The bottom rung of the US industry, the so-called national carriers that fall below the majors, remains a curiosity.
Vanguard Airlines, which ceased flying and sought bankruptcy protection in the summer, now seeks a new investor after the collapse of a planned stake from the owner of restaurant chain Hooters. Vanguard filed for Chapter 11 protection shortly after being rejected for a loan guarantee by the Air Transportation Stabilization Board.
By mid-October, the panel had also twice rejected a plea by Spirit Airlines, reasoning that it could not be certain it would be repaid its portion of the $60 million loan guarantee. Spirit, however, continues to carry record traffic loads.
The board did, however, tentatively guarantee a $165 million loan package to American Trans Air, the mixed charter and scheduled service carrier.
Elsewhere, Midway Airlines, which sought bankruptcy shortly before the September 2001 terrorist attacks, has stalled in its plans to re-emerge as a US Airways Express feeder in the Carolinas. Although Midway won Transportation Department approval for the venture in October, it still had not met the financing terms that US Airways set out as prerequisites. Grounded since July, Midway hoped to start the feeder service in December.
National Airlines, the Las Vegas-based carrier in bankruptcy protection since December 2000, says it had a $112 million finance plan in place although the Transportation Department moved to transfer its Reagan Washington National Airport slots to other airlines.
Source: Airline Business
