LV-based National Airlines in bankruptcy

Wednesday, Dec. 6, 2000 | 4:43 a.m.

National Airlines Inc. of Las Vegas, which started operations in May 1999, said Wednesday it filed for Chapter 11 bankruptcy protection in order to reorganize its finances.

National blamed the filing on escalating fuel prices. But it's been no secret that just one gaming company -- Harrah's Entertainment Inc. -- is a financial backer of National.

Other casino operators decided against investing in National -- and this lack of investment backing could have contributed to its financial problems.

National was founded on the premise that Las Vegas was under-served by other airlines, particularly on long-haul direct routes. National, in seeking financial backing from casinos, had argued it would help fill hotel-casino hotel rooms and casinos.

National said it's continuing normal business operations and will continue uninterrupted services to its customers.

"We want to assure our customers that we will continue to operate on a normal schedule without interruption, and we are dedicated to serving our customers' needs today while we strengthen our ability to provide them with high-quality service well into the future," said Chief Executive Michael Conway. "Protecting customer interests and providing them with exceptional customer service has been and remains one of our top priorities."