WASHINGTON â€“ Morgan Stanley Dean Witter & Co. has been stymied in efforts to regain a $32 million jet that was leased to a customer in Ireland, yet wound up in Libyan leader Moammar Gadhafi's national airline.
A subsidiary called Morgan Stanley Aircraft Finance leased the Airbus A320-200 to TransAer International Airlines Ltd., an Irish charter flight provider, a regulatory filing said. TransAer subleased the jet to Libyan Arab Airlines in Tripoli.
When TransAer went bankrupt last month, Morgan Stanley found itself faced with the task of repossessing the plane from the desert state, according to documents filed with the Securities and Exchange Commission. Libyan Arab Airlines balked, refusing to return the plane.
Morgan Stanley declined comment on the leased plane.