National Airlines has won another extension of its contracts, keeping the carrier flying and giving it additional time to assemble a reorganization plan.
With agreements in hand, the Las Vegas-based airline now has lease guarantees through at least Dec. 31. Those assurances also may qualify National for some of the $10 billion in government-backed loans offered in the wake of the Sept. 11 attacks.
Monday’s lease package, hammered out in federal court, is the latest step in National’s effort to climb out of Chapter 11 bankruptcy. To help Las Vegas’ tourist economy get back on its feet, the airline has slashed fares for midweek flights. Also, through Oct. 31, outbound passengers can book roundtrip tickets for $1 to any of National’s eight cities and return for $24 (West Coast) to $74 (East Coast).