Air Lease Corp (AL) 2024年年度報告「NYSE」.pdf

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1、2024 Annual Report CORPORATE DIRECTORY(as of March 2025)BOARD OF DIRECTORS Steven F.Udvar-Hzy Executive Chairman of the Board John L.Plueger Chief Executive Officer and President Robert A.Milton Lead Independent Director Chair,Nominating and Corporate Governance Committee Audit Committee Leadership

2、Development and Compensation Committee Matthew J.Hart Chair,Audit Committee Nominating and Corporate Governance Committee Ian M.Saines Audit Committee Cheryl Gordon Krongard Chair,Leadership Development and Compensation Committee Nominating and Corporate Governance Committee Marshall O.Larsen Nomina

3、ting and Corporate Governance Committee Leadership Development and Compensation Committee Susan R.McCaw Leadership Development and Compensation Committee Yvette Hollingsworth Clark Audit Committee LEADERSHIP TEAM Executive Leadership Steven F.Udvar-Hzy Executive Chairman of the Board John L.Plueger

4、Chief Executive Officer and President Marketing and Commercial Affairs Alex A.Khatibi Executive Vice President Kishore Korde Executive Vice President Grant Levy Executive Vice President Legal Carol Forsyte Executive Vice President,General Counsel,Corporate Secretary and Chief Compliance Officer Fina

5、nce and Accounting Gregory B.Willis Executive Vice President and Chief Financial Officer Sabrina Lemmens Senior Vice President and Controller Grant Newman Senior Vice President,Treasurer Technical Asset Management Eric Hoogenkamp Senior Vice President Aircraft Procurement and Specification John Poer

6、schke Executive Vice President Commercial Contracts Sara Evans Senior Vice President Aircraft Sales&Trading David Beker Executive Vice President Finance&Managed Assets Shirley Lu Senior Vice President Investor Relations Jason Arnold Vice President Human Resources&Office Management Courtney McKeown S

7、enior Vice President Information Technology John Rojas Vice President UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-K(Mark One)ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIESEXCHANGE ACT OF 1934For the fiscal year ended December 31,2024TRANSITION REPORT PU

8、RSUANT TO SECTION 13 OR 15(d)OF THE SECURITIESEXCHANGE ACT OF 1934For the transition period fromtoCommission File Number 001-35121AIR LEASE CORPORATION(Exact name of registrant as specified in its charter)Delaware27-1840403(State or other jurisdiction ofincorporation or organization)(I.R.S.EmployerI

9、dentification No.)2000 Avenue of the Stars,Suite 1000NLos Angeles,California90067(Address of principal executive offices)(Zip Code)(Registrants telephone number,including area code):(310)553-0555Securities registered pursuant to Section 12(b)of the Act:Title of each classTrading Symbol(s)Name of eac

10、h exchangeon which registeredClass A Common StockALNew York Stock Exchange3.700%Medium-Term Notes,Series A,due April 15,2030AL30New York Stock ExchangeSecurities registered pursuant to Section 12(g)of the Act:NoneIndicate by check mark if the registrant is a well-known seasoned issuer,as defined in

11、Rule 405 of the SecuritiesAct.Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d)of the ExchangeAct.Yes No Indicate by check mark whether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Secur

12、itiesExchange Act of 1934 during the preceding 12 months(or for such shorter period that the registrant was required to file such reports),and(2)has been subject to such filing requirements for the past 90 days.Yes No Indicate by check mark whether the registrant has submitted electronically every I

13、nteractive Data File required to be submittedpursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shorter period that theregistrant was required to submit such files).Yes No Indicate by check mark whether the Registrant is a large accelerated file

14、r,an accelerated filer,a non-accelerated filer,a smallerreporting company,or an emerging growth company.See the definitions of“large accelerated filer,”“accelerated filer,”“smaller reportingcompany,”and“emerging growth company”in Rule 12b-2 of the Exchange Act.Large accelerated filer Accelerated fil

15、er Non-accelerated filer Smaller reporting company Emerging growth company If an emerging growth company,indicate by check mark if the Registrant has elected not to use the extended transition period forcomplying with any new or revised financial accounting standards provided pursuant to Section 13(

16、a)of the Exchange Act.Indicate by check mark whether the registrant has filed a report on and attestation to its managements assessment of theeffectiveness of its internal control over financial reporting under Section 404(b)of the Sarbanes-Oxley Act(15 U.S.C.7262(b)by theregistered public accountin

17、g firm that prepared or issued its audit report.If securities are registered pursuant to Section 12(b)of the Act,indicate by check mark whether the financial statements of theregistrant included in the filing reflect the correction of an error to previously issued financial statements.Indicate by ch

18、eck mark whether any of those error corrections are restatements that required a recovery analysis of incentive-basedcompensation received by any of the registrants executive officers during the relevant recovery period pursuant to 240.10D-1(b).Indicate by check mark whether the registrant is a shel

19、l company(as defined in Rule 12b-2 of the Exchange Act).Yes No The aggregate market value of registrants Class A common stock held by non-affiliates was approximately$5.0 billion onJune 28,2024,based upon the last reported sales price on the New York Stock Exchange.As of February 11,2025,there were

20、111,376,884shares of Class A common stock outstanding.DOCUMENTS INCORPORATED BY REFERENCEDesignated portions of the Proxy Statement relating to registrants 2025 Annual Meeting of Shareholders,which will be filed with theSecurities and Exchange Commission within 120 days after the end of the 2024 fis

21、cal year,are incorporated by reference into Part III of this Report.Form 10-KFor the Year Ended December 31,2024INDEXTABLE OF CONTENTSPagePART I.Item 1.Business.4Item 1A.Risk Factors.16Item 1B.Unresolved Staff Comments.34Item 1C.Cybersecurity.34Item 2.Properties.35Item 3.Legal Proceedings.37Item 4.M

22、ine Safety Disclosures.38PART IIItem 5.Market for Registrants Common Equity,Related Stockholder Matters and Issuer Purchases ofEquity Securities.39Item 6.RESERVED.40Item 7.Managements Discussion and Analysis of Financial Condition and Results of Operations.41Item 7A.Quantitative and Qualitative Disc

23、losures About Market Risk.64Item 8.Financial Statements and Supplementary Data.66Item 9.Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.98Item 9A.Controls and Procedures.98Item 9B.Other Information.99Item 9C.Disclosure Regarding Foreign Jurisdictions that Prevent

24、 Inspections.100PART IIIItem 10.Directors,Executive Officers and Corporate Governance.101Item 11.Executive Compensation.101Item 12.Security Ownership of Certain Beneficial Owners and Management Related StockholderMatters.101Item 13.Certain Relationships and Related Transactions,and Director Independ

25、ence.102Item 14.Principal Accounting Fees and Services.102PART IVItem 15.Exhibits,Financial Statement Schedules.103Item 16.Form 10-K Summary.1352FORWARD LOOKING STATEMENTSThis Annual Report on Form 10-K and other publicly available documents may contain or incorporatestatements that constitute forwa

26、rd-looking statements within the meaning of the Private Securities LitigationReform Act of 1995.Those statements appear in a number of places in this Form 10-K and include statementsregarding,among other matters,the state of the airline industry,our access to the capital and debt markets,theimpact o

27、f Russias invasion of Ukraine and the impact of sanctions imposed on Russia,aircraft and enginedelivery delays and manufacturing flaws,including as a result of the previous labor strike of The BoeingCompany,our aircraft sales pipeline and expectations,changes in inflation and interest rates and othe

28、rmacroeconomic conditions and other factors affecting our financial condition or results of operations.Wordssuch as“can,”“could,”“may,”“predicts,”“potential,”“will,”“projects,”“continuing,”“ongoing,”“expects,”“anticipates,”“intends,”“plans,”“believes,”“seeks,”“estimates”and“should,”and variations of

29、 these wordsand similar expressions,are used in many cases to identify these forward-looking statements.Any such forward-looking statements are not guarantees of future performance and involve risks,uncertainties,and other factorsthat may cause our actual results,performance or achievements,or indus

30、try results to vary materially from ourfuture results,performance or achievements,or those of our industry,expressed or implied in such forward-looking statements.Such factors include,among others,general commercial aviation industry,economic,andbusiness conditions,which will,among other things,affe

31、ct demand for aircraft,availability,and creditworthinessof current and prospective lessees;lease rates;availability and cost of financing and operating expenses;governmental actions and initiatives;and environmental and safety requirements,as well as the factors discussedunder“Item 1A.Risk Factors”i

32、n this Annual Report on Form 10-K.All forward-looking statements arenecessarily only estimates of future results,and there can be no assurance that actual results will not differmaterially from expectations.You are therefore cautioned not to place undue reliance on such statements.Anyforward-looking

33、 statement speaks only as of the date on which it is made,and we do not intend and undertake noobligation to update any forward-looking information to reflect actual results or events or circumstances after thedate on which the statement is made or to reflect the occurrence of unanticipated events.3

34、PART IITEM 1.BUSINESSOverviewAir Lease Corporation(the“Company”,“ALC”,“we”,“our”or“us”)is a leading aircraft leasingcompany that was founded by aircraft leasing industry pioneer,Steven F.Udvar-Hzy.We are principallyengaged in purchasing the most modern,fuel-efficient new technology commercial jet ai

35、rcraft directly fromaircraft manufacturers,such as Airbus S.A.S.(“Airbus”)and The Boeing Company(“Boeing”),and leasing thoseaircraft to airlines throughout the world with the intention to generate attractive returns on equity.In addition toour leasing activities,we sell aircraft from our fleet to th

36、ird parties,including other leasing companies,financialservices companies,airlines and other investors.We also provide fleet management services to investors andowners of aircraft portfolios for a management fee.Our operating performance is driven by the growth of ourfleet,the terms of our leases,th

37、e interest rates on our debt,and the aggregate amount of our indebtedness,supplemented by gains from aircraft sales and our management fees.We currently have relationships with over 200 airlines across 70 countries.We operate our business on aglobal basis,providing aircraft to airline customers in e

38、very major geographical region,including markets suchas Asia Pacific,Europe,the Middle East and Africa,Central America,South America and Mexico,and the U.S.and Canada.In markets such as the United States and Western Europe,our strategy is to focus on thereplacement market as many airlines look to re

39、place aging aircraft with new,modern technology,fuel efficientjet aircraft.In less saturated markets,including parts of Asia,in addition to the replacement market,we servecustomers expanding their fleets.Many of these less saturated markets are experiencing increased demand forpassenger airline trav

40、el.We expect that these less saturated markets will also present significant replacementopportunities in upcoming years as many airlines look to replace aging aircraft with new,modern technology,fuel efficient jet aircraft.An important focus of our strategy is meeting the needs of this replacement m

41、arket.Airlines in some of these less saturated markets have fewer financing alternatives,enabling us to commandhigher lease rates compared to those in more mature markets.We mitigate the risks of owning and leasing aircraft through careful management and diversification ofour leases and lessees by g

42、eography,lease term,and aircraft age and type.We believe that diversification of ourfleet reduces the risks associated with individual lessee defaults and adverse geopolitical and regional economicevents.We mitigate the risks associated with cyclical variations in the airline industry by managing cu

43、stomerconcentrations and lease maturities in our fleet to minimize periods of concentrated lease expirations.In order tomaximize residual values and minimize the risk of obsolescence,our strategy is to own an aircraft during the firstthird of its expected 25-year useful life.During the year ended De

44、cember 31,2024,we purchased 65 new aircraft from Airbus and Boeing,andsold 39 aircraft.We ended the year with a total of 489 aircraft in our owned fleet.The net book value of our fleetgrew by 7.4%to$28.2 billion as of December 31,2024 compared to$26.2 billion as of December 31,2023.Theweighted avera

45、ge age of our fleet was 4.6 years and the weighted average lease term remaining was 7.2 years asof December 31,2024.Our managed fleet was comprised of 60 aircraft as of December 31,2024 compared to 78aircraft as of December 31,2023.We have a globally diversified customer base comprised of 116 airlin

46、es in 58countries as of December 31,2024.We continued to maintain a strong lease utilization rate of 100.0%for theyear ended December 31,2024.As of December 31,2024,we had commitments to purchase 269 aircraft from Airbus and Boeing fordelivery through 2029,with an estimated aggregate commitment of$1

47、7.1 billion.We have placed 100%of ourexpected orderbook on long-term leases for aircraft delivering through the end of 2026 and have placedapproximately 62%of our entire orderbook.We ended 2024 with$29.5 billion in committed minimum futurerental payments,consisting of$18.3 billion in contracted mini

48、mum rental payments on the aircraft in our existing4fleet and$11.2 billion in minimum future rental payments related to aircraft which will deliver between 2025through 2029.Our total revenues for the year ended December 31,2024 increased by 1.8%to$2.7 billion as comparedto 2023.The increase in our t

49、otal revenues was primarily due to an increase in aircraft sales and trading activityand the growth of our fleet,partially offset by a decrease in end of lease revenue of$100.1 million as comparedto the prior period,due to fewer aircraft returns during the year ended December 31,2024,as well as a sl

50、ightdecrease in our lease yields due to the sales of older aircraft with higher lease yields and the purchases of newaircraft with lower initial lease yields.During the year ended December 31,2024,we recognized$169.7 millionin gains from the sale of 39 aircraft,compared to$146.4 million in gains fro

51、m the sale of 25 aircraft for the yearended December 31,2023.We finance the purchase of aircraft and our business with available cash balances and internallygenerated funds,including through cash flows from our operating leases,aircraft sales and trading activity anddebt financings.Our debt financin

52、g strategy is focused on raising unsecured debt in the global bank and debtcapital markets,with limited utilization of government guaranteed export credit or other forms of securedfinancing.During 2024,we raised approximately$5.6 billion in committed debt financings,with floating interestrates rangi

53、ng from one-month SOFR plus 1.02%and one-month SOFR plus 1.40%and fixed interest ratesranging from 5.10%to 5.95%,net of the effects of cross-currency hedging arrangements.We ended 2024 with anaggregate borrowing capacity under our revolving credit facility of$7.6 billion and total liquidity of$8.1 b

54、illion.As of December 31,2024,we had total debt outstanding of$20.4 billion,of which 79.0%was at a fixed rate and97.3%of which was unsecured,and in the aggregate,our composite cost of funds was 4.14%.Our net income attributable to common stockholders for the year ended December 31,2024 was$372.1 mil

55、lion,or$3.33 per diluted share,as compared to$572.9 million,or$5.14 per diluted share,for the yearended December 31,2023.Our net income attributable to common stockholders decreased from the prior yearprimarily due to higher interest expense,driven by the increase in our composite cost of funds and

56、overalloutstanding debt balance,partially offset by the increase in total revenue as discussed above.In addition,for theyear ended December 31,2023,we recognized a net benefit of approximately$67.0 million for the settlement ofinsurance claims under S7s insurance policies related to four aircraft pr

57、eviously included in our owned fleet andour equity interest in certain aircraft in our managed fleet that were previously on lease to S7.See“Item 7.Managements Discussion and Analysis of Financial Condition and Results of Operations”for more informationon our financial results for the year ended Dec

58、ember 31,2024.Adjusted net income before income taxes1during the year ended December 31,2024 was$574.2 millionor$5.13 per adjusted diluted share,as compared to$733.6 million,or$6.58 per adjusted diluted share,for theyear ended December 31,2023.Adjusted net income before income taxes decreased primar

59、ily due to higherinterest expense,driven by the increase in our composite cost of funds and overall outstanding debt balance,partially offset by the increase in total revenue as discussed above.1Adjusted net income before income taxes excludes the effects of certain non-cash items such as non-cashde

60、emed dividends upon redemption of our Series A preferred stock,one-time or non-recurring items that arenot expected to continue in the future,such as net write-offs and recoveries related to our former Russianfleet,and certain other items.Adjusted net income before income taxes and adjusted diluted

61、earnings pershare before income taxes are measures of financial and operational performance that are not defined by U.S.Generally Accepted Accounting Principles(“GAAP”).See“Results of Operations”in“Item 7.Managements Discussion and Analysis of Financial Condition and Results of Operations”of this An

62、nualReport on Form 10-K for a discussion of adjusted net income before income taxes and adjusted dilutedearnings per share before income taxes as non-GAAP measures and a reconciliation of these measures to netincome attributable to common stockholders.5Aircraft IndustryWe believe the current airline

63、 operating environment is favorably positioned for us and the broadercommercial aircraft leasing industry.Factors such as increases in population growth and the size of the globalmiddle class as well as air travel demand,and improved global economic health and development positivelyaffect the long-t

64、erm performance of the commercial aircraft leasing industry.In addition,factors and trendsincluding increased airline financing needs,Original Equipment Manufacturer(“OEM”)supply chain challengesand backlogs,the elevated price of jet fuel,and environmental sustainability objectives impact the commer

65、cialaircraft leasing industry in the short-term and may increase the demand for our aircraft.Passenger traffic volume has historically expanded at a faster rate than global gross domestic product(“GDP”)growth,in part due to the expansion of the global middle class and the ease and affordability of a

66、irtravel,which we expect to continue.The International Air Transport Association(“IATA”)reported thatpassenger traffic was up 10%during 2024 relative to the prior year,primarily due to continued strength ininternational traffic and healthy continued expansion of domestic traffic globally.Internation

67、al traffic in 2024rose 14%relative to the prior year,benefiting from robust continued international travel expansion in the AsiaPacific region,as well as strong expansion in most other major international markets reported by IATA.Globaldomestic traffic rose 6%during 2024 as compared to the prior yea

68、r,remaining above the pace of global GDPexpansion.Meanwhile,passenger load factors also continue to rise and are persisting at historically high levels,which is compounding airline demand for additional aircraft.IATA reported total global passenger load factorsof 84%for 2024,as compared to 82%in the

69、 prior year period and 79%for full-year 2022.As global air traffic continues to expand,we are experiencing increased demand for our aircraft throughnew lease requests and lease extension requests,which we expect to continue into 2025.Airline forward ticketsales as reported by a number of major airli

70、nes remained healthy in the fourth quarter 2024,illustrating continuedsupport for traffic volume expansion.We expect the need for airlines to replace aging aircraft will also increasethe demand for newer,more fuel efficient aircraft.As a result,we believe many airlines will look to lessors forthese

71、new aircraft.In addition,both Airbus and Boeing have ongoing delivery delays which have been furthercompounded by engine manufacturer delays,shorter on-wing engine time of most new technology engines and,most recently,the Boeing labor strike in late 2024.The labor strike impacted Boeings ability to

72、produce anddeliver aircraft in our orderbook and we anticipate ongoing impacts to our Boeing orderbook deliveries.Weexpect deliveries of our 737MAX aircraft and some 787 deliveries will continue to be impacted by the residualeffects of the labor strike and the FAAs heightened involvement in Boeings

73、production rates.In addition,theBoeing labor strike could lead to negative impacts on the broader aviation supply chain which could ultimatelyimpact other OEMs,including Airbus.We also expect that relatively low levels of widebody retirements inrecent years could lead to an accelerated replacement c

74、ycle of older widebody aircraft in the future.The increased demand for our aircraft,combined with elevated interest rates and inflation,helped toincrease lease rates on new lease agreements and lease extensions during the year ended December 31,2024.Ournew aircraft deliveries in the fourth quarter o

75、f 2024 represented our highest delivery lease yield in a quarter inover four years;however,lease rate increases continue to lag behind our rising borrowing costs.We expect thatlease rates will remain strong as the supply and demand environment for commercial aircraft remains tight andour funding adv

76、antage relative to our airline customers widens.Lease rates are influenced by several factorsabove and beyond interest rates,including aircraft demand,supply technicals,supply chain disruptions,environmental initiatives and other factors that may result in a change in lease rates regardless of the i

77、nterest rateenvironment and therefore,are difficult to project or forecast.Based on our views of the market and assumptionsaround our sales activity and interest rate environment,we expect to see a moderately-sized upward trajectory inlease yield by the end of 2025 and for each year for the next thr

78、ee to four years.We also believe the increase inlease rates and the sustained tightness in the credit markets may result in a shortfall of available capital to financeaircraft purchases,which could increase the demand for leasing.Airline reorganizations,liquidations,or other forms of bankruptcies oc

79、curring in the industry mayinclude some of our aircraft customers and result in the early return of aircraft or changes in our lease terms.Our6airline customers are facing higher operating costs as a result of higher fuel costs,persistently elevated interestrates,inflation,foreign currency risk,ongo

80、ing labor shortages and disputes,as well as delays and cancellationscaused by the global air traffic control system and airports,although strong air traffic demand has provided acounterbalance to these increased costs.We believe the aircraft leasing industry has remained resilient over time across a

81、 variety of globaleconomic conditions and remain optimistic about the long-term fundamentals of our business.We believe leasingwill continue to be an attractive form of aircraft financing for airlines because less cash and financing is requiredfor the airlines,lessors maintain key delivery positions

82、,and it provides fleet flexibility while eliminating residualvalue risk for lessees.Operations to DateCurrent FleetThe net book value of our fleet2increased by 7.4%to$28.2 billion as of December 31,2024 comparedto$26.2 billion as of December 31,2023.As of December 31,2024,we owned 489 aircraft in ou

83、r aircraftportfolio,comprised of 355 narrowbody aircraft and 134 widebody aircraft.As of December 31,2024,theweighted average fleet age and weighted average remaining lease term of our fleet was 4.6 years and 7.2 years,respectively.We had a managed fleet of 60 aircraft as of December 31,2024 compare

84、d to 78 as of December 31,2023.Geographic DiversificationOver 95%of our aircraft are operated internationally.The following table sets forth the dollar amountand percentage of our Rental of flight equipment revenues attributable to the respective geographical regionsbased on each airlines principal

85、place of business:Year EndedDecember 31,2024Year EndedDecember 31,2023Year EndedDecember 31,2022RegionAmount ofRentalRevenue%of TotalAmount ofRentalRevenue%of TotalAmount ofRentalRevenue%of Total(in thousands,except percentages)Asia Pacific.$1,004,20240.4%$1,156,83746.7%$1,067,27048.2%Europe.944,637

86、38.0%769,40731.1%611,09127.6%The Middle East and Africa.206,8468.3%262,55410.6%251,24311.3%Central America,South America andMexico.189,9197.6%156,2756.3%141,6386.4%U.S.and Canada.142,3515.7%132,5345.3%143,2666.5%Total.$2,487,955100.0%$2,477,607100.0%$2,214,508100.0%2References throughout this Annual

87、 Report on Form 10-K to“our fleet”refer to the aircraft included in flightequipment subject to operating leases and do not include aircraft in our managed fleet,our flight equipmentheld for sale or aircraft classified as net investments in sales-type leases unless the context indicatesotherwise.7The

88、 following table sets forth the regional concentration based on each airlines principal place ofbusiness of our flight equipment subject to operating lease based on net book value as of December 31,2024 and2023:December 31,2024December 31,2023RegionNet BookValue%of TotalNet BookValue%of Total(in tho

89、usands,except percentages)Europe.$11,653,66841.4%$9,881,02437.7%Asia Pacific.10,077,62135.8%10,456,43539.8%Central America,South America,and Mexico.2,685,0989.5%2,361,0899.0%The Middle East and Africa.1,971,4487.0%2,062,4207.9%U.S.and Canada.1,782,6316.3%1,470,2405.6%Total.$28,170,466100.0%$26,231,2

90、08100.0%The following table sets forth our top five lessees by net book value as of December 31,2024 and 2023:December 31,2024December 31,2023Lessee%of TotalLessee%of TotalVirgin Atlantic.6.5%EVA Air.4.9%Air France-KLM Group.6.2%Virgin Atlantic.4.8%ITA.5.6%Air France-KLM Group.4.3%Vietnam.4.6%ITA.4.

91、2%Aeromexico.4.4%Vietnam Airlines.4.1%At December 31,2024 and 2023,we owned and managed leased aircraft to customers in the followingregions based on each airlines principal place of business:December 31,2024December 31,2023RegionNumber ofCustomers(1)%of TotalNumber ofCustomers(1)%of TotalEurope.514

92、4.0%5042.0%Asia Pacific.3227.6%3428.6%The Middle East and Africa.1412.1%1512.6%U.S.and Canada.119.5%1210.1%Central America,South America and Mexico.86.8%86.7%Total.116100.0%119100.0%(1)A customer is an airline with its own operating certificate.For the year ended December 31,2024,no individual count

93、ry represented at least 10%of our rentalrevenue based on each airlines principal place of business;however,for the years ended December 31,2023 and2022,China was the only individual country that represented at least 10%of our rental revenue based on eachairlines principal place of business with rent

94、al revenues of$330.8 million and$360.0 million,respectively.For the years ended December 31,2024,2023 and 2022,no individual airline contributed more than10%to our rental revenue.Our customer base is highly diversified,with an average customer concentration of approximately 1.0%of our fleet net book

95、 value as of December 31,2024.We also have a globally diversified customer base with anaverage country concentration of approximately 1.9%of our fleet net book value as of December 31,2024.8Aircraft Acquisition StrategyWe seek to acquire the most highly in demand and widely distributed,modern techno

96、logy,fuel efficientand lowest emissions narrowbody and widebody commercial jet aircraft,with a primary focus on passengeraircraft.Our strategy is to order new aircraft directly from the manufacturers.When placing new aircraft orderswith the manufacturers,we strategically target the replacement of ag

97、ing aircraft with modern technology aircraft.Additionally,we look to supplement our order pipeline with opportunistic purchases of aircraft in the secondarymarket and participate in sale-leaseback transactions with airlines.Prior to ordering aircraft,we evaluate the market for specific types of airc

98、raft.We consider the overalldemand for the aircraft type in the marketplace based on our deep knowledge of the aviation industry and ourcustomer relationships.It is important to assess the airplanes economic viability,the operating performancecharacteristics,engine variant options,intended utilizati

99、on by our customers,and which aircraft types it willreplace or compete within the global market.Additionally,we study the effects of global airline passenger trafficgrowth in order to determine the likely demand for our new aircraft upon delivery.For new aircraft deliveries,we source many components

100、 separately,which include seats,safetyequipment,avionics,galleys,cabin finishes,engines,and other equipment.Oftentimes,we are able to achievelower pricing through direct bulk purchase contracts with the component manufacturers than would beachievable if we relied on the airframe manufacturers to sou

101、rce the components for the aircraft themselves.Airframe manufacturers such as Airbus and Boeing install these buyer furnished equipment in our aircraft duringthe final assembly process at their facilities.With this purchasing strategy,we are able to both meet specificcustomer configuration requireme

102、nts and lower our total acquisition cost of the aircraft.Aircraft Leasing StrategyThe airline industry is complex and constantly evolving due to changes in the competitive landscape andpassenger traffic patterns.Fleet flexibility is key to the airlinesability to effectively operate and compete in th

103、eirrespective markets.Operating leases offer airlines significant fleet flexibility by allowing them to adapt andmanage their fleets through varying market conditions without bearing the full financial risk associated withthese capital-intensive assets that have an expected useful life of 25 years.W

104、e work closely with our airlinecustomers throughout the world to help optimize their long-term aircraft fleet strategies.We may also,from timeto time,work with our airline customers to assist them in obtaining financing for aircraft.We work to mitigate the risks associated with owning and leasing ai

105、rcraft and cyclical variations in theairline industry through careful management of our fleet,including managing customer concentrations bygeography and region,entering into long-term leases,staggering lease maturities,balancing aircraft typeexposures,and maintaining a young fleet age.We believe tha

106、t diversification of our fleet reduces the risksassociated with individual customer defaults and the impact of adverse geopolitical and regional economicevents.In order to maximize residual values and minimize the risk of obsolescence,our strategy is generally toown an aircraft for approximately the

107、 first third of its expected 25-year useful life.Our management team identifies prospective airline customers based upon industry knowledge andlong-standing relationships.Prior to leasing an aircraft,we evaluate the competitive positioning of the airline,thestrength and quality of the management tea

108、m,and the financial performance of the airline.Our management teamobtains and reviews relevant business materials from all prospective customers before entering into a leaseagreement.Under certain circumstances,the customer may be required to obtain guarantees or other financialsupport from a sovere

109、ign entity or a financial institution.We work closely with our existing customers andpotential lessees to develop customized lease structures that address their specific needs.We typically enter intoa lease agreement 18 to 36 months in advance of the delivery of a new aircraft from our orderbook.Onc

110、e theaircraft has been delivered and operated by the airline,we look to remarket the aircraft and sign a follow-on leasesix to 12 months ahead of the scheduled expiry of the initial lease term.9Our leases are typically structured as operating leases with fixed rates and terms and typically requireca

111、sh security deposits and maintenance reserve payments.In addition,our leases are all structured as triple netleases,whereby the lessee is responsible for all operating costs,including taxes,insurance and maintenance andalso contain provisions that require payment whether or not the aircraft is opera

112、ted,irrespective of thecircumstances.Substantially all of our leases require payments to be made in U.S.dollars.In addition,our leases require the lessee to be responsible for compliance with applicable laws andregulations with respect to the aircraft.We require our lessees to comply with the standa

113、rds of either the U.S.Federal Aviation Administration(“FAA”)or its equivalent in foreign jurisdictions.As a function of these lawsand the provisions in our lease contracts,the lessees are responsible for performing all maintenance of the aircraftand returning the aircraft and its components in a spe

114、cified return condition.Generally,we receive a cash depositand maintenance reserves as security for the lessees performance of its obligations under the lease and thecondition of the aircraft upon return.In addition,most leases contain extensive provisions regarding our remediesand rights in the eve

115、nt of a default by a lessee.The lessee generally is required to continue to make leasepayments under all circumstances,including periods during which the aircraft is not in operation due tomaintenance or grounding.Some foreign countries have currency and exchange laws regulating the international tr

116、ansfer ofcurrencies.When necessary,we may require,as a condition to any foreign transaction,that the lessee orpurchaser in a foreign country obtain the necessary approvals of the appropriate government agency,financeministry,or central bank for the remittance of all funds contractually owed in U.S.d

117、ollars.We attempt tominimize our currency and exchange risks by negotiating the designated payment currency in our leases to beU.S.dollars.To meet the needs of certain of our airline customers,we have agreed to accept certain leasepayments in a foreign currency.After we agree to the rental payment c

118、urrency with an airline,the negotiatedcurrency typically remains for the term of the lease.We may enter into contracts to mitigate our foreign currencyrisk,but we expect that the economic risk arising from foreign currency denominated leases will be immaterial tous.We may,in connection with the leas

119、e of used aircraft,agree to contribute specific additional amounts tothe cost of certain first major maintenance events or modifications,which usually reflect the usage of the aircraftprior to the commencement of the lease.We may be obligated under the leases to make reimbursements ofmaintenance res

120、erves previously received to lessees for expenses incurred for certain planned majormaintenance.We also,on occasion,may contribute towards aircraft modifications and recover any such costsover the life of the lease.MonitoringDuring the lease term,we closely follow the operating and financial perform

121、ance of our lessees.Wemaintain a high level of communication with the lessee and frequently evaluate the state of the market in whichthe lessee operates,including the impact of changes in passenger air travel and preferences,the impact ofdelivery delays,changes in general economic conditions,emergin

122、g competition,new government regulations,regional catastrophes,and other unforeseen shocks that are relevant to the airlines market.This enables us toidentify lessees that may be experiencing operating and financial difficulties.This identification assists us inassessing the lessees ability to fulfi

123、ll its obligations under the lease.This monitoring also identifies candidates,where appropriate,to restructure the lease prior to the lessees insolvency or the initiation of bankruptcy orsimilar proceedings.Once an insolvency or bankruptcy occurs,we typically have less control over,and wouldmost lik

124、ely incur greater costs in connection with,the restructuring of the lease or the repossession of the aircraft.During the life of the lease,situations may emerge that place our customers under significant financialpressure,which may lead us to repossess our aircraft or restructure our leases with our

125、 airline customers.Whenwe repossess an aircraft leased in a foreign country,we generally expect to export the aircraft from the lesseesjurisdiction.In some situations,the lessees may not fully cooperate in returning the aircraft.In those cases,we10will take appropriate legal action,a process that co

126、uld ultimately delay the return and export of the aircraft.Inaddition,in connection with the repossession of an aircraft,we may be required to pay outstanding mechanicsliens,airport charges,navigation fees and other amounts secured by liens on the repossessed aircraft.Thesecharges could relate to ot

127、her aircraft that we do not own but were operated by the lessee.RemarketingOur lease agreements are generally structured to require lessees to notify us six to 12 months in advanceof the leases expiration if a lessee desires to renew or extend the lease.Requiring lessees to provide us with suchadvan

128、ce notice provides our management team with an extended period of time to consider a broad set ofalternatives with respect to the aircraft,including assessing general market and competitive conditions andpreparing to remarket or sell the aircraft.If a lessee fails to provide us with notice,the lease

129、 will automaticallyexpire at the end of the term,and the lessee will be required to return the aircraft pursuant to the conditions in thelease.As discussed above,our leases contain detailed provisions regarding the required condition of the aircraftand its components upon return at the end of the le

130、ase term.Aircraft Sales&Trading StrategyOur strategy is to maintain a portfolio of young modern aircraft with a widely diversified customer base.In order to achieve this profile,we primarily order new planes directly from the manufacturers,place them onlong-term leases,and sell the aircraft when the

131、y near the end of the first third of their expected 25-year economicuseful life.We typically sell aircraft that are currently operated by an airline with multiple years of lease termremaining on the contract,in order to achieve the maximum disposition value of the aircraft.Buyers of theaircraft may

132、include other leasing companies,financial institutions,airlines and other investors.We also,fromtime to time,buy and sell aircraft on an opportunistic basis for trading profits.Additionally,as discussed below,we may provide management services to buyers of our aircraft assets for a fee.Aircraft Mana

133、gement StrategyWe supplement our core business model by providing fleet management services to third-party investorsand owners of aircraft portfolios for a management fee.This allows us to better serve our airline customers andexpand our existing airline customer base by providing additional leasing

134、 opportunities beyond our own aircraftportfolio,new order pipeline,and customer or regional concentration limits.As of December 31,2024,we had amanaged fleet of 60 aircraft.Financing StrategyWe finance the purchase of aircraft and our business with available cash balances and internallygenerated fun

135、ds,including through cash flows from our operating leases,aircraft sales and trading activity,anddebt financings.We aim to maintain investment-grade credit metrics and focus our debt financing strategy onfunding our business primarily on an unsecured basis with mostly fixed-rate debt issued in the p

136、ublic bondmarket.Unsecured financing provides us with operational flexibility when selling or transitioning aircraft fromone airline to another.We also have the ability to seek debt financing secured by our assets,as well as financingssupported through government-guaranteed export credit agencies fo

137、r most of our future aircraft deliveries.InsuranceWe require our lessees to obtain insurance coverage that is customary in the air transportation industry,including comprehensive liability insurance,aircraft all-risk hull insurance,and war-risk insurance covering riskssuch as hijacking,terrorism,con

138、fiscation,expropriation,seizure,and nationalization.We generally require acertificate of insurance from the lessees insurance broker prior to delivery of an aircraft.Generally,allcertificates of insurance contain a breach of warranty endorsement so that our interests are not prejudiced by any11act o

139、r omission of the lessee.Lease agreements generally require hull and liability limits to be in U.S.dollars,which are shown on the certificate of insurance.In accordance with our lease agreements,insurance premiums are paid by the lessee,with coverageacknowledged by the broker or carrier.The territor

140、ial coverage,in each case,should be suitable for the lesseesarea of operations and based on available insurance coverages.We generally require that the certificates ofinsurance contain,among other provisions,a provision prohibiting cancellation or material change without atleast 30 daysadvance writt

141、en notice to the insurance broker,who would be obligated to give us prompt notice,except in the case of hull war and liability war insurance policies,which customarily only provide seven daysadvance written notice for cancellation and may be subject to shorter notice under certain market conditions.

142、Furthermore,the insurance is primary and not contributory,and we require that all insurance carriers be requiredto waive rights of subrogation against us.The stipulated loss value schedule under aircraft hull insurance policies is on an agreed-value basisacceptable to us and typically exceeds the bo

143、ok value of the aircraft.In cases where we believe that the agreedvalue stated in the lease is not sufficient,we make arrangements to cover such deficiency,which would includethe purchase of additional“Total Loss Only”coverage for the deficiency.Aircraft hull policies generally contain standard clau

144、ses covering aircraft and engines.The lessee isrequired to pay all deductibles.Furthermore,the hull war policies generally contain war risk endorsements,including,but not limited to,confiscation(where available),seizure,hijacking and similar forms of retention orterrorist acts.The comprehensive liab

145、ility insurance listed on certificates of insurance generally includes provisionsfor bodily injury,property damage,passenger liability,cargo liability,and such other provisions reasonablynecessary in commercial passenger and cargo airline operations.We expect that such certificates of insurance list

146、combined comprehensive single liability limits of not less than$500 million for Airbus and Boeing aircraft.As astandard in the industry,airline operators policies contain a sublimit for third-party war risk liability generally inthe amount of at least$150 million.We require each lessee to purchase h

147、igher limits of third-party war riskliability.The international aviation insurance market has exclusions for physical damage to aircraft hulls causedby weapons of mass destruction,including nuclear events,dirty bombs,bio-hazardous materials,andelectromagnetic pulsing.Exclusions for the same type of

148、perils could be introduced into liability policies in thefuture as well.We cannot assure you that our lessees will be adequately insured against all risks in all territories inwhich they operate,that lessees will at all times comply with their obligations to maintain insurance,that anyparticular cla

149、im will be paid,or that lessees will be able to obtain adequate insurance coverage at commerciallyreasonable rates in the future.In addition to the insurance coverage obtained by our lessees,we separately purchase contingentliability insurance and contingent hull insurance on all aircraft in our own

150、ed fleet and maintain other insurancecovering the specific needs of our business operations.While we believe our insurance is adequate both as tocoverages and amounts based on industry standards in the current market,we cannot assure you that we areadequately insured against all risks and in all ter

151、ritories in which our aircraft operate.For example,Russia,Ukraine,Belarus and the Republic of Sudan are now generally excluded from coverage in our contingentliability,contingent hull and contingent hull war insurance.CompetitionThe leasing,remarketing,and sale of aircraft is highly competitive.Whil

152、e we are one of the largestaircraft lessors operating on a global scale,the aircraft leasing industry is diversified with a large number of12competitors.We face competition from aircraft manufacturers,banks,financial institutions,other leasingcompanies,and airlines.Some of our competitors may have g

153、reater operating and financial resources and accessto lower capital costs than we have.Competition for leasing transactions is based on a number of factors,including delivery dates,lease rates,lease terms,other lease provisions,aircraft condition,and the availability inthe marketplace of the types o

154、f aircraft required to meet the needs of airline customers.Competition in thepurchase and sale of used aircraft is based principally on the availability of used aircraft,price,the terms of thelease to which an aircraft is subject,and the creditworthiness of the lessee,if any.Government RegulationThe

155、 air transportation industry is highly regulated.We do not operate commercial jet aircraft,and thusmay not be directly subject to many industry laws and regulations,such as regulations of the U.S.Department ofState(the“DOS”),the U.S.Department of Transportation,or their counterpart organizations in

156、foreign countriesregarding the operation of aircraft for public transportation of passengers and property.As discussed below,however,we are subject to government regulation in a number of respects.In addition,our lessees are subject toextensive regulation under the laws of the jurisdictions in which

157、 they are registered or operate.These lawsgovern,among other things,the registration,operation,maintenance,and condition of the aircraft.We are required to register our aircraft with an aviation authority mutually agreed upon with our lessee.Each aircraft registered to fly must have a Certificate of

158、 Airworthiness,which is a certificate demonstrating theaircrafts compliance with applicable government rules and regulations and that the aircraft is consideredairworthy.Each airline we lease to must have a valid operation certificate to operate our aircraft.Our lessees areobligated to maintain the

159、Certificates of Airworthiness for the aircraft they lease.Our involvement with the civil aviation authorities of foreign jurisdictions consists largely of requests toregister and deregister our aircraft on those countriesregistries.We are also subject to the regulatory authority of the DOS and the U

160、.S.Department of Commerce(the“DOC”)to the extent such authority relates to the export of aircraft for lease and sale to foreign entities and theexport of parts to be installed on our aircraft.We may be required to obtain export licenses for parts installed inaircraft exported to foreign countries.Th

161、e DOC and the U.S.Department of the Treasury(through its Office ofForeign Assets Control,or“OFAC”)impose restrictions on the operation of U.S.-made goods,such as aircraftand engines,in sanctioned countries,as well as on the ability of U.S.companies to conduct business with entitiesin those countries

162、 and with other entities or individuals subject to blocking orders.The U.S.Patriot Act of 2001(the“Patriot Act”)prohibits financial transactions by U.S.persons,including U.S.individuals,entities,andcharitable organizations,with individuals and organizations designated as terrorists and terrorist sup

163、porters bythe U.S.Secretary of State or the U.S.Secretary of the Treasury.The U.S.Customs and Border Protection,a lawenforcement agency of the U.S.Department of Homeland Security,enforces regulations related to the import ofaircraft into the United States for maintenance or lease and the importation

164、 of parts into the U.S.for installation.Jurisdictions in which aircraft are registered as well as jurisdictions in which they operate may imposeregulations relating to noise and emission standards.In addition,most countriesaviation laws require aircraft tobe maintained under an approved maintenance

165、program with defined procedures and intervals for inspection,maintenance and repair.To the extent that aircraft are not subject to a lease or a lessee is not in compliance,weare required to comply with such requirements,possibly at our own expense.Corporate Responsibility and SustainabilityClimate C

166、hangeSince the inception of our company in 2010,we have focused on purchasing the most modern,fuel-efficient aircraft available and leasing them to our customers worldwide.In many cases,we serve as a launch13customer for Boeing or Airbus,whereby we play a crucial role in introducing a new aircraft t

167、ype into the globalfleet.Our core strategy is helping our airline customers modernize their fleets through our fleet planning servicesand our portfolio of aircraft that are generally 20 to 25%more fuel-efficient and have a significantly smallernoise footprint than the aircraft they will replace.Alig

168、ned with the needs of our customers,reduced fuelconsumption,emissions,and noise are a priority when selecting an aircraft to join our fleet.Many of theimprovements related to fuel efficiency within the aviation industry have been the result of airlines operatingnew,more fuel-efficient aircraft.Human

169、 Capital ResourcesCulture and ValuesWe strive to conduct our business with integrity and in an honest and responsible manner and to buildand maintain long-term,mutually beneficial relationships with our customers,suppliers,shareholders,employeesand other stakeholders.We are also committed to fosteri

170、ng and cultivating a culture of inclusion.As ofDecember 31,2024,39%of our employees are multicultural and 52%are female.Our values and priorities arefurther specified in our code of conduct and our ethics-related compliance policies,procedures,trainings,andprograms.Ethical and inclusive behavior is

171、strongly promoted by the management team and these values arereflected in our long-term strategy and our way of doing business.Employees,Compensation and BenefitsPay equity is central to our mission to attract and retain the best talent.Our compensation philosophyand reward structure are designed to

172、 compensate employees equitably and free of any bias.We demonstrate ourcommitment to pay equity by regularly reviewing our compensation practices for all our employees.Further,thehealth and wellness of our employees is a priority,and we offer employee benefits including a competitivecompensation phi

173、losophy with comprehensive benchmarking analysis.Other benefits for which our employees inthe United States,and to the extent practicable outside of the United States,are eligible for include but are notlimited to:cash bonus programs,our long-term incentive plan,employee-funded 401(k)programs with c

174、ompanymatching,education reimbursement,company-paid medical,dental and vision insurance,company-paid lifeinsurance,reimbursement accounts and remote healthcare services among other health and wellness offerings.Asof December 31,2024,we had 165 full-time employees.None of our employees are represente

175、d by a union orcollective bargaining agreements.Access to Our InformationWe file annual,quarterly,current reports,proxy statements and other information with the Securitiesand Exchange Commission(the“SEC”).We make our public SEC filings available,at no cost,through ourwebsite at http:/ as soon as re

176、asonably practicable after the report is electronically filedwith,or furnished to,the SEC.The information contained on or connected to our website is not incorporated byreference into this Annual Report on Form 10-K and should not be considered part of this or any other reportfiled with the SEC.We w

177、ill also provide these reports in electronic or paper format free of charge upon writtenrequest made to Investor Relations at 2000 Avenue of the Stars,Suite 1000N,Los Angeles,California 90067.Our SEC filings are also available free of charge on the SECs website at http:/www.sec.gov.Corporate Informa

178、tionOur website is http:/.We may post information that is important to investors onour website.Information included or referred to on,or otherwise accessible through,our website is not intendedto form a part of or be incorporated by reference into this report.14Information about our Executive Office

179、rsSet forth below is certain information concerning each of our executive officers as of February 13,2025,including his/her age and current position with us.All of our executive officers have been employed by us duringthe past five years.NameAgeCompany PositionSteven F.Udvar-Hzy.78Executive Chairman

180、 of the Board of DirectorsJohn L.Plueger.70Chief Executive Officer,President and DirectorCarol H.Forsyte.62Executive Vice President,General Counsel,Corporate Secretary and ChiefCompliance OfficerGregory B.Willis.46Executive Vice President and Chief Financial OfficerAlex A.Khatibi.64Executive Vice Pr

181、esident,MarketingKishore Korde.51Executive Vice President,MarketingGrant A.Levy.62Executive Vice President,Marketing and Commercial AffairsJohn D.Poerschke.63Executive Vice President of Aircraft Procurement and SpecificationsDavid Beker.47Executive Vice President,Marketing15ITEM 1A.RISK FACTORSThe f

182、ollowing important risk factors,and those risk factors described elsewhere in this report or inour other filings with the SEC,could cause our actual results to differ materially from those stated in forward-looking statements contained in this document and elsewhere.These risks are not presented in

183、order ofimportance or probability of occurrence.Further,the risks described below are not the only risks that we face.Additional risks and uncertainties not currently known to us or that we currently deem immaterial may alsoimpair our business operations.Any of these risks may have a material advers

184、e effect on our business,reputation,financial condition,results of operations,profitability,cash flows or liquidity.Risks relating to our capital requirements and debt financingsWe will require significant capital to refinance our outstanding indebtedness and to acquire aircraft;ourinability to make

185、 our debt payments and obtain incremental capital may have a material adverse effect on ourbusiness.We and our subsidiaries have a significant amount of indebtedness.As of December 31,2024,our totalconsolidated indebtedness,net of discounts and issuance costs,was approximately$20.2 billion and our i

186、nterestpayments were approximately$794.3 million for the year ended December 31,2024.We expect these amounts togrow as we acquire more aircraft.Our level of debt could have important consequences,including making itmore difficult for us to satisfy our debt payment obligations and requiring a substan

187、tial portion of our cash flowsto be dedicated to debt service payments;limiting our ability to obtain additional financing;increasing ourvulnerability to negative economic and industry conditions;increasing our interest rate risk;and limiting ourflexibility in planning for and reacting to changes in

188、 our industry.Growing our fleet will require us to obtain substantial capital through additional financing,which maynot be available to us on favorable terms or at all.As of December 31,2024,we had 269 new aircraft on orderwith an estimated aggregate purchase price of approximately$17.1 billion.In a

189、ddition to utilizing cash flow fromoperations to meet these commitments and to maintain an adequate level of unrestricted cash,we will need toraise additional funds by accessing committed debt facilities,securing additional financing from banks orthrough capital markets offerings.We also need to mai

190、ntain access to the capital and credit markets and othersources of financing in order to repay or refinance our outstanding debt obligations.Our access to financing sources depends upon a number of factors over which we have limited control,including general market conditions and interest rate fluct

191、uations;periods of unexpected market disruption andvolatility;the markets view of the quality of our business and assets,perception of our growth potential andassessment of our credit risk;the relative attractiveness of alternative investments;and the trading prices of ourdebt and equity securities.

192、Depending on market conditions at the time and our access to capital,we may alsohave to rely more heavily on less efficient forms of debt financing or additional equity issuances that may requirea larger portion of our cash flow from operations to service,thereby reducing funds available for our ope

193、rations,future business opportunities and other purposes.Further,the issuance of additional shares of preferred stockmay result in such preferred stockholders having rights,preferences or privileges senior to existing Class Acommon stockholders,who would not have the ability to approve such issuance

194、.These alternative measures maynot be successful and may not permit us to make required repayments on our debt or meet our cash requirements,including aircraft purchase commitments.The issuance of additional equity may be dilutive to existingshareholders or otherwise may be on terms not favorable to

195、 us or existing shareholders.If we are unable to generate sufficient cash flows from operations and cannot obtain capital on termsacceptable to us,we may be forced to seek alternatives,such as to reduce or delay investments and aircraftpurchases,or to sell aircraft.We also may not be able to satisfy

196、 funding requirements for any aircraft acquisitioncommitments then in place,which could force us to forfeit our deposits and/or expose us to potential breach ofcontract claims by our lessees and manufacturers.16As a result of these risks and repercussions,our inability to make our debt payments and/

197、or obtainincremental capital to fund future aircraft purchases may have a material adverse effect on our business.Cost of borrowing or interest rate increases may adversely affect our net income and our ability to compete inthe marketplace.We finance our business through a combination of short-term

198、and long-term debt financingspredominantly at fixed rate.As of December 31,2024,we had$16.1 billion of fixed rate debt and$4.3 billion offloating rate debt outstanding.Further,we have outstanding preferred stock with an aggregate stated amount of$900.0 million that currently pays dividends at a fixe

199、d rate,but the dividend rate is subject to reset every five yearsbased on the then current 5-year U.S.treasury rate.Any increase in our cost of borrowing directly impacts our netincome.A shift in monetary policy in the United States and other countries beginning in 2022 resulted in rapidinterest rat

200、e increases over a relatively short period of time and many are predicting that rates may remain elevateddespite rate cuts in late 2024 by the Federal Reserve Open Market Committee(“FOMC”).Persistently elevatedinterest rates in 2024 increased our borrowing costs,with our composite cost of funds incr

201、easing from 3.77%atDecember 31,2023 to 4.14%at December 31,2024.Interest rates that we obtain on our debt financings canfluctuate based on,among other things,changes in views of our credit risk,fluctuations in U.S.Treasury rates andSOFR,as applicable,changes in credit spreads,and the duration of the

202、 debt being issued.Increased interest ratesprevailing in the market at the time of our incurrence of new debt will also increase our interest expense.Moreover,if interest rates remain elevated,we will be unable to immediately offset the negative impacton our net income by increasing lease rates,even

203、 if the market were able to bear the increased lease rates.Leaserates are influenced by several factors other than interest rates,including supply technicals driven by aircraftdemand,supply chain disruptions,environmental initiatives and other factors that may result in a change in leaserates regard

204、less of the interest rate environment.Our leases are generally entered into 18-36 months in advanceof aircraft delivery and are for multiple years with fixed lease rates over the life of the lease.Therefore,lags willexist because our lease rates with respect to a particular aircraft cannot generally

205、 be increased until the expirationof the lease.Higher interest expense and the need to offset higher borrowing costs by increasing lease rates mayultimately impact our ability to compete with other aircraft leasing companies in the marketplace,especially ifthose companies have lower cost of funding.

206、Decreases in interest rates may also adversely affect our business.Since our fixed rate leases are based,in part,on prevailing interest rates at the time we enter into the lease,if interest rates decrease,new fixed rateleases we enter into may be at lower lease rates and our lease revenue will be ad

207、versely affected.If any of these circumstances occur,our net income and/or our ability to compete in the marketplacemay be adversely affected.Negative changes in our credit ratings may limit our ability to obtain financing or increase our borrowingcosts,which may adversely impact our net income and/

208、or our ability to compete in the marketplace.We are currently subject to periodic review by independent credit rating agencies S&P,Fitch and Kroll,each of which currently maintains an investment grade rating with respect to us,and we may become subject toperiodic review by other independent credit r

209、ating agencies in the future.Our ability to obtain debt financing andour cost of debt financing is dependent,in part,on our credit ratings and we cannot assure you that these creditratings will remain in effect or that a rating will not be lowered,suspended or withdrawn.Maintaining our creditratings

210、 depends in part on strong financial results and other factors,including the outlook of the rating agencies onour sector and on the market generally.Ratings are not a recommendation to buy,sell or hold any security,and eachagencys rating should be evaluated independently of any other agencys rating.

211、Actual or anticipated changes ordowngrades in our credit ratings,including any announcement that our ratings are under review for a downgrade,could increase our borrowing costs and limit our access to the capital markets,including our commercial paperprogram which may adversely impact our net income

212、 and/or our ability to compete in the marketplace.17Certain of our debt agreements contain covenants that impose restrictions on us and our subsidiaries that maylimit our flexibility to operate our business.Some of the agreements governing our indebtedness contain financial and non-financial covenan

213、ts.Most of our credit facilities require us to comply with certain financial maintenance covenants(measured at theend of each quarter)including minimum consolidated shareholdersequity,minimum consolidatedunencumbered assets,and an interest coverage test.Complying with such covenants may at times nec

214、essitate thatwe forego other opportunities,including incurring additional indebtedness,declaring or paying certain dividendsand distributions or entering into certain transactions,investments,acquisitions,loans,guarantees or advances.Moreover,our failure to comply with any of these covenants could c

215、onstitute a default and could acceleratesome,if not all,of the indebtedness outstanding under such agreements and could create cross-defaults underother debt agreements,which would have a negative effect on our business and our ability to continue as a goingconcern.In addition,for our secured debt,i

216、f we are unable to repay such indebtedness when due and payable,thelenders under our secured debt could proceed against,among other things,the aircraft or other assets securingsuch indebtedness.As the result of the existence of these financial and non-financial covenants and our need tocomply with t

217、hem,the flexibility we have to operate our business may be limited.Operational risks relating to our businessWe may be unable to generate sufficient returns on our aircraft investments which may have an adverseimpact on our net income.Our financial performance is driven by our ability to acquire str

218、ategically attractive commercial aircraft,profitably lease and re-lease them,and finally sell such aircraft in order to generate sufficient revenues to financeour growth and operations,pay our debt service obligations,and meet our other corporate and contractualobligations.We rely on our ability to

219、negotiate and enter into leases with favorable lease terms and to evaluatethe ability of lessees to perform their obligations to us prior to receiving the delivery of our orderbook aircraftfrom the manufacturers.When our leases expire or our aircraft are returned prior to the date contemplated in th

220、elease,we bear the risk of re-leasing or selling the aircraft.Because our leases are predominantly operating leases,only a portion of an aircrafts value is recovered by the revenues generated from the lease and we may not beable to realize the aircrafts residual value after lease expiration.Our abil

221、ity to profitably purchase,lease,re-lease,sell or otherwise dispose of our aircraft will depend on conditions in the airline industry and generalmarket and competitive conditions at the time of purchase,lease and disposition.In addition to factors linked tothe aviation industry in general,other fact

222、ors that may affect our ability to generate adequate returns from ouraircraft include the maintenance and operating history of the airframe and engines,the number of operators usingthe particular type of aircraft,and aircraft age.If we are unable to generate sufficient returns on our aircraft dueto

223、any of the above factors within or outside of our control,it may have an adverse impact on our net income.Failure to satisfy our aircraft acquisition commitments would negatively affect our ability to further grow ourfleet and net income.As of December 31,2024,we had entered into binding purchase co

224、mmitments to acquire a total of 269new aircraft for delivery through 2029.If we are unable to complete the purchase of such aircraft,we would faceseveral risks,including forfeiting deposits and progress payments and having to pay and expense certainsignificant costs relating to these commitments;not

225、 realizing any of the benefits of completing the acquisitions;damage to our reputation and relationship with aircraft manufacturers;and defaulting on our lease commitments,which could result in monetary damages and damage to our reputation and relationships with lessees.If wedetermine that the capit

226、al required to satisfy these commitments is not available on terms we deem attractive,wemay eliminate or reduce any then-existing dividend program to preserve capital to apply to such commitments.These risks,whether financial or reputational,would negatively affect our ability to further grow our fl

227、eet andnet income.18Failure to complete our planned aircraft sales could affect our net income and may lead us to use alternativesources of liquidity.Proceeds from aircraft sales in our owned portfolio help supplement our liquidity position,contribute toour net income and improve our debt-to-equity

228、ratio.We currently expect to sell approximately$1.5 billion inaircraft in 2025.Our inability to complete the sales of such aircraft on the timeline anticipated,or at all,it couldimpact our net income and may lead us to use alternative sources of liquidity to fund our operations such asadditional cap

229、ital markets issuances or borrowings under our credit facilities.The failure of an aircraft or engine manufacturer to meet its delivery obligations to us may negatively impactour ability to grow our fleet and our earnings.The supply of commercial aircraft is dominated by a limited number of airframe

230、 and enginemanufacturers.As a result,we depend on these manufacturersability to remain financially stable,produceproducts and related components which meet airlinesdemands and regulatory requirements,and fulfill anycontractual obligations they have to us,which is in turn dependent on a number of fac

231、tors over which we havelittle or no control.Those factors include the availability of raw materials and manufactured components,changes in highly exacting performance requirements and product specifications,economic conditions,changesin the regulatory environment and labor relations and negotiations

232、 between manufacturers and their respectiveworkforces.If manufacturers fail to meet their contractual obligations to us,we may experience:missed or late aircraft deliveries and potential inability to meet our contractual delivery obligationsowed to our lessees,resulting in potential lost or delayed

233、revenues,and strained customerrelationships;an inability to acquire aircraft and engines resulting in lower growth or contraction of our aircraftfleet;reduced demand for a particular manufacturers product,which may lead to reduced market leaserates and lower aircraft residual values and may affect o

234、ur ability to remarket or sell at a profit,or atall,some of the aircraft in our fleet;andtechnical or other difficulties with aircraft or engines after delivery that subject aircraft to operatingrestrictions,groundings or increased maintenance requirements,resulting in a decline in residualvalue and

235、 lease rates of such aircraft and impair our ability to lease or dispose of such aircraft orengines on favorable terms or at all.There have been well-publicized delivery delays by airframe and engine manufacturers.For example,wehave experienced ongoing delivery delays of Airbus and Boeing aircraft a

236、nd have been advised delays could extendthrough 2029.Additionally,recent events,including the Boeing labor strike and the FAAs increased oversight ofBoeings quality control procedures and constraints placed on 737 MAX program production have resulted infurther delivery delays.Our Airbus deliveries m

237、ay also be impacted by the residual effects of the Boeing laborstrike on the broader aviation supply chain.In addition,the ongoing impact from Pratt&Whitney GTF enginemanufacturing flaws is resulting in accelerated engine removal and incremental shop visits,which have resulted andmay continue to res

238、ult in delivery delays of these engines for new aircraft.As a result of airframe and engine delays,our orderbook delivery schedule could continue to be subject to material changes and delivery delays are expectedto extend beyond 2025.Our leases and purchase agreements with Airbus and Boeing typicall

239、y provide forcancellation rights starting at one year after the contractual delivery date,regardless of cause.If there are deliverydelays greater than one year for aircraft that we have made future lease commitments,some or all of our affectedlessees could elect to cancel their lease with respect to

240、 such delayed aircraft.Any such cancellation could strain ourrelationship with such lessee going forward and would negatively affect our business.Should the severity of the delivery delays from the manufacturers continue or worsen,or should newdelays arise,such delays may negatively impact our abili

241、ty to grow our fleet and our earnings.19If our aircraft become obsolete or experience a decline in customer demand,our ability to lease and sell thoseaircraft and our results of operations may be negatively impacted and may result in impairment charges.Aircraft are long-lived assets,requiring long l

242、ead times to develop and manufacture,with modelsbecoming obsolete or less in demand over time,in particular when newer,more advanced aircraft aremanufactured.Our fleet,as well as the aircraft that we have on order,have exposure to a decline in customer demandor obsolescence,particularly if unanticip

243、ated events occur which shorten the life cycle of such aircraft types,including:the introduction of superior aircraft or technology,such as new airframes or engines with higher fuelefficiency;the entrance of new manufacturers which could offer aircraft that are more attractive to our targetlessees,i

244、ncluding manufacturers of alternative technology aircraft;the advent of alternative transportationtechnologies which could make travel by air less desirable;government regulations,including those limitingnoise and emissions and the age of aircraft operating in a jurisdiction;the costs of operating a

245、n aircraft,includingmaintenance which increases with aircraft age;and compliance with airworthiness directives.Obsolescence ofcertain aircraft may also trigger impairment charges,increase depreciation expense or result in losses related toaircraft asset value guarantees,if we provide such guarantees

246、.The demand for our aircraft is also affected by other factors outside of our control,including:airpassenger demand;air cargo demand;air travel restrictions;airline financial health;changes in fuel costs,interestrates,foreign currency,inflation and general economic conditions;technical problems asso

247、ciated with aparticular aircraft or engine model;airport and air traffic control infrastructure constraints;and the availabilityand cost of financing.As demand for particular aircraft declines,lease rates for that type of aircraft are likely tocorrespondingly decline,the residual values of that type

248、 of aircraft could be negatively impacted,and we may beunable to lease or sell such aircraft on favorable terms,if at all.In addition,the risks associated with a decline indemand for a particular aircraft model or type increase if we acquire a high concentration of such aircraft.If demand declines f

249、or a model or type of aircraft of which we own or of which we have a relativelyhigh concentration,or should the aircraft model or type become obsolete,our ability to lease or sell those aircraftand our results of operations may be negatively impacted and may result in impairment charges.The value an

250、d lease rates for aircraft that we own or acquire could decline resulting in an impact to ourearnings and cash flows.From time to time,aircraft values and lease rates have experienced declines due to a variety of factorsoutside of our control.These factors may impact the aviation industry as a whole

251、 or may be more specific tocertain types of aircraft in our fleet.For example,the effects of pandemic related travel restrictions,as well as,groundings and aircraft production delays,have each impacted and may continue to impact lease rates or ourability to lease certain aircraft in our fleet or ord

252、erbook.Other factors include,but are not limited to:manufacturer production levels and technological innovation;the number of airlines operating the aircraft;ourlesseesfailure to maintain our aircraft;the impact of decisions by the regulatory authority under which theaircraft is operated and any app

253、licable airworthiness directives,service bulletins or other regulatory action thatcould prevent or limit utilization of the aircraft.As a result of these factors,our earnings and cash flows may beimpacted by any decrease in the value of aircraft that we own or acquire or decrease in market rates for

254、 leases forthese aircraft.Inflationary pressure may have a negative impact on our financial results,including by diminishing the valueof our leases.After a sustained period of relatively low inflation rates,current rates of inflation are above long-termtargets in the United States,the European Union

255、,the United Kingdom and other countries.High rates of inflation20may have a number of adverse effects on our business.Inflation may increase the costs of goods,services andlabor used in our operations,thereby increasing our expenses.In addition,inflation has also contributed to theincrease in market

256、 values for aircraft including older generation aircraft.Because the majority of our income isderived from leases with fixed rates of payment,high rates of inflation will cause a greater decrease in the valueof those payments than had the rates of inflation remained lower.In addition,because our lea

257、ses are generally formulti-year periods,there has been a lag in our ability to adjust the lease rates for a particular aircraft forcorresponding increases in interest rates.High rates of inflation may also lead policymakers to attempt todecrease demand or to adopt higher interest rates to combat inf

258、lationary pressures,which could increase ourexposure to the risks detailed in“Risks relating to our capital requirements and debt financingsCost ofborrowing or interest rate increases may adversely affect our net income and our ability to compete in themarketplace.”Our suppliers and lessees may also

259、 be subject to material adverse effects as a result of high rates ofinflation,including as a result of the impact on their financial conditions,changes in demand patterns,pricevolatility,and supply chain disruption.Aircraft have limited economic useful lives and depreciate over time and we may be re

260、quired to record animpairment charge or sell aircraft for a price less than its depreciated book value which may impact ourfinancial results.We depreciate our aircraft for accounting purposes on a straight-line basis to the aircrafts residual valueover its estimated useful life.Our management team e

261、valuates on a quarterly basis the need to perform animpairment test whenever facts or circumstances indicate a potential impairment has occurred.An assessment isperformed whenever events or changes in circumstances indicate that the carrying amount of an aircraft may notbe recoverable from its expec

262、ted future undiscounted net cash flow.We develop the assumptions used in therecoverability assessment based on managements knowledge of,and historical experience in,the aircraft leasingmarket and aviation industry,as well as from information received from third-party industry sources.Factorsconsider

263、ed in developing estimates for this assessment include changes in contracted lease rates,economicconditions,technology,and airline demand for a particular aircraft type.Any of our assumptions and estimatesmay prove to be inaccurate,which could adversely impact forecasted cash flow.In the event that

264、an aircraft doesnot meet the recoverability test,the aircraft will be recorded at fair value,resulting in an impairment charge.Deterioration of future lease rates and the residual values of our aircraft could result in impairment charges whichmay have a significant impact on our financial results.Th

265、e occurrence of unexpected events or changingconditions may also result in impairment charges.For a description of our impairment policy,see the sectiontitled“Managements Discussion and Analysis of Financial Condition and Results of OperationsCriticalAccounting EstimatesFlight equipment.”If we were

266、to record an impairment charge on aircraft,or if we were to dispose of aircraft for a price thatis less than its depreciated book value on our balance sheet,it would reduce our total assets and shareholdersequity and increase our debt-to-equity ratio.For example,during the year ended December 31,202

267、2,werecognized a net loss from asset write-offs of our interest in owned and managed aircraft detained in Russia as aresult of the Russia-Ukraine conflict totaling approximately$771.5 million.Depending on the size of theimpairment,a reduction in our shareholdersequity may negatively impact our assig

268、ned credit rating from ratingsagencies or our ability to comply with financial maintenance covenants in certain of our agreements governingour indebtedness.If we are unable to comply with financial maintenance covenants,it could result in an event ofdefault under such agreements.For these reasons,ou

269、r financial results may be impacted.The Russian-Ukraine conflict and the impact of related sanctions may continue to impact our business.We terminated our leasing activities and wrote-off our interests in owned and managed aircraft detainedin Russia during 2022 due to the Russian-Ukraine conflict an

270、d related sanctions,which may continue to impactour business,the business of our airline customers and global macroeconomic conditions.Some of our customersare impacted by closures of Russian and Ukrainian airspace,instability in fuel and energy prices,and disruptionsof the global supply chain.Ongoi

271、ng airspace closures require certain of our airline customers to re-route flights21to avoid such airspace which has resulted in increased flight times and fuel costs.Any of these factors couldcause our lessees to incur higher costs and to generate lower revenues which could adversely affect their ab

272、ilityto make lease payments which in turn could impact our financial results.We have concentrated customer exposure and economic,legal and political risks associated with these lessees,including adverse events involving the regions in which these lessees operate may have an adverse effect onour fina

273、ncial condition.Through our lessees and the countries in which they operate,we are exposed to the specific economic,legal and political conditions and associated risks of those jurisdictions.As of December 31,2024,we hadconcentrated customer exposure with our top five lessees by net book value,liste

274、d below under“Item 7.Managements Discussion and Analysis of Financial Condition and Results of OperationsOur Fleet”and wealso had approximately 7.8%and 2.5%of our aircraft by net book value on lease to lessees located in Taiwanand China,respectively.The concentration of our aircraft in the regions i

275、n which these lessees operate exposes usto economic,legal and political conditions in these regions,as well as changes in government relations betweenany of these regions and the U.S.,including trade disputes and trade barriers.Our customer base is highlydiversified,with an average customer concentr

276、ation of approximately 1.0%of our fleet net book value as ofDecember 31,2024.We also have a globally diversified customer base with an average country concentration ofapproximately 1.9%of our fleet net book value as of December 31,2024.Risks related to concentrated exposureinclude economic recession

277、s,financial,public health and political emergencies,burdensome local regulations,trade disputes,and increased risks of requisition of our aircraft and risks of wide-ranging sanctions prohibiting usfrom leasing flight equipment in certain jurisdictions.An adverse economic,legal or political event in

278、or relatedto these regions,or deterioration of government relations between the U.S.and these regions,could affect theability of these lessees to meet their obligations to us,or expose us to various associated legal or political risks,which could have an adverse effect on our financial condition.We

279、are dependent on the ability of our lessees to perform their payment and other obligations to us under ourleases and their failure to do so may materially and adversely affect our financial results and cash flows.We generate substantially all of our revenue from leases of aircraft to commercial airl

280、ines and ourfinancial performance is driven by the ability of our lessees to perform their payment and other obligations to usunder our leases.The airline industry is cyclical,economically sensitive and highly competitive,and our lesseesare affected by several factors over which we and they have lim

281、ited control,including:air passenger demand;changes in fuel costs,interest rates,foreign currency,inflation,labor difficulties,including pilot shortages,wagenegotiations or other labor actions;increases in other operating costs,such as increased insurance costs,generaleconomic conditions and governm

282、ental regulation and associated fees affecting the air transportation business.Inrecent years,geopolitical events such as changes in national policy or the imposition of sanctions,including newsanctions,trade barriers or tariffs,as well as events leading to political or economic instability such as

283、war,prolonged armed conflict and acts of terrorism;epidemics,pandemics and natural disasters;availability offinancing,including availability of governmental support;airline financial health may also have an impact.Finally,our lessees may also be affected by aircraft accidents,in particular a loss if

284、 the aircraft is damaged ordestroyed by an event for which insurance coverage is excluded or limited.These factors could cause our lessees to incur higher costs and to generate lower revenues,which couldadversely affect their ability to make lease payments.In addition,lease default levels will likel

285、y increase overtime if economic conditions deteriorate.In recent years,a majority of our lessees received lease deferrals or other accommodations during theCOVID-19 pandemic,and we may agree to deferrals,restructurings and terminations in the ordinary course ofour business in the future.If a lessee

286、delays,reduces,or fails to make lease payments when due and if we areunable to agree on a lease payment deferral or lease restructuring and we elect to terminate the lease,we may notreceive all or any payments still outstanding,and we may be unable to re-lease the aircraft promptly and at22favorable

287、 rates,if at all.While deferrals generally shift the timing of payments to a later period,restructuringsand terminations generally permanently reduce our lease revenue.If we perform a significant number ofrestructurings and terminations,the associated reduction in lease revenue could materially and

288、adversely affectour financial results and cash flows.Lessee defaults and reorganizations,bankruptcies or similar proceedings,may result in lost revenues andadditional costs.From time to time,an airline may seek reorganization or protection from creditors under its local lawsor may go into liquidatio

289、n.Some of our lessees have defaulted on their lease obligations or filed for bankruptcyor otherwise sought protection from creditors(collectively referred to as“bankruptcy”).One of our lessees issubject to bankruptcy proceedings as of February 13,2025 and lessee bankruptcies may increase in the futu

290、re.Based on historical rates of airline defaults and bankruptcies,we expect that we will experience additional lesseedefaults and bankruptcies in the ordinary course of our business.When a lessee defaults on its lease or files for bankruptcy,we typically incur significant additionalcosts,including l

291、egal and other expenses associated with court or other governmental proceedings.We could alsoincur substantial maintenance,refurbishment or repair costs if a defaulting lessee fails to pay such costs whennecessary to put the aircraft in suitable condition for remarketing or sale.We may also incur st

292、orage costsassociated with aircraft that we repossess and are unable to place immediately with another lessee,and we maynot ultimately be able to re-lease the aircraft at a similar or favorable lease rate.It may also be necessary to payoff liens including fleet liens,taxes and other governmental cha

293、rges on the aircraft to obtain clear possession andto remarket the aircraft effectively,including,in some cases,liens that the lessee might have incurred inconnection with the operation of its other aircraft.We could also incur other costs in connection with the physicalpossession of the aircraft.Wh

294、en a lessee fails to fulfill their obligations under the lease or enters into bankruptcy proceedings,thelessee may not make lease payments or may return aircraft to us before the lease expires.When a lessee files forbankruptcy with the intent of reorganizing its business,we may agree to adjust our l

295、ease terms,includingreducing lease payments by a significant amount.Certain jurisdictions give rights to the trustee in a bankruptcyto assume or reject the lease or to assign it to a third party,or entitle the lessee or another third party to retainpossession of the aircraft without paying lease ren

296、tals or performing all or some of the obligations under therelevant lease.If one or more airline bankruptcies result in a larger number of aircraft being available forpurchase or lease over a short period of time,aircraft values and aircraft lease rates may be depressed,andadditional grounded aircra

297、ft and lower market values could adversely affect our ability to sell our aircraft or leaseor remarket our aircraft at favorable rates or at all.Our rights upon a lessee default will vary significantly depending upon the jurisdiction and theapplicable law,including the need to obtain a court order f

298、or repossession of the aircraft and/or consents forderegistration or export of the aircraft.When a defaulting lessee is in bankruptcy additional limitations mayapply.There can be no assurance that jurisdictions that have adopted the Cape Town Convention,which providesfor uniformity and certainty for

299、 repossession of aircraft,will enforce it as written.In addition,certain of ourlessees are owned,in whole or in part,by government-related entities,which could complicate our efforts torepossess our aircraft in that governments jurisdiction.Accordingly,we may be delayed in,or prevented from,enforcin

300、g certain of our rights under a lease and in remarketing the affected aircraft.If we repossess an aircraft,we may not be able to export or deregister and profitably redeploy theaircraft in a timely manner or at all.Before an aviation authority will register an aircraft that has previously beenregist

301、ered in another country,it must receive confirmation that the aircraft has been deregistered by thatcountrys aviation authority.In order to deregister an aircraft,the lessee must comply with applicable laws andregulations,and the relevant governmental authority must enforce these laws and regulation

302、s.For instance,where a lessee or other operator flies only domestic routes in the jurisdiction in which the aircraft is registered,23repossession may be more difficult,especially if the jurisdiction permits the lessee or the other operator to resistderegistration.We may also incur significant costs

303、in retrieving or recreating aircraft records required forregistration of the aircraft,and in obtaining a certificate of airworthiness for an aircraft.Upon a lessee default,wemay incur significant costs in connection with repossessing our aircraft and we may be delayed in repossessingour aircraft or

304、may be unable to obtain possession of our aircraft.As a result of the time and process involved with lessee defaults,reorganizations,bankruptcies orsimilar proceedings as described above,which can vary by airline and jurisdiction among other factors,we mayexperience lost revenues and additional cost

305、s.We may experience increased competition from other aircraft lessors which may impact our ability to executeour long-term strategy.The aircraft leasing industry is highly competitive.Some of our competitors have greater resources,lower capital costs,the ability to provide financial or maintenance s

306、ervices,or other inducements to potentiallessees or buyers that we do not have,which could help them compete more effectively in certain markets weoperate in.In addition,some competitors may have higher risk tolerances,lower investment return expectationsor different risk or residual value assessmen

307、ts,which could allow them to consider a wider variety ofinvestments,establish more relationships,bid more aggressively on aviation assets available for sale and offerlower lease rates or sale prices than we can.Our primary competitors are other aircraft leasing companies.Thebarriers to entry in the

308、aircraft sale and leaseback market are comparatively low,and new entrants with privateequity,hedge fund,or other funding sources appear from time to time.Lease competition is driven by lease rates,aircraft availability dates,lease terms,relationships,aircraftcondition,specifications and configuratio

309、n of the aircraft necessary to meet the customers needs.Competition inthe used aircraft market is driven by price,the terms of the lease to which an aircraft is subject and thecreditworthiness of the lessee,if any.Our inability to compete successfully with our competitors may impact ourability to ex

310、ecute our long-term strategy.Our lessees may fail to adequately insure our aircraft or fulfill their indemnity obligations,or we may not beable to adequately insure our aircraft,which may result in increased costs and liabilities.When an aircraft is on lease,we do not directly control its operation.

311、Nevertheless,because we hold titleto the aircraft,we could be sued or held strictly liable for losses resulting from the operation of such aircraft,ormay be held liable for losses on other legal theories or claims may be made against us as the owner of an aircraftrequiring us to expend resources in

312、our defense.As a result,we separately purchase contingent liability insuranceand contingent hull insurance on all aircraft in our owned fleet.While we believe our insurance is adequate bothas to coverages and amounts based on industry standards in the current market,we cannot assure you that we area

313、dequately insured against all risks and in all territories in which our aircraft operate.For example,Russia,Ukraine,Belarus and Crimea are now generally excluded from coverage in our contingent liability,contingenthull and contingent hull war insurance.We also separately require our lessees to obtai

314、n specified levels of insurance customary in the aviationindustry and indemnify us for,and insure against,liabilities arising out of the lessees use and operation of theaircraft.Lessees are also required to maintain public liability,property damage and all risk hull and war riskinsurance on the airc

315、raft at agreed upon levels.Some lessees may fail to maintain adequate insurance coverageduring a lease term,which,although in contravention of the lease terms,could necessitate our taking somecorrective action such as terminating the lease or securing insurance for the aircraft.Moreover,even if ourl

316、essees retain specified levels of insurance,and indemnify us for,and insure against,liabilities arising out of theiruse and operation of the aircraft,we cannot assure you that we will not have any liability.24In addition,there are certain risks or liabilities that we or our lessees may face,for whic

317、h insurers maybe unwilling to provide coverage or the cost to obtain such coverage may be prohibitively expensive.Forexample,insurance coverage is unavailable for claims resulting from dirty bombs,bio-hazardous materials andelectromagnetic pulsing.Following the Russia-Ukraine conflict,insurance cove

318、rage for claims resulting fromacts of terrorism or war are subject to increased coverage limitations and increased premiums.Even where we,or our lessees,have insurance,we or they may face difficulties in recovering lossesunder such policies.Disputes with insurers over the extent of coverage are comm

319、on and insurance claims maytake years to fully resolve and we,or our lessees,may not ultimately be successful in recovering losses underinsurance policies.Pursuing insurance claims may also require us to incur legal,regulatory and otherenforcement costs for which we may not be entitled to reimbursem

320、ent.For example,as described in“Item 3.Legal Proceedings,”we and certain of our subsidiaries have submitted insurance claims to recover losses relatingto aircraft detained in Russia,and such claims remain outstanding and subject to litigation.Accordingly,our or our lesseesinsurance coverage could be

321、 insufficient to cover all claims that couldbe asserted against us arising from the operation of our aircraft.Inadequate insurance coverage or default bylessees in fulfilling their indemnification or insurance obligations will reduce the proceeds that would be receivedby us if we are sued and are re

322、quired to make payments to claimants.Moreover,our and our lesseesinsurancecoverage is dependent on the financial condition of insurance companies,which might be unable or unwilling topay claims.Our or our lesseesfailure to adequately insure our aircraft,or our lesseesfailure to fulfill theirindemnit

323、y obligations to us,could reduce insurance proceeds otherwise payable to us in certain cases,may resultin increased costs and liabilities for our business.We may experience the death,incapacity or departure of one of our key officers which may negatively impactour business.We believe our senior mana

324、gements reputation and relationships with lessees,manufacturers,buyersand financiers of aircraft are a critical element to our business.We depend on the diligence,skill and network ofbusiness contacts of our management team.Our future success will depend,to a significant extent,upon thecontinued ser

325、vice of our senior management team,particularly:Mr.Udvar-Hzy,our founder,and ExecutiveChairman of the Board;Mr.Plueger,our Chief Executive Officer and President;and our other senior officers,each of whose services are critical to the success of our business strategies.We do not have employmentagreem

326、ents with Mr.Udvar-Hzy or Mr.Plueger for their services at Air Lease Corporation,although one of ourIrish subsidiaries has limited duration employment agreements under which Mr.Udvar-Hzy and Mr.Pluegermay terminate their employment at any time.If we were to lose the services of any of the members of

327、 our seniormanagement team,it may negatively impact our business.A cyberattack or other interruption could lead to a material disruption of our information technology(“IT”)systems or the IT systems of our third-party providers and the loss of information,which may hinder ourability to conduct our bu

328、siness effectively and may result in lost revenues and additional costs.We depend on our and our third-party providers IT systems to conduct our operations.Such systemsare subject to damage or interruption from power outages,computer and telecommunications failures,computerviruses,security breaches,

329、ransomware attacks,social-engineering attacks(including through phishing attacks),malicious code(such as viruses and worms),malware(including as a result of advanced persistent threatintrusions),fire and natural disasters,and other similar threats.In particular,severe ransomware attacks arebecoming

330、increasingly prevalent and can lead to significant interruptions in our operations,loss of sensitiveinformation and income,reputational harm,and diversion of funds.Extortion payments may alleviate thenegative impact of a ransomware attack,but we may be unwilling or unable to make such payments due t

331、oapplicable laws or regulations prohibiting such payments.Damage or interruption to such IT systems or our data25may require significant investment to fix or replace,and we may suffer operational interruptions.Potentialinterruptions associated with the implementation of new or upgraded systems and t

332、echnology or withmaintenance of existing systems could also disrupt or reduce operational efficiency.Remote work by ouremployees also increases risks to our IT systems and data,as our employees utilize network connections,computers and devices outside our premises or network,including working at hom

333、e and while traveling.Parts of our business depend on the secure operation of our and our third-party providersIT systems tomanage,process,store,and transmit sensitive information,including our proprietary information and that of ourcustomers,suppliers and employees and aircraft leasing information.We have experienced threats to our dataand systems,including malware and computer virus attacks.A cy