World Airways gets $27M loan guarantee

World Airways gets $27M loan guarantee

The Air Transportation Stabilization Board said Tuesday it issued a $27 million federal loan guarantee for World Airways Inc.

The guarantee is for a private loan package of $30 million. The airline received conditional approval for the federal loan guarantee in April.

"The ATSB loan represents an important milestone for World Airways as we continue to strengthen our balance sheet and improve our operating performance," said Hollis Harris, chairman and chief executive officer of World Airways.

The board was created by Congress to oversee a $10 billion loan program to help out the airline industry, which was dealt a sharp blow by the Sept. 11, 2001, terror attacks.

World Airways operates cargo and passenger charter services.