America West Amends Request

America West Holdings Corp. said Wednesday that it will again amend a request for U.S. loan guarantees, reducing the amount to $380 million from $400 million, to meet a government board’s demands and avoid a possible bankruptcy filing.

The revised application also adds a $3.8-million upfront fee to the government and reduces the payback period to 4.5 years from 5.8, the parent of America West Airlines said. The proposal also includes “lenders with no material interest in or exposure to the company,” it said.

The Phoenix-based airline is the only major U.S. carrier to seek the guarantees under a $15-billion aid program Congress set up to help airlines and air cargo companies recover from the Sept. 11 terrorist attacks. Other airlines are expected to follow.

America West made its initial request Nov. 13 and first revised it last week. The company said its financial performance has improved since its initial application.

America West has said the federal guarantees would trigger a $445-million loan and more than $600 million in concessions from aircraft makers, lessors, suppliers and state and local governments.

The company said in its revision last week that it would provide the government warrants to buy about 3.4 million Class B shares, or about 10% of those shares outstanding. Those warrants would have an exercise price of $6 and expire after seven years. The government also would receive fees that could exceed $175 million, America West has said.

The loan program includes $10 billion of the total federal aid. The rest is cash assistance, most of which has been distributed.

America West is the only one of the nine largest U.S. airlines to seek a government loan guarantee, although the deadline to file is June. Vanguard Airlines Inc., a regional airline, has applied for a $60-million loan guarantee.