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November 27, 2009

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Bankrupt National Airlines sues to get two aircraft engines

Wednesday, Jan. 10, 2001 | 11:36 a.m.

Bankrupt National Airlines of Las Vegas filed lawsuits this week to reclaim two aircraft engines it says are being held by its Dallas maintenance contractor because of unpaid bills.

National, which said one of its Boeing 757 aircraft is sitting idle because Texas Aero Engine Services LLC is holding its engine until a $1.8 million repair bill is paid, seeks an injunction against the company to immediately release the engine.

National, which filed Chapter 11 bankruptcy protection on Dec. 6, alleged its reorganization efforts will be hampered if its flight schedule were interrupted or if it is "forced to incur significant costs to obtain a replacement engine at a time when it can ill afford to incur unnecessary costs."

Separately, National filed another lawsuit against Texas Aero and Pegasus Aviation V Inc. to repossess another aircraft engine for which it hasn't paid about $350,000 for repairs.

Texas Aero could not be reached for comment.

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