Ramon Lopez/WASHINGTON DC

BUSINESS EXPRESS, the US regional carrier based in Portsmouth, New Hampshire, has been forced into the federal bankruptcy court by Saab Aircraft. The airline owes Saab more than $20 million - much of it in unpaid lease payments.

A major creditor, Saab filed a so-called "involuntary petition" which placed the US regional carrier under bankruptcy court protection. Such petitions are not often used by the aviation industry, but are a common practice in the business world. Usually, a failing company with creditors at the door seeks the court's protection itself.

Saab , along with its subsidiaries Saab Aircraft Credit and Fairbrook Leasing, launched the legal manouvre after learning that another major creditor was about to attack Business Express assets, including valuable landing slots.

Warren Wilkinson, marketing director for Business Express, says that the petition was filed without the airline's knowledge. He says that both sides are now working together to resolve the outstanding financial issues.

Business Express is saddled with large debts, including unpaid aircraft rentals, and Saab says that it was left with "no practical alternative" but to seek the relief afforded by the bankruptcy court.

Saab says that it is owed more than $20 million. Business Express operates 37 Saab 340s, of which 32 are subleased from Fairbrook Leasing. The other five, Saab 340s are owned, by another party. The regional carrier is returning about a dozen leased Beech 1900s. It is also handing back its three Avro International Aerospace RJ70s to the lessor, Trident Jet Leasing.

Source: Flight International