Sky Holding Company, LLC, the servicer for the Pegasus Aviation Lease Securitization (PALS) I & III transactions, is proposing to re-lease a 1988 MD-83 in PALS I to Aserca Airlines and a 1996 B767-300ER in PALS III to Santa Barbara Airlines, both domiciled in Venezuela. The placement of these aircraft with each of the proposed lessees would exceed various concentration limits as defined by the transaction documents. Both aircraft are currently off lease. Fitch Ratings does not anticipate that these actions, in and of themselves, would adversely impact Fitch''s ratings on either of the trusts.

Fitch currently rates the trusts as follows:

Pegasus Aviation Lease Securitization (PALS I)

--Class A-1 and A-2 notes rated ''CC/DR4'';

--Class B-1, C-1, and D-1 notes rated ''C/DR6''.

Pegasus Aviation Lease Securitization III (PALS III)

--Class A-1, A-2, and A-3 notes rated ''B/DR2'';

--Class B-1, B-2, C-1, C-2, and D-1 rated ''C/DR6''.

Additional information is available at www.fitchratings.com.

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Contacts:

Fitch Ratings, New York
Peter Manofsky, +1-312-368-2068 (Chicago)
Brad Sohl, +1-312-368-3127 (Chicago)
Media Relations:
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com