05-31-2002, 08:49 PM
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| Senior Member
Join Date: Sep 2001 Location: AUS
Posts: 690
| Federal Panel Refuses Airline's Loan Application
Federal Panel Refuses Airline's Loan Application Quote:
A federal panel refused to approve a $7.2 million loan guarantee for Frontier Flying Service Inc., saying the carrier's application didn't satisfy the government's standards.
The Air Transportation Stabilization Board 's decision was announced Friday and marked the second time this week that the panel had rejected an airline's request.
In Frontier's case, the board said the company had applied for a loan guarantee, citing concerns that it wouldn't be able to renew its insurance at a reasonable rate in the aftermath of the Sept. 11 terror attacks. But in fact the company "was able to renew its insurance coverage at acceptable rates," the board said.
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