October 19, 2005
JS-2979

ATSB Announces Sale of US Airways and America West Loans

The Air Transportation Stabilization Board (ATSB) today announced that the ATSB-guaranteed loans issued to US Airways and America West have been sold to private investors without the government guarantee.  This remarketing eliminates the risk to the government that had been associated with these loans.

The original US Airways loan was issued on March 31, 2003 in the amount of $1 billion, of which $900 million was guaranteed by the ATSB.  At the time of US Airways' exit from bankruptcy, the loan had been paid down, without loss, to $582.9 million, of which $524.6 million was guaranteed.  The loan was remarketed at par.

The original America West loan was issued on January 18, 2002 in the amount of $429 million, of which $379.6 million was guaranteed by the ATSB.    At the time of the remarketing, the outstanding balance on the loan was $249.6 million, of which $227.7 million was guaranteed.  The loan was remarketed at par plus 1 percent.

Of the six loans guaranteed by the Board, four have been paid off in full or remarketed without the government guarantee.