US AIRWAYS GETS LOAN GUARANTEE

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US Airways gets loan guarantee

Bankrupt airline receives the government's approval
for $900M loan guarantee with new conditions.
February 11, 2003: 2:22 PM EST

WASHINGTON (Reuters) - US Airways Group Inc. received
government approval Tuesday for a $900 million loan
guarantee critical to the carrier's bid to reorganize
under bankruptcy protection.

The guarantee from the Air Transportation
Stabilization Board -- the government entity set up to
assist financially struggling airlines after the Sept
11, 2001 hijack attacks -- will underpin $1 billion in
private financing.

US Airways must still meet several new conditions
before the government will activate the guarantee.
They include finalizing concession deals with workers,
obtaining final bankruptcy court approval of its
reorganization proposal, and regulatory and judicial
clearance of its plan to eliminate its pilot's union
retirement plan.

The board agreed to take a 10 percent stake in US
Airways and said it may seek more agreements on other
matters with the carrier before the bankruptcy process
ends. US Airways plans to emerge from bankruptcy at
the end of March.

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