Air Transportation Stabilization Board

From Wikipedia, the free encyclopedia
Jump to: navigation, search

The Air Transportation Stabilization Board (ATSB) is an office of United States Department of the Treasury created to assist US airlines in the wake of the September 11, 2001 attacks.

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."[1] Legal services to the Board were provided by contract by New York-based law firm Curtis, Mallet-Prevost, Colt & Mosle.

Loan guarantees[edit]

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.

ATSB Results[edit]

Successes[edit]

  • 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[edit]

Casualties[edit]

  • 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.
  • Evergreen International Airlines
  • World Airways

References[edit]

  1. ^ ATSB Loan Guarantees, Archive copy at the Wayback Machine

External links[edit]