Re: UAL to pay Indiana for not meeting development goal

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I was wondering what ever happened to this great idea we all heard about 10
years ago in which UA was going to build a mx megaplex at IND similar to
AA's TUL facility.

Walter
DCA

----- Original Message -----
From: "W Wilson" <wlw-jr@att.net>
To: <AIRLINE@LISTSERV.CUNY.EDU>


> CHICAGO, Dec 29 (Reuters) - United Airlines, a unit of UAL Corp. (UAL),
> likely will have to pay Indiana state and local governments millions of
> dollars in 2002 for failing to meet spending goals in a 1991 economic
> development agreement, a United spokesman said on Saturday.
>
> "We have fallen short of our capital obligation and we are going to pay a
> penalty," spokesman Joe Hopkins said.
>
> The airline estimated earlier this year the penalty would be $32 million,
> but the final amount has not been determined, he said.
>
> The penalty is in connection with an agreement calling for United to build
a
> major maintenance facility at the Indianapolis International Airport in
> return for $294.5 million in incentives from the state and city.
>
>
> The Chicago Tribune reported on Saturday that United has spent $536
million
> on the facility, short of $800 million it had agreed to spend.
>
> United's penalties could rise over the next several years if other
> provisions, such as hiring goals, are not met, Hopkins confirmed. The
> Tribune reported that the airline could have to repay a total of $190
> million.
>
> The economic environment for United and other airlines changed following
the
> Sept. 11 attacks on the United States by men who hijacked commercial
> aircraft and crashed them into New York's World Trade Center and the
> Pentagon outside Washington.
>
> Airlines slashed the number of flights as potential passengers chose to
> avoid air travel.
>
>
> ©2001 Reuters Limited.

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