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 and crowded airliners and into smaller, more convenient business jets." [1]
According to Aviation Week, Avolar was "the first-ever affiliate of a major airline to enter the fractional fray."[2] According to an article in airlineforecasts.com [3] Avolar had a total of 306 aircraft ordered up until February 2002.
However, after being in existence for less than 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. [4]
References
- ↑ Reuters. "UAL Studying Launch of Corporate Jet Service" Archived February 27, 2007, at the Wayback Machine.
- ↑ Rich Piellisch. "Avolar Will Offer Airbus Fractionals; Sees Closer Ties with United Airlines", Aviation Week.
- ↑ Vaughn Cordle. "United's Avolar Idea Was a Day Late and a Dollar Short" Archived February 9, 2007, at the Wayback Machine., Airlineforecasts.com, Published: March 11, 2002. (The web article states that this piece originally appeared in Aviation Oracle in February 2002.)
- ↑ "UAL Corporation Reports First-Quarter Results" Archived November 28, 2006, at the Wayback Machine.