Airline pain spreads: Disney and Pitney Bowes write down jet-lease exposure Canadian Press Tuesday, December 24, 2002 (AP) - Walt Disney Co. and Pitney Bowes Inc. say their exposure to bankrupt airlines is forcing them to write down investments in airplane leases. Walt Disney said Monday it is writing down a $114-million investment in airplane leases to United Airlines because of that company's Chapter 11 bankruptcy filing. The accounting adjustment will result in a cost of $83 million in the quarter ending Dec. 31, Disney said. Also Monday, Pitney Bowes said it will record a pretax charge of about $100 million in the fourth quarter to write down its investments in commercial aircraft leases with United and US Airways, which also has filed for bankruptcy. The Pitney Bowes charge stems from the estimated loss of payments over the next 10 years and reflects the expected final outcome of negotiations with US Airways and United Airlines. The actual outcome will not be determined until negotiations with both airlines are completed and any necessary bankruptcy court approvals are obtained, Pitney Bowes said. Disney invested $289 million between 1992 and 1994 to buy 11 aircraft, which it leased to Delta Air Lines, Federal Express and United. It retains leases totalling $175 million with Delta and FedEx. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) : escape email mailto:ejames@escape.ca Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: www.tobagoweddings.com/ TnT Webdirectory: http://search.co.tt *********************************************************