Judge grants lifeline to bankrupt US airline

US Airways has obtained court permission to continue normal operations under a bankruptcy protection order.

US Airways has obtained court permission to continue normal operations under a bankruptcy protection order.

Bankruptcy Judge Robert Mayer has also approved a $500 million financing package from which US Airways can draw while it reorganises.

On Sunday, the seventh-largest carrier in the US became the first major airline to file for bankruptcy since the September 11th attacks devastated the airline industry.

US Airways, which had been struggling well before the terrorist strikes, was the airline most severely affected by the attacks. It is the largest airline at Reagan Washington National Airport, which was closed for weeks after the terror attacks.

READ MORE

In the United States, Chapter 11 bankruptcy protection allows a company to continue operating and hold its creditors at bay while it gets its finances in order.

PA