Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement
of a Registrant.
Through a wholly-owned subsidiary, the Company executed Conditional Sale
Agreements (CSA's) on July 26, 2021 through Air Lease Corporation for ten Airbus
A320 series aircraft. These ten aircraft are expected to be delivered to the
Company between November 2021 and July 2022. Each CSA has a term of 123 months
and provides for monthly payments and a purchase option exercisable at the
expiration of the term. Upon delivery, the CSA's will be recorded as finance
leases on the Company's financial statements. The Company estimates that it will
record between $235 million and $245 million as fixed assets and as debt under
finance leases upon delivery of all ten of the aircraft which are the subject of
these CSA's.
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