Air Transportation Safety and System Stabilization Act

Air Transportation Safety and System Stabilization Act - Title I: Airline Stabilization - Directs the President to take certain actions to compensate air carriers for losses they incurred as a result of the terrorist attacks on the United States on September 11, 2001, including to: (1) issue Federal credit instruments (including subsidy amounts for such instruments) in the aggregate not to exceed $10 billion to such air carriers; and (2) compensate them in the aggregate of $5 billion for direct losses incurred as a result of any Federal ground stop order issued by the Government and any incremental losses incurred as a direct result of such attacks. Designates the amount of new budget authority and outlays in all fiscal years resulting from this title as an emergency requirement pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act).

(Sec. 102) Establishes an Air Transportation Stabilization Board to issue such Federal credit instruments. Sets forth certain Board and instrument requirements. Requires the Board to ensure that the Government is compensated for its risk in assuming guarantees. Authorizes the Board to enter into contracts under which the Government would participate in any equity gains of a participating corporation or its stockholders.

(Sec. 103) Limits the amount of compensation payable to an air carrier to the amount of its losses for a specified period following September 11, 2001.

(Sec. 104) Requires air carriers receiving Federal credit instruments to limit for two years to the same amount the total compensation (or, in the case of severance pay, double the compensation) of any officer or employee whose total compensation exceeded $300,000 in calendar 2000.

(Sec. 105) Urges the Secretary of Transportation to take appropriate action to ensure the continuation of scheduled air service to all communities, including essential air service to small communities. Authorizes appropriations.

(Sec. 106) Requires the President to report to specified congressional committees on the financial status of the air industry and the amounts of assistance provided under this title to each air carrier.

Title II: Aviation Insurance - Amends Federal transportation law to authorize the Secretary of Transportation to provide insurance and reinsurance against loss or damage arising out of any risk from the operation of an American aircraft or foreign-flag aircraft while in the United States (domestically) (effectively eliminating the Government from insuring or reinsuring such aircraft in international air transportation). Authorizes the Secretary to reimburse an air carrier for any increase in the costs of insurance since September 11, 2001. Sets forth certain insurance requirements, including limiting air carrier liability for losses to no more than $100 million in the aggregate for all claims arising as a result of an act of terrorism. Authorizes the Secretary to extend such insurance requirements to the vendors, agents, and subcontractors of air carriers.

Title III: Tax Provisions - Extends from November 15, 2001, until January 15, 2002, the deadline for an air carrier to make certain airline-related excise tax deposits otherwise due under the Internal Revenue Code between September 10 and November 15, 2001. Declares that nothing in this Act shall be construed to exclude from an air carrier's gross income compensation received under this Act.

Title IV: Victim Compensation - September 11th Victim Compensation Fund of 2001 - Establishes a compensation program, administered by the Attorney General through a Special Master, for any individual who was injured or killed as a result of the terrorist-related aircraft crashes of September 11, 2001. Authorizes appropriations. Sets forth certain program requirements, including restricting air carrier liability for compensatory or punitive damages arising from the terrorist attacks on September 11, 2001, to the limits of liability coverage maintained by the air carrier.

(Sec. 408) Provides a Federal cause of action for damages arising out of the hijacking and subsequent crashes of American Airlines flights 11 and 77, and United Airlines flights 93 and 175, on September 11, 2001. Declares such cause of action shall be the exclusive remedy for damages arising out of such incident.

Title V: Air Transportation Safety - Affirms the President's decision to spend $3 billion on airline safety and security.

(Sec. 502) Declares that Congress is committed to act expeditiously to strengthen airport security and take further measures to enhance the security of air travel.

Title VI: Separability - Declares if any provision of this Act is held invalid that the remainder of such Act shall not be affected.