Air Wisconsin details contributions to US Airways financing

Washington DC
Source: Flightglobal.com
This story is sourced from Flightglobal.com

Regional Air Wisconsin Airlines is the latest entity to step forward as a financial backer of US Airways.

Air Wisconsin will provide the Star Alliance member with a $35 million loan for an initial term of 12 months. Optional monthly extensions are available for up to twelve months, provided certain conditions are met.

The loan is part of the roughly $950 million in financing and near-term liquidity commitments US Airways raised with partners including Airbus, Barclays Bank and Republic Airways Holdings.

On 20 October, US Airways closed on roughly $800 million of the transactions, including the $35 million from Air Wisconsin.

On the same day, US Airways agreed to amendments of its aircraft purchase agreements with the European airframer covering Airbus A320 family aircraft, A330s and A350 XWBs.

According to Flight's ACAS database, US Airways has well over 100 Airbus aircraft on order, including 18 A350-800s and four A350-900s.

In exchange for US Airways agreeing to the new amendments, Airbus "advanced to US Airways Group $200 million earned in consideration of aircraft deliveries under the various related purchase agreements", the carrier previously said in a regulatory filing.

Republic has loaned US Airways $10 million. A further $25 million in funding may be provided during the first quarter of 2009, subject to certain conditions.

Proceeds from the $800 million were used to prepay the company's bank debt facility and boost its cash position.

Remaining liquidity commitments are expected to close during the fourth quarter, with cash benefits realized through 2009.