As a result of the COVID-19 pandemic many aircraft have been parked and lease rates have fallen. Rather than completing its proposed leasing transaction with Azul described in the February Application, Breeze has reentered the market for ERJ-190/195 series aircraft and signed a term sheet with NAC to lease fifteen (15) used ERJ-190 aircraft. The terms of the NAC lease offer significantly better terms than the original term sheet signed with Azul for ERJ-195 aircraft. In the long term Breeze envisions operating ERJ-190/ERJ-195 aircraft alongside the A220s. Breeze signed the term sheet on June 19, 2020, which is attached hereto as Exhibit 6, and the parties are expected to formalize the final lease documentation by July 31, 2020.