Delta objects to Eos Airlines sell-off plan

NEW YORK, May 22 (Reuters) - Delta Air Lines Inc (DAL.N: Quote, Profile, Research, Stock Buzz) has filed a motion to stop bankrupt Eos Airlines from attempting to sell equipment and the leases on its planes.

Eos, which went into Chapter 11 protection in late April, filed a petition to auction off its assets earlier this month, although no bidders have expressed interest in public so far.

Delta, the No. 3 U.S. carrier, said Eos is in possession of some of its equipment and is in no position to sell it. It also said Eos is a party to maintenance, facilities and engine lease contracts with Delta, which Delta may object to being passed onto another party.

Delta asked the bankruptcy court to uphold its objection to the planned auction, in a filing with the bankruptcy court for the Southern District of New York on Monday.

Mexican airline Mexicana, which sub-leased three aircraft to Eos, also filed an objection to the planned auction, in a similar motion filed on Tuesday.

Eos, which offered business-class only flights between New York and London, stopped services last month, one of seven airlines to shut its operations or go into bankruptcy in the past five months. (Reporting by Bill Rigby; Editing by Andre Grenon)