By Patrick Markey NEW YORK, Dec 27 (Reuters) - Federal officials could decide within days whether to grant America West Airlines crucial loan guarantees as the threat of bankruptcy clouds its future and other airlines watch from the sidelines. Phoenix-based America West, owned by America West Holdings (AWA), said on Thursday that the federal loan guarantees remain essential for the airline to stave off a possible bankruptcy filing in the wake of the Sept. 11 attacks on the United States. America West, the No. 8 U.S. carrier, has already revised its application three times to appease regulators, including offering the government a 10 percent stake in the airline and trimming its loan guarantee request to $380 million. The Air Transportation Stabilization Board will meet on Friday or Monday to discuss America West's application for part of the $10 billion in loan guarantees, according to people familiar with the situation. "The board is working very diligently on the America West application. It is a top priority, but there is no set timetable for a decision," said a spokeswoman for the U.S. Treasury Department. America West and Vanguard Airlines Inc. (VNGD) are the only carriers to so far apply for the guarantees as part of the Bush administration's $15-billion bailout package for the ailing airline industry. While some airlines have dismissed the loan program, other major carriers said they plan to keep the option open as a safety net while observing the industry's recovery and what demands the board places on the America West. The deadline for application is June 28 next year. BANKRUPTCY THREAT U.S. airlines, already battered by the lingering economic downturn, have been struggling against staunch losses caused by the steep drop in air travel after September's attacks. Aviation experts believe the industry could post annual losses reaching $9 billion by the end of this year, but some are predicting a rebound in business by late 2002. Soon after September's devastating attacks, America West President, Chairman and Chief Executive Douglas Parker said his airline and other carriers could face bankruptcy without government intervention. America West said on Thursday that threat still lingers. "Until loan guarantees are actually approved, America West's situation remains relatively unchanged," said Jim Sabourin, a spokesman for the airline. America West had about $145 million in cash at the end of the third quarter and during its fourth quarter, it also secured about $70 million in private financing and received $38 million from the cash portion of the government's bailout program. Sabourin said America West also has some debt payments due earlier next year, but would not provide details or comment on whether it has cash available to make those payments. The airline said at the end of the third quarter that it was losing about $1 million to $2 million a day as it slowly recovered from the slump in traffic. Though America West has seen traffic creep back, the airline is still losing cash at the low end of that range, Sabourin said. America West shares lost nearly 4 percent, or 10 cents, during Thursday trading, to close at $2.60 on the New York Stock Exchange. ©2001 Reuters Limited.