The airline industry suffered financially in the wake of the Sept. 11 terrorist attacks. In response, Congress passed legislation that provides federally guaranteed loans to airlines, which must meet strict conditions in return, so they can regain their footing. Only one airline so far has received approval: America West Airlines obtained a $380 million loan guarantee in December from the Air Transportation Stabilization Board, the new panel created by Congress to approve or reject these loan applications.
National Airlines, the Las Vegas-based carrier that ranks fifth in the number of passengers that fly in and out of McCarran International Airport, also has an application pending, though its amount, $60 million, is significantly less than that of rival America West. National, which filed for bankruptcy protection in December 2000, has tied its reorganization plan to approval of this loan. If National's application were rejected, and the airline had to severely curtail operations, Las Vegas itself would feel more than a ripple since the airline is a key link to cities on the East Coast. A source of reasonably priced fares to Las Vegas could vanish, a situation that a tourist-based economy such as ours could ill afford.
National, which appears to be doing better, is the kind of airline that should be helped under Congress' assistance package for the airlines. If America West, an airline that has had financial difficulties itself, can secure a private loan backed by the federal government, then we see no reason why National should be precluded, either.
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