Avolar Announces Bombardier, Beechjet Orders

Avolar announced orders and options for as many as 82 additional aircraft, increasing to 309 aircraft the fledgling fractional ownership program has ordered.

The UAL Corp. division has signed letters of intent for 15 Beechjet 400As, with options for 10 additional aircraft, as well as "up to 57" Learjet 45 and 60s. The Raytheon order has a potential value of $150 million, while the Bombardier order is worth as much as $632 million.

Saying he "bullish on the market potential for Avolar," president and CEO Stuart Oran acknowledged that no firm share purchases have been made but predicted that "several" aircraft would be sold by the end of the month. He says more than 100 proposals have been sent to serious prospects in the past three weeks. Although new aircraft deliveries will not begin until Spring 2002, Avolar has two Falcon 50EX and a Hawker 800 available for charter and leasing.

Oran says the company has already operated charter flights under its recently-granted FAR Part 135 certificate and expects to receive Part 121 approval shortly. Only flight operations in Avolar's Airbus Corporate Jetliner joint ownership program will operate under Part 121.

Avolar also said it is nearing a final commitments for a private equity investor to buy the majority of UAL's ownership interest and to provide long-term funding. Oran would not disclose the identity of the investor, the dollar value of the investment nor the ownership percentage UAL is selling. He did say that the investment would be "hundreds of millions" and is from the "traditional private equity market."

Faced with budget shortfalls and layoffs in the aftermath of the September 11th terror attacks and a weakened economy, UAL ousted its former CEO and decided not to make any further investments in the Avolar program.