Question-and-Answer Session
Operator
Thank you sir. (Operator Instructions) Your first question comes from Bob Labick.
Bob Labick
You mentioned a couple of things you know that were interesting in the quarter. Most recently on Friday you had announced the SonAir deal and you talked a little bit about it. I was hoping you could give us a little more color and maybe explain the risks of the contract to you now since you don’t have the aircraft but you’re doing the maintenance. How should we look at this on a go forward basis and model for it? Will it be part of ACMI? Or could you just talk more broadly about where this will fit into the P&L and potential contribution you might expect in the future.
Jason Grant
Sure Bob. It’s Jason. So let me give you sort of where we stand today. We are thinking of this as ACMI in terms of the classification going forward. We do have some time here before the service starts so that’s sort of our preliminary read on this in terms of how it will be presented. In terms of modeling you want to think of this similar to our core ACMI business on the 400 freighter fleet. Effectively we’re providing the same outsourced operating services that we would provide on the 400 freighter platform. It just happens to be in passenger configuration.
From an economic standpoint I think the simplest way to think about this is you know this is effectively economics that are similar to the ACMI business in terms of the contribution that we will generate up on the business. Its two physical aircraft. Its effectively one aircraft that we’re flying and from a modeling standpoint we think of this similar to the contribution we generate on a 400 ACMI unit on the freighter side, Bob, which you can really get referencing back to our 10-Q or 10-K. So that’s how you think about the contribution. From a cost standpoint I think the unique feature of this contract is that we are not bearing asset risk, so that is obviously a positive feature when we talk about sort of ACMI type contribution without the asset risk for the aircraft.
Bob Labick
And in the release and Bill just mentioned at the very end of the call there, expected contribution and growth from Titan in 2010. Is there anything in Titan right now that’s contributing or does this mean that you have some plans already put in place that would begin there? And could you just elaborate on that?
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