Following a similar loan from Republic Airways Holdings, Air Wisconsin Airlines Corporation is providing $35 million loan to US Airways, Inc for an initial term of 12 months with optional monthly extensions totaling an additional 12 months, provided certain conditions are met. Related Story
The loan agreement is part of the comprehensive liquidity program US Airways announced on Oct. 23, through which it raised a total of approximately $950 million of financing and near-term liquidity commitments. On October 20, US Airways closed on approximately $800 million of these transactions, which included the $35 million in proceeds from Air Wisconsin.
"As the regional carrier operating the largest fleet of US Airways Express aircraft, Air Wisconsin remains committed to supporting US Airways success," said President and CEO Jim Rankin. "This investment represents a continuation of the strong partnership between Air Wisconsin and US Airways, and demonstrates our support for the US Airways team and the actions they have taken to navigate a very difficult economic environment."
US Airways Express President Dion Flannery said, "We are extremely appreciative of the commitment Air Wisconsin made two weeks ago as a part of our comprehensive liquidity program and greatly value their support. We will work diligently so our customers continue to benefit from our partnership and look forward to succeeding together."
Air Wisconsin, the largest privately held regional airline in the United States, has operated its entire fleet of 70 Canadair Regional Jets as US Airways Express since establishing a partnership with US Airways in 2005. Air Wisconsin performs ground-handling services for United Express and Northwest Airlines.