United may sell massive repair center

CHICAGO, Aug. 23 (UPI) -- United Airlines is considering selling its massive but aging repair base in San Francisco in a venture that could mean millions to the carrier.

Chicago-based United earlier had drawn up strategic options for its maintenance, repair and overhaul operations, which employ about 5,500 mechanics and handle much of the airline's routine repair work as well as maintenance for about 150 other carriers.

"We are contemplating bringing in third parties who can invest in the maintenance, repair and overhaul business," said United spokeswoman Jean Medina. "This will enable us to continue to provide the highest quality maintenance to United and our customers.”

United executives are said to favor pursuing a joint venture that would allow the airline to retain a minority stake in the maintenance operations while handing over control to an outside investor such as a hedge fund, third-party contractor or even another airline, the Chicago Tribune said.

Entering into such a joint venture could help United raise hundreds of millions from outside investors and avoid costly infrastructure investments needed to keep its San Francisco operations current, sources say. The San Francisco Airport maintenance facility dates to the 1950s.