United Airlines is exploring spinning off much of its maintenance division, including its massive repair base at San Francisco International Airport. Chicago-based United earlier this year hired McKinsey and Co. to draw up strategic options for its maintenance, repair and overhaul operations, which employ about 5,500 mechanics and handle much of the airline's routine repair work as well as maintenance for about 150 other carriers. "We are contemplating bringing in third parties who can invest in the maintenance, repair and overhaul business," said United spokeswoman Jean Medina. "This will enable us to continue to provide the highest quality maintenance to United and our customers. We are working cooperatively with our labor groups to ensure that any arrangement would be for the long term with a partner that creates value for our customers, investors and employees." United executives are said to favor pursuing a joint venture that would allow the airline to retain a minority stake in the maintenance operations while handing over control to an outside investor such as a hedge fund, third-party contractor or even another airline. Any such change in ownership structure would require union approval, sources said.
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