United Airlines is appealing to the US Air Transportation Stabilization Board (ATSB) for reconsideration of its rejected application for a $1.6 billion government loan guarantee.
The Star Alliance carrier had seen a $1.6 billion federal guarantee of a $2 billion private loan as key to its plan to emerge from Chapter 11 protection.
The ATSB says that "a guaranteed loan to United is not a necessary part of maintaining a safe, efficient and viable commercial aviation system in the United States".
United says it is "perplexed" by the rejection, and "has reason to believe we are in the midst of a process with the ATSB to make our application acceptable and that a decision was premature".
While the ATSB's announcement represents the second time it has rejected a loan guarantee request from United - the first just days before the airline filed for bankruptcy protection in December 2002 - the Treasury Department says a revised application could again be assessed.
"Treasury could not support the application as presented," it says. "Should United submit an improved application...Treasury is open to reconsidering it."
Source: Flight International
