Frontier says it's first airline to pay off post-Sept. 11 loan

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Frontier says it's first airline to pay off post-Sept. 11 loan
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Associated Press
Dec. 22, 2003 11:44 AM


DENVER - Frontier Airlines said Monday it has become the first U.S. airline to repay a post-Sept. 11 loan from the government.

Frontier CEO and president Jeff Potter said the $11.6 million balance remaining on the $70 million loan would be given to members of the state's congressional delegation later Monday.

After the 2001 attacks, Congress established the Air Transportation Stabilization Board to distribute $10 billion in loans to cash-strapped airlines. Since then, discount carriers like Frontier have grown quickly despite the economic downturn.

Potter said the Denver-based airline used the loan to help its fleet expansion, which had been under way before the attacks.

"Obtaining approval for this government-backed loan helped to ensure that we could continue our business strategy, bring competitive air travel options to more communities and preserve competition in the aviation industry," he said in a statement.

Frontier, with about 3,800 employees, serves 37 cities in the United States and four in Mexico. Its stock traded down 49 cents at $14.28 on Monday on the Nasdaq Stock Market.

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On the Net: http://www.frontier.com

Roger
EWROPS

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