NYTimes.com Article: Trans Air Receives Loan Guarantee

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Trans Air Receives Loan Guarantee

September 28, 2002
By THE ASSOCIATED PRESS






INDIANAPOLIS, Sept. 27 (AP) - American Trans Air said today
that the federal government had agreed to guarantee most of
a $165 million loan it had asked for.

The Air Transportation Stabilization Board agreed to back a
$148.5 million loan, should Trans Air default. The loan
guarantee, approved late Thursday, is part of Congressional
action taken to help stabilize the airline industry after
the Sept. 11 terrorist attacks. To qualify for loan
guarantees, airlines must exhibit stringent cost controls.

George Mikelsons, the chief executive of Trans Air, said
the company would eliminate about 8 percent of its work
force through layoffs and by not filling vacant positions.

Trans Air, which is based in Indianapolis, had been
profitable before the attacks. It posted a $58 million loss
in the second quarter ended June 30.

Trans Air made the loan guarantee request in June. Since
May, the board has denied five loan guarantee requests and
approved two.


http://www.nytimes.com/2002/09/28/business/28TRAN.html?ex=1034229430&ei=1&en=7aceaffcab8c7c91



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