Aloha Airlines plans to apply for U.S. backing of private financing to help recover from last fall's tourism disaster. Aloha Airlines
to file for federal
loan guaranteeeBy Russ Lynch
rlynch@starbulletin.com
Aloha won't say how much it is seeking. Spokesman Stu Glauberman would say only that the airline plans to meet Friday's deadline to file the application.
Hawaiian Airlines has no plans to file for that support, said its spokesman, Keoni Wagner.
The backing for commercial loans is a separate program from the federal disaster direct compensation, which so far has brought Aloha $7.7 million in taxpayers' money and Hawaiian $24.9 million, for losses that had to be proven to the federal government's satisfaction.
Both airlines said yesterday they expect no more compensation under that program.
The separate loan guarantee program, passed by Congress in the weeks after Sept. 11, provides up to $10 billion in federal government loan guarantees for airlines damaged by the tragedy. Each airline must get its loan from the private sector but federal backing of the loan should improve access to such financing, although the guarantees are subject to some serious restrictions.
America West was a successful applicant, receiving a federal guarantee of $380 million for loans totaling $429 million from private lenders.
That was the only guarantee granted so far although several other airlines have applied, the biggest being United Airlines' request yesterday for U.S. backing to the tune of $1.8 billion. Like the others, United will have to show it has the private financing before a government guarantee would be possible.