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World Airways, Inc. is a U.S. certificated air carrier. World Airways provides long-range passenger and cargo charter and wet lease air transportation, serving the U.S. Government, international passenger and cargo air carriers, tour operators, international freight forwarders and cruise ship companies. World Airways focuses its marketing efforts on the U.S. Air Force Air Mobility Command, freight operators, cruise ship companies, tour operators and international airlines. The Company increases its potential customer base by being able to serve both passenger and cargo customers with its passenger, cargo, and passenger/cargo convertible aircraft.
US okays $27 mln loan guarantee for World Airways
Wednesday April 23, 3:42 pm ET
WASHINGTON, April 23 (Reuters) - The federal panel overseeing a program to ensure financing for U.S. airlines in the wake of the Sept. 11 attacks on Wednesday approved $27 million in loan guarantees for Georgia-based World Airways Inc. (NasdaqSC:WLDAC - News)
The vote by the Air Transportation Stabilization Board was split, with representatives of the Department of Transportation and the Federal Reserve voting in favor of government backing. Peter Fisher, representing the Treasury Department, voted against.
"Undersecretary (for Domestic Finance) Fisher felt the application did not meet the statutory requirement for approval," said Treasury spokeswoman Betsy Holahan.
According to a letter sent to World Airways CEO Hollis Harris, the ATSB made its approval conditional on the Peachtree City, Georgia-based airline making "certain structural and financial enhancements acceptable to the Board," resolving issues involving collateral and giving the ATSB "additional compensation."
The letter did not specify the exact changes sought by the ATSB. The board was created to help airlines find financing in the wake of the sharp drop-off in air travel immediately following Sept. 11. More recently, President George W. Bush signed a spending bill to pay for the Iraq war that included $3.5 billion in airline industry aid, as bookings suffered in connection with the short-lived Iraq war