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Commitments and Contingencies
6 Months Ended
Jun. 30, 2018
Commitments and Contingencies  
Commitments and Contingencies

Note 5.Commitments and Contingencies

 

As of June 30, 2018, except as noted in footnote 2 below, the Company had commitments to acquire a total of 391 new aircraft for delivery through 2024 as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aircraft Type

    

2018

    

2019

    

2020

    

2021

    

2022

    

Thereafter

    

Total

Airbus A321-200

 

 2

 

 —

 

 —

 

 —

 

 —

 

 —

 

 2

Airbus A320/321neo(1)

 

 9

 

36

 

27

 

22

 

25

 

25

 

144

Airbus A330-900neo

 

 5

 

 5

 

 4

 

 7

 

 6

 

 2

 

29

Airbus A350-900/1000

 

 1

 

 4

 

 2

 

 5

 

 3

 

 —

 

15

Boeing 737-7/8/9 MAX

 

 4

 

27

 

29

 

36

 

34

 

28

 

158

Boeing 787-9/10

 

 4

 

12

 

10

 

 8

 

 9

 

 —

 

43

Total(2)

 

25

 

84

 

72

 

78

 

77

 

55

 

391


(1)

Our Airbus A320/321neo aircraft orders include 55 long-range variants.

(2)

In August 2018, we entered into an agreement to purchase up to 78 Boeing Aircraft, including 75 737-8 MAX aircraft and three 787-9 aircraft.  Of the 78 aircraft commitments, 30 737-8 MAX aircraft and three 787-9 aircraft are firm commitments and are included in our order book total.

 

Airbus has informed us to expect several month delivery delays relating to certain aircraft scheduled for delivery in 2018 and 2019.  The delays have been reflected in our commitment schedules above; however, we anticipate additional delivery delays not currently reflected in the schedules above. Our leases contain lessee cancellation clauses related to aircraft delivery delays, typically for aircraft delays greater than one year. Our purchase agreements contain similar clauses. As of August 9, 2018, none of our lease contracts were subject to cancellation.

 

Commitments for the acquisition of these aircraft and other equipment at an estimated aggregate purchase price (including adjustments for inflation) of approximately $27.8 billion at June 30, 2018, as adjusted for the order referenced in footnote 2 in the table above, are as follows (in thousands):

 

 

 

 

 

Years ending December 31,

    

 

 

2018

 

$

2,465,306

2019

 

 

6,151,512

2020

 

 

5,493,536

2021

 

 

5,808,153

2022

 

 

5,210,440

Thereafter

 

 

2,714,769

Total

 

$

27,843,716

 

We have made non-refundable deposits on the aircraft for which we have commitments to purchase of $1.6 billion as of June 30, 2018 and December 31, 2017, which are subject to manufacturer performance commitments. 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.

 

As of June 30, 2018, as adjusted for the order referenced in footnote 2 in the table above, the Company had non-binding commitments to acquire up to five Airbus A350-1000 aircraft and 45 Boeing 737-8 MAX aircraft.  Deliveries of these aircraft are scheduled to commence in 2023 and continue through 2024.