National grooms investors

July 09, 2002 9:07 AM
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National Airlines is in talks with two potential equity investors who could bolster the carrier’s chances for $50.5 million in federal loan guarantees.

That news surfaced Monday as the Las Vegas-based airline awaits approval from the Air Transportation Stabilization Board.

"Discussions have been heating up,’’ National spokesman Dik Schmizu told GamingToday. If more equity partners come on board, the carrier believes it will have a better shot at landing loan guarantees instituted in the wake of Sept. 11. National, which already has one unidentified equity partner, did not disclose how much capital is being pledged.

In all, 13 airlines have applied for some $10 billion in loan guarantees. "We think we have a very good chance,’’ Schmizu said.