Commitments and Contingencies

6 Months Ended

Jun. 30, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies

4. Commitments and Contingencies

a.	Aircraft Acquisition
	As of June 30, 2011, we had commitments to acquire a total of 234 new and nine used aircraft for delivery as follows:

Aircraft Type	2011(1)		2012		2013		2014		2015		Thereafter		Total
Airbus A319-100		1		—		—		—		—		—		1
Airbus A320/321-200		5		10		13		12		7		—		47
Airbus A320/321 NEO(2)(3)		—		—		—		—		—		50		50
Airbus A330-200/300		6		6		—		—		—		—		12
Boeing 737-700		2		—		—		—		—		—		2
Boeing 737-800(2)		2		3		12		12		14		37		80
Boeing 767-300ER		2		—		—		—		—		—		2
Boeing 777-300ER(3)		—		—		—		2		3		—		5
Boeing 787-9(3)		—		—		—		—		—		4		4
Embraer E175/190		11		19		—		—		—		—		30
ATR 72-600		2		8		—		—		—		—		10
Total		31		46		25		26		24		91		243

(1)	Of the 31 aircraft that we will acquire in the remainder of 2011, the following nine aircraft will be used aircraft: the A319-100, one A320-200, one A330-200, both 737-700s, both 737-800s and both 767-300ERs.
(2)	We have cancellation rights with respect to 14 of the Airbus A320/321 NEO aircraft and four of the Boeing 737-800 aircraft.
(3)	As of June 30, 2011, the Airbus A320/321 NEO aircraft, the Boeing 777-300ER aircraft and the Boeing 787-9 aircraft were subject to non-binding memoranda of understanding for the purchase of these aircraft.

Commitments for the acquisition of these aircraft at an estimated aggregate purchase price (including adjustments for inflation) of approximately $11.9 billion at June 30, 2011 are as follows:

(dollars in thousands)
Years ending December 31,
2011	$	1,289,930
2012		1,817,592
2013		1,210,000
2014		1,408,662
2015		1,381,692
Thereafter		4,756,915
Total	$	11,864,791

We have made non-refundable deposits on the aircraft for which we have commitments to purchase of $319.1 million and $183.4 million as of June 30, 2011 and December 31, 2010, respectively. If we are unable to satisfy our purchase commitments we may be forced to forfeit our deposits. Further, we would be exposed to breach of contract claims by our lessees and manufacturers.

b.

Office Lease

The Company’s lease for office space provides for step rentals over the term of the lease. Those rentals are considered in the evaluation of recording rent expense on a straight-line basis over the term of the lease. Tenant improvement allowances received from the lessor are deferred and amortized in selling, general and administrative expenses against rent expense. Commitments for minimum rentals under the non-cancelable lease term at June 30, 2011 are as follows:

(dollars in thousands)
Years ending December 31,
2011	$	—
2012		1,441
2013		2,325
2014		2,395
2015		2,467
Thereafter		23,241
Total	$	31,869