National hopeful for federal assistance

Monday, Oct. 8, 2001 | 9:54 a.m.

Las Vegas-based National Airlines said it's hopeful it will quality for federal assistance and that it's been in contact with Nevada Sens. Harry Reid and John Ensign on the issue.

National is operating under bankruptcy protection, making a loan guarantee for it questionable because such guarantees are intended for more financially viable operations, according to some observers.

But National issued a statement Saturday saying it will apply for a loan guarantee.

"We are confident that National Airlines is fully eligible to participate in the 'Air Carrier Guarantee Loan Program' based on our review of the final criteria set forth by the Office of Management and Budget (OMB) late on Friday," said Chief Executive Michael Conway.

"We are very appreciative of the support National received from Nevada's Members of Congress in providing input to the OMB to ensure that all airlines would be treated in an equitable manner and for the legislation that created this program. We were in frequent communication with Sen. Reid and Sen. Ensign and their respective staffs, and it was apparent to us from the outset that they were committed to ensure that Nevada's largest home-based carrier would receive equitable treatment," Conway said.

"Despite rumors and speculation that were rampant during the drafting phase of the OMB's Rules and Regulations on this matter, it is our view that the process, as finalized, will allow carriers such as National to demonstrate that not only are we a viable carrier, but we are also a carrier capable of continuing to be a leading provider of affordable and quality air transportation between Southern Nevada and major cities throughout the country."