The Air Transportation Stabilization Board (ATSB) is an office of United States Department of the Treasury

United States Department of the Treasury

The Department of the Treasury is an executive department and the treasury of the United States federal government. It was established by an Act of Congress in 1789 to manage government revenue...

 created to assist US

United States

The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 airline

Airline

An airline provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit...

s in the wake of the September 11, 2001 attacks

September 11, 2001 attacks

The September 11 attacks The September 11 attacks The September 11 attacks (also referred to as September 11, September 11th or 9/119/11 is pronounced "nine eleven". The slash is not part of the pronunciation...

.

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

New York

New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...

-based law firm Curtis, Mallet-Prevost, Colt & Mosle

Curtis, Mallet-Prevost, Colt & Mosle

Curtis, Mallet-Prevost, Colt & Mosle LLP is a New York-based international law firm with 260 attorneys in 15 offices worldwide. In 2009, its declared revenues were approximately $135 million...

.

Loan guarantees

Between 2001 and 2003, the ATSB approved applications for loan guarantees from seven carriers: America West Airlines

America West Airlines

America West Airlines corporate offices were in Tempe, Arizona and the main hub was at Phoenix Sky Harbor International Airport. The airline became part of the US Airways Group after a merger in 2005....

, US Airways

US Airways

US Airways, Inc. is a major airline based in the U.S. city of Tempe, Arizona. The airline is an operating unit of US Airways Group and is the sixth largest airline by traffic and eighth largest by market value in the country....

, American Trans Air, Aloha Airlines

Aloha Airlines

Aloha Airlines was an American airline headquartered in Honolulu CDP, City and County of Honolulu, Hawaii, operating from a hub at Honolulu International Airport...

, Frontier Airlines

Frontier Airlines

Frontier Airlines, Inc., is an American airline headquartered in Indianapolis, Indiana, United States. The carrier, which is a subsidiary and operating brand of Republic Airways Holdings, operates flights to 83 destinations throughout the United States, Mexico, and Costa Rica and maintains hubs at...

, Evergreen International Airlines

Evergreen International Airlines

Evergreen International Airlines is a cargo airline based in McMinnville, Oregon, USA. It operates contract freight services, offering charters and scheduled flights, as well as wet lease services. It operates services for the U.S. military and the United States Postal Service, as well as ad hoc...

, and World Airways

World Airways

World Airways, Inc. is an American airline headquartered at the HLH Building in Peachtree City, Georgia. For the most part, the company operates non-scheduled services. Its main aircraft and maintenance base is Tampa International Airport.-History:...

. These carriers accepted loan guarantees worth $1.179 billion.

The ATSB denied applications from nine carriers: Ozark Airlines dba Great Plains Airlines

Great Plains Airlines

Great Plains Airlines was a regional airline headquartered out of Tulsa, Oklahoma, United States. The airline was founded in 2001 a mix of tax credits and government loans totaling $27 million and expanded rapidly, filing with the Air Transportation Stabilization Board for a guarantee of $17...

, MEDjet International, Corporate Airlines, Gemini Air Cargo

Gemini Air Cargo

Gemini Air Cargo was an American ACMI cargo airline headquartered in Dulles, Virginia, USA. It operated worldwide cargo schedules and charters on a wet-lease basis....

, Frontier Flying Service

Frontier Flying Service

Frontier Flying Service is an American airline headquartered in Fairbanks, Alaska, United States. It operates an extensive network of year-round scheduled commuter services and postal services to Alaska bush communities, primarily north of Fairbanks, as well as charter services to the lower 48 and...

, Spirit Airlines

Spirit Airlines

Spirit Airlines is a United States ultra low-cost carrier operating scheduled flights throughout the Americas. The airline is headquartered in Miramar, Florida, in the Miami metropolitan area. Spirit currently maintains a base in Fort Lauderdale, Florida...

, National Airlines

National Airlines (N7)

National Airlines was a Las Vegas based low fare airline, and the third United States-based airline to use the name. The airline was created to bring tourists to Las Vegas. As a result, it offered service to a limited number of cities with high traffic to Las Vegas...

, and both initial and revised applications from United Airlines

United Airlines

United Air Lines, Inc., is the world's largest airline with 86,852 employees United Air Lines, Inc., is the world's largest airline with 86,852 employees United Air Lines, Inc., is the world's largest airline with 86,852 employees (which includes the entire holding company United Continental...

 and Vanguard Airlines

Vanguard Airlines

Vanguard Airlines was an airline based out of Kansas City, Missouri. For a time, Vanguard also had significant operations at Chicago Midway International Airport in Chicago, Illinois, until late 2000. It ceased operations on July 29, 2002, after filing for bankruptcy...

.

External links

• U.S. Treasury - Air Transportation Stabilization Board
• GAO: State Of the U.S. Commercial Airline Industry and Possible Issues for Congressional Consideration