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Government to make a profit from loan guarantee to America West

Wednesday, 5 October 20053 min read

After the World Trade Center terrorist attack, the helped America West Airlines by guaranteeing a $429 million emergency loan package in return for stock options.

In an unusual twist for the government, not only will it receipt the interest and principal payments on the loan, but earn $116 million in the sale of the stocks from US Airways, the newly merged airline with America West in a deal completed last week.