About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

17 New Eng. L. Rev. 807 (1981-1982)
Aircraft Financing and the Government: The Federal Aviation Administration's Loan Guarantee Program

handle is hein.journals/newlr17 and id is 835 raw text is: Aircraft Financing and the Government: The Federal Aviation Administration's Loan Guarantee Program by Richard A. Smith* The Federal Aviation Administration's (FAA) Loan Guarantee Program initially was enacted as a means to allow smaller airlines to obtain the necessary financing to replace their aging fleets and serve the smaller communities. Since airline deregulation, however, it is arguable that even the largest air carriers may qualify for loan guarantee assistance. In this Article, the author traces the statutory and regulatory framework of the loan guarantee program. The priority system established by the FAA is discussed. In summary, the author concludes that if all air carriers are now eligible for such federal assistance, then the present priority system should be reap- praised, taking into consideration that servicing the needs of smaller communities for rapid and efficient air service remains a major purpose of the program. INTRODUCTION With the advent of airline deregulation, segments of the airline in- dustry have become intensely competitive. By September of 1981, the Civil Aeronautics Board (CAB) had eliminated most regulatory barriers to carriers which sought to establish new routes or service within the continental United States. Consequently, the largest airlines, termed major system air carriers, are encountering intense competition in many of their traditional routes to large cities by the smaller national airlines and a newly created class of regional feeder carriers. This competitive effect may be attributed in large part to the Airline Deregulation Act of 1978,' which revived and broadened a dormant federal authority to * Assistant Chief Counsel, Federal Aviation Administration, A.B., Colgate University; LLB, Duke University; LLM, New York University. The views expressed in this Article are the author's own, and are not intended to represent the views of his agency or any other agency of the federal government. 1. Pub. L. No. 95-504, 92 Stat. 1705 (1978). 807

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most