National Airlines files for bankruptcy protection

Airline Industry Information, Dec 8, 2000

AIRLINE INDUSTRY INFORMATION-(C)1997-2000 M2 COMMUNICATIONS LTD

National Airlines, a US carrier based in Las Vegas, has filed for Chapter 11 bankruptcy protection, citing the impact of fuel costs as its main problem.

The carrier has indicated that it will continue normal business operations and provide uninterrupted service to its customers. A statement released by National Airlines said that the decision to file for Chapter 11 protection was necessary to protect the carrier's ability to meet its obligation to customers.

In light of the bankruptcy filing, Harrah's Entertainment Inc, a casino operator, has indicated that it will write off some of its investment in National Airlines.

Harrah's Entertainment made a filing with the Securities and Exchange Commission stating that it was 'currently evaluating the impacts of NAI's filing on the carrying value of the company's investment in NAI and related assets', reported Reuters.

Analysts have raised concerns that the filing for bankruptcy protection could impact negatively on Las Vegas games operators.

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