US Airways Dividend Miles (Pre-FlightFund Merger) - US Airways says it won't apply for federal loan deal

US Airways says it won't apply for federal loan deal

US Airways Group said on Monday it has no plans to apply for federal loan guarantees even after regulators granted conditional approval to a similar application by America West Airlines.



Analysts have often pointed to America West and Arlington, Va. -based US Airways as the two carriers most threatened by possible bankruptcy after the Sept. 11 terrorists attacks.

Investors applauded the decision and US Airways shares rose 13.2 percent, or 74 cents, to $6.34 during Monday trading on the New York Stock Exchange.

http://www.boston.com/dailyglobe2/002/business/US_Airways_says_it_won_t_apply_for_federal_loan_de al+.shtml

I noticed that America West has to give up a 1/3 equity stake to the government for those guarantees. Kinda like the Sopranos go to Washington. Yo, have I got a deal for yuz!

Actually, the government received warrants for a 1/3 stake, the big difference being they could (and probably would I think) convert the warrants directly to cash by selling the warrants if and when they are worth something.

For those that may not know, "warrants" are very much like long term "options." http://www.flyertalk.com/forum/smile.gif

Very similar to the Chrysler bailout years ago which, btw, the govt. made a bunch of $$$ on... http://www.flyertalk.com/forum/smile.gif