Part Of Comprehensive, Liquidity Program
US$35 million loan from Air Wisconsin part of US Airways' US$950 million financing package
APPLETON, WI - Air Wisconsin Airlines Corporation announced today it has agreed to provide a $35 million loan to US Airways, Inc. The loan has an initial term of twelve months with optional, monthly extensions totaling an additional twelve months, provided certain conditions are met. The loan agreement is part of the comprehensive, liquidity program US Airways announced on October 23, through which it raised a total of approximately US$950 million of financing and near-term, liquidity commitments. On October 20, 2008, US Airways closed on approximately US$800 million of these transactions, which included the US$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 Air Wisconsin 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. In addition to its flying operations, which schedules nearly 500 departures per day to 69 cities in 26 states and two Canadian provinces, Air Wisconsin performs ground-handling services for United Express and Northwest Airlines at over 30 locations throughout the country, including Washington Dulles (IAD).