WASHINGTON, DC - The Air Transportation Stabilization Board (ATSB) announced today that it has rejected the application of Vanguard Airlines, Inc. for a Federal guarantee of a $15 million financing pursuant to the Air Transportation Safety and System Stabilization Act (Act) and implementing regulations promulgated by the Office of Management and Budget (OMB). The Board concluded its review based on the standards set out in the Act and the OMB regulations and determined that Vanguard’s application did not meet the applicable standards. The Board determined that Vanguard’s proposal did not provide a reasonable assurance that Vanguard will be able to repay the loan, one of the factors that the Board is required to consider under the OMB regulations.
The ATSB, established as part of the Air Transportation Safety and System Stabilization Act signed into law September 22, consists of designees of Federal Reserve Board Chairman Alan Greenspan, Treasury Secretary Paul O`Neill and Transportation Secretary Norman Mineta. The designees are Federal Reserve Board Governor Edward M. Gramlich, Treasury Under Secretary for Domestic Finance Peter R. Fisher and Department of Transportation General Counsel Kirk K. Van Tine. David Walker, Comptroller General of the United States, is a non-voting member of the Board.
Additional information about the ATSB is available on its web site, www.treas.gov/atsb.