Question-and-Answer Session
Operator
Thank you Mr. Larsen. Ladies and gentlemen today's question and answer session will be conducted electronically (Operator instructions)I would like to remind you again to please limit yourself to one question and you may reenter the queue (Operator instructions)we will take your questions at this time we will pause a moment to assemble the roster. We will go first today to Ronald Epstein with Merrill Lynch.
Ronald Epstein - Merrill Lynch
Good morning, Marshall.
Marshall Larsen
Good morning.
Ronald Epstein - Merrill Lynch
Were you surprised at how soft the after market ended up being this year, for you guys and if so, why? What happened to make it softer than maybe you were originally anticipating?
Marshall Larsen
Well, when we put our outlook for '09, Ron, there was one thing we didn't expect to have quite as much impact. And that is the utilization rate of the newer generation aircraft like A320s and 737 NGs. As you know, those are the last aircraft that you know any fleet is going to park, because they are the most fuel efficient. But the extent of the recessionary down turn in '09 in the U.S. in particular caused some of the carriers that fly exclusively A320s or 737 NGs to have a reduced utilization rate.
They didn't park the aircraft. Instead of running them for 12.8 hours a day they are running them for 12.3 for example. That had more of an effect on our after market and we weren't expecting that much of a utilization decrease. We also expect to see just the opposite going forward. Those aircraft were the first ones to be used fully as we start seeing demand solidify going into next year. So I think well, it causes a little bit more down turn this year than we were expecting. I think it will also add to the up turn going forward.
Ronald Epstein - Merrill Lynch
Okay great. Thank you.
Operator
Our next question will go to David Strauss with UBS.
David Strauss - UBS
Good morning.
Marshall Larsen
Good morning, David.
David Strauss - UBS
Just wanted to look at margins, it looks like in the fourth quarter on the segment basis you are applying about 14% margins and then more importantly looking to 2010 it looks like 14.5 to 15 or so, let me know if those are off. But you know, with the improvement in the after market that you are predicting, I think a bit of a tail wind on FX. I know you got a bit (Inaudible) but I would think margins would hang in there rather than go move lower in 2010?
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