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Fri, Jul 12, 2002 - Page 12 News List

US Airways gets loan okay


US Airways Group Inc received a conditional US$900 million loan guarantee that the carrier said it needs to raise US$1 billion in new financing and avoid a bankruptcy filing. The application was approved on conditions that include the seventh-largest US carrier giving the government a bigger potential stake in the company and completing concession agreements with workers and creditors, the Air Transportation Stabilization board said in a statement. The carrier is trying to shave US$1.3 billion from its annual expenses to survive a slump in travel that started early last year. The board was created to review applications for as much as US$10 billion in guarantees, which includes a US$1.8 billion request that's still pending from UAL Corp's United Airlines.

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