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IN RE IONOSPHERE CLUBS, INC.

Bankruptcy Nos. 89 B 10448, 89 B 10449.

100 B.R. 670 (1989)

In re IONOSPHERE CLUBS, INC. and Eastern Air Lines, Inc., Debtors.

United States Bankruptcy Court, S.D. New York.

May 25, 1989.

Attorney(s) appearing for the Case

Weil, Gotshal & Manges, New York City (Harvey R. Miller, and Bruce R. Zirinsky, of counsel), Cravath, Swaine & Moore, New York City (David Boies, of counsel), for Eastern Air Lines.

Weil, Gotshal & Manges, Houston, Tex. (Zack A. Clement, of counsel), for Texas Air Inc.

Kramer, Levin, Nessen, Kamin & Frankel, New York City (Joel B. Zweibel, of counsel), for Creditors Committee.

Guerrieri, Edmond & James, P.C., Washington, D.C. (Joseph Guerrieri, of counsel), for Intern. Ass'n of Machinists.

O'Donnell & Schwartz, New York City (Malcolm A. Goldstein, of counsel), for TWU.

Cohen Weiss and Simon, New York City (Bruce H. Simon and Richard M. Seltzer, of counsel), for Airline Pilots Ass'n.

Richard K. Helman, The Port Authority of New York and New Jersey, New York City.

Hazel, Thomas, Fiske, Beckhorn & Hanes, P.C., Washington, D.C. (Stanley J. Samorajczyk, of counsel), for Examiner.

Winthrop, Stimson, Putnam & Roberts, New York City (John F. Pritchard, and Eloise L. Morgan, of counsel), for America West Airlines.

Willkie Farr & Gallagher, New York City (Myron Trepper, of counsel), for Trump Air Shuttle.

MEMORANDUM DECISION RELATING TO MOTION OF EASTERN AIRLINES TO AUTHORIZE (i) SALE OF EASTERN AIR SHUTTLE ASSETS AND OPERATIONS, (ii) EXECUTION OF LAGUARDIA AIRPORT EAST END TERMINAL LEASE AND (iii) RELATED RELIEF

BURTON R. LIFLAND, Chief Judge.

BACKGROUND

On March 9, 1989 (the "Petition Date"), Eastern Air Lines, Inc. ("Eastern") and Ionosphere Clubs, Inc. each commenced a case for relief under Chapter 11 of the Code. Eastern continues to operate...

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