Understanding the Air Transportation System Stabilization Board and Its Impact on U.S. Aviation

Definition & Meaning

The Air Transportation System Stabilization Board is a federal agency within the U.S. Department of the Treasury. It was established to support U.S. airlines in response to the economic challenges following the September 11, 2001 attacks. The board has the authority to provide federal loan guarantees to airlines that are unable to secure credit through traditional means. Its primary goal is to ensure the safety, efficiency, and sustainability of the commercial aviation system in the United States.

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Real-world examples

Here are a couple of examples of abatement:

For instance, after the September 11 attacks, the board provided financial assistance to several major airlines that faced severe financial distress due to decreased travel demand. This assistance helped stabilize the airlines and allowed them to continue operations. (hypothetical example)

Comparison with related terms

Term Definition Key Difference
Federal Aviation Administration (FAA) The agency responsible for regulating civil aviation. The FAA focuses on safety and regulation, while the Stabilization Board provides financial support.
Air Carrier A company that provides air transport services for passengers or cargo. An air carrier may seek assistance from the Stabilization Board during financial crises.

What to do if this term applies to you

If you are involved in the aviation industry and believe your airline may benefit from federal loan guarantees, consider consulting with a legal professional who specializes in aviation law. You can also explore US Legal Forms for templates that may assist you in navigating the application process for financial assistance.

Quick facts

Attribute Details
Established 2001
Primary Function Provide federal loan guarantees to airlines
Regulatory Reference 14 CFR 1310.3

Key takeaways

Frequently asked questions

Its purpose is to assist U.S. airlines by providing federal loan guarantees during economic crises.