Just Passing Thru
Nov 5, 02, 10:43 am
http://www.reuters.com/news_article.jhtml?type=businessnews&StoryID=1681934
WASHINGTON (Reuters) - The federal panel set up after the Sept. 11 attacks to ensure cash-strapped airlines had access to credit approved loan guarantee requests from two carriers, Frontier Airlines Inc. FRNT.O and Aloha Airlines Inc. on Tuesday.
The Air Transportation Stabilization Board said both guarantees were granted conditionally, the panel said in separate releases.
In Frontier's case, the ATSB said it would guarantee $63 million of $70 million financing sought by the carrier, but sought unspecified "additional fees and warrants."
For Aloha, the panel approved a smaller guarantee of $40.5 million in connection with a $45 million financing deal sought by the airline. In that case, the ATSB granted approval based on Aloha making "certain structural and financial enhancements," which it did not specify.
The decisions by the board, which includes representatives of the Treasury and Transportation Departments and the Federal Reserve, were unanimous. In granting the requests, the board said both carriers seemed likely to repay the loans. In Aloha's case, however, some ATSB members noted Aloha's role "in the unique Hawaiian aviation market."
Frontier is based in Denver, Colo., employs about 3,000 workers and offers service to 37 cities. Aloha, based in Honolulu, also has about 3,000 workers and offers flights between Hawaii and several U.S. mainland cities.
WASHINGTON (Reuters) - The federal panel set up after the Sept. 11 attacks to ensure cash-strapped airlines had access to credit approved loan guarantee requests from two carriers, Frontier Airlines Inc. FRNT.O and Aloha Airlines Inc. on Tuesday.
The Air Transportation Stabilization Board said both guarantees were granted conditionally, the panel said in separate releases.
In Frontier's case, the ATSB said it would guarantee $63 million of $70 million financing sought by the carrier, but sought unspecified "additional fees and warrants."
For Aloha, the panel approved a smaller guarantee of $40.5 million in connection with a $45 million financing deal sought by the airline. In that case, the ATSB granted approval based on Aloha making "certain structural and financial enhancements," which it did not specify.
The decisions by the board, which includes representatives of the Treasury and Transportation Departments and the Federal Reserve, were unanimous. In granting the requests, the board said both carriers seemed likely to repay the loans. In Aloha's case, however, some ATSB members noted Aloha's role "in the unique Hawaiian aviation market."
Frontier is based in Denver, Colo., employs about 3,000 workers and offers service to 37 cities. Aloha, based in Honolulu, also has about 3,000 workers and offers flights between Hawaii and several U.S. mainland cities.