Taxpayers In The Clear

[SpinDoc]

Excellent news. The new US Airways
has repaid the ATSB loans 5 years
early. See story.

CHICAGO, Oct 19 (Reuters) - US Airways Group (LCC.N: Quote, Profile, Research) on Wednesday said debt totaling $777 million, of which $752 million was backed by the government, has been sold at a slight premium to par to 13 fixed-income investors.

These loans had been granted to the former America West Airlines and US Air following the Sept. 11, 2001, terror attacks on the United States. The current outstanding balance of the loans is $832 million, with $55 million held by two other investors.

US Air and America West merged their operations this year to form a single airline.

Terms associated with the loans are unchanged, with the former America West loan terminating in 2008 and the former US Airways loan terminating in 2010.

"Today's announcement signifies the payoff of both the former America West and US Airways government-backed loans," said US Air Chief Executive Doug Parker in a statement

 

[700UW]

Your title is misleading the loans were not repaid, the loans were sold and the ATSB got thier money and US now owes the corporations that bought the loans.

 

[EricLv2Fish]

Your title is misleading the loans were not repaid, the loans were sold and the ATSB got thier money and US now owes the corporations that bought the loans.

Taxpayers made a profit and lost nothing for the bailout...that's the bottom line. And probably the new financing is less restrictive.

 

[qwerty]

In fact the title of the post couldn't be more accurate. The ATSB has been paid and the taxpayers are no longer liable for a default.

The title of the article is unfortunate, US still carries the debt.