America West Airlines
(NYSE: AWA) today said it did not make deferred aircraft lease payments of
approximately $49 million within the applicable grace period that expired
today, but plans to make the payments simultaneously with the closing of a
$429 million loan, anticipated later this week.  The airline added it was
confident that, prior to the anticipated loan closing, it would suffer no
materially adverse legal or financial consequences as the result of the lease
payment deferrals.

On December 28, 2001, America West announced that the Air Transportation
Stabilization Board (ATSB) had conditionally approved the airline`s
application for approximately $380 million in loan guarantees under the Air
Transportation Safety and System Stabilization Act of 2001.  On January 14,
2002, America West announced that the ATSB had advised that the company had
satisfied the two primary conditions to the approval of that application.
America West expects to close and fund a loan in the amount of $429 million,
supported by the ATSB guarantee and more than $600 million in concessions,
financing and additional financial assistance, by the end of this week.

——-