From Travel Weekly:
National gets financing; expects Ch. 11 exit (9/5/2002)
'The unwavering support of our loyal and growing customer base and our travel agent partners cannot be overemphasized.'
LAS VEGAS -- National Airlines, flying under Chapter 11 bankruptcy protection since December 2000, reached a deal on a $112 million financing package and said it expects to emerge from bankruptcy protection in October.
The financing package is valued at $112 million, the airline said Sept. 4. National said it also reduced its annual operating expenses by about $50 million through renegotiated aircraft lease rates and vendor contracts and employee pay cuts.
Management and pilots are taking the biggest cuts, National said.
Michael Conway, National's president and chief executive, thanked the employees, lessors, investor Harrah's Entertainment and other key creditors, but also two other groups: "The unwavering support of our loyal and growing customer base and our travel agent partners cannot be overemphasized," he said.
The financial package would seem to save National, which faced a potential shutdown after the Air Transportation Stabilization Board Aug. 14 rejected the airline's request for a $55.5 million federal loan guarantee.
In related news, National said it is postponing its return of service to Washington National, previously scheduled to begin Oct. 3, and will temporarily discontinue its Chicago Midway service Oct. 1. The airline continues to serve Washington via Dulles Airport, and Chicago via O'Hare.
National still plans to begin new service to Reno/Tahoe Oct. 3 with four daily flights, and new season service to West Palm Beach beginning Nov. 21.
Anyone with more details?