Air Transportation Stabilization Board
The Air Transportation Safety and System Stabilization Act, signed into law September 22, 2001, authorizes the board to issue up to $10 billion in federal loan guarantees to air carriers for which credit is not otherwise available and where "such agreement is a necessary part of maintaining a safe, efficient and viable commercial aviation system in the United States." Legal services to the Board were provided by contract by New York-based law firm Curtis, Mallet-Prevost, Colt & Mosle.
Between 2001 and 2003, the ATSB approved applications for loan guarantees from seven carriers: America West Airlines, US Airways, American Trans Air, Aloha Airlines, Frontier Airlines, Evergreen International Airlines, and World Airways. These carriers accepted loan guarantees worth $1.179 billion.
The ATSB denied applications from nine carriers: Ozark Airlines dba Great Plains Airlines, MEDjet International, Corporate Airlines, Gemini Air Cargo, Frontier Flying Service, Spirit Airlines, National Airlines, and both initial and revised applications from United Airlines and Vanguard Airlines.
- America West Airlines - ceases to exist, merges with US Airways under the US Airways Group umbrella.
- US Airways - merges with America West to form US Airways.
Still in Business and holding on in life support
- Evergreen International Airlines -
- Frontier Airlines - reorganizes after a chapter 11 bankruptcy filing and is acquired by Republic Airways Holdings.
- World Airways - acquired by MatlinPatterson's Global Aero Logistics / Global Aviation Holdings, and placed into chapter 11 reorganization.
- Aloha Airlines - shut down in a chapter 7 bankruptcy filing.
- American Trans Air - acquired by the private equity firm MatlinPatterson's Global Aero Logistics and shut down in chapter 7 bankruptcy filing.
- U.S. Treasury - Air Transportation Stabilization Board Archive copy at the Wayback Machine
- GAO: State Of the U.S. Commercial Airline Industry and Possible Issues for Congressional Consideration
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