New investment capital and financial aid from the US Government will enable Las Vegas-based National Airlines to emerge from bankruptcy protection by year-end, according to recently filed court documents.
Chief executive Michael Conway says he has also secured "significant capital" from investors, as well as backing from major creditor, Harrah's.
The plan calls for the introduction of smaller aircraft to National's fleet of 15 Boeing 757-200s. The smaller aircraft will operate on shorter routes in the hope of improving yields. The firm will continue with its plan to add five to seven aircraft per year for five years, bringing the fleet to 50 by mid-2007.
National says it has incurred $30 million in losses since 11 September, although traffic has rebounded solidly. Conway says losses will be partially offset by $22 million in federal grants the firm is due to receive.
Source: Flight International