PHOENIX — America West Airlines is offering the government the option to buy a large chunk of company stock as part of a revised application for $445 million in federal loan guarantees.

The nation's eight-largest carrier made the offer, plus other concessions, in an amended loan application Monday, America West president and CEO Douglas Parker said. The change was meant to satisfy concerns that the original request placed too much risk on taxpayers.

The stock offer would be in the form of warrants giving the government the option to purchase 3.4 million shares — 10 percent of the company's class B stock — at a set price. If the stock price rises, the government could exercise the warrants and sell the shares at a profit.

Federal officials have said they would look favorably on applications that provide the government with an equity stake in the airlines.

America West was the first airline to apply for loan guarantees after Congress created the program to help carriers in the aftermath of the Sept. 11 terrorist attacks.

If the application is approved, the federal government will be a co-signer with the airline on private loans. No taxpayer funds would be involved unless the airline defaulted on the loans.

In its original application, America West asked for the government's backing on more than $400 million in loans and negotiated $600 million more in financial concessions from aircraft-leasing firms, manufacturers, creditors, vendors and state and city governments. Those concessions are contingent on its receiving the federal loan guarantee.

In the revised request, America West added $63 million more in concessions, agreed to a fee structure that could result in payments of more than $175 million to the U.S. Treasury and reduced the government guarantee portion to less than 90 percent of the loan amounts.

Parker said America West expects to lose money next year but should return to profitability in 2003. The airline expects to repay the loans by 2008.

"Our business plan shows that we can pay back the loans even under the most conservative circumstances," Parker said. "We are confident that our application is in a form that should be approved."