[Archive Home][Date Prev][Date Next][Index]
"Bankrupt airlines owe $1.3 million to New Orleans airport"
Thursday, February 13, 2003
Bankrupt airlines owe $1.3 million to N.O. airport
United, U.S. Airways express intent to pay
By Matt Scallan
The New Orleans (LA) Times Picayune
United Airlines and U.S. Airways, both in Chapter 11 bankruptcy, owe Louis
Armstrong International Airport a total of $1.3 million in landing fees and
terminal rentals.
Since the debts were owed before the airlines declared bankruptcy, the
airport cannot collect what is owed without court approval. One airline,
however, has said it intends to pay what it owes.
Chapter 11 is designed to allow struggling businesses to reorganize their
finances to stay in business. Businesses in Chapter 11 typically get a court
excuse from paying many of their debts. Both airlines still are flying at
the airport.
U.S. Airways has asked the bankruptcy court to allow it to pay the $750,191
it owes the airport over a 12-month period, interest-free.
The New Orleans Aviation Board voted to accept the offer Wednesday.
"Any time someone in bankruptcy offers to pay you, it's not wise to delay
very long," Board Member Revius Ortique Jr. said.
United apparently has not asked permission to pay the airport, at least not
yet.
Each of the two airlines carried about 8 percent of Armstrong's passenger
traffic in 2002, and have been on time paying their bills since the
bankruptcy filing, said Carol Lowe, the airport's deputy director for
commercial development.
United has 11 daily departures to Chicago, Denver, Los Angeles, San
Francisco and Washington -- Dulles. The airport billed the company $2.63
million in 2001.
The company filed for Chapter 11 bankruptcy Dec. 9.
U.S. Airways, with 10 daily departures to Charlotte, New York -- Laguardia,
Philadelphia, Pittsburgh and Washington -- National, filed for bankruptcy
Aug. 11. The airport billed the airline $2.65 million in terminal rental and
landing fees in 2001.
Do you have an opinion about this story?
Share it with other readers in our CAA Discussion Forums
http://www.californiaaviation.org/dc/dcboard.php
*****************************************
Fair Use Notice
This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of political, human rights, economic, democracy and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.html. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.
If you have any queries regarding this issue, please Email us at stepheni@cwnet.com