Aircraft ABS could be negatively impacted by the Air Transportation Stabilization Board decision not to guarantee loans made to Vanguard Airlines, according to research from Morgan Stanley.

The ATSB - a panel of regulators set up after Sept. 11 - announced on May 29 that it had rejected the third application from Vanguard, this one for $15 million in loan guarantees. The airline initially filed for $55 million in loan guarantees last December.

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