A ruling expected this week on United Airlines’ secured bonds could upset the industry’s debt market, making it far harder for airlines to borrow money in the future.
Like many airlines, the majority of US operator United’s debt is issued in the form of Enhanced Equipment Trust Certificates (EETCs) ? bonds secured on the airline’s assets, usually aeroplanes. But a US bankruptcy court last week issued a temporary restraining order preventing United’s creditors from taking control of about 14 aircraft.
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