aviator66
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- Joined
- Dec 7, 2002
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Aloha gets $45 million loan
Prabha Natarajan Pacific Business News
Aloha Airlines obtained a $45 million loan package from Citibank on Monday.
The loan is backed by a $40.5 million guarantee that the federal Air Transportation Stabilization Board approved last month. The loan was arranged by Salomon Smith Barney, and Mercer Management Consulting acted as financial adviser.
Aloha employees will take $37 million in pay cuts over the next three years as part of the company's financial stability package.
"Today marks a new beginning for Aloha," said Glenn Zander, Aloha's president and CEO. "With the completion of this financing, Aloha will be able to move forward with its plans for the future, which include further increases of service to the U.S. mainland and Pacific islands, as well as continuing to serve the people of Hawaii in our traditional interisland transportation niche."
The federal board was established by Congress last year to oversee a $10 billion loan program, part of an airline industry bailout after last year's Sept. 11 terrorist attacks. It is the same board that rejected $1.8 billion in loan guarantees for United Airlines, while telling UAL Corp. it could reapply later if it thought circumstances changed enough to warrant a different judgment.
Prabha Natarajan Pacific Business News
Aloha Airlines obtained a $45 million loan package from Citibank on Monday.
The loan is backed by a $40.5 million guarantee that the federal Air Transportation Stabilization Board approved last month. The loan was arranged by Salomon Smith Barney, and Mercer Management Consulting acted as financial adviser.
Aloha employees will take $37 million in pay cuts over the next three years as part of the company's financial stability package.
"Today marks a new beginning for Aloha," said Glenn Zander, Aloha's president and CEO. "With the completion of this financing, Aloha will be able to move forward with its plans for the future, which include further increases of service to the U.S. mainland and Pacific islands, as well as continuing to serve the people of Hawaii in our traditional interisland transportation niche."
The federal board was established by Congress last year to oversee a $10 billion loan program, part of an airline industry bailout after last year's Sept. 11 terrorist attacks. It is the same board that rejected $1.8 billion in loan guarantees for United Airlines, while telling UAL Corp. it could reapply later if it thought circumstances changed enough to warrant a different judgment.