US Airways Gets Reprieve to Keep Flying

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Last updated at: (Beijing Time) Tuesday, August 13, 2002

US Airways Gets Reprieve to Keep Flying

US Airways won approval from a bankruptcy court on Monday to borrow US$75 million and stay in the air, a day after it filed for protection from its creditors.

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US Airways won approval from a bankruptcy court on Monday to borrow US$75 million and stay in the air, a day after it filed for protection from its creditors.

It is the first major United States carrier to file for Chapter 11 bankruptcy protection since the Sept 11 hijackings frightened millions of passengers out of the skies.

Judge Robert Mayer at the court in Alexandria, Virginia, approved the interim financing until Sept 26 when he reviews the airline's plans to borrow US$500 million.

It has already won a commitment for the money from Credit Suisse First Boston and Bank of America Corp.

'While we restructure, our operations continue, and we will continue to purchase and pay for goods and services from our suppliers,' US Airways president and chief executive David Siegel said.

The Arlington, Virginia-based carrier had filed for bankruptcy protection late on Sunday, saying it planned to emerge from the process by early 2003 after a reorganisation.

The seventh-largest US carrier, which has about 40,000 employees, said it would continue to honour all of its ticket and frequent flier vouchers during its reorganisation.

Source: Agencies

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