Just Leave the Keys in the Plane When You’re Done
Defense contractor Raytheon Co.’s lending arm (who knew the manufacturer of radar and satellite sensors had a lending arm?) has issued a stern demand from bankrupt Mesa Air Group. Namely, that Mesa return 20 airplanes that the air carrier has defaulted on the loan for. Just one condition - no scratches, bumps, or dents.
Mesa requested permission from the bankruptcy court to abandon the Beechcraft 1900D turboprop planes, giving way for Raytheon, which holds the security interest in the collateral, can foreclose on the planes. The planes (which secured a loan from Raytheon) must, under the terms of the agreement, be returned in “airworthy condition.”
Such language is standard in loan agreements, but Raytheon claims that several of the planes are “missing one or both of their engines.” If the allegations are true, it begs the questions: (a) why did Mesa remove the engines; and (b) what does the defunct regional carrier plan to do with them?
In any event, I would love to see Raytheon put a couple of Beechcrafts up on blocks in front of corporate headquarters.
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