XML 28 R12.htm IDEA: XBRL DOCUMENT
v3.20.2

Commitments and Contingencies | 9 Months Ended
--- | ---
Sep. 30, 2020
Commitments and Contingencies |
Commitments and Contingencies | Note 4. Commitments and Contingencies ​ As of September 30, 2020, the Company had commitments to acquire a total of 372 new aircraft for delivery through 2026 as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Estimated Delivery Years
Aircraft Type |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  | 2024 |  | Thereafter |  | Total
Airbus A220-300(1) | ​ | — | ​ | — | ​ | 3 | ​ | 14 | ​ | 12 | ​ | 21 | ​ | 50
Airbus A320/321neo(2) |  | 7 |  | 32 |  | 22 |  | 23 |  | 27 |  | 37 |  | 148
Airbus A330-900neo |  | 1 |  | 3 |  | 7 |  | 4 |  | — |  | — |  | 15
Airbus A350-900/1000 |  | 1 |  | 4 |  | 3 |  | 4 |  | 5 |  | 1 |  | 18
Boeing 737-7/8/9 MAX |  | — |  | 15 |  | 20 |  | 42 |  | 30 |  | — |  | 107
Boeing 787-9/10 |  | 5 |  | 9 |  | 8 |  | 10 |  | 2 |  | — |  | 34
Total |  | 14 |  | 63 |  | 63 |  | 97 |  | 76 |  | 59 |  | 372
(1) | In addition to the Company’s commitments, as of September 30, 2020, the Company had options to acquire up to 25 Airbus A220 aircraft. If exercised, deliveries of these aircraft are scheduled to commence in 2023 and continue through 2028.
(2) | The Company’s Airbus A320/321neo aircraft orders include 45 long-range variants and 29 extra long-range variants.
​ Pursuant to the Company's purchase agreements with Boeing and Airbus for new aircraft, the Company and each manufacturer agree to contractual delivery dates for each aircraft ordered. These dates can change for a variety of reasons, and in the last several years manufacturing delays have significantly impacted the Company’s actual delivery dates. For several years, the Company has also experienced delivery delays for certain of its Airbus orderbook aircraft, primarily the A321neo aircraft and, to a lesser extent, A330neo aircraft. The worldwide grounding of the Boeing 737 MAX aircraft (“737 MAX”) began on March 10, 2019, and remains in effect. As a result, Boeing temporarily halted production and delivery of all 737 MAX aircraft. While production of the 737 MAX has now resumed, deliveries remain on hold. The Federal Aviation Administration (“FAA”) and the European Union Aviation Safety Agency (“EASA”) have both completed flight testing for recertification of the 737 MAX, though a number of key milestones remain before the aircraft can return to service. Lifting of the grounding is subject to the approval of the FAA, EASA and other global regulatory authorities, and the Company is unable to speculate as to when this may occur. Even after the grounding is lifted, Boeing’s ability to deliver 737 MAX aircraft may be impacted as a result of the COVID-19 pandemic. The Company is currently in discussions with Boeing regarding the mitigation of possible damages resulting from the grounding of, and the delivery delays associated with the 737 MAX aircraft that the Company owns or has on order, which could result in changes to the commitment table. ​ The ongoing COVID-19 pandemic has caused delivery delays of aircraft in the Company’s orderbook and is expected to continue to cause delays of aircraft delivery. As discussed in further detail in Note 12, “Impact of COVID-19 Pandemic,” the COVID-19 pandemic has resulted in numerous travel restrictions and business shutdowns or other operating limitations, including the temporary closure of final aircraft assembly facilities for each of Boeing and Airbus. In the second quarter of 2020, Boeing and Airbus resumed production at these facilities, but with reduced output. As a result of the temporary closures of the Boeing and Airbus facilities and the subsequently reduced production by these manufacturers, most of our expected aircraft deliveries were delayed during the second and third quarter. Given the dynamic nature of the ongoing COVID-19 pandemic, the Company is in ongoing discussions with Boeing and Airbus to determine the impact and duration of delivery delays. However, the Company is not yet able to determine the impact of the delivery delays, and as such, the delivery dates listed could materially change. ​ The aircraft purchase commitments discussed above also could be impacted by lease cancellation. The Company's leases typically provide that the Company and the airline customer each have a cancellation right related to certain aircraft delivery delays. The Company’s purchase agreements with Boeing and Airbus also generally provide that the Company and the manufacturer each have cancellation rights that typically are parallel with the Company’s cancellation rights in its leases. The Company’s leases and its purchase agreements with Boeing and Airbus typically provide for cancellation rights starting at one year after the original contractual delivery date, regardless of cause. As of September 30, 2020, the Company has canceled its orders for 19 737 MAX aircraft with Boeing. ​ The Company has commitments for the acquisition of 372 aircraft for delivery through 2026, calculated at an estimated aggregate purchase price (including adjustments for anticipated inflation) of approximately $24.8 billion at September 30, 2020, which are due as follows (in thousands): ​
​ | ​ | ​ | ​
Years ending December 31, |  | ​
2020 | ​ | $ | 1,213,581
2021 | ​ |  | 4,841,564
2022 | ​ |  | 5,604,050
2023 | ​ |  | 6,153,520
2024 | ​ |  | 4,211,633
Thereafter | ​ |  | 2,789,136
Total | ​ | $ | 24,813,484
​ The Company has made non-refundable deposits on the aircraft for which the Company has commitments to purchase of approximately $1.6 billion as of September 30, 2020 and December 31, 2019, which are subject to manufacturer performance commitments. If the Company is unable to satisfy its purchase commitments, the Company may be forced to forfeit its deposits. Further, the Company would be exposed to breach of contract claims by its lessees and manufacturers.

X
- References No definition available. + Details
Name: | us-gaap_CommitmentsAndContingenciesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for commitments and contingencies. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -URI http://asc.fasb.org/topic&trid=2127136 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -URI http://asc.fasb.org/topic&trid=2144648 + Details
Name: | us-gaap_CommitmentsAndContingenciesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration