Seattle-based express carrier Airborne Inc., said it has received $8.8 million in aid from the U.S. government under the Air Transportation Safety and System Stabilization Act. The company said this payment compensates its subsidiary, Airborne Express, for a portion of its direct losses incurred as a result of the grounding of its aircraft fleet, as well as for anticipated losses through December 31 related to the September attacks.
Additional payments may be received before the end of the calendar year, the company said.
"Prior to September 11, we were making progress in returning to operating profitability and expected substantial improvement over second quarter operating results due primarily to the success of our cost containment efforts," said Carl Donaway, Airborne’s president & COO. "The two-day closure of the national air network following the attacks significantly affected our operations, resulting in lost revenue and added cost."
Airborne said it expects to lose between $13 million to $15 million in the third quarter as a result of the airline industry shutdown following the attacks.
