UAUA » Topics » Flight Equipment.

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:

Aircraft Type
  Average
No. of Seats

  Owned(a)
  Leased
  Total
  Average
Age (Years)

A319-100   120   36   19   55   8
A320-200   148   42   55   97   10
B737-300   123   17   47   64   19
B737-500   108   30     30   16
B747-400   347   21   9   30   12
B757-200   172   46   51   97   16
B767-300   213   17   18   35   13
B777-200   267   46   6   52   9
       
 
 
   
Total Operating Fleet—UAL   255   205   460   13
       
 
 
   
Total Operating Fleet—United(b)   254   206   460   13
       
 
 
   

(a)
At December 31, 2007, 142 owned aircraft were encumbered.

(b)
United leases one B737-500 aircraft owned by a subsidiary of UAL.

        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:

Aircraft Type
  Average
No. of Seats

  Total
Bombardier CRJ200   50   98
Bombardier CRJ700   66   87
De Havilland Dash 8   37   10
Embraer EMB120   30   28
Embraer ERJ145   50   28
Embraer EMB170   70   28
       
Total Operating Fleet       279
       

        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:























































































































































































Aircraft Type
 Average

No. of Seats

 Owned(a)
 Leased
 Total
 Average

Age (Years)

A319-100 120 36 19 55 8
A320-200 148 42 55 97 10
B737-300 123 17 47 64 19
B737-500 108 30  30 16
B747-400 347 21 9 30 12
B757-200 172 46 51 97 16
B767-300 213 17 18 35 13
B777-200 267 46 6 52 9
    
 
 
  
Total Operating Fleet—UAL 255 205 460 13
    
 
 
  
Total Operating Fleet—United(b) 254 206 460 13
    
 
 
  






(a)
At
December 31, 2007, 142 owned aircraft were encumbered.


(b)
United
leases one B737-500 aircraft owned by a subsidiary of UAL.


        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:











































































Aircraft Type
 Average

No. of Seats

 Total
Bombardier CRJ200 50 98
Bombardier CRJ700 66 87
De Havilland Dash 8 37 10
Embraer EMB120 30 28
Embraer ERJ145 50 28
Embraer EMB170 70 28
    
Total Operating Fleet   279
    




        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.



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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9.                                      

"Flight Equipment." elsewhere:

SkyWest (SKYW)
ExpressJet (XJT)
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