Operational problems reared their ugly head throughout the summer. Mechanical problems increased, unfavorable press ensued, and employee stress reached a breaking point. Union issues were becoming more and more common, for the flight attendant contract was still open. Mechanics elected the Teamsters as their representative, and were negotiating their first contract. Dispatchers had just concluded their first contract on April 13.
A well-publicized FAA fine was imposed on the airline in June. The record $5 million fine was imposed over maintenance issues, primarily oversight and changes in recommended procedures. America West admitted no wrongdoing, and half the fine was forgiven after a restructuring of the maintenance oversight procedures. Eventually, this would lead to yet another change in heavy maintenance contractors.
February 17, 2000 would prove to be an omen for the year. Eagle, the automated dispatch system, went down for over five hours. At the time, America West had no backup dispatch system, leading to over 280 cancellations over three days. Passengers were left stranded around the system, boosting the industry-high complaint rate. America West was rapidly becoming known as "America Worst" for its customer service and operational problems.
The relationship with the FAA was poor, leading to further restrictions on growth until the FAA was assured maintenance could handle the extra aircraft. The airline was not in good shape.
America West was literally days from bankruptcy when the Loan Guarantee was approved on January 18, 2002. The process was a long one, but triggered rent reductions on the aircraft fleet, return of 11 aircraft, deferral of deliveries from Airbus, and rent credits from the city of Phoenix. The price was high, with the government obtaining warrants to purchase up to one-third of America West's equity at $3.00 per share. Employees were not required to take pay cuts, but labor costs had to be controlled under the agreement.
