SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Air Transportation
Safety and System Stabilization Act’’.
TITLE I—AIRLINE
STABILIZATION
SEC. 101. AVIATION DISASTER RELIEF.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, the President shall take the following actions
to compensate air carriers for losses incurred by the air
carriers as a result of the terrorist attacks on the United
States that occurred on September 11, 2001:
(1) Subject to such terms and conditions as the
President deems necessary, issue Federal credit in-
struments to air carriers that do not, in the aggre-
gate, exceed $10,000,000,000 and provide the sub-
sidy amounts necessary for such instruments in ac-
cordance with the provisions of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661 et seq.).
(2) Compensate air carriers in an aggregate
amount equal to $5,000,000,000 for—
(A) direct losses incurred beginning on
September 11, 2001, by air carriers as a result
of any Federal ground stop order issued by the
Secretary of Transportation or any subsequent
order which continues or renews such a stop-
page; and
(B) the incremental losses incurred begin-
ning September 11, 2001, and ending Decem-
ber 31, 2001, by air carriers as a direct result
of such attacks.
(b) 
EMERGENCY
DESIGNATION.—Congress 
des-
ignates the amount of new budget authority and outlays
in all fiscal years resulting from this title as an emergency
requirement pursuant to section 252(e) of the Balanced
Budget and Emergency Deficit Control Act of 1985 (2
U.S.C. 901(e)). Such amount shall be available only to the
extent that a request, that includes designation of such
amount as an emergency requirement as defined in such
Act, is transmitted by the President to Congress.
SEC. 102. AIR TRANSPORTATION STABILIZATION BOARD.
(a) DEFINITIONS.—In this section, the following defi-
nitions apply:
(1) BOARD.—The term ‘‘Board’’ means the Air
Transportation 
Stabilization 
Board 
established
under subsection (b).
(2) FINANCIAL OBLIGATION.—The term ‘‘finan-
cial obligation’’ means any note, bond, debenture, or
other debt obligation issued by an obligor in connec-
tion with financing under this section and section
101(a)(1).
(3) LENDER.—The term ‘‘lender’’ means any
non-Federal qualified institutional buyer (as defined
by section 230.144A(a) of title 17, Code of Federal
Regulations (or any successor regulation) known as
Rule 144A(a) of the Securities and Exchange Com-
mission and issued under the Security Act of 1933,
including—
(A) a qualified retirement plan (as defined
in section 4974(c) of the Internal Revenue Code
of 1986 (26 U.S.C. 4974(c)) that is a qualified
institutional buyer; and
(B) a governmental plan (as defined in
section 414(d) of the Internal Revenue Code of
1986 (26 U.S.C. 414(d)) that is a qualified in-
stitutional buyer.
(4) OBLIGOR.—The term ‘‘obligor’’ means a
party primarily liable for payment of the principal of
or interest on a Federal credit instrument, which
party may be a corporation, partnership, joint ven-
ture, trust, or governmental entity, agency, or in-
strumentality.
(b) AIR TRANSPORTATION STABILIZATION BOARD.—
(1) ESTABLISHMENT.—There is established a
board (to be known as the ‘‘Air Transportation Sta-
bilization Board’’) to review and decide on applica-
tions for Federal credit instruments under section
101(a)(1).
(2) COMPOSITION.—The Board shall consist
of—
(A) the Secretary of Transportation or the
designee of the Secretary;
(B) the Chairman of the Board of Gov-
ernors of the Federal Reserve System, or the
designee of the Chairman, who shall be the
Chair of the Board;
(C) the Secretary of the Treasury or the
designee of the Secretary; and
(D) the Comptroller General of the United
States, or the designee of the Comptroller Gen-
eral, as a nonvoting member of the Board.
(c) FEDERAL CREDIT INSTRUMENTS.—
(1) IN GENERAL.—The Board may enter into
agreements with 1 or more obligors to issue Federal
credit instruments under section 101(a)(1) if the
Board determines, in its discretion, that—
(A) the obligor is an air carrier for which
credit is not reasonably available at the time of
the transaction;
(B) the intended obligation by the obligor
is prudently incurred; and
(C) such agreement is a necessary part of
maintaining a safe, efficient, and viable com-
mercial aviation system in the United States.
(2) TERMS AND LIMITATIONS.—
(A) FORMS; TERMS AND CONDITIONS.—A
Federal credit instrument shall be issued under
section 101(a)(1) in such form and on such
terms and conditions and contain such cov-
enants, representatives, warranties, and require-
ments (including requirements for audits) as
the Board determines appropriate.
(B) PROCEDURES.—Not later than 14
days after the date of enactment of this Act,
the Director of the Office of Management and
Budget shall issue regulations setting forth pro-
cedures for application and minimum require-
ments, which may be supplemented by the
Board in its discretion, for the issuance of Fed-
eral credit instruments under section 101(a)(1).
(d) FINANCIAL PROTECTION OF GOVERNMENT.—
(1) IN GENERAL.—To the extent feasible and
practicable, the Board shall ensure that the Govern-
ment is compensated for the risk assumed in making
guarantees under this title.