=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2002/07/10/n= ational2122EDT0827.DTL ---------------------------------------------------------------------- Wednesday, July 10, 2002 (AP) U.S. government gives US Airways conditional approval for federal loan guar= antee MATTHEW BARAKAT, AP Business Writer (07-10) 18:22 PDT ARLINGTON, Va. (AP) -- The federal government gave conditional approval Wednesday to US Airways' application for a $900 million federal loan guarantee the airline says it needs to avoid bankruptcy. But the federal Air Transportation Stabilization Board said ultimate approval is contingent on several factors, including final agreements with unions on wage concessions. The board also wants the airline to enhance its offer giving the government a chance to buy a stake in the airline. The ATSB said it wants a larger stake, but did not say how much. A similar loan approved for America West Airlines gave the government the chance to buy a third of the company at $3 a share. In approving the loan, the board said that US Airways has shown it has a reasonable chance of repayment based on its restructured business plan. The $900 million loan guarantee is in addition to $100 million in private financing the airline sought as part of a restructuring plan designed to cut costs by $1.2 billion a year, mostly through labor concessions. The struggling airline has been negotiating with its unions in an effort to cut $950 million in wages. It has reached tentative agreements with its pilots and flight attendants, but not with gate workers or machinists. US Airways lost $2.1 billion in 2001 and was hit especially hard by the drop-off in air travel after the Sept. 11 attacks. =20 ---------------------------------------------------------------------- Copyright 2002 AP