The Stabilisation Act was passed by Congress after 11 September to offer state financing to carriers unable to obtain credit in the free market.

Critics are concerned, however, that the guarantees will prop up airlines which were already struggling before the terrorist attacks. America West, the eighth largest US carrier, was the weakest US major airline even before the attacks, and has already picked up $38 million in cash from the Stabilisation Act.

Other carriers which have applied for government guarantees are bankrupt National Airlines and Vanguard Airlines, which were struggling before 11 September. US Airways, despite being the second weakest US major, has no plans to apply for government loan guarantees.

Source: Flight International