Message-ID: <23899357.1075840214078.JavaMail.evans@thyme>
Date: Mon, 9 Oct 2000 07:30:00 -0700 (PDT)
From: nina.garcia@enron.com
To: kenneth.lay@enron.com
Subject: SALE OF FALCON 900B (#N5733)
Cc: steven.kean@enron.com
Mime-Version: 1.0
Content-Type: text/plain; charset=us-ascii
Content-Transfer-Encoding: 7bit
Bcc: steven.kean@enron.com
X-From: Nina Garcia
X-To: Kenneth Lay
X-cc: Steven J Kean
X-bcc: 
X-Folder: \Kenneth_Lay_Dec2000\Notes Folders\All documents
X-Origin: LAY-K
X-FileName: klay.nsf

Ken,

Earlier this year when the decision was made to purchase our new GV aircraft, 
we agreed to move forward with plans to sell one of our Falcon 900B's by 
year-end.

This allows for Aviation to maintain a six aircraft domestic fleet, once the 
GV is delivered and operational at the beginning of the 2nd quarter of next 
year.  Our '01 budget forecast is based on this assumption.

A year-end sale avoids ad valorem tax issues.  It reduces our fleet to five 
during the 1st quarter, which is also the limit that we can operate aircraft, 
i.e., several pilots unavailable (at GV flight training during this period).

Gary Fitch advises that Jeff and Joe do not have a preference on which 
aircraft to sell.  Gary prefers selling the Falcon 900B (#N5733), since it 
has only one lavatory.  The aircraft is 12 years old, in excellent condition, 
and has a market value of $20-22 million (lease buy-out of $19 million).

With your concurrence, we will contract with an aircraft broker and place the 
Falcon on the market.

Bill