US Airways Wins Conditional Guarantee
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US Airways Group Inc. received a conditional $900-million loan guarantee that the carrier said it needs to raise $1 billion in new financing and avoid a bankruptcy filing.
The application was approved on conditions that include the seventh-largest U.S. 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.
The carrier has been trying to shave $1.3 billion from its annual expenses to survive amid a slump in travel that started early last year and worsened after the Sept. 11 attacks. The board was created to review applications for up to $10 billion in guarantees.
Shares of Arlington, Va.-based US Airways rose 11 cents to $3.63 on the New York Stock Exchange.
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