Court OKs Loan to Keep AccessAir Afloat

Discount air carrier AccessAir hopes to resume service to Los Angeles this summer after a federal bankruptcy court approved transfer of a $500,000 loan to keep the company afloat while it completes a Chapter 11 reorganization plan. The Des Moines-based air carrier had provided Los Angeles-to-New York service with a stop in Iowa’s capital for much of last year before $30 million in losses forced the company to file for Chapter 11 protection and ground all flights in November. Ruan Inc., a Des Moines trucking company that is one of the carrier’s original investors, earlier this week announced plans to provide $13 million as part of the proposed reorganization. The $500,000 transfer, also from Ruan, is intended to keep the carrier operating pending approval of the reorganization plan, AccessAir spokeswoman Julie Evans said. A court hearing on the plan has been scheduled for July 5 in Des Moines.

*

Guide to Our Staff: Need to reach Business section reporters or editors? A guide to the section’s staff can be found at: https://www.latimes.com/bizstaff.