Tue, Feb 04, 2003
Airports Don't Want to Foot the Bills for 'Deadbeat'
Airline
United
has asked the Bankruptcy Court for six more months, to figure out
just which airport gates and other facilities (if any) it won't
want. In the meantime, the cities, 'cooperating' by court order,
don't want United to skate on fees, until the airline makes up its
mind; or until the Court renders some sort of formal decision.
Los Angeles, according to the Nando Times, says United
already owes it over $2, for December and January; and it doesn't
want to have United have the very real chance to operate there for
free, for what could be six months more -- or longer. Other airport
managements, including those in Detroit and Cleveland, are equally
concerned.
Under
Chapter 11 of the US Bankruptcy Code, United may have the
court-sanctioned privilege to break leases on gates, terminal
space, etc. The official deadline (60 days from filing Chapter 11)
is Friday; but United notes that these types of decisions,
especially when balanced against other big logistical decisions
(like mothballing aircraft, or not accepting contracted-for
planes), is taking longer than it would like.
On the other hand, the airports argue, United, by the very
nature of its being protected under Chapter 11, has already called
in a lot of goodwill; and the airports have bills to pay, as
well.
If nothing else, the airport managers would like United to be
compelled to at least pay its current bills, as it makes up its
mind.
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