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Airline stock rises after bailout

Wednesday, Jan. 2, 2002 | 9:40 a.m.

PHOENIX -- Buoyed by a $380 million loan guarantee from the federal government, America West Airlines' stock soared 41 percent Monday and shares of other major carriers rose in sympathy.

The Tempe, Ariz.-based airline received conditional approval for the loan guarantee Friday, the first carrier to be awarded a portion of the multibillion package passed by Congress after the Sept. 11 attacks. Under terms of the deal, the government would repay up to $380 million of $445 million in loans America West has negotiated contingent on government backing.

Shares of America West Holdings Corp. rose $1.03 to $3.50 Monday on the New York Stock Exchange. The stock rose again this morning to $3.92.

To obtain the guarantees, America West canceled pay raises and bonuses and had to make other tough concessions.

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