Political Quotes

“I am pleased to be a cosponsor of the bankruptcy reform bill which is before the Senate today. I wanted to acknowledge and compliment the chairman of the committee in particular for including one provision which is especially important to the largest employer in my State, the Boeing Co. This provision is a clarification of section 1110 of the Bankruptcy Code. Section 1110 of the Bankruptcy Code provides special protections to those who finance or lease aircraft. Under these provisions, in the event of a bankruptcy, a debtor must within 60 days either agree to perform its obligations under the terms of the lease or must allow the lendor or lessor to retrieve the aircraft. In other words, if an airline goes into bankruptcy, the company that has financed the sale of the airlines' leased planes will be able to get the plane back after 60 days. This is extremely important to both the manufacturers of aircraft and the airlines. As a member of the National Commission to Ensure a Strong Competitive Airline Industry, I strongly supported the clarification of section 1110. The language included in this bill today will encourage traditional aircraft lenders to get back into the marketplace. It will result in lower charges to the airlines for financing aircraft as the additional risk of the present uncertain situation will be removed. Aircraft are great collateral; their value is high and their depreciation low.”