Case No. 00-19258-LBRUnited States Bankruptcy Court, D. Nevada
January 22, 2002
Attorneys for NATIONAL AIRLINES, INC., Craig D. Hansen, Esq., Thomas J. Salerno, Esq., SQUIRE, SANDERS DEMPSEY L.L.P., Phoenix, Arizona
Local Counsel for NATIONAL AIRLINES, INC., James Shea, Esq., SHEA CARLYON, LTD, Las Vegas, Nevada
ORDER PURSUANT TO 11 U.S.C. § 105 AND 363 APPROVING AND AUTHORIZING DEBTOR’S ENTRY INTO SHORT TERM ENGINE LEASE
LINDA B. RIEGLE, United States Bankruptcy Judge
The Court has considered the “Motion For An OrderPursuant To 11 U.S.C. § 105 And 363 Approving AndAuthorizing Debtor’s Entry Into Short Term Engine Lease” (the “Motion”) filed by NATIONAL AIRLINES, INC. (“National” or “Debtor”) Debtor-In-Possession in the above-captioned case, the supporting Memorandum of Points and Authorities and the entire record now before the Court, and after due deliberation and sufficient cause appearing therefore, the Court approves the Motion as follows:
THE COURT FINDS AND CONCLUDES AS FOLLOWS:
1. This Court has jurisdiction over this Motion pursuant to 28 U.S.C. § 157 and 1334. Venue is proper pursuant to 28 U.S.C. § 1408 and 1409. This Motion is a core proceeding pursuant to 28 U.S.C. § 157(b)(2). The statutory predicate for the relief requested herein are Sections 105 and 363 of the Bankruptcy Code.
2. Notice of Motion has been given to the U.S. Trustee, the Committee and all parties on the Official Service List. Such notice is adequate under the circumstances.
3. As part of its ongoing effort to continue to service its existing flight schedules, the Debtor has determined, in the exercise of its business judgment, that it must lease a replacement engine for aircraft N526NA.
4. The Debtor has negotiated short term engine Lease (the “Lease”) of a replacement engine.
5. It is in the best interest of the estate and creditors to allow the Debtor to lease the engine replacement.
6. Debtor’s inability to service passengers booked will cause financial harm and shake customer confidence. It is critical that the Debtor honor its passenger bookings and flight schedules.
7. The Debtor believes that the Lease of the engine upon the terms and conditions set forth in the Motion and the Lease reflects a market-competitive transaction.
8. The costs associated with the Lease are more than justified by the benefits that are expected to be realized by enabling the Debtor to service its markets and maintain its flight schedules. The terms of the Lease were negotiated in good faith and represent competitive terms for agreements of this nature.
9. In sum, the Debtor has determined in the exercise of its business judgment that entering into the Lease will enable the Debtor to continue to service its markets. Accordingly, the granting of the relief requested in the Motion is in the best interests of its estates, its creditors and other interested parties.
IT IS HEREBY ORDERED, ADJUDGED AND DECREED THAT:
A. The Motion is approved;
B. The Lease is approved and the Debtor is authorized to perform thereunder.