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I’d like to begin the call by reading the following Safe Harbor statement. This conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to statements regarding the outlook for the Company's future business and financial performance.Forward-looking statements are based on current expectations and assumptions of FLY's management which are subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially due to factors that are summarized in the earnings press release and are described more fully in the Company's filings with the SEC. Please refer to these sources for additional information. FLY expressly disclaims any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in its views or expectations, or otherwise. This call is the property of FLY and cannot be distributed or broadcast in any form without the expressed written consent of the Company. A replay of today’s call is available for two weeks from today. An archived webcast of the conference call will be available for one year on the Company's website. I will now hand the call over to Steve Zissis, the President and CEO of BBAM the company that manages FLY’s fleet in order to give you his view on industry conditions. Steve? Steve Zissis Good morning everyone and thank you for joining us today. As is usually the case, you will be hearing from Colm and Gary on today’s call. So I will keep my comments rather brief. But I’ll be happy to answer any questions at the end of the prepared remarks. I’d like to start off today with some high level comments on the supply and demand dynamics currently in place in the commercial aircraft leasing business. Given the current economic stability in Europe. And slowing growth in China, demand for leased aircraft has performed and continues to perform better than one might have expected.
Premium long-haul traffic remains robust and customers filling these seats drive profitability for legacy and flight carriers around the world. But with that said, the short-haul, charter and low cost carriers are clearly feeling the pinch of the slowing global market environment.And this may impact demand for leased aircraft in the foreseeable future. While it is true that a handful of European and US carriers are shrinking their capacity, most networks are on hold or growing service leads. We have been predicting for several years that the fleeting requirements of the US legacy carriers would push demand for aircraft to higher levels. And this dynamic is clearly taking hold in the industry. Several new orders have recently been announced by these airlines and we expect this free fleeting trend to continue. The supply of aircraft continues to notch up as Boeing and Airbus increased production across the board. The Boeing narrow body equipment continues to outperform the comparable Airbus products in terms of demand and lease rates. I had expressed a view on a prior call that the demand for Airbus equipment had increased and that we were optimistic about the earnings potential of these aircrafts in the future. But increasing supply has softened our view on the speed and strength of this recovery over the near term. I would now like to make comments briefly on the state of the financing markets for aircrafts leasing. There are three main pillars for debt financing in the aircraft leasing business today. They are one ECA and EXIM financing, two capital markets financing and three bank loan financing. It will be no surprise to anyone on this call that capital market conditions continue to be highly volatile, making it difficult for less source to rely on these markets or perhaps more troubling for us and the reason is recent pullback in bank loan financing activity for US dollar loans. This is particularly true for the French banks, who have been significant lenders in the aviation industry, even through the credit crisis that began in 2007 and 2008. Read the rest of this transcript for free on seekingalpha.com