was climbing after the company reached an arrangement with the federal government that will provide the airline with a needed financial package.
After the market closed Friday, the company said it received approval for $380 million in federal loan guarantees under the Air Transportation Safety and Stabilization Act. The loan guarantees will allow America West to close a $445 million loan and complete arrangements for more than $600 million in concessions, financing and financial assistance.
Shares of America West were gaining 64 cents, or 25.9%, to $3.11 in recent activity on the
New York Stock Exchange. The 52-week low is $1.45.
America West is the first carrier to get the loan guarantees from the federal government, and the deal raises the possibility that other major airlines will seek and receive similar financial assistance packages from Washington.
were all up around 3% Monday.
were also higher.
In order to close the deal, America West must give the government control of about 33% of the company. Additionally, the airline will be required to keep labor costs under control. America West expects to receive the loan proceeds by mid-January.
Congress and the Bush administration formulated the loan guarantee program as part of the plan to help the nation's airlines stay afloat in the wake of the Sept. 11 terrorist attacks on New York and Washington.