Fairbrook Leasing, Inc. v. Mesaba Aviation, Inc.

LOKEN, Chief Judge.

In March 1996, Mesaba Aviation, Inc. (“Mesaba”), a regional airline, and subsidiaries of Swedish airplane manufacturer Saab AB 1 executed a document entitled, “Term Sheet Proposal for the Acquisition of Saab 340 Aircraft by Mesaba Aviation, Inc.” (the “Term Sheet”). The Term Sheet called for Mesaba to purchase thirty new 340BPlus aircraft from Saab and to sublease twenty used 340A aircraft from Fairbrook. The Term Sheet recited that it was “a summary of selected elements” of the final agreement; the parties agreed “to negotiate, execute, and deliver definitive documentation…