Concentration of Risk

12 Months Ended

Dec. 31, 2023

Geographical and credit risks

As of December 31, 2023, all of the Company’s Rental of flight equipment revenues were generated by leasing flight equipment to foreign and domestic airlines, and the Company leased and managed aircraft to 119 customers whose principal places of business are located in 62 countries as of December 31, 2023 compared to 117 lessees in 62 countries as of December 31, 2022.

Over 95% of the Company’s aircraft are operated internationally. The following table sets forth the regional concentration based on each airline's principal place of business of the Company’s flight equipment subject to operating leases based on net book value as of December 31, 2023 and 2022:


	December 31, 2023				December 31, 2022
Region	Net Book Value		% of Total		Net Book Value		% of Total
	(in thousands, except percentages)
Asia Pacific	$	10,456,435	39.8	%	$	10,818,250	44.1	%
Europe	9,881,024		37.7	%	7,985,317		32.5	%
Central America, South America, and Mexico	2,361,089		9.0	%	1,924,216		7.8	%
The Middle East and Africa	2,062,420		7.9	%	2,253,342		9.3	%
U.S. and Canada	1,470,240		5.6	%	1,557,260		6.3	%
Total(1)	$	26,231,208	100.0	%	$	24,538,385	100.0	%

(1) As of December 31, 2022, we had four aircraft classified as held for sale with a carrying value of $153.5 million included in the table above.

At December 31, 2023 and 2022, the Company owned and managed leased aircraft to customers in the following regions based on each airline's principal place of business:


	December 31, 2023			December 31, 2022
Region	Number of Customers(1)	% of Total		Number of Customers(1)	% of Total
Europe	50	42.0	%	49	41.9	%
Asia Pacific	34	28.6	%	34	29.0	%
The Middle East and Africa	15	12.6	%	14	12.0	%
U.S. and Canada	12	10.1	%	13	11.1	%
Central America, South America and Mexico	8	6.7	%	7	6.0	%
Total	119	100.0	%	117	100.0	%


(1) A customer is an airline with its own operating certificate.

The following table sets forth the dollar amount and percentage of the Company’s Rental of flight equipment revenues from its flight equipment subject to operating leases attributable to the indicated regions based on each airline’s principal place of business:


	Year Ended December 31, 2023				Year Ended December 31, 2022				Year Ended December 31, 2021
Region	Amount of Rental Revenue		% of Total		Amount of Rental Revenue		% of Total		Amount of Rental Revenue		% of Total
	(in thousands, except percentages)
Asia Pacific	$	1,156,837	46.7	%	$	1,067,270	48.2	%	$	992,849	49.6	%
Europe	769,407		31.1	%	611,091		27.6	%	564,479		28.2	%
The Middle East and Africa	262,554		10.6	%	251,243		11.3	%	210,977		10.5	%
Central America, South America and Mexico	156,275		6.3	%	141,638		6.4	%	104,315		5.2	%
U.S. and Canada	132,534		5.3	%	143,266		6.5	%	130,717		6.5	%
Total	$	2,477,607	100.0	%	$	2,214,508	100.0	%	$	2,003,337	100.0	%

For the years ended December 31, 2023, 2022, and 2021, our rental revenues from China were $330.8 million, $360.0 million and $352.4 million, respectively. China was the only individual country that represented at least 10% of our rental revenue based on each airline's principal place of business in each of 2021, 2022 and 2023; however, no individual airline contributed more than 10% to the Company’s rental revenue.

Currency risk

The Company attempts to minimize currency and exchange risks by entering into aircraft purchase agreements and a majority of lease agreements and debt agreements with U.S. dollars as the designated payment currency.