The future of United Airlines, the world's second largest airline, remained uncertain yesterday after its second application for a critical $1.6 billion (€1.32 billion) loan guarantee was rejected.
Even with some company officials battling to keep open the chance to submit a new request, unions were outraged at the decision. Opponents of the guarantee, however, were concerned at an intervention by Mr John Snow, treasury secretary, to allow United a chance to reapply.
The three-man board of the Airline Transportation Stabilisation Board, which oversees loan guarantees, rejected United's application on Thursday, following a No vote from Mr Ned Gramlich from the Federal Reserve and Mr Brian Roseboro, treasury under-secretary for domestic finance.
But the US treasury then in effect overruled the decision of its own appointee, saying it was open to a revised application. The Department of Transportation, which abstained in the Thursday vote, also said it would consider any new plan from United.
Mr Snow's intervention came amid intense pressure from Mr Dennis Hastert, the influential speaker of the House, who first called him on Tuesday.
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