America West Closes $429 Million Loan

America West Holdings
Corporation (NYSE: AWA) today announced that its subsidiary, America West
Airlines, Inc., has closed a term loan in the amount of $429 million and
completed arrangements for more than $600 million in concessions, financing
and financial assistance following final approval by the Air Transportation
Stabilization Board (ATSB) of approximately $380 million in loan guarantees.
“This is great news for America West, its customers, employees,
shareholders and business partners,” said W. Douglas Parker, chairman,
president and chief executive officer.  “America West is now positioned, with
strengthened liquidity, to build upon the dramatic improvements in operational
performance and customer service achieved this past year.
“Our 13,000 dedicated employees, along with our many customers, deserve
recognition for their support throughout this process,” added Parker.  “We are
grateful for their continued loyalty.  We also appreciate the significant
efforts of the ATSB and the members of its staff who worked tirelessly to
close this transaction.”

America West also announced that, simultaneously with the funding of the
loan, it paid in full approximately $49 million in previously deferred
aircraft lease payments.

Additionally, America West said that, at the request of the ATSB,
TPG Partners, L.P., and its affiliates, owners of all 941,431 shares of
America West Class A common stock, have undertaken not to dispose of their
Class A stock other than in connection with an offer to acquire all the shares
of the company`s Class B common stock accepted or approved by the holders of a
majority of the Class B stock.  This undertaking is subject to certain
exceptions, including transfers to TPG affiliates, repurchase of the Class A
stock by America West and exercise of TPG`s rights to convert the Class A
stock into Class B stock, and will terminate when the warrants issued in
connection with the term loan transactions expire or are exercised and the
underlying shares of Class B stock are sold, or TPG and its affiliates no
longer hold the Class A stock.

Parker added, “We also want to express our gratitude to our advisors,
Salomon Smith Barney, Citibank and their counsel, Milbank Tweed; to our
lawyers, Cooley Godward, Skadden Arps and Vedder Price; and to The Seabury
Group, which led our negotiations with aircraft lessors.”