United Airlines officials confirm departure from Indy

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United Airlines officials confirm departure from Indy

INDIANAPOLIS (AP) ? United Airlines has permanently closed its aircraft
maintenance base at Indianapolis International Airport. A two-sentence
statement about the closure by the airline on Friday dashed any lingering
hopes that the site might yet survive the airline's restructuring plan. On
April 11, Mayor Bart Peterson said it was "inconceivable" the airline would
resume operations at the base that employed 1,500 workers, including 1,100
mechanics. UAL Corp., United's parent company, said it filed a motion
Friday in federal bankruptcy court in Chicago "to reject its lease at IMC
(Indianapolis Maintenance Center) in order to make permanent the closing of
the facility" along with a second repair base in Oakland, Calif. United
issued a temporary closing order for Indianapolis' facility on April 6.
Friday's decision came in stark contrast to the celebration a dozen years
ago when state and local leaders landed the base ? then one of the nation's
largest economic development projects. United pays the airport $690,000
annually to lease land under the base. "We will definitely pursue any legal
claims with respect to rent and other payments. We are looking at any
potential claims we have," said Melina Kennedy, the city's director of
economic development. The city and airport also will continue to conduct
audits to make sure United doesn't leave with more than $30 million in
tools and equipment purchased with economic incentives that state, city and
Hendricks County officials used to land the maintenance facility. United
already has paid the city $34 million in penalties for missing the first
round of employment targets. The base was to employ 7,500 workers by 2004
under terms of a $300 million incentive package by state and local
governments. United is on the hook for a total of $100 million in
penalties, although it's unclear how bankruptcy court will treat that claim.


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