Fight Halts Jet Deal Between Russian, U.S. Companies
A plane a Russian telecommunications conglomerate hoped to use as a corporate jet remained grounded in Wisconsin on Monday after the sellers, who say they are still owed millions of dollars, said the Russians took the plane and tried to fly it to Canada.
The plane's seller, N871DP LLC, sought a restraining order Friday because Siviera - a subsidiary of Russian telecommunications conglomerate Sistema - said it wanted to back out of the roughly $16 million (euro12 million) deal for the MD-87. Siviera still owed more than $2.5 million (euro1.8 million), partner Peter DeLisa said.
But Siviera's representatives then took the plane from the company outfitting it Saturday, DeLisa said. That prompted him and his partners to call the U.S. Federal Aviation Administration.
"We didn't know who was flying it and why it was taken," DeLisa said. "There were no FAA licenses or permits to be operating it or flying it in the airspace they were flying it in."
The FAA diverted the plane - which was first headed to Canada - to Milwaukee. It remained at Mitchell International Airport on Monday while authorities looked at whether its operators had followed flight guidelines and whether the plane was suitable for flying, FAA spokeswoman Elizabeth Isham Cory said.
The Federal Bureau of Investigation determined the plane did not pose a security risk, spokeswoman Monica Shipley said.
A court order extended until Wednesday blocks the plane from taking off until Monday, said Sean Bellew, an attorney for N871DP LLC.
Martin Weinberg, an attorney representing Siviera, said the company paid for the plane. The six people on the plane were flying to Russia to show the board of directors, he said.
MD-87s can carry at least 120 passengers and are often used commercially. The plane was outfitted as a corporate jet that can hold 19 people, DeLisa said.
Sistema is considered the largest private consumer services company in Russia. Its portfolio of businesses includes telecommunications, insurance, real estate, banking and pharmaceuticals. It posted revenues of nearly $7.6 billion (euro5.7 billion) in 2005.
News stories provided by third parties are not edited by "Site Publication" staff. For suggestions and comments, please click the Contact link at the bottom of this page.