Judge OKs more jet leases for National

Friday, April 12, 2002 | 11:09 a.m.

A U.S. Bankruptcy Court judge has given National Airlines of Las Vegas permission to lease two Boeing 757 jets, paving the way for the company to start nonstop service between Las Vegas and Seattle next month.

Judge Linda Riegle on Wednesday authorized the lease agreement with International Lease Finance Corp., Los Angeles, for the two twin-engine, 175-passenger jets, which the lessor repossessed from a bankrupt Canadian airline. Terms of the deal were not disclosed.

The judge approved the deal over the objection of BF Goodrich Aerospace MRO Group Inc., Everett, Wash., which has National's heavy aircraft maintenance contract. Goodrich said National violated terms of the maintenance agreement by allowing ILFC to service the aircraft. National said that it didn't break the agreement because it had not taken possession of the planes from the lessor.

In approving the transaction, Riegle allowed Goodrich to maintain its right to seek legal action on the matter in the future.

By taking the planes, National will have 18 757s and the company plans to start three daily flights between Las Vegas and Seattle and a fourth round-trip between Las Vegas and Dallas-Fort Worth on May 23. Attorneys for National said advanced bookings for its Seattle flights have exceeded expectations with more than 7,000 seats sold so far.

National, operating under Chapter 11 bankruptcy protection since December 2000, has a court-approved reorganization plan that would become effective pending approval of a federal government loan guarantee of up to $70 million. The airline has made preliminary filings for a loan application before the three-member Air Transportation Stabilization Board in Washington.