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AMERICA WEST AIRLINES SUPPORTS LEGISLATION TO SPEED RECOVERY OF AIRLINE INDUSTRY

 PHOENIX, June 3 /PRNewswire/ -- America West Airlines (NASDAQ: AWAQC) announced today that it supports H.R. 2278, legislation introduced last week which would speed the recovery of the nation's suffering airline industry. If enacted, H.R. 2278 will permit all airlines to accelerate the time they can apply their Tax Net Operating Loss Carryforwards (NOLs) as deductions, allowing them a one-time election to use NOLs as a deduction from federal excise taxes paid in 1992. America West is part of an airline coalition, including Continental Airlines, Northwest Airlines and USAir, which supports this legislation.
 "We commend Congressmen Jim Oberstar, Bob Carr, Sander Levin, Jim Ramstad and Jon Kyl for the bold step they have taken in support of this legislation," said Michael J. Conway, president and chief executive officer. "Arizona Representative Kyl has been especially understanding in addressing the health of the aerospace industry and the important role it plays in the nation's economy."
 Conway noted, "During the past three years, the nation's airlines have suffered in excess of $10 billion in losses, of which in excess of $6 billion is carried on their books in the form of NOLs. In this same period, the airlines have paid in excess of $13 billion in federal excise taxes. Under present tax law, companies with NOLs cannot realize their monetary value other than from a deduction against future profits.
 "After the three worst financial years in airline industry history, the nation's airlines, the American consumer and the economy as a whole would all be better served by providing more immediate relief from the crushing burden of excise taxes that Congress clearly did not intend for the airlines to bear in this economic environment." Conway continued, "This is one way, and an appropriate first step, in which to assist in the recovery of a very troubled industry.
 "This proposal would provide the nation's airlines with approximately $1.8 billion in immediate relief. Since the proposal is essentially an acceleration of an existing tax deduction, the impact on the federal treasury over the next several years would be minimal should the industry be successful in its efforts to return to profitability," Conway concluded.
 This idea was first advanced by Northwest Airlines to President Clinton and Secretary of Transportation Pena at a meeting with all airline CEOs at Boeing headquarters in Seattle.
 -0- 6/3/93
 /CONTACT: Daphne Dicino, senior director of corporate communications of America West Airlines, 602-693-5729/
 (AWAQC)


CO: America West Airlines ST: Arizona IN: AIR SU: LEG

JL-JB -- LA049 -- 5230 06/03/93 18:01 EDT
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Publication:PR Newswire
Date:Jun 3, 1993
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