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The Air Transportation Safety and System Stabilization Act of 2001

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THE AIR TRANSPORTATION STABILIZATION ACT OF 2001 1

The Air Transportation Safety and System Stabilization Act of 2001
And it’s Effects on the Airline Industry
Matthew J. Garcia
Embry Riddle Aeronautical University
Aviation Legislation/ASCI 254
February 23, 2012
Professor Peters

THE AIR TRANSPORTATION STABILIZATION ACT OF 2001 2

Abstract
Due to the devastating acts on September 11, 2001, a bill was passed after. The Air Transportation Safety and System Stabilization Act of 2001 was an aid to help the airlines industries in their decline in sales, loss of profit and intimate bankruptcy. The act provides assistance to U.S. passenger and cargo airlines through $5 billion in grants, up to $10 billion in federal credit assistance, extended deadlines for tax payments, and reimbursements for certain increases in insurance premiums. The act was a huge bailout relief for these airline companies. Although it made the commercial airline industry happy, it may not have been so for many others. In an already declining economy this bailout increased the countries debt as well as cost money for the American taxpayers. Maybe there could have been a better way to deal with this situation, however it could have been the best thing to do, all in all only time will tell.

THE AIR TRANSPORTATION STABILIZATION ACT OF 2001 3 On September 11, 2001 at 8:46 a.m., five hijackers crashed American Airlines Flight 11 into the World Trade Center's North Tower and at 9:03 a.m., another five hijackers crashed United Airlines Flight 175 into the South Tower. At 9:40 a.m., the FAA grounded all aircraft within the United States and aircraft already in flight were told to land immediately. All international

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