Air Transport World

US Airways to get loan guarantee as UA stumbles. (News Briefs).(United Airlines)(Brief Article)(Statistical Data Included)

Having achieved tentative cost-cutting agreements with most of its unions-including its pilots and flight attendants-and won preliminary approval from the Air Transportation Stabilization Board for a $900 million loan guarantee, US Airways appears to have dodged bankruptcy for the present. The ATSB approval came nor a moment too soon for the airline, which suspended certain lease payments at the end of June.

But there are several conditions to be met before ATSB gives a final nod to the deal that will secure $1 billion in private lending. For one, the carrier must "conclude legally binding agreements regarding the concessions and initiatives described in the business plan." Additionally, it needs to provide additional stock warrants to ATSB in order to give the government a greater stake in a successful outcome. …

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