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Non-Tech : United Airlines -- Ignore unavailable to you. Want to Upgrade?

To: SLSUSMA who wrote (3)	8/7/2002 2:41:20 PM
From: Original Mad Dog	Read Replies (2) \| Respond to of 94

chicagotribune.com United's $1.8 billion request gains congressional backing By John Crawley Reuters Published August 7, 2002 WASHINGTON -- In a bipartisan push, key members of Congress lobbied the Bush administration to approve a $1.8 billion U.S. loan guarantee for United Airlines, urging quick action. The support was led by Illinois lawmakers, United's home base. A letter circulated by Sen. Richard Durbin (D-Ill.) and sent Monday to the board overseeing the $10 billion credit program was signed by 30 U.S. senators, including Majority Leader Thomas Daschle (D-S.D.). More than 100 members of the House also signed correspondence to the Air Transportation Stabilization Board in support of the carrier. House Speaker Dennis Hastert, an Illinois Republican, also is supporting United's appeal for $1.8 billion in loan guarantees. "United has indicated that it has been unable to access the credit markets on commercially reasonable terms. Thus, in order to contribute to a safe, efficient, and viable national commercial aviation system, preserve competition, and to fully implement the financial recovery goals outlined in United's business plan, the federal loan guarantee is necessary," Durbin's letter said. United, the world's second-biggest airline, has lost nearly $3 billion since the Sept. 11 attacks in which two of its planes were hijacked. United has $2.7 billion in cash and more than $3 billion in unencumbered aircraft that could be used as collateral. Many House and Senate lawmakers from Colorado, California, and Virginia--all United hub states--were among those who signed letters circulated by Durbin and Rep. William Lipinski (D-Ill.). It was unclear how much influence Congress will have over the three-member stabilization board, which has been tough on loan guarantee applicants despite political pressure. United also has not nailed down concessions from all of its unions to reduce labor costs, something the board wants US Airways to do before granting final approval of its $900 million loan guarantee bid. Some industry and government officials have questioned whether United's financial troubles are dire enough to warrant federal help, and whether capital markets are as tight as the company claims. For instance, Northwest Airlines completed the public sale Monday of $749 million in secured aircraft bonds in order to buy new planes. But Jack Creighton, the company's chief executive, said in a statement that the company qualified for the loan guarantee program, which was established after Sept. 11 to help struggling airlines. "We believe we are in exactly the position the [loan] program was designed to assist, and we are grateful for the support we've received," he said. There is no timetable for a decision on United's application. Copyright © 2002, Chicago Tribune