05/26/98
David Sisson Named CEO

Chicago, IL (May 26, 1998) - David J. Sisson has signed a letter of intent to become President and Chief Executive Officer of the recently announced joint venture of United Airlines, Air Canada and Lufthansa Technik, when it is formally established. The new venture is being established to buy and sell aircraft materials in the secondary spare parts market.

In his new position, Sisson will be responsible for all aspects of the venture's operations, including marketing, finance, and administration. The new company is expected to start operations in the second half of 1998.

Before coming to his new position, Sisson was President and CEO of AVSCO Aviation Service Corporation, a division of Aerospatiale. AVSCO is a $90 million distributor of aviation parts and accessories based in Atlanta, GA.

Sisson has had an extensive career in the aircraft industry. He has held senior positions with Heads Up Technologies, Inc., Superior Air Parts, Inc., Textron Lycoming Division of Textron, Inc., and the Statham Division of Solartron. He started his career at Pratt & Whitney Division of United Technologies Corporation.

Sisson received a B.S. and a Master's degree in education from Bowling Green State University, and completed graduate course work toward a Ph.D. at the University of Illinois. He is a commercial pilot with single and multi-engine instrument ratings. He served in the U.S. Navy during the Viet Nam conflict. Sisson, his wife and two children, currently live in the Atlanta area.

The United Airlines, Air Canada, Lufthansa Technik joint venture will buy and sell materials for its partners and customer airlines, building upon the well established quality systems and the extensive combined inventories of the partners. Currently, the airline industry spends more than $10 billion (U.S.) for spare parts annually, with approximately 10% of that total coming from the pre-owned stocks of airlines and overhaul agencies. Worldwide, there are hundreds of suppliers in what is commonly acknowledged as a highly fragmented market.

The venture will take aim at reducing the costs and complexity of obtaining highest quality parts by providing a single, comprehensive source for a wide range of parts for engines and airframes. By establishing an efficient vehicle for the reallocation of inventory between airlines, the venture partners plan to lower maintenance costs in the industry, making quality pre-owned materials an even more cost-effective alternative to buying new spares from the manufacturers.

United Airlines, Air Canada and Lufthansa German Airlines combined operate more than 1,000 aircraft and generate 17% of the world's available seat miles. For more information or to arrange an interview, contact: Michael King, King Group Public Relations, telephone 805-462-3000, fax 805-462-3002, email mking@kinggroup.com.

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