US Airways to Seek Loans, May Reorganize

[dbaker]

US Airways to Seek Loans, May Reorganize

CHICAGO (Reuters) - US Airways Group (NYSE:U - News) said on Friday it will seek federal loan guarantees following huge losses since the Sept. 11 attacks and will consider a bankruptcy filing if it cannot reach agreement with employees, suppliers and lenders to cut costs.

[tycoonjack]

US Airways Files $900 Mln Loan Guarantee

Struggling air carrier US Airways Group Inc. asked the government on Monday to guarantee 90 percent of a $1 billion loan that it would use to help salvage its business, which took a huge financial hit after the Sept. 11 attacks.


The Arlington, Virginia-based air carrier, the nation's sixth-largest, reported a $2.1 billion loss last year, and its financial stability deteriorated even further as it reported a $269 million shortfall in the first quarter of this year.

The carrier filed an application on Monday evening for a $900 million loan guarantee from the government's Air Transportation Stabilization Board (ATSB), which was created by following the Sept. 11 attacks to aid the faltering airline industry.