America West Gets Financing
PHOENIX — America West Airlines on Thursday announced an agreement with Kawasaki Leasing International Inc. that will lend the troubled carrier the $23 million it needs to get on with reorganizing its finances.
The Kawasaki deal gives America West the last piece of $200 million in financing it needed to get out of federal bankruptcy court, where it landed in June.
“It’s an important piece of financing,” America West spokeswoman Daphne Dicino said.
America West leases planes from Kawasaki and also has other financial agreements on aircraft with the firm.
The deal is subject to approval of the court, but America West said it expected the $23-million loan to be available before Dec. 31.
The carrier is in the process of selling its Nagoya, Japan, route to Northwest Airlines for $15 million, a deal America West expects to complete early next year.
The Tempe, Ariz.-based carrier lost $80.8 million in the first half of the year and has projected at least a $100-million loss for all of 1991.
To lower costs, the airline has cut routes and implemented a 10% across-the-board pay cut, while eliminating at least 1,500 jobs.
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