft before they roll out of the hangar. Ideally, before we put the next one into conversion. So, I would expect that we'll have three converted aircraft sold for this year. If we can do a fourth, we can finish a fourth and be able to sell a fourth one this year; the balance of converted aircraft sales will roll into next year. So, the expectation is we'll sell the majority of aircraft this year. Whatever we have leftover to sell will be sold next year, and once we decide which aircraft are not going to be converted those aircraft will be fed into our parts machine.

Got it. And then, on AerAware, I was wondering if you could expand upon what milestones investors should be tracking for certification, the type certification. What still needs to be done if you will? And what's the lead time to getting that done? So when's the earliest we could actually see certification coming through?

Okay, so good question. We're flying with the FAA in two weeks, less than two weeks. We expect that we will have that FAA pre-certification flying done that same week. So, before the end of this month, we will no longer have to fly the airplane to demonstrate. Remember, we've flown over 60 hours on the airplane already with an FAA-designated engineering representative, a DER. We have another FAA-designated person who has certified that the airplane meets all of our drawings and conforms to certification, which he'll be able to endorse when the FAA completes its test flights. When that happens, we're still waiting on some documentation from Universal on software validation, which we expect to have by the end of April, at least we hope by the end of April. So, the FAA won't issue the STC until it has the validation paperwork on the software. We are therefore hopeful that sometime in May, after the validation of the software is finished, all the documentation will be in the hands of the FAA and we'll just be waiting for them to approve. Our expectation, because the FAA seems to be really interested in this project, is that we'll have the certification. Our best guess is by the end of May or sometime in June. But before the end of the second quarter, we believe we'll have it certified.

Okay. That's great to hear. And then my last one for now anyway is, if you could just talk about the equipment acquisition environment. So we didn't see as many retirements as we thought maybe last year. Wondering, if you're expecting that flight to show up in 2021? And if so, are you already seeing a lot of opportunity to deploy capital to acquire USM? If you could just talk to that environment?

So, we've been seeing it all year, but it's not been pricing that's attractive for us. Ultimately, these assets have been held because the price at which we'd be willing to pay is not suitable to the sellers. That's been predominantly what we've experienced to date. However, what we're starting to see now is that aircraft that have now been on the ground for coming up on a year, the sellers of those aircraft are realizing that many of them are not going to get redeployed given the status of the passenger airline industry. Lessors who have aircraft and the aircraft that are still in the hands of lessees that are unable to pay have no place to put the aircraft right now; that will be alleviated as some aircraft are returned to service, freeing up some storage space for other aircraft. What we are seeing is that pricing is finally getting to the point where our bid separation is very small. Arguably, we could take some of the deals that are being offered today, but we still think that pricing is going to soften, so we're not over-eager to spend money today until we really feel that we're at or close to the bottom. My personal view is that we're about six months away from realizing pricing in volume coming to us. Again, we’re seeing little trickles of it, and we are starting to acquire some assets, but not in the volume that we anticipate. I expect that as we get towards the end of the third quarter, the dam's going to break. I think by then when aircraft have been returned to service by the end of summer, many of those airplanes will be retired permanently. I think that's when we'll start seeing aircraft available at attractive pricing. So, we think it's going to be after the summer and the third quarter.

Our next question is from Gautam Khanna with Cowen. Please proceed with your question.

Sorry. I don't mean to monopolize, but I was going to ask a couple follow-ups. The other thing I was curious about was on the CARES Act funding, and so that was $9.2 million that's included in the EBITDA guide for the year I presume. Is that right? I just want to confirm that.

That’s right.

Okay. Can you remind me, were there any non-recurring items that we should be thinking about that are in the numbers this year or that we should just mentally model out from last year? Because if I recall, there was like a $10 million one-time item that was Q3 balance sheet, maybe Martin, if you could just kind of call out any specific items that we should be making sure we have in mind so we don't have kind of crazy year-over-year dynamics from last year, what's happening other than the CARES Act and some of the other ones?

You got it right. Besides the $12.7 million in CARES Act that was in 2020, we also had a return condition payment related to a freighter asset that we have on lease. That was a little over $10 million that came in in 2020. So that was a one-time overall item. Obviously, in 2021 what you're going to see is an increase in whole asset sales related to the 757 transaction, when that number was relatively small, about $3 million in 2020. So that'll be driving a lot of our revenue and margin improvements for 2021.

Got it. That makes sense. And then the other thing I was curious in Q4 itself was there any carryover of CARES Act proceeds from the prior two quarters?

No. In the fourth quarter, we had no additional CARES Act amounts. All the amounts that we received were utilized in the second and third quarter.

Got it. And of the $9.2 million that you've talked about, how does that flow through, like in what period? Is that Q1, Q2, Q3?

Yes. So, we were awarded in February, and we can use those proceeds once the proceeds were received. So, you will see a good majority of that amount coming in the first quarter, as it'll cover qualifying payroll in the first quarter with remaining amounts coming in the second quarter. But it will be fully utilized by the end of the second quarter.

Got it. And then maybe just bigger picture in terms of the MRO facilities, what you're seeing with respect to demand from third-party customers? Are we starting to see an uptick in either USM inquiries, requests for DDR repairs? I mean, I'm just curious, we're seeing a little bit of an uptick in freight activity. I'm wondering how that has translated so far in the first quarter with respect to kind of your run-of-the-mill aftermarket demand at the various sites?

We're really at our capacity. We're just being slammed at our heavy MROs. It's hard to separate the storage revenue from return-to-service revenue from new aircraft going in because we're seeing both aircraft exiting storage and aircraft entering storage. It's tying up so much of our personnel resources doing that, while we've got a conversion line going on, while we have customers that are eager for their aircraft to be ready, getting painted. I would tell you that from our perspective, this is the best we've ever seen it from an airframe MRO perspective since the start of the pandemic, and we're starting to see signs of recovery on the component MRO side as well because aircraft were grounded. Similar for engine leasing, other than wide-body engine leasing to support cargo customers. The demand for component MRO had been severely diminished as a result of COVID. There are signs of life now and we anticipate rising volumes in our component MRO. Landing gear work right now will require ensuring we have enough personnel to accommodate the amount of landing gear work that we expect to have this year. So the component MRO side is coming back. On the USM part side, interestingly, because the wide-body market is so soft with respect to passengers, you would think that the demand for parts for wide-body engines would be diminished. It's not; it's just the opposite. What we're seeing is that for aircraft that operate Pratt & Whitney 4000 engines, on aircraft like the 767 and 747, and likewise the CFM56-80, demand for material is recovering nicely right now as well as the demand for those engines.

And then is that a freighter-driven dynamic?

Yes, there's a freighter-driven dynamic.

Got it. And Martin you know I was looking through the earnings release, if I recall there was something like a $1.869 million adjustment to EBITDA in the quarter, if I recall. What was that by the way?

Hold on. Let me go back. That was related to transaction costs and equity compensation. Specifically, we had transaction costs related to our merger and legal fees that we expensed last year, and in this year's adjusted EBITDA table we reversed them out as transaction-related costs so they're excluded from adjusted EBITDA. That resulted in the $1.869 million adjustment in the table.

Got it, okay, that’s all clear. Thank you so much. I appreciate the color.

You're welcome.

And our next question is from Ken Herbert with Canaccord. Please proceed with your question.

Hey good morning, good afternoon. I just wanted to follow up on your comments regarding your storage facilities. At what point this year do you expect to start to see an outflow of aircraft out of those facilities? And when we hit that point or get close to that point, what does that do for you from a revenue standpoint?

So, I'm not sure we're going to see a net outflow this year. I think we projected it, but that's not my belief. And the reason I say that is because there's just not enough storage capacity relative to the amount of aircraft that are not generating positive revenue for the carriers that operate them. We are constantly being asked by airlines to store more aircraft than our facilities can accommodate and we’re turning some away. So what I expect to happen is that as some narrow bodies exit, we're going to see more wide-bodies enter storage, and that’s going to keep us busy for the balance of the year. I don’t see any material reduction in storage revenue and the maintenance associated with storage this year. When that balance shifts and more aircraft are coming out than are going in, that will result in loading up our aircraft MRO facilities with a lot of return-to-service work, which would include heavy checks, potentially cargo conversions, painting, interior reconfigurations, etc. So although storage business is a higher-margin business and relatively straightforward in terms of labor, return-to-service work results in more man-hours and higher billed labor. We think that will offset lower storage revenue when it occurs.

Okay, that’s helpful, and it sounds like from your comments Nick that you see the opportunity getting better as we go through this year for your ability to acquire feedstock at perhaps more attractive prices. Is it possible for you to quantify that at all? I mean, obviously the risk of maybe trying to time the market is too much and I think you would know better than anybody. But how much more downside could you expect to see on some of these feedstock opportunities? And what do you need to see as a signal where you start to get more aggressive on starting to procure material?

We're not competitive for acquiring aircraft that are sale-leaseback transactions because that uses a different capital structure than we have. Where we have an advantage is when an aircraft is naked — it comes off lease, requires work to restore to service, and you can part it out to create flyable aircraft using the best equipment, cobble engines, and monetize the residuals. That's our value-add. Many investors are buying aircraft that are either on lease or ready for lease, but the majority of parked aircraft today require significant work before they can be returned to service. Our 757 transaction is an example: we won that package because of our ability to do all the necessary work to get maximum value. If you don't have the ability to monetize the airframe, engines and parts at the parts level, it's difficult to buy a package of aircraft. As more aircraft stay in storage, airlines and lessors will rationalize their fleets and some will decide to sell. I don't know of a single event that will trigger that; rather, you'll see it empirically as carriers rationalize their fleets, particularly after the peak summer flying season. My sense is that late summer into September and October is when many carriers will decide to permanently retire aircraft, and that's when we would expect more attractive pricing and volume to become available.

All right Nick. Thanks for all the detail.

You're welcome.

It seems as if there are no more questions; therefore we’ve reached the end of the question-and-answer session. Now, I’ll turn the call over to Nick Finazzo for closing remarks.

Okay, so Gautam and Ken, thank you very much for the good questions. Appreciate that. Good talking to you guys today. And thank you everyone else for joining our call and we look forward to updating you again next quarter. Thank you. Goodbye.

This concludes today’s conference and you may disconnect your lines at this time. Thank you for your participation.