MEMORANDUM AND ORDER
EDWARD R. BECKER, District Judge.
We have before us the petition of the reorganization debtor to reject an executory sublease. For the reasons hereinafter stated, the petition will be granted.
Petitioners are the duly qualified trustees of Red Dodge Aviation, Inc.
("Red Dodge"). Red Dodge is engaged in the business of carrying commercial air freight between Anchorage, Fairbanks, and the North Slope of Alaska pursuant to the rights granted to it by the Alaska Transportation Commission.
Red Dodge is sublessee of premises located at the Air Industrial Park, Fairbanks International Airport. The premises are used for the staging, storage, loading, unloading and parking of aircraft, and also for office space, under a sublease agreement with Denali Services Co., Inc. ("Denali") for a term of three (3) years commencing January 15, 1970, and ending January 14, 1973, at a rental of $3,353.55 per month, plus insurance on inventory and personal property taxes. The petition to reject this executory sublease was filed on March 10, 1971. Notice of hearing was sent to debtor's counsel in Alaska. A hearing on the matter was held on April 14, 1971, at which testimony was taken. Denali's counsel did not appear but filed a written brief in opposition to the petition.
The gravamen of the trustees' petition is that the leased premises do not include hangar space and that, because of the frigid temperatures in the winter months at Fairbanks, the debtor was unable to perform maintenance on its aircraft at the leased premises and was forced to conduct costly ferry flights to Anchorage and places outside Alaska so that maintenance could be performed. At the hearing conducted on this matter, the trustee Eugene Bernstein testified that, because of this situation, the lease is burdensome to the debtor's estate.
Mr. Bernstein further testified that the trustees had negotiated a lease with another party at the Fairbanks International Airport providing for all of the facilities included in the Denali sublease, plus the use of a hangar for Red Dodge's aircraft. The Federal Aviation Agency does not permit outdoor maintenance operations in Fairbanks' temperatures except in the warm months of the year, and the new facility obviates the ferry flights.
Section 116(1) of the Bankruptcy Act, 11 U.S.C. § 516(1) provides that upon the approval of a reorganization petition the judge may:
(1) permit the rejection of executory contracts of the debtor, except contracts in the public authority, upon notice to the parties to such contracts and to such other parties in interest as the judge may designate.