US Airways is getting by with a little help from its friends.
Air Wisconsin Airlines revealed Thursday it plans to provide the
carrier with a $35 million loan, as part of a larger $950 million
financing plan US Airways announced in October.
The Milwaukee Journal-Sentinel reports the loan has a 12-month
initial term, though US Airways may opt to double that timeframe
for additional penalties, and assuming certain conditions are
Air Wisconsin is a regional subsidiary for US Airways.
"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.
US Airways reports it has closed on roughly $800 million in new
funding as of October 20. Half that amount will be used to pay down
interest against the $1.6 billion bank debt the airline
carries, with the balance going toward normal operating costs.
There's no doubt, we're talking serious money here... as the
loan amount from Air Wisconsin alone could buy 17.5 million Cokes onboard US