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These excerpts taken from the UAUA 10-K filed Feb 29, 2008. Flight Equipment Details of UAL's and United's Mainline operating fleet as of December 31, 2007 are provided in the following table:
Details of United Express' operating fleet that are operated under capacity purchase lease agreements as of December 31, 2007, are provided in the following table:
All of the Bombardier CRJ700 and Embraer EMB170 aircraft are equipped with explus seating. For additional information on aircraft financings see Note 12, "Debt Obligations" and Note 16, "Lease Obligations," in the Combined Notes to Consolidated Financial Statements. Flight Equipment Details of UAL's and United's Mainline operating fleet as of December 31, 2007 are provided in the following table:
Details of United Express' operating fleet that are operated under capacity purchase lease agreements as of December 31, 2007, are provided
All of the Bombardier CRJ700 and Embraer EMB170 aircraft are equipped with explus seating. For additional information on aircraft financings see This excerpt taken from the UAUA 8-K filed Oct 26, 2005. Flight Equipment. Flight
Equipment includes all aircraft equipment, e.g.,
aircraft, spare engines, spare parts and rotables, leasehold improvements on
leased aircraft, deposits for aircraft, and prepayments on aircraft purchase
contracts. After repayment of the DIP
Facility in a liquidation, the Debtors expect to own certain Flight Equipment,
including aircraft previously encumbered under the DIP Facility (the “Unencumbered
Aircraft”), as well as an inventory of spare engines, rotables, and spare
parts.
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Using recent third-party fair market value estimates, the Liquidation Analyses assume the following realization rates for Flight Equipment: (i) between 50% and 68% of fair market value for Unencumbered Aircraft; (ii) between 50% and 57% of fair market value for spare engines; and (iii) between 32% and 57% of fair market value for spare parts and rotables. The Liquidation Analyses rely on the Debtor’s extensive industry knowledge and certain third-party appraisals to determine a forced or orderly liquidation value for each aircraft and engine type. These realization estimates are also based on factors such as the number of aircraft and engines anticipated to be in the market, the demand for a particular aircraft type, and age and costs of replacement. The Liquidation Analyses assume that the return of all of the aircraft in the Debtors’ fleet into the market will further reduce expected liquidation proceeds on account of such aircraft.
On an aircraft-by-aircraft basis, the Debtors have identified certain encumbered / mortgaged aircraft where the liquidation proceeds may exceed the outstanding debt obligations on such aircraft by up to $160 million. The Liquidation Analyses do not assume that the Trustee would realize such additional liquidation proceeds, because of the complicated nature of the Debtors’ aircraft financing arrangements and the ability of aircraft creditors to liquidate collateral to satisfy various cross-holdings. In any event, including such proceeds in the Liquidation Analyses would not result in a recovery to Unsecured Creditors. Therefore, the Liquidation Analyses assume that on an aggregate basis the liquidation proceeds from the encumbered/mortgaged aircraft in United’s and Air Wisconsin’s respective fleets would be exceeded by the outstanding debt obligations on such aircraft. The Liquidation Analyses thus assume that the Trustee will abandon United’s and Air Wisconsin’s encumbered aircraft, because the Debtors’ estates would not receive any proceeds or other value from such encumbered aircraft. The Liquidation Analyses assume that the Trustee will return all leased aircraft to the relevant lessors rather than attempt to assign the leases to third parties. Therefore, the Liquidation Analyses assume no realization on account of aircraft leasehold improvements. Deficiency claims arising out of the Trustee’s abandonment of mortgaged aircraft and rejection of aircraft leases is reflected in Line Item 22 below (Other Unsecured Claims).
The Liquidation Analyses assume that any cash deposits with aircraft lenders or lessors will be offset against such parties’ claims in connection with relevant aircraft. The Liquidation Analyses further assume that any Flight Equipment-related claim that is not completely satisfied by the value of any underlying collateral or deposits will result in an unsecured aircraft deficiency Claim reflected in Line Item 22 (Other Unsecured Claims).(5) The Liquidation Analyses assume that any prepayments associated with contracts for future aircraft purchases will be offset against the corresponding alleged claims asserted by the manufacturers for the rejection of such commitments. The Liquidation Analyses account for all airframes and engines no longer in operation as Other Assets (Line Item 11), not as Flight Equipment.
(5) See 11 U.S.C. § 506(a) (bifurcating claims into secured and unsecured portions based on a valuation of collateral).
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