CHICAGO, Mar. 22, 2002 - UAL Corporation (NYSE:UAL) announced today that the company was closing its wholly owned subsidiary, Avolar, which it launched last spring to capitalize on opportunities in the fast-growing fractional-ownership market.
In making the announcement, United CEO Jack Creighton said, “Since my arrival in October, we have explored every possible option that would have enabled UAL to benefit from its original investment in this subsidiary. Unfortunately, none of them proved financially viable in the current airline operating environment created by the downturn in the economy and exacerbated by the September 11 terrorist attacks. At this juncture, we believe closing the subsidiary is the most prudent move possible - one that protects United Airlines from further financial exposure, supports United`s efforts to pursue its financial stability and recovery, and enables United to focus on its core competencies.”
With the decision, UAL will begin an orderly shutdown of the operation. Customers who signed on for Avolar`s fractional jet service are in the process of being notified of the closing.
“We greatly appreciate the tireless efforts and dedication of the employees who helped us launch this subsidiary,” Creighton says. “They worked hard to bring the vision of Avolar to life, but were challenged by unfortunate and unexpected circumstances that even their best efforts couldn`t overcome.”