Avolar (UAL Corporation subsidiary)

Avolar (United BizJet Holding, Inc.) was United Airlines' attempt to enter the Fractional Jets market, which had until then been dominated by Netjets. On the 26th of April 2001, United Airlines said that it was "considering new services to lure high-end travelers out of delayed andcrowded airliners and into smaller, more convenient business jets." [ Reuters. [http://archives.californiaaviation.org/airport/msg14693.html "UAL Studying Launch of Corporate Jet Service"] ]

According to "Aviation Week", Avolar was "the first-ever affiliate of a major airline to enter the fractional fray." [Rich Piellisch. [http://www.aviationweek.com/shownews/01nbaa2/frax03.htm "Avolar Will Offer Airbus Fractionals; Sees Closer Ties with United Airlines"] , "Aviation Week". ] According to an article in airlineforecasts.com [Vaughn Cordle. [http://www.airlineforecasts.com/UAL_Avolar.html "United's Avolar Idea Was a Day Late and a Dollar Short"] , "Airlineforecasts.com", Published: March 11, 2002. (The web article states that this piece originally appeared in "Aviation Oracle" in February 2002.)] Avolar had a total of 306 aircraft ordered up until February 2002.

However, after being in existence for under one year as a UAL subsidiary, and before its first commercial flight, Avolar was shut down by the parent company, UAL Corporation. In a statement issued on March 22, 2002, United Airlines stated that the then "economic downturn and post-Sept. 11 drop in demand made this venture unprofitable."

Financially, in connection with the closing of Avolar, UAL recorded a charge of $82 million in the first quarter 2002, which represented advance payments on aircraft purchases, severance costs, termination fees and expenses in support of the business and its shutdown. [ [http://ir.united.com/phoenix.zhtml?c=83680&p=irol-newsArticle_print&ID=408110&highlight= "UAL Corporation Reports First-Quarter Results"] ]

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