A1FlyBoy
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Crain's Chicago Business
Observers who think they've seen it all in United Airlines' chaotic bankruptcy are scratching their heads over the case of the vanishing jumbo jet.
A Boeing 747 that had been part of United's fleet for nearly 15 years was reclaimed Aug. 5 at Chicago's O'hare International Airport by its owner, Wilmington Trust Co. The next day, United settled a lengthy dispout with leasing companties that own 105 other aircraft in its fleet.
While United says it voluntarily returned the aircraft, people close to the lessors say the jet was repossessed - unusual for a major airline - as a negotiating ploy. The maneuver pressured United execs to reach a deal with financiers who control about one quarter of its 450 aircraft fleet, they contended.
Either way, the airline lost a wide-bodied jet for its lucrative overseas routes at the height of the summer travel season. "United probably didn't want to give up that airplane at that particular point." says Glen Langdon, president of Langdon Asset Management Inc.
Adds turnaround expert William Brandt: "When somebody pops an airplane out of you, it gets your attention. It's also embarrassing."
A United spokesman has another take. "We'd made competitive offers on the aircraft and it was not in our financial interest to pay the rates they were seeking," he says. "We did not return it. It did not impact our schedule or operations."
Lawyers for the leasing firms and a Wilmington Trust spokeswoman did not return calls. Wilmington still has the plane N-176UA, which is parked in the Mojave Desert.
Observers who think they've seen it all in United Airlines' chaotic bankruptcy are scratching their heads over the case of the vanishing jumbo jet.
A Boeing 747 that had been part of United's fleet for nearly 15 years was reclaimed Aug. 5 at Chicago's O'hare International Airport by its owner, Wilmington Trust Co. The next day, United settled a lengthy dispout with leasing companties that own 105 other aircraft in its fleet.
While United says it voluntarily returned the aircraft, people close to the lessors say the jet was repossessed - unusual for a major airline - as a negotiating ploy. The maneuver pressured United execs to reach a deal with financiers who control about one quarter of its 450 aircraft fleet, they contended.
Either way, the airline lost a wide-bodied jet for its lucrative overseas routes at the height of the summer travel season. "United probably didn't want to give up that airplane at that particular point." says Glen Langdon, president of Langdon Asset Management Inc.
Adds turnaround expert William Brandt: "When somebody pops an airplane out of you, it gets your attention. It's also embarrassing."
A United spokesman has another take. "We'd made competitive offers on the aircraft and it was not in our financial interest to pay the rates they were seeking," he says. "We did not return it. It did not impact our schedule or operations."
Lawyers for the leasing firms and a Wilmington Trust spokeswoman did not return calls. Wilmington still has the plane N-176UA, which is parked in the Mojave Desert.