[USC02] 49 USC Ch. 417: OPERATIONS OF CARRIERS
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49 USC Ch. 417: OPERATIONS OF CARRIERS
From Title 49—TRANSPORTATIONSUBTITLE VII—AVIATION PROGRAMSPART A—AIR COMMERCE AND SAFETYsubpart ii—economic regulation

CHAPTER 417—OPERATIONS OF CARRIERS

SUBCHAPTER I—REQUIREMENTS

Sec.
41701.
Classification of air carriers.
41702.
Interstate air transportation.
41703.
Navigation of foreign civil aircraft.
41704.
Transporting property not to be transported in aircraft cabins.
41705.
Discrimination against handicapped individuals.
41706.
Prohibitions against smoking on passenger flights.
41707.
Incorporating contract terms into written instrument.
41708.
Reports.
41709.
Records of air carriers.
41710.
Time requirements.
41711.
Air carrier management inquiry and cooperation with other authorities.
41712.
Unfair and deceptive practices and unfair methods of competition.
41713.
Preemption of authority over prices, routes, and service.
41714.
Availability of slots.
41715.
Phase-out of slot rules at certain airports.
41716.
Interim slot rules at New York airports.
41717.
Interim application of slot rules at Chicago O'Hare International Airport.
41718.
Special rules for Ronald Reagan Washington National Airport.
41719.
Air service termination notice.
41720.
Joint venture agreements.
41721.
Reports by carriers on incidents involving animals during air transport.
41722.
Delay reduction actions.
41723.
Notice concerning aircraft assembly.
41724.
Musical instruments.
41725.
Prohibition on certain cell phone voice communications.
41726.
Strollers.

        

SUBCHAPTER II—SMALL COMMUNITY AIR SERVICE

41731.
Definitions.
41732.
Basic essential air service.
41733.
Level of basic essential air service.
41734.
Ending, suspending, and reducing basic essential air service.
41735.
Enhanced essential air service.
41736.
Air transportation to noneligible places.
41737.
Compensation guidelines, limitations, and claims.
41738.
Fitness of air carriers.
41739.
Air carrier obligations.
41740.
Joint proposals.
41741.
Insurance.
41742.
Essential air service authorization.
41743.
Airports not receiving sufficient service.
41744.
Preservation of basic essential air service at single carrier dominated hub airports.
41745.
Community and regional choice programs.
41746.
Tracking service.
[41747.
Repealed.]
41748.
Marketing program.

        

SUBCHAPTER III—REGIONAL AIR SERVICE INCENTIVE PROGRAM

41761.
Purpose.
41762.
Definitions.
41763.
Federal credit instruments.
41764.
Use of Federal facilities and assistance.
41765.
Administrative expenses.
41766.
Funding.
41767.
Termination.

        

Amendments

2018Pub. L. 115–254, div. B, title IV, §§403(b), 412(b), title V, §539(e), Oct. 5, 2018, 132 Stat. 3329, 3332, 3370, added items 41725 and 41726 and substituted "rules" for "Rules" in item 41718.

2012Pub. L. 112–95, title IV, §403(b), Feb. 14, 2012, 126 Stat. 85, which directed amendment of analysis for "such subchapter", meaning subchapter I of chapter 417, by adding item 41724 at the end, was executed by adding item 41724 to analysis for this chapter to reflect the probable intent of Congress.

Pub. L. 112–95, title IV, §§401(b), 430, Feb. 14, 2012, 126 Stat. 83, 100, substituted "Prohibitions against smoking on passenger flights" for "Prohibitions against smoking on scheduled flights" in item 41706, and struck out item 41747 "EAS local participation program".

2003Pub. L. 108–176, title IV, §§408(b), 410(b), 422(b), title VIII, §810(b), Dec. 12, 2003, 117 Stat. 2547, 2549, 2552, 2590, added items 41721 to 41723 and 41745 to 41748 and struck out former item 41721 "Reports by carriers on incidents involving animals during air transportation".

2000Pub. L. 106–181, title II, §§203(b), 204(b), 210(b), 231(j)(2), title VII, §710(b), Apr. 5, 2000, 114 Stat. 93, 94, 102, 115, 160, added items 41715 to 41718, redesignated former items 41715 and 41716 as 41719 and 41720, respectively, and added items 41721, 41743, and 41744, subchapter III heading, and items 41761 to 41767.

1998Pub. L. 105–277, div. C, title I, §110(f)(2), Oct. 21, 1998, 112 Stat. 2681–590, which directed amendment of the analysis for subchapter I of chapter 417 by adding item 41716 without specifying the Code title or Act for chapter 417, was executed by adding item 41716 to this analysis to reflect the probable intent of Congress.

1996Pub. L. 104–264, title II, §278(d), Oct. 9, 1996, 110 Stat. 3250, substituted "Essential air service authorization" for "Ending effective date" in item 41742.

1994Pub. L. 103–429, §6(52), Oct. 31, 1994, 108 Stat. 4385, made technical correction to chapter heading.

Pub. L. 103–305, title II, §§206(b), 207(b), Aug. 23, 1994, 108 Stat. 1587, 1588, added items 41714 and 41715.

SUBCHAPTER I—REQUIREMENTS

§41701. Classification of air carriers

The Secretary of Transportation may establish—

(1) reasonable classifications for air carriers when required because of the nature of the transportation provided by them; and

(2) reasonable requirements for each class when the Secretary decides those requirements are necessary in the public interest.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1140.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41701 49 App.:1386(a). Aug. 23, 1958, Pub. L. 85–726, §416(a), 72 Stat. 771.
  49 App.:1551(b)(1)(E). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §1601(b)(1)(E); added Oct. 4, 1984, Pub. L. 98–443, §3(e), 98 Stat. 1704.

In this section, before clause (1), the words "from time to time" are omitted as unnecessary. In clauses (1) and (2), the word "just" is omitted as being included in "reasonable". In clause (1), the word "groups" is omitted as being included in "classifications". The words "transportation provided" are substituted for "services performed" for consistency in the revised title. In clause (2), the word "requirements" is substituted for "rules and regulations pursuant to and consistent with the provisions of this subchapter" as being more appropriate and for consistency in the revised title.

§41702. Interstate air transportation

An air carrier shall provide safe and adequate interstate air transportation.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1140.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41702 49 App.:1374(a)(1). Aug. 23, 1958, Pub. L. 85–726, §404(a)(1), 72 Stat. 760; Mar. 22, 1972, Pub. L. 92–259, §1, 86 Stat. 95; Oct. 24, 1978, Pub. L. 95–504, §23, 92 Stat. 1724.
  49 App.:1551(a)(4)(C) (related to 49 App.:1374(a)(1)). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §1601(a)(4)(C) (related to §404(a)(1)); added Oct. 4, 1984, Pub. L. 98–443, §3(c), 98 Stat. 1703.

This section is substituted for 49 App.:1374(a)(1) because 49 App.:1551(a)(4)(C) provides that 49 App.:1374 no longer applies to interstate or overseas air transportation except insofar as 49 App.:1374 requires air carriers to provide safe and adequate service.

§41703. Navigation of foreign civil aircraft

(a) Permitted Navigation.—A foreign aircraft, not part of the armed forces of a foreign country, may be navigated in the United States only—

(1) if the country of registry grants a similar privilege to aircraft of the United States;

(2) by an airman holding a certificate or license issued or made valid by the United States Government or the country of registry;

(3) if the Secretary of Transportation authorizes the navigation; and

(4) if the navigation is consistent with terms the Secretary may prescribe.


(b) Requirements for Authorizing Navigation.—The Secretary may authorize navigation under this section only if the Secretary decides the authorization is—

(1) in the public interest; and

(2) consistent with any agreement between the Government and the government of a foreign country.


(c) Providing Air Commerce.—The Secretary may authorize an aircraft permitted to navigate in the United States under this section to provide air commerce in the United States. However, the aircraft may take on for compensation, at a place in the United States, passengers or cargo destined for another place in the United States only if—

(1) specifically authorized under section 40109(g) of this title; or

(2) under regulations the Secretary prescribes authorizing air carriers to provide otherwise authorized air transportation with foreign registered aircraft under lease or charter to them without crew.


(d) Permit Requirements Not Affected.—This section does not affect section 41301 or 41302 of this title. However, a foreign air carrier holding a permit under section 41302 does not need to obtain additional authorization under this section for an operation authorized by the permit.

(e) Cargo in Alaska.—

(1) In general.—For the purposes of subsection (c), eligible cargo taken on or off any aircraft at a place in Alaska in the course of transportation of that cargo by any combination of 2 or more air carriers or foreign air carriers in either direction between a place in the United States and a place outside the United States shall not be deemed to have broken its international journey in, be taken on in, or be destined for Alaska.

(2) Eligible cargo.—For purposes of paragraph (1), the term "eligible cargo" means cargo transported between Alaska and any other place in the United States on a foreign air carrier (having been transported from, or thereafter being transported to, a place outside the United States on a different air carrier or foreign air carrier) that is carried—

(A) under the code of a United States air carrier providing air transportation to Alaska;

(B) on an air carrier way bill of an air carrier providing air transportation to Alaska;

(C) under a term arrangement or block space agreement with an air carrier; or

(D) under the code of a United States air carrier for purposes of transportation within the United States.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1140; Pub. L. 108–176, title VIII, §808, Dec. 12, 2003, 117 Stat. 2588.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41703(a) 49 App.:1508(b) (1st sentence). Aug. 23, 1958, Pub. L. 85–726, §1108(b) (1st, 2d, last sentences), 72 Stat. 798, 799.
  49 App.:1551(b)(1)(E). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §1601(b)(1)(E); added Oct. 4, 1984, Pub. L. 98–443, §3(e), 98 Stat. 1704.
41703(b) 49 App.:1508(b) (2d sentence).
  49 App.:1551(b)(1)(E).
41703(c) 49 App.:1508(b) (3d sentence). Aug. 23, 1958, Pub. L. 85–726, §1108(b) (3d sentence), 72 Stat. 799; Feb. 15, 1980, Pub. L. 96–192, §20, 94 Stat. 43.
  49 App.:1551(b)(1)(E).
41703(d) 49 App.:1508(b) (last sentence).

In subsection (a), the word "country" is substituted for "nation" for consistency in the revised title and with other titles of the United States Code. In clause (3), the words "permit, order, or regulation issued" are omitted as surplus. In clause (4), the words "conditions, and limitations" are omitted as being included in "terms".

In subsection (b)(2), the word "agreement" is substituted for "treaty, convention, or agreement" for clarity and consistency in the revised title. The words "which may be in force" are omitted as surplus. The words "or countries" are omitted because of 1:1.

In subsection (c), before clause (1), the word "place" is substituted for "point", and the word "passengers" is substituted for "persons", for consistency in the revised title.

In subsection (d), the word "affect" is substituted for "limit, modify, or amend" to eliminate unnecessary words.

Amendments

2003—Subsec. (e). Pub. L. 108–176 added subsec. (e).

Effective Date of 2003 Amendment

Amendment by Pub. L. 108–176 applicable only to fiscal years beginning after Sept. 30, 2003, except as otherwise specifically provided, see section 3 of Pub. L. 108–176, set out as a note under section 106 of this title.

§41704. Transporting property not to be transported in aircraft cabins

Under regulations or orders of the Secretary of Transportation, an air carrier shall transport as baggage the property of a passenger traveling in air transportation that may not be carried in an aircraft cabin because of a law or regulation of the United States. The carrier is liable to pay an amount not more than the amount declared to the carrier by that passenger for actual loss of, or damage to, the property caused by the carrier. The carrier may impose reasonable charges and conditions for its liability.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1141.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41704 49 App.:1516. Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §1116; added Aug. 5, 1974, Pub. L. 93–366, §205, 88 Stat. 418.
  49 App.:1551(b)(1)(E). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §1601(b)(1)(E); added Oct. 4, 1984, Pub. L. 98–443, §3(e), 98 Stat. 1704.

The words "as may be necessary", "which . . . lawfully", and "by such person" are omitted as surplus. The words "The carrier is liable to pay an amount not more than" are substituted for "shall assume liability . . . within" for clarity. The words "to such person" are omitted as surplus. The words "The carrier may impose" are added for clarity. The words "terms and" are omitted as covered by "conditions".

Refunds for Delayed Baggage

Pub. L. 114–190, title II, §2305, July 15, 2016, 130 Stat. 640, provided that:

"(a) In General.—Not later than 1 year after the date of enactment of this Act [July 15, 2016], the Secretary of Transportation shall issue final regulations to require an air carrier or foreign air carrier to promptly provide to a passenger an automated refund for any ancillary fees paid by the passenger for checked baggage if—

"(1) the air carrier or foreign air carrier fails to deliver the checked baggage to the passenger—

"(A) not later than 12 hours after the arrival of a domestic flight; or

"(B) not later than 15 hours after the arrival of an international flight; and

"(2) the passenger has notified the air carrier or foreign air carrier of the lost or delayed checked baggage.

"(b) Exception.—If, as part of the rulemaking, the Secretary makes a determination on the record that a requirement under subsection (a) is not feasible and would adversely affect consumers in certain cases, the Secretary may modify 1 or both of the deadlines specified in subsection (a)(1) for such cases, except that—

"(1) the deadline relating to a domestic flight may not exceed 18 hours after the arrival of the domestic flight; and

"(2) the deadline relating to an international flight may not exceed 30 hours after the arrival of the international flight."

§41705. Discrimination against handicapped individuals

(a) In General.—In providing air transportation, an air carrier, including (subject to section 40105(b)) any foreign air carrier, may not discriminate against an otherwise qualified individual on the following grounds:

(1) the individual has a physical or mental impairment that substantially limits one or more major life activities.

(2) the individual has a record of such an impairment.

(3) the individual is regarded as having such an impairment.


(b) Each Act Constitutes Separate Offense.—For purposes of section 46301, a separate violation occurs under this section for each individual act of discrimination prohibited by subsection (a).

(c) Investigation of Complaints.—

(1) In general.—The Secretary shall investigate each complaint of a violation of subsection (a).

(2) Publication of data.—The Secretary shall publish disability-related complaint data in a manner comparable to other consumer complaint data.

(3) Review and report.—The Secretary shall regularly review all complaints received by air carriers alleging discrimination on the basis of disability and shall report annually to Congress on the results of such review.

(4) Technical assistance.—Not later than 180 days after the date of the enactment of this subsection, the Secretary shall—

(A) implement a plan, in consultation with the Department of Justice, the United States Architectural and Transportation Barriers Compliance Board, and the National Council on Disability, to provide technical assistance to air carriers and individuals with disabilities in understanding the rights and responsibilities set forth in this section; and

(B) ensure the availability and provision of appropriate technical assistance manuals to individuals and entities with rights or responsibilities under this section.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1141; Pub. L. 106–181, title VII, §707(a), Apr. 5, 2000, 114 Stat. 158; Pub. L. 108–176, title V, §503(d)(1), Dec. 12, 2003, 117 Stat. 2559.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41705 49 App.:1374(c). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §404(c); added Oct. 2, 1986, Pub. L. 99–435, §2(a), 100 Stat. 1080.

In this section, before clause (1), the words "on the following grounds" are substituted for "by reason of such handicap" and "For purposes of paragraph (1) of this subsection the term 'handicapped individual' means any individual who" because of the restatement.

References in Text

The date of the enactment of this subsection, referred to in subsec. (c)(4), is the date of enactment of Pub. L. 106–181, which was approved Apr. 5, 2000.

Amendments

2003—Subsec. (b). Pub. L. 108–176 substituted "section 46301" for "section 46301(a)(3)(E)".

2000Pub. L. 106–181 designated existing provisions as subsec. (a), inserted heading, substituted "carrier, including (subject to section 40105(b)) any foreign air carrier," for "carrier" in introductory provisions, and added subsecs. (b) and (c).

Effective Date of 2003 Amendment

Amendment by Pub. L. 108–176 applicable only to fiscal years beginning after Sept. 30, 2003, except as otherwise specifically provided, see section 3 of Pub. L. 108–176, set out as a note under section 106 of this title.

Effective Date of 2000 Amendment

Amendment by Pub. L. 106–181 applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as a note under section 106 of this title.

Regulations Ensuring Assistance for Passengers With Disabilities in Air Transportation

Pub. L. 115–254, div. B, title IV, §440, Oct. 5, 2018, 132 Stat. 3347, provided that:

"(a) In General.—Not later than 180 days after the date of enactment of this Act [Oct. 5, 2018], the Secretary of Transportation shall—

"(1) review, and if necessary revise, applicable regulations to ensure that passengers with disabilities who request assistance while traveling in air transportation receive dignified, timely, and effective assistance at airports and on aircraft from trained personnel; and

"(2) review, and if necessary revise, applicable regulations related to covered air carrier training programs for air carrier personnel, including contractors, who provide physical assistance to passengers with disabilities to ensure that training under such programs—

"(A) occurs on an annual schedule for all new and continuing personnel charged with providing physical assistance; and

"(B) includes, as appropriate, instruction by personnel, with hands-on training for employees who physically lift or otherwise physically assist passengers with disabilities, including the use of relevant equipment.

"(b) Types of Assistance.—The assistance referred to [in] subsection (a)(1) may include requests for assistance in boarding or deplaning an aircraft, requests for assistance in connecting between flights, and other similar or related requests, as appropriate."

[For definition of "covered air carrier" as used in section 440 of Pub. L. 115–254, set out above, see section 401 of Pub. L. 115–254, set out as a Definitions of Terms in Pub. L. 115–254 note under section 40101 of this title.]

Airline Passengers With Disabilities Bill of Rights

Pub. L. 115–254, div. B, title IV, §434, Oct. 5, 2018, 132 Stat. 3343, provided that:

"(a) Airline Passengers With Disabilities Bill of Rights.—The Secretary of Transportation shall develop a document, to be known as the 'Airline Passengers with Disabilities Bill of Rights', using plain language to describe the basic protections and responsibilities of covered air carriers, their employees and contractors, and people with disabilities under the [sic] section 41705 of title 49, United States Code.

"(b) Content.—In developing the Airline Passengers with Disabilities Bill of Rights under subsection (a), the Secretary shall include, at a minimum, plain language descriptions of protections and responsibilities provided in law related to the following:

"(1) The right of passengers with disabilities to be treated with dignity and respect.

"(2) The right of passengers with disabilities to receive timely assistance, if requested, from properly trained covered air carrier and contractor personnel.

"(3) The right of passengers with disabilities to travel with wheelchairs, mobility aids, and other assistive devices, including necessary medications and medical supplies, including stowage of such wheelchairs, aids, and devices.

"(4) The right of passengers with disabilities to receive seating accommodations, if requested, to accommodate a disability.

"(5) The right of passengers with disabilities to receive announcements in an accessible format.

"(6) The right of passengers with disabilities to speak with a complaint resolution officer or to file a complaint with a covered air carrier or the Department of Transportation.

"(c) Rule of Construction.—The development of the Airline Passengers with Disabilities Bill of Rights under subsections (a) and (b) shall not be construed as expanding or restricting the rights available to passengers with disabilities on the day before the date of the enactment of this Act [Oct. 5, 2018] pursuant to any statute or regulation.

"(d) Consultations.—In developing the Airline Passengers with Disabilities Bill of Rights under subsection (a), the Secretary of Transportation shall consult with stakeholders, including disability organizations and covered air carriers and their contractors.

"(e) Display.—Each covered air carrier shall include the Airline Passengers with Disabilities Bill of Rights—

"(1) on a publicly available internet website of the covered air carrier; and

"(2) in any pre-flight notifications or communications provided to passengers who alert the covered air carrier in advance of the need for accommodations relating to a disability.

"(f) Training.—Covered air carriers and contractors of covered air carriers shall submit to the Secretary of Transportation plans that ensure employees of covered air carriers and their contractors receive training on the protections and responsibilities described in the Airline Passengers with Disabilities Bill of Rights. The Secretary shall review such plans to ensure the plans address the matters described in subsection (b)."

[For definition of "covered air carrier" as used in section 434 of Pub. L. 115–254, set out above, see section 401 of Pub. L. 115–254, set out as a Definitions of Terms in Pub. L. 115–254 note under section 40101 of this title.]

Harmonization of Service Animal Standards

Pub. L. 115–254, div. B, title IV, §437, Oct. 5, 2018, 132 Stat. 3344, provided that:

"(a) Rulemaking.—The Secretary of Transportation shall conduct a rulemaking proceeding—

"(1) to define the term 'service animal' for purposes of air transportation; and

"(2) to develop minimum standards for what is required for service and emotional support animals carried in aircraft cabins.

"(b) Considerations.—In conducting the rulemaking under subsection (a), the Secretary shall consider, at a minimum—

"(1) whether to align the definition of 'service animal' with the definition of that term in regulations of the Department of Justice implementing the Americans with Disabilities Act of 1990 (Public Law 101–336) [42 U.S.C. 12101 et seq.];

"(2) reasonable measures to ensure pets are not claimed as service animals, such as—

"(A) whether to require photo identification for a service animal identifying the type of animal, the breed of animal, and the service the animal provides to the passenger;

"(B) whether to require documentation indicating whether or not a service animal was trained by the owner or an approved training organization;

"(C) whether to require, from a licensed physician, documentation indicating the mitigating task or tasks a service animal provides to its owner; and

"(D) whether to allow a passenger to be accompanied by more than 1 service animal;

"(3) reasonable measures to ensure the safety of all passengers, such as—

"(A) whether to require health and vaccination records for a service animal; and

"(B) whether to require third-party proof of behavioral training for a service animal;

"(4) the impact additional requirements on service animals could have on access to air transportation for passengers with disabilities; and

"(5) if impacts on access to air transportation for passengers with disabilities are found, ways to eliminate or mitigate those impacts.

"(c) Final Rule.—Not later than 18 months after the date of enactment of this Act [Oct. 5, 2018], the Secretary shall issue a final rule pursuant to the rulemaking conducted under this section."

Advisory Committee on the Air Travel Needs of Passengers With Disabilities

Pub. L. 115–254, div. B, title IV, §439, Oct. 5, 2018, 132 Stat. 3345, provided that:

"(a) Establishment.—The Secretary of Transportation shall establish an advisory committee on issues related to the air travel needs of passengers with disabilities (referred to in this section as the 'Advisory Committee').

"(b) Duties.—The Advisory Committee shall—

"(1) identify and assess the disability-related access barriers encountered by passengers with disabilities;

"(2) determine the extent to which the programs and activities of the Department of Transportation are addressing the barriers identified in paragraph (1);

"(3) recommend consumer protection improvements to the air travel experience of passengers with disabilities;

"(4) advise the Secretary with regard to the implementation of section 41705 of title 49, United States Code; and

"(5) conduct such activities as the Secretary considers necessary to carry out this section.

"(c) Membership.—

"(1) In general.—The Advisory Committee shall be composed of at least 1 representative of each of the following groups:

"(A) Passengers with disabilities.

"(B) National disability organizations.

"(C) Air carriers.

"(D) Airport operators.

"(E) Contractor service providers.

"(F) Aircraft manufacturers.

"(G) Wheelchair manufacturers.

"(H) National veterans organizations representing disabled veterans.

"(2) Appointment.—The Secretary of Transportation shall appoint each member of the Advisory Committee.

"(3) Vacancies.—A vacancy in the Advisory Committee shall be filled in the manner in which the original appointment was made.

"(d) Chairperson.—The Secretary of Transportation shall designate, from among the members appointed under subsection (c), an individual to serve as chairperson of the Advisory Committee.

"(e) Travel Expenses.—Members of the Advisory Committee shall serve without pay, but shall receive travel expenses, including per diem in lieu of subsistence, in accordance with subchapter I of chapter 57 of title 5, United States Code.

"(f) Reports.—

"(1) In general.—Not later than 14 months after the date of establishment of the Advisory Committee, and annually thereafter, the Advisory Committee shall submit to the Secretary of Transportation a report on the needs of passengers with disabilities in air travel, including—

"(A) an assessment of existing disability-related access barriers, and any emerging disability-related access barriers that will likely be an issue in the next 5 calendar years;

"(B) an evaluation of the extent to which the Department of Transportation's programs and activities are eliminating disability-related access barriers;

"(C) a description of the Advisory Committee's actions;

"(D) a description of improvements related to the air travel experience of passengers with disabilities; and

"(E) any recommendations for legislation, administrative action, or other action that the Advisory Committee considers appropriate.

"(2) Report to congress.—Not later than 60 days after the date the Secretary receives the report under paragraph (1), the Secretary shall submit to the appropriate committees of Congress [Committee on Commerce, Science, and Transportation of the Senate and Committee on Transportation and Infrastructure of the House of Representatives] a copy of the report, including any additional findings or recommendations that the Secretary considers appropriate.

"(g) Termination.—The Advisory Committee established under this section shall terminate on September 30, 2023.

"(h) Termination of the Next Generation Air Transportation System Senior Policy Committee.—The Next Generation Air Transportation System Senior Policy Committee established by the Secretary of Transportation shall terminate on the date of the initial appointment of the members of the Advisory Committee."

Training Policies Regarding Assistance for Persons With Disabilities

Pub. L. 115–254, div. B, title IV, §433, Oct. 5, 2018, 132 Stat. 3342, provided that: "Following the receipt of the report required under section 2107 of the FAA Extension, Safety, and Security Act of 2016 (Public Law 114–190; 130 Stat. 622) [set out below], the Secretary of Transportation shall develop, if appropriate, specific recommendations regarding improvements to wheelchair assistance provided by air carriers and recommendations on how training programs by air carriers can address consumer complaints regarding wheelchair assistance."

Pub. L. 114–190, title II, §2107, July 15, 2016, 130 Stat. 622, provided that:

"(a) In General.—Not later than 270 days after the date of enactment of this Act [July 15, 2016], the Comptroller General of the United States shall submit to Congress a report assessing required air carrier personnel and contractor training programs regarding the assistance of persons with disabilities, including—

"(1) variations in training programs between air carriers;

"(2) instances since 2005 where the Department of Transportation has requested that an air carrier take corrective action following a review of the air carrier's training programs; and

"(3) actions taken by air carriers following requests described in paragraph (2).

"(b) Best Practices.—After the date the report is submitted under subsection (a), the Secretary of Transportation, based on the findings of the report, shall develop, make publicly available, and appropriately disseminate to air carriers such best practices as the Secretary considers necessary to improve the reviewed training programs."

Establishment of Higher International Standards

Pub. L. 106–181, title VII, §707(c), Apr. 5, 2000, 114 Stat. 158, provided that: "The Secretary [of Transportation] shall work with appropriate international organizations and the aviation authorities of other nations to bring about the establishment of higher standards for accommodating handicapped passengers in air transportation, particularly with respect to foreign air carriers that code-share with air carriers."

Restrictions on Air Transportation of Peanuts; Scientific Study on Effect of Airborne Particles on Passengers

Pub. L. 106–69, title III, §346, Oct. 9, 1999, 113 Stat. 1023, provided that: "Hereafter, none of the funds made available under this Act or any other Act, may be used to implement, carry out, or enforce any regulation issued under section 41705 of title 49, United States Code, including any regulation contained in part 382 of title 14, Code of Federal Regulations, or any other provision of law (including any Act of Congress, regulation, or Executive order or any official guidance or correspondence thereto), that requires or encourages an air carrier (as that term is defined in section 40102 of title 49, United States Code) to, on intrastate or interstate air transportation (as those terms are defined in section 40102 of title 49, United States Code)—

"(1) provide a peanut-free buffer zone or any other related peanut-restricted area; or

"(2) restrict the distribution of peanuts,

until 90 days after submission to the Congress and the Secretary of a peer-reviewed scientific study that determines that there are severe reactions by passengers to peanuts as a result of contact with very small airborne peanut particles of the kind that passengers might encounter in an aircraft."

Similar provisions were contained in Pub. L. 105–277, div. A, §101(g) [title III, §372], Oct. 21, 1998, 112 Stat. 2681–439, 2681-479.

§41706. Prohibitions against smoking on passenger flights

(a) Smoking Prohibition in Interstate and Intrastate Air Transportation.—An individual may not smoke—

(1) in an aircraft in scheduled passenger interstate or intrastate air transportation; or

(2) in an aircraft in nonscheduled passenger interstate or intrastate air transportation, if a flight attendant is a required crewmember on the aircraft (as determined by the Administrator of the Federal Aviation Administration).


(b) Smoking Prohibition in Foreign Air Transportation.—The Secretary of Transportation shall require all air carriers and foreign air carriers to prohibit smoking—

(1) in an aircraft in scheduled passenger foreign air transportation; and

(2) in an aircraft in nonscheduled passenger foreign air transportation, if a flight attendant is a required crewmember on the aircraft (as determined by the Administrator or a foreign government).


(c) Limitation on Applicability.—

(1) In general.—If a foreign government objects to the application of subsection (b) on the basis that subsection (b) provides for an extraterritorial application of the laws of the United States, the Secretary shall waive the application of subsection (b) to a foreign air carrier licensed by that foreign government at such time as an alternative prohibition negotiated under paragraph (2) becomes effective and is enforced by the Secretary.

(2) Alternative prohibition.—If, pursuant to paragraph (1), a foreign government objects to the prohibition under subsection (b), the Secretary shall enter into bilateral negotiations with the objecting foreign government to provide for an alternative smoking prohibition.


(d) Electronic Cigarettes.—

(1) Inclusion.—The use of an electronic cigarette shall be treated as smoking for purposes of this section.

(2) Electronic cigarette defined.—In this section, the term "electronic cigarette" means a device that delivers nicotine to a user of the device in the form of a vapor that is inhaled to simulate the experience of smoking.


(e) Regulations.—The Secretary shall prescribe such regulations as are necessary to carry out this section.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1141; Pub. L. 106–181, title VII, §708(a), Apr. 5, 2000, 114 Stat. 159; Pub. L. 112–95, title IV, §401(a), Feb. 14, 2012, 126 Stat. 83; Pub. L. 115–254, div. B, title IV, §409, Oct. 5, 2018, 132 Stat. 3331.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41706 49 App.:1374(d)(1). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §404(d)(1); added Dec. 22, 1987, Pub. L. 100–202, §328(a), 101 Stat. 1329–382; Nov. 21, 1989, Pub. L. 101–164, §335 (less effective date), 103 Stat. 1098, 1099.
  49 App.:1374 (note). Nov. 21, 1989, Pub. L. 101–164, §335 (related to effective date), 103 Stat. 1099.

In subsection (a), before clause (1), the words "On and after the date of expiration of the 4-month period following December 22, 1987" are omitted as executed. The words "of an aircraft" are added for clarity. The text of 49 App.:1374 (note) is omitted as executed.

Amendments

2018—Subsecs. (d), (e). Pub. L. 115–254 added subsec. (d) and redesignated former subsec. (d) as (e).

2012Pub. L. 112–95, §401(a)(1), substituted "passenger" for "scheduled" in section catchline.

Subsecs. (a), (b). Pub. L. 112–95, §401(a)(2), added subsecs. (a) and (b) and struck out former subsecs. (a) and (b) which read as follows:

"(a) Smoking Prohibition in Intrastate and Interstate Air Transportation.—An individual may not smoke in an aircraft in scheduled passenger interstate air transportation or scheduled passenger intrastate air transportation.

"(b) Smoking Prohibition in Foreign Air Transportation.—The Secretary of Transportation shall require all air carriers and foreign air carriers to prohibit smoking in any aircraft in scheduled passenger foreign air transportation."

2000Pub. L. 106–181 amended section catchline and text generally. Prior to amendment, text read as follows:

"(a) General.—An individual may not smoke in the passenger cabin or lavatory of an aircraft on a scheduled airline flight segment in air transportation or intrastate air transportation that is—

"(1) between places in a State of the United States, the District of Columbia, Puerto Rico, or the Virgin Islands;

"(2) between a place in any jurisdiction referred to in clause (1) of this subsection (except Alaska and Hawaii) and a place in any other of those jurisdictions; or

"(3)(A) scheduled for not more than 6 hours' duration; and

"(B)(i) between a place referred to in clause (1) of this subsection (except Alaska and Hawaii) and Alaska or Hawaii; or

"(ii) between Alaska and Hawaii.

"(b) Regulations.—The Secretary of Transportation shall prescribe regulations necessary to carry out this section."

Effective Date of 2000 Amendment

Pub. L. 106–181, title VII, §708(b), Apr. 5, 2000, 114 Stat. 159, provided that: "The amendment made by subsection (a) [amending this section] shall take effect on the date that is 60 days after the date of the enactment of this Act [Apr. 5, 2000]."

§41707. Incorporating contract terms into written instrument

To the extent the Secretary of Transportation prescribes by regulation, an air carrier may incorporate by reference in a ticket or written instrument any term of the contract for providing interstate air transportation.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1141.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41707 49 App.:1381(b). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §411(b); added Oct. 4, 1984, Pub. L. 98–443, §7(a), 98 Stat. 1706.

§41708. Reports

(a) Application.—To the extent the Secretary of Transportation finds necessary to carry out this subpart, this section and section 41709 of this title apply to a person controlling an air carrier or affiliated (within the meaning of section 11343(c) of this title) with a carrier.

(b) Requirements.—The Secretary may require an air carrier or foreign air carrier—

(1)(A) to file annual, monthly, periodical, and special reports with the Secretary in the form and way prescribed by the Secretary; and

(B) to file the reports under oath;

(2) to provide specific answers to questions on which the Secretary considers information to be necessary; and

(3) to file with the Secretary a copy of each agreement, arrangement, contract, or understanding between the carrier and another carrier or person related to transportation affected by this subpart.


(c) Diverted and Cancelled Flights.—

(1) Monthly reports.—The Secretary shall require an air carrier referred to in paragraph (2) to file with the Secretary a monthly report on each flight of the air carrier that is diverted from its scheduled destination to another airport and each flight of the air carrier that departs the gate at the airport at which the flight originates but is cancelled before wheels-off time.

(2) Applicability.—An air carrier that is required to file a monthly airline service quality performance report pursuant to part 234 of title 14, Code of Federal Regulations, shall be subject to the requirement of paragraph (1).

(3) Contents.—A monthly report filed by an air carrier under paragraph (1) shall include, at a minimum, the following information:

(A) For a diverted flight—

(i) the flight number of the diverted flight;

(ii) the scheduled destination of the flight;

(iii) the date and time of the flight;

(iv) the airport to which the flight was diverted;

(v) wheels-on time at the diverted airport;

(vi) the time, if any, passengers deplaned the aircraft at the diverted airport; and

(vii) if the flight arrives at the scheduled destination airport—

(I) the gate-departure time at the diverted airport;

(II) the wheels-off time at the diverted airport;

(III) the wheels-on time at the scheduled arrival airport; and

(IV) the gate-arrival time at the scheduled arrival airport.


(B) For flights cancelled after gate departure—

(i) the flight number of the cancelled flight;

(ii) the scheduled origin and destination airports of the cancelled flight;

(iii) the date and time of the cancelled flight;

(iv) the gate-departure time of the cancelled flight; and

(v) the time the aircraft returned to the gate.


(4) Publication.—The Secretary shall compile the information provided in the monthly reports filed pursuant to paragraph (1) in a single monthly report and publish such report on the Internet Web site of the Department of Transportation.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1141; Pub. L. 112–95, title IV, §402(a), Feb. 14, 2012, 126 Stat. 83.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41708(a) 49 App.:1377(e) (last sentence). Aug. 23, 1958, Pub. L. 85–726, §407(e) (last sentence), 72 Stat. 766.
  49 App.:1551(b)(1)(E). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §1601(b)(1)(E); added Oct. 4, 1984, Pub. L. 98–443, §3(e), 98 Stat. 1704.
41708(b) 49 App.:1377(a). Aug. 23, 1958, Pub. L. 85–726, §407(a), 72 Stat. 766; Feb. 15, 1980, Pub. L. 96–192, §10, 94 Stat. 38.
  49 App.:1551(b)(1)(E).

In subsection (a), the word "reasonably" is omitted as surplus. The words "carry out" are substituted for "administration" for consistency in the revised title. The words "section 11343(c) of this title" are substituted for "section 5(8) of the Interstate Commerce Act, as amended" in section 407(e) of the Federal Aviation Act of 1958 (Public Law 85–726, 72 Stat. 766), to cite the corresponding section of the revised title and correct the inaccurate reference to the definition of "affiliate".

In subsection (b)(3), the word "copy" is substituted for "true copy" to eliminate an unnecessary word. The word "transportation" is substituted for "traffic" for consistency in the revised title.

Amendments

2012—Subsec. (c). Pub. L. 112–95 added subsec. (c).

Effective Date of 2012 Amendment

Pub. L. 112–95, title IV, §402(b), Feb. 14, 2012, 126 Stat. 84, provided that: "Beginning not later than 90 days after the date of enactment of this Act [Feb. 14, 2012], the Secretary of Transportation shall require monthly reports pursuant to the amendment made by subsection (a) [amending this section]."

§41709. Records of air carriers

(a) Requirements.—The Secretary of Transportation shall prescribe the form of records to be kept by an air carrier, including records on the movement of traffic, receipts and expenditures of money, and the time period during which the records shall be kept. A carrier may keep only records prescribed or approved by the Secretary. However, a carrier may keep additional records if the additional records do not impair the integrity of the records prescribed or approved by the Secretary and are not an unreasonable financial burden on the carrier.

(b) Inspection.—(1) The Secretary at any time may—

(A) inspect the land, buildings, and equipment of an air carrier or foreign air carrier when necessary to decide under subchapter II of this chapter or section 41102, 41103, or 41302 of this title whether a carrier is fit, willing, and able; and

(B) inspect records kept or required to be kept by an air carrier, foreign air carrier, or ticket agent.


(2) The Secretary may employ special agents or auditors to carry out this subsection.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1142.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41709(a) 49 App.:1377(d). Aug. 23, 1958, Pub. L. 85–726, §407(d), 72 Stat. 766.
  49 App.:1551(b)(1)(E). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §1601(b)(1)(E); added Oct. 4, 1984, Pub. L. 98–443, §3(e), 98 Stat. 1704.
41709(b) 49 App.:1377(e) (1st–3d sentences). Aug. 23, 1958, Pub. L. 85–726, §407(e) (1st–3d sentences), 72 Stat. 766; Jan. 3, 1975, Pub. L. 93–623, §7(b), 88 Stat. 2105; restated Oct. 4, 1984, Pub. L. 98–443, §9(t), 98 Stat. 1708.
  49 App.:1551(b)(1)(E).

In subsection (a), the word "unreasonable" is substituted for "undue" for consistency in the revised title and with other titles of the United States Code.

In subsection (b)(1)(A) and (B), the word "inspect" is substituted for "have access to" for consistency in the revised title and with other titles of the Code.

In subsection (b)(2), the words "to carry out this subsection" are substituted for "who shall have authority under the orders of the Board to inspect and examine lands, buildings, equipment, accounts, records, and memorandums to which the Board has access under this subsection" to eliminate unnecessary words.

§41710. Time requirements

When a matter requiring action of the Secretary of Transportation is submitted under section 40109(a) or (c)–(h), 41309, or 42111 of this title and an evidentiary hearing—

(1) is ordered, the Secretary shall make a final decision on the matter not later than the last day of the 12th month that begins after the date the matter is submitted; or

(2) is not ordered, the Secretary shall make a final decision on the matter not later than the last day of the 6th month that begins after the date the matter is submitted.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1142.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41710 49 App.:1490. Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §1010; added Oct. 24, 1978, Pub. L. 95–504, §38(a), 92 Stat. 1743.
  49 App.:1551(b)(1)(E). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §1601(b)(1)(E); added Oct. 4, 1984, Pub. L. 98–443, §3(e), 98 Stat. 1704.

In this section, before clause (1), the words "matter requiring action of the Secretary" are substituted for "application or other written document" for clarity. The reference to 49 App.:1378 and 1379 is omitted as obsolete because under 49 App.:1551(a)(7), those sections ceased to be in effect on January 1, 1989. The words "on or after the one-hundred-eightieth day after October 24, 1978" are omitted as executed. In clauses (1) and (2), the words "order or" are omitted as surplus.

§41711. Air carrier management inquiry and cooperation with other authorities

In carrying out this subpart, the Secretary of Transportation may—

(1) inquire into the management of the business of an air carrier and obtain from the air carrier, and a person controlling, controlled by, or under common control with the carrier, information the Secretary decides reasonably is necessary to carry out the inquiry;

(2) confer and hold a joint hearing with a State authority; and

(3) exchange information related to aeronautics with a government of a foreign country through appropriate departments, agencies, and instrumentalities of the United States Government.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1142.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41711(1) 49 App.:1385. Aug. 23, 1958, Pub. L. 85–726, §§204(b), (c), 415, 72 Stat. 743, 770.
  49 App.:1551(b)(1)(E). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §1601(b)(1)(E); added Oct. 4, 1984, Pub. L. 98–443, §3(e), 98 Stat. 1704.
41711(2) 49 App.:1324(b).
  49 App.:1551(b)(1)(E).
41711(3) 49 App.:1324(c)
  49 App.:1551(b)(1)(E).

In this section, before clause (1), the words "In carrying out" are substituted for "in connection with any matter arising under this chapter within its jurisdiction" and "in the administration and enforcement of this chapter" in 49 App.:1324(b) and "For the purpose of exercising and performing its powers and duties under this chapter" in 49 App.:1385, and added (as the words relate to 49 App.:1324(c)), for clarity and consistency in this section. In clause (1), the words "full and complete reports and other" are omitted as surplus. In clause (2), the words "State aeronautical agency, or other" are omitted as surplus. The text of 49 App.:1324(b) (words after 3d comma) is omitted as surplus because of 49:322(c)(3). In clause (3), the words "government of a foreign country" are substituted for "foreign governments" for consistency in the revised title and with other titles of the United States Code.

§41712. Unfair and deceptive practices and unfair methods of competition

(a) In General.—On the initiative of the Secretary of Transportation or the complaint of an air carrier, foreign air carrier, air ambulance consumer (as defined by the Secretary of Transportation), or ticket agent, and if the Secretary considers it is in the public interest, the Secretary may investigate and decide whether an air carrier, foreign air carrier, or ticket agent has been or is engaged in an unfair or deceptive practice or an unfair method of competition in air transportation or the sale of air transportation. If the Secretary, after notice and an opportunity for a hearing, finds that an air carrier, foreign air carrier, or ticket agent is engaged in an unfair or deceptive practice or unfair method of competition, the Secretary shall order the air carrier, foreign air carrier, or ticket agent to stop the practice or method.

(b) E-Ticket Expiration Notice.—It shall be an unfair or deceptive practice under subsection (a) for any air carrier, foreign air carrier, or ticket agent utilizing electronically transmitted tickets for air transportation to fail to notify the purchaser of such a ticket of its expiration date, if any.

(c) Disclosure Requirement for Sellers of Tickets for Flights.—

(1) In general.—It shall be an unfair or deceptive practice under subsection (a) for any ticket agent, air carrier, foreign air carrier, or other person offering to sell tickets for air transportation on a flight of an air carrier to fail to disclose, whether verbally in oral communication or in writing in written or electronic communication, prior to the purchase of a ticket—

(A) the name of the air carrier providing the air transportation; and

(B) if the flight has more than one flight segment, the name of each air carrier providing the air transportation for each such flight segment.


(2) Internet offers.—In the case of an offer to sell tickets described in paragraph (1) on an Internet Web site, disclosure of the information required by paragraph (1) shall be provided on the first display of the Web site following a search of a requested itinerary in a format that is easily visible to a viewer.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1143; Pub. L. 106–181, title II, §221, Apr. 5, 2000, 114 Stat. 102; Pub. L. 111–216, title II, §210, Aug. 1, 2010, 124 Stat. 2362; Pub. L. 115–254, div. B, title IV, §419(b), Oct. 5, 2018, 132 Stat. 3336.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41712 49 App.:1381(a). Aug. 23, 1958, Pub. L. 85–726, §411(a), 72 Stat. 769; Oct. 4, 1984, Pub. L. 98–443, §7(a), 98 Stat. 1706.
  49 App.:1551(b)(1)(E). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §1601(b)(1)(E); added Oct. 4, 1984, Pub. L. 98–443, §3(e), 98 Stat. 1704.

The words "such action by" are omitted as surplus. The words "opportunity for a" are added for consistency in the revised title and with other titles of the United States Code.

Amendments

2018—Subsec. (a). Pub. L. 115–254 inserted "air ambulance consumer (as defined by the Secretary of Transportation)," after "of an air carrier, foreign air carrier,".

2010—Subsec. (c). Pub. L. 111–216 added subsec. (c).

2000Pub. L. 106–181 designated existing provisions as subsec. (a), inserted heading, and added subsec. (b).

Effective Date of 2000 Amendment

Amendment by Pub. L. 106–181 applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as a note under section 106 of this title.

§41713. Preemption of authority over prices, routes, and service

(a) Definition.—In this section, "State" means a State, the District of Columbia, and a territory or possession of the United States.

(b) Preemption.—(1) Except as provided in this subsection, a State, political subdivision of a State, or political authority of at least 2 States may not enact or enforce a law, regulation, or other provision having the force and effect of law related to a price, route, or service of an air carrier that may provide air transportation under this subpart.

(2) Paragraphs (1) and (4) of this subsection do not apply to air transportation provided entirely in Alaska unless the transportation is air transportation (except charter air transportation) provided under a certificate issued under section 41102 of this title.

(3) This subsection does not limit a State, political subdivision of a State, or political authority of at least 2 States that owns or operates an airport served by an air carrier holding a certificate issued by the Secretary of Transportation from carrying out its proprietary powers and rights.

(4) Transportation by air carrier or carrier affiliated with a direct air carrier.—

(A) General rule.—Except as provided in subparagraph (B), a State, political subdivision of a State, or political authority of 2 or more States may not enact or enforce a law, regulation, or other provision having the force and effect of law related to a price, route, or service of an air carrier or carrier affiliated with a direct air carrier through common controlling ownership when such carrier is transporting property by aircraft or by motor vehicle (whether or not such property has had or will have a prior or subsequent air movement).

(B) Matters not covered.—Subparagraph (A)—

(i) shall not restrict the safety regulatory authority of a State with respect to motor vehicles, the authority of a State to impose highway route controls or limitations based on the size or weight of the motor vehicle or the hazardous nature of the cargo, or the authority of a State to regulate motor carriers with regard to minimum amounts of financial responsibility relating to insurance requirements and self-insurance authorization; and

(ii) does not apply to the transportation of household goods, as defined in section 13102 of this title.


(C) Applicability of paragraph (1).—This paragraph shall not limit the applicability of paragraph (1).

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1143; Pub. L. 103–305, title VI, §601(b)(1), (2)(A), Aug. 23, 1994, 108 Stat. 1605, 1606; Pub. L. 105–102, §2(23), Nov. 20, 1997, 111 Stat. 2205.)

Historical and Revision Notes
Pub. L. 103–272
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41713(a) 49 App.:1305(c), (d) (related to (a), (b)(1), (c)). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §105(a)(2), (b)(1), (c), (d) (related to (a), (b)(1), (c)); added Oct. 24, 1978, Pub. L. 95–504, §4(a), 92 Stat. 1708.
41713(b)(1) 49 App.:1305(a)(1). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §105(a)(1); added Oct. 24, 1978, Pub. L. 95–504, §4(a), 92 Stat. 1707; Oct. 4, 1984, Pub. L. 98–443, §9(u), 98 Stat. 1709.
41713(b)(2) 49 App.:1305(a)(2).
  49 App.:1551(b)(1)(E). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §1601(b)(1)(E); added Oct. 4, 1984, Pub. L. 98–443, §3(e), 98 Stat. 1704.
41713(b)(3) 49 App.:1305(b)(1).
  49 App.:1551(b)(1)(E).

In subsection (a), the words "the term" are omitted as surplus. The words "the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, the Virgin Islands, and" are omitted as surplus because of the definition of "territory or possession of the United States" in section 40102(a) of the revised title, 48:734, and section 502 of the Covenant to Establish a Commonwealth of the Northern Mariana Islands in Political Union with the United States of America. The text of 49 App.:1305(c) is omitted as obsolete.

In subsection (b)(1) and (3), the words "interstate agency or other" are omitted as surplus. The word "authority" is substituted for "agency" for consistency in the revised title and with other titles of the United States Code.

In subsection (b)(1), the word "rule" is omitted as being synonymous with "regulation". The words "standard" and "having authority" are omitted as surplus.

In subsection (b)(2), the words "pursuant to a certificate issued by the Board", "by air of persons, property, or mail", and "the State of" are omitted as surplus.

Pub. L. 105–102

This amends 49:41713(b)(4)(B)(ii) to correct a cross-reference necessary because of the restatement of subtitle IV of title 49 by the ICC Termination Act (Public Law 104–88, 109 Stat. 803).

Amendments

1997—Subsec. (b)(4)(B)(ii). Pub. L. 105–102 substituted "13102" for "10102".

1994—Subsec. (b)(2). Pub. L. 103–305, §601(b)(2)(A), substituted "Paragraphs (1) and (4) of this subsection do" for "Paragraph (1) of this subsection does".

Subsec. (b)(4). Pub. L. 103–305, §601(b)(1), added par. (4).

Effective Date of 1994 Amendment

Amendment by Pub. L. 103–305 effective Jan. 1, 1995, see section 601(d) of Pub. L. 103–305, set out as a note under section 10521 of this title.

§41714. Availability of slots

(a) Making Slots Available for Essential Air Service.—

(1) Operational authority.—If basic essential air service under subchapter II of this chapter is to be provided from an eligible point to a high density airport (other than Ronald Reagan Washington National Airport), the Secretary of Transportation shall ensure that the air carrier providing or selected to provide such service has sufficient operational authority at the high density airport to provide such service. The operational authority shall allow flights at reasonable times taking into account the needs of passengers with connecting flights.

(2) Exemptions.—If necessary to carry out the objectives of paragraph (1), the Secretary shall by order grant exemptions from the requirements of subparts K and S of part 93 of title 14, Code of Federal Regulations (pertaining to slots at high density airports), to air carriers using Stage 3 aircraft or to commuter air carriers, unless such an exemption would significantly increase operational delays.

(3) Assurance of access.—If the Secretary finds that an exemption under paragraph (2) would significantly increase operational delays, the Secretary shall take such action as may be necessary to ensure that an air carrier providing or selected to provide basic essential air service is able to obtain access to a high density airport.

(4) Action by the secretary.—The Secretary shall issue a final order under this subsection on or before the 60th day after receiving a request from an air carrier for operational authority under this subsection.


(b) Slots for Foreign Air Transportation.—

(1) Exemptions.—If the Secretary finds it to be in the public interest at a high density airport (other than Ronald Reagan Washington National Airport), the Secretary may grant by order exemptions from the requirements of subparts K and S of part 93 of title 14, Code of Federal Regulations (pertaining to slots at high density airports), to enable air carriers and foreign air carriers to provide foreign air transportation using Stage 3 aircraft.

(2) Slot withdrawals.—The Secretary may not withdraw a slot at Chicago O'Hare International Airport from an air carrier in order to allocate that slot to a carrier to provide foreign air transportation.

(3) Equivalent rights of access.—The Secretary shall not take a slot at a high density airport from an air carrier and award such slot to a foreign air carrier if the Secretary determines that air carriers are not provided equivalent rights of access to airports in the country of which such foreign air carrier is a citizen.

(4) Conversions of slots.—Effective May 1, 2000, slots at Chicago O'Hare International Airport allocated to an air carrier as of November 1, 1999, to provide foreign air transportation shall be made available to such carrier to provide interstate or intrastate air transportation.


(c) Slots for New Entrants.—If the Secretary finds it to be in the public interest, the Secretary may by order grant exemptions from the requirements under subparts K and S of part 93 of title 14, Code of Federal Regulations (pertaining to slots at high density airports), to enable new entrant air carriers to provide air transportation at high density airports (other than Ronald Reagan Washington National Airport).

(d) Special Rules for Ronald Reagan Washington National Airport.—

(1) In general.—Notwithstanding sections 49104(a)(5) and 49111(e) of this title, or any provision of this section, the Secretary may, only under circumstances determined by the Secretary to be exceptional, grant by order to an air carrier currently holding or operating a slot at Ronald Reagan Washington National Airport an exemption from requirements under subparts K and S of part 93 of title 14, Code of Federal Regulations (pertaining to slots at Ronald Reagan Washington National Airport), to enable that carrier to provide air transportation with Stage 3 aircraft at Ronald Reagan Washington National Airport; except that such exemption shall not—

(A) result in an increase in the total number of slots per day at Ronald Reagan Washington National Airport;

(B) result in an increase in the total number of slots at Ronald Reagan Washington National Airport from 7:00 ante meridiem to 9:59 post meridiem;

(C) increase the number of operations at Ronald Reagan Washington National Airport in any 1-hour period by more than 2 operations;

(D) result in the withdrawal or reduction of slots operated by an air carrier;

(E) result in a net increase in noise impact on surrounding communities resulting from changes in timing of operations permitted under this subsection; and

(F) continue in effect on or after the date on which the final rules issued under subsection (f) become effective.


(2) Limitation on applicability.—Nothing in this subsection shall adversely affect Exemption No. 5133, as from time-to-time amended and extended.


(e) Study.—

(1) Matters to be considered.—The Secretary shall continue the Secretary's current examination of slot regulations and shall ensure that the examination includes consideration of—

(A) whether improvements in technology and procedures of the air traffic control system and the use of quieter aircraft make it possible to eliminate the limitations on hourly operations imposed by the high density rule contained in part 93 of title 14 of the Code of Federal Regulations or to increase the number of operations permitted under such rule;

(B) the effects of the elimination of limitations or an increase in the number of operations allowed on each of the following:

(i) congestion and delay in any part of the national aviation system;

(ii) the impact of noise on persons living near the airport;

(iii) competition in the air transportation system;

(iv) the profitability of operations of airlines serving the airport; and

(v) aviation safety;


(C) the impact of the current slot allocation process upon the ability of air carriers to provide essential air service under subchapter II of this chapter;

(D) the impact of such allocation process upon the ability of new entrant air carriers to obtain slots in time periods that enable them to provide service;

(E) the impact of such allocation process on the ability of foreign air carriers to obtain slots;

(F) the fairness of such process to air carriers and the extent to which air carriers are provided equivalent rights of access to the air transportation market in the countries of which foreign air carriers holding slots are citizens;

(G) the impact, on the ability of air carriers to provide domestic and international air service, of the withdrawal of slots from air carriers in order to provide slots for foreign air carriers; and

(H) the impact of the prohibition on slot withdrawals in subsections (b)(2) and (b)(3) of this section on the aviation relationship between the United States Government and foreign governments, including whether the prohibition in such subsections will require the withdrawal of slots from general and military aviation in order to meet the needs of air carriers and foreign air carriers providing foreign air transportation (and the impact of such withdrawal on general aviation and military aviation) and whether slots will become available to meet the needs of air carriers and foreign air carriers to provide foreign air transportation as a result of the planned relocation of Air Force Reserve units and the Air National Guard at O'Hare International Airport.


(2) Report.—Not later than January 31, 1995, the Secretary shall complete the current examination of slot regulations and shall transmit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report containing the results of such examination.


(f) Rulemaking.—The Secretary shall conduct a rulemaking proceeding based on the results of the study described in subsection (e). In the course of such proceeding, the Secretary shall issue a notice of proposed rulemaking not later than August 1, 1995, and shall issue a final rule not later than 90 days after public comments are due on the notice of proposed rulemaking.

(g) Weekend Operations.—The Secretary shall consider the advisability of revising section 93.227 of title 14, Code of Federal Regulations, so as to eliminate weekend schedules from the determination of whether the 80 percent standard of subsection (a)(1) of that section has been met.

(h) Definitions.—In this section and sections 41715–41718 and 41734(h), the following definitions apply:

(1) Commuter air carrier.—The term "commuter air carrier" means a commuter operator as defined or applied in subpart K or S of part 93 of title 14, Code of Federal Regulations.

(2) High density airport.—The term "high density airport" means an airport at which the Administrator limits the number of instrument flight rule takeoffs and landings of aircraft.

(3) New entrant air carrier.—The term "new entrant air carrier" means an air carrier that does not hold a slot at the airport concerned and has never sold or given up a slot at that airport after December 16, 1985, and a limited incumbent carrier.

(4) Slot.—The term "slot" means a reservation for an instrument flight rule takeoff or landing by an air carrier of an aircraft in air transportation.

(5) Limited incumbent air carrier.—The term "limited incumbent air carrier" has the meaning given that term in subpart S of part 93 of title 14, Code of Federal Regulations; except that—

(A) "40" shall be substituted for "12" in sections 93.213(a)(5), 93.223(c)(3), and 93.225(h);

(B) for purposes of such sections, the term "slot" shall not include—

(i) "slot exemptions";

(ii) slots operated by an air carrier under a fee-for-service arrangement for another air carrier, if the air carrier operating such slots does not sell flights in its own name, and is under common ownership with an air carrier that seeks to qualify as a limited incumbent and that sells flights in its own name; or

(iii) slots held under a sale and license-back financing arrangement with another air carrier, where the slots are under the marketing control of the other air carrier; and


(C) for Ronald Reagan Washington National Airport, the Administrator shall not count, for the purposes of section 93.213(a)(5), slots currently held by an air carrier but leased out on a long-term basis by that carrier for use in foreign air transportation and renounced by the carrier for return to the Department of Transportation or the Federal Aviation Administration.


(6) Regional jet.—The term "regional jet" means a passenger, turbofan-powered aircraft with a certificated maximum passenger seating capacity of less than 71.

(7) Nonhub airport.—The term "nonhub airport" means an airport that had less than .05 percent of the total annual boardings in the United States as determined under the Federal Aviation Administration's Primary Airport Enplanement Activity Summary for Calendar Year 1997.

(8) Small hub airport.—The term "small hub airport" means an airport that had at least .05 percent, but less than .25 percent, of the total annual boardings in the United States as determined under the summary referred to in paragraph (7).

(9) Medium hub airport.—The term "medium hub airport" means an airport that each year has at least .25 percent, but less than 1.0 percent, of the total annual boardings in the United States as determined under the summary referred to in paragraph (7).


(i) 60-Day Application Process.—

(1) Request for slot exemptions.—Any slot exemption request filed with the Secretary under this section or section 41716 or 41717 (other than subsection (c)) shall include—

(A) the names of the airports to be served;

(B) the times requested; and

(C) such additional information as the Secretary may require.


(2) Action on request; failure to act.—Within 60 days after a slot exemption request under this section or section 41716 or 41717 (other than subsection (c)) is received by the Secretary, the Secretary shall—

(A) approve the request if the Secretary determines that the requirements of the section under which the request is made are met;

(B) return the request to the applicant for additional information relating to the request to provide air transportation; or

(C) deny the request and state the reasons for its denial.


(3) 60-day period tolled for timely request for more information.—If the Secretary returns under paragraph (2)(B) the request for additional information during the first 20 days after the request is filed, then the 60-day period under paragraph (2) shall be tolled until the date on which the additional information is filed with the Secretary.

(4) Failure to determine deemed approval.—If the Secretary neither approves the request under paragraph (2)(A) nor denies the request under paragraph (2)(C) within the 60-day period beginning on the date the request is received, excepting any days during which the 60-day period is tolled under paragraph (3), then the request is deemed to have been approved on the 61st day, after the request was filed with the Secretary.


(j) Exemptions May Not Be Transferred.—No exemption from the requirements of subparts K and S of part 93 of title 14, Code of Federal Regulations, granted under this section or section 41716, 41717, or 41718 may be bought, sold, leased, or otherwise transferred by the carrier to which it is granted, except through an air carrier merger or acquisition.

(k) Affiliated Carriers.—For purposes of this section and sections 41716, 41717, and 41718, an air carrier that operates under the same designator code, or has or enters into a code-share agreement, with any other air carrier shall not qualify for a new slot or slot exemption as a new entrant or limited incumbent air carrier at an airport if the total number of slots and slot exemptions held by the two carriers at the airport exceed 20 slots and slot exemptions.

(Added Pub. L. 103–305, title II, §206(a)(1), Aug. 23, 1994, 108 Stat. 1584; amended Pub. L. 104–287, §5(9), Oct. 11, 1996, 110 Stat. 3389; Pub. L. 105–66, title III, §345, Oct. 27, 1997, 111 Stat. 1449; Pub. L. 105–102, §2(24), Nov. 20, 1997, 111 Stat. 2205; Pub. L. 105–154, §2(a)(1)(C), (2), Feb. 6, 1998, 112 Stat. 3; Pub. L. 106–181, title II, §231(a), (d)(2)–(4), Apr. 5, 2000, 114 Stat. 106, 112; Pub. L. 112–95, title IV, §414(c), (d), Feb. 14, 2012, 126 Stat. 92.)

Historical and Revision Notes

Pub. L. 105–102

This amends 49:41714(d)(1) to make a conforming cross-reference necessary because of the restatement of the Metropolitan Washington Airports Act of 1986 (Public Law 99–500, 100 Stat. 1783–373, Public Law 99–591, 100 Stat. 3341–376) by section 2(26) of this Act as chapter 491 of title 49.

Amendments

2012—Subsec. (h)(5)(A). Pub. L. 112–95, §414(c)(1), substituted "40" for "20".

Subsec. (h)(5)(B). Pub. L. 112–95, §414(c)(2), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: "for purposes of such sections, the term 'slot' shall include 'slot exemptions'; and".

Subsec. (j). Pub. L. 112–95, §414(d), substituted ", except through an air carrier merger or acquisition." for period at end.

2000—Subsec. (a)(3). Pub. L. 106–181, §231(d)(2), struck out before period at end "; except that the Secretary shall not be required to make slots available at O'Hare International Airport in Chicago, Illinois, if the number of slots available for basic essential air service (including slots specifically designated as essential air service slots and slots used for such purposes) to and from such airport is at least 132 slots".

Subsec. (b)(2). Pub. L. 106–181, §231(d)(3), inserted "at Chicago O'Hare International Airport" after "a slot" and struck out before period at end "if the withdrawal of that slot would result in the withdrawal of slots from an air carrier at O'Hare International Airport under section 93.223 of title 14, Code of Federal Regulations, in excess of the total withdrawn from that air carrier as of October 31, 1993".

Subsec. (b)(4). Pub. L. 106–181, §231(d)(4), amended heading and text of par. (4) generally. Prior to amendment, text read as follows: "This subsection and exemptions issued under this subsection shall cease to be in effect when the final rules issued under subsection (f) become effective."

Subsec. (c). Pub. L. 106–181, §231(a)(4), reenacted subsec. heading and struck out "(1) In general.—" before "If the Secretary finds", "and the circumstances to be exceptional" before ", the Secretary may by", and par. (2) heading and text. Text of par. (2) read as follows: "Exemptions issued under this subsection shall cease to be in effect on or after the date on which the final rules issued under subsection (f) become effective."

Subsec. (h). Pub. L. 106–181, §231(a)(5)(A), in introductory provisions, substituted "and sections 41715–41718 and 41734(h)" for "and section 41734(h)".

Subsec. (h)(3). Pub. L. 106–181, §231(a)(5)(B), struck out "as defined in subpart S of part 93 of title 14, Code of Federal Regulations" before period at end.

Subsec. (h)(5) to (9). Pub. L. 106–181, §231(a)(5)(C), added pars. (5) to (9).

Subsec. (i). Pub. L. 106–181, §231(a)(1), amended heading and text of subsec. (i) generally. Prior to amendment, text read as follows: "Within 120 days after receiving an application for an exemption under subsection (a)(2) to improve air service between a nonhub airport (as defined in section 41731(a)(4)) and a high density airport subject to the exemption authority under subsection (a), the Secretary shall grant or deny the exemption. The Secretary shall notify the Senate Committee on Commerce, Science, and Transportation and the House Committee on Transportation and Infrastructure of the grant or denial within 14 calendar days after the determination and state the reasons for the determination."

Subsecs. (j), (k). Pub. L. 106–181, §231(a)(2), (3), added subsecs. (j) and (k).

1998—Subsecs. (a)(1), (b)(1), (c)(1), (d). Pub. L. 105–154 substituted "Ronald Reagan Washington National Airport" for "Washington National Airport" wherever appearing in text and in subsec. (d) heading.

1997—Subsec. (d)(1). Pub. L. 105–102 substituted "sections 49104(a)(5) and 49111(e) of this title" for "sections 6005(c)(5) and 6009(e) of the Metropolitan Washington Airports Act of 1986".

Subsec. (i). Pub. L. 105–66 added subsec. (i).

1996—Subsec. (e)(2). Pub. L. 104–287 substituted "Transportation and Infrastructure" for "Public Works and Transportation".

Effective Date of 2000 Amendment

Amendment by Pub. L. 106–181 applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as a note under section 106 of this title.

Return of Withdrawn Slots

Pub. L. 106–181, title II, §231(d)(5), Apr. 5, 2000, 114 Stat. 112, provided that: "The Secretary [of Transportation] shall return any slot withdrawn from an air carrier under section 41714(b) of title 49, United States Code, before the date of the enactment of this Act [Apr. 5, 2000], to that carrier on April 30, 2000."

§41715. Phase-out of slot rules at certain airports

(a) Termination.—The rules contained in subparts S and K of part 93, title 14, Code of Federal Regulations, shall not apply—

(1) after July 1, 2002, at Chicago O'Hare International Airport; and

(2) after January 1, 2007, at LaGuardia Airport or John F. Kennedy International Airport.


(b) Statutory Construction.—Nothing in this section and sections 41714 and 41716–41718 shall be construed—

(1) as affecting the Federal Aviation Administration's authority for safety and the movement of air traffic; and

(2) as affecting any other authority of the Secretary to grant exemptions under section 41714.


(c) Factors To Consider.—

(1) In general.—Before the award of slot exemptions under sections 41714 and 41716–41718, the Secretary of Transportation may consider, among other determining factors, whether the petitioning air carrier's proposal provides the maximum benefit to the United States economy, including the number of United States jobs created by the air carrier, its suppliers, and related activities. The Secretary should give equal consideration to the consumer benefits associated with the award of such exemptions.

(2) Applicability.—Paragraph (1) does not apply in any case in which the air carrier requesting the slot exemption is proposing to use under the exemption a type of aircraft for which there is not a competing United States manufacturer.

(Added Pub. L. 106–181, title II, §231(b)(2), Apr. 5, 2000, 114 Stat. 108.)

Prior Provisions

A prior section 41715 was renumbered section 41719 of this title.

Effective Date

Section applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as an Effective Date of 2000 Amendments note under section 106 of this title.

§41716. Interim slot rules at New York airports

(a) Exemptions for Air Service to Small and Nonhub Airports.—Subject to section 41714(i), the Secretary of Transportation shall grant, by order, exemptions from the requirements under subparts K and S of part 93 of title 14, Code of Federal Regulations (pertaining to slots at high density airports) to any air carrier to provide nonstop air transportation, using an aircraft with a certificated maximum seating capacity of less than 71, between LaGuardia Airport or John F. Kennedy International Airport and a small hub airport or nonhub airport—

(1) if the air carrier was not providing such air transportation during the week of November 1, 1999;

(2) if the number of flights to be provided between such airports by the air carrier during any week will exceed the number of flights provided by the air carrier between such airports during the week of November 1, 1999; or

(3) if the air transportation to be provided under the exemption will be provided with a regional jet as replacement of turboprop air transportation that was being provided during the week of November 1, 1999.


(b) Exemptions for New Entrant and Limited Incumbent Air Carriers.—Subject to section 41714(i), the Secretary shall grant, by order, exemptions from the requirements under subparts K and S of part 93 of title 14, Code of Federal Regulations (pertaining to slots at high density airports), to any new entrant air carrier or limited incumbent air carrier to provide air transportation to or from LaGuardia Airport or John F. Kennedy International Airport if the number of slot exemptions granted under this subsection to such air carrier with respect to such airport when added to the slots and slot exemptions held by such air carrier with respect to such airport does not exceed 20; except that the Secretary may grant not to exceed 4 additional slot exemptions at LaGuardia Airport to an incumbent air carrier operating at least 20 but not more than 28 slots at such airport as of October 1, 2004, to provide air transportation between LaGuardia Airport and a small hub airport or nonhub airport.

(c) Stage 3 Aircraft Required.—An exemption may not be granted under this section with respect to any aircraft that is not a Stage 3 aircraft (as defined by the Secretary).

(d) Preservation of Certain Existing Slot-Related Air Service.—An air carrier that provides air transportation of passengers from LaGuardia Airport or John F. Kennedy International Airport to a small hub airport or nonhub airport, or to an airport that is smaller than a nonhub airport, on or before the date of the enactment of this subsection pursuant to an exemption from the requirements of subparts K and S of part 93 of title 14, Code of Federal Regulations (pertaining to slots at high density airports), or where slots were issued to an air carrier conditioned on a specific airport being served, may not terminate air transportation for that route before July 1, 2003, unless—

(1) before October 1, 1999, the Secretary received a written air service termination notice for that route; or

(2) after September 30, 1999, the air carrier submits an air service termination notice under section 41719 for that route and the Secretary determines that the carrier suffered excessive losses, including substantial losses on operations on that route during any three quarters of the year immediately preceding the date of submission of the notice.

(Added Pub. L. 106–181, title II, §231(c), Apr. 5, 2000, 114 Stat. 109; amended Pub. L. 108–447, div. H, title I, §199, Dec. 8, 2004, 118 Stat. 3235.)

References in Text

The date of the enactment of this subsection, referred to in subsec. (d), is the date of enactment of Pub. L. 106–181, which was approved Apr. 5, 2000.

Prior Provisions

A prior section 41716 was renumbered section 41720 of this title.

Amendments

2004—Subsec. (b). Pub. L. 108–447 inserted before period at end "; except that the Secretary may grant not to exceed 4 additional slot exemptions at LaGuardia Airport to an incumbent air carrier operating at least 20 but not more than 28 slots at such airport as of October 1, 2004, to provide air transportation between LaGuardia Airport and a small hub airport or nonhub airport".

Effective Date

Section applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as an Effective Date of 2000 Amendments note under section 106 of this title.

§41717. Interim application of slot rules at Chicago O'Hare International Airport

(a) Slot Operating Window Narrowed.—Effective July 1, 2001, the requirements of subparts K and S of part 93 of title 14, Code of Federal Regulations, do not apply with respect to aircraft operating before 2:45 post meridiem and after 8:14 post meridiem at Chicago O'Hare International Airport.

(b) Exemptions for Air Service to Small and Nonhub Airports.—Effective May 1, 2000, subject to section 41714(i), the Secretary of Transportation shall grant, by order, exemptions from the requirements of subparts K and S of part 93 of title 14, Code of Federal Regulations (pertaining to slots at high density airports), to any air carrier to provide nonstop air transportation, using an aircraft with a certificated maximum seating capacity of less than 71, between Chicago O'Hare International Airport and a small hub or nonhub airport—

(1) if the air carrier was not providing such air transportation during the week of November 1, 1999;

(2) if the number of flights to be provided between such airports by the air carrier during any week will exceed the number of flights provided by the air carrier between such airports during the week of November 1, 1999; or

(3) if the air transportation to be provided under the exemption will be provided with a regional jet as replacement of turboprop air transportation that was being provided during the week of November 1, 1999.


(c) Exemptions for New Entrant and Limited Incumbent Air Carriers.—

(1) In general.—The Secretary shall grant, by order, 30 exemptions from the requirements under subparts K and S of part 93 of title 14, Code of Federal Regulations, to any new entrant air carrier or limited incumbent air carrier to provide air transportation to or from Chicago O'Hare International Airport.

(2) Deadline for granting exemptions.—The Secretary shall grant an exemption under paragraph (1) within 45 days of the date of the request for such exemption if the person making the request qualifies as a new entrant air carrier or limited incumbent air carrier.


(d) Slots Used To Provide Turboprop Service.—

(1) In general.—Except as provided in paragraph (2), a slot used to provide turboprop air transportation that is replaced with regional jet air transportation under subsection (b)(3) may not be used, sold, leased, or otherwise transferred after the date the slot exemption is granted to replace the turboprop air transportation.

(2) Two-for-one exception.—An air carrier that otherwise could not use 2 slots as a result of paragraph (1) may use 1 of such slots to provide air transportation.

(3) Withdrawal of slot.—If the Secretary determines that an air carrier that is using a slot under paragraph (2) is no longer providing the air transportation that replaced the turboprop air transportation, the Secretary shall withdraw the slot that is being used under paragraph (2).

(4) Continuation.—If the Secretary determines that an air carrier that is using a slot under paragraph (2) is no longer providing the air transportation that replaced the turboprop air transportation with a regional jet, the Secretary shall withdraw the slot being used by the air carrier under paragraph (2) but shall allow the air carrier to continue to hold the exemption granted to the air carrier under subsection (b)(3).


(e) International Service at O'Hare Airport.—

(1) Termination of requirements.—Subject to paragraph (2), the requirements of subparts K and S of part 93 of title 14, Code of Federal Regulations, shall be of no force and effect at Chicago O'Hare International Airport after May 1, 2000, with respect to any aircraft providing foreign air transportation.

(2) Exception relating to reciprocity.—The Secretary may limit access to Chicago O'Hare International Airport with respect to foreign air transportation being provided by a foreign air carrier domiciled in a country to which an air carrier provides nonstop air transportation from the United States if the country in which that carrier is domiciled does not provide reciprocal airport access for air carriers.


(f) Stage 3 Aircraft Required.—An exemption may not be granted under this section with respect to any aircraft that is not a Stage 3 aircraft (as defined by the Secretary).

(g) Preservation of Certain Existing Slot-Related Air Service.—An air carrier that provides air transportation of passengers from Chicago O'Hare International Airport to a small hub airport or nonhub airport, or to an airport that is smaller than a nonhub airport, on or before the date of the enactment of this subsection pursuant to an exemption from the requirements of subparts K and S of part 93 of title 14, Code of Federal Regulations (pertaining to slots at high density airports), or where slots were issued to an air carrier conditioned on a specific airport being served, may not terminate air transportation service for that route for a period of 1 year after the date on which those requirements cease to apply to such airport unless—

(1) before October 1, 1999, the Secretary received a written air service termination notice for that route; or

(2) after September 30, 1999, the air carrier submits an air service termination notice under section 41719 for that route and the Secretary determines that the carrier suffered excessive losses, including substantial losses on operations on that route during the calendar quarters immediately preceding submission of the notice.

(Added Pub. L. 106–181, title II, §231(d)(1), Apr. 5, 2000, 114 Stat. 110.)

References in Text

The date of the enactment of this subsection, referred to in subsec. (g), is the date of enactment of Pub. L. 106–181, which was approved Apr. 5, 2000.

Effective Date

Section applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as an Effective Date of 2000 Amendments note under section 106 of this title.

§41718. Special rules for Ronald Reagan Washington National Airport

(a) Beyond-Perimeter Exemptions.—The Secretary shall grant, by order, 24 exemptions from the application of sections 49104(a)(5), 49109, 49111(e), and 41714 of this title to air carriers to operate limited frequencies and aircraft on select routes between Ronald Reagan Washington National Airport and domestic hub airports and exemptions from the requirements of subparts K and S of part 93, Code of Federal Regulations, if the Secretary finds that the exemptions will—

(1) provide air transportation with domestic network benefits in areas beyond the perimeter described in that section;

(2) increase competition by new entrant air carriers or in multiple markets;

(3) not reduce travel options for communities served by small hub airports and medium hub airports within the perimeter described in section 49109; and

(4) not result in meaningfully increased travel delays.


(b) Within-Perimeter Exemptions.—The Secretary shall grant, by order, 20 exemptions from the requirements of sections 49104(a)(5), 49111(e), and 41714 of this title and subparts K and S of part 93 of title 14, Code of Federal Regulations, to air carriers for providing air transportation to airports within the perimeter established for civil aircraft operations at Ronald Reagan Washington National Airport under section 49109. The Secretary shall develop criteria for distributing slot exemptions for flights within the perimeter to such airports under this paragraph in a manner that promotes air transportation—

(1) by new entrant air carriers and limited incumbent air carriers;

(2) to communities without existing nonstop air transportation to Ronald Reagan Washington National Airport;

(3) to small communities;

(4) that will provide competitive nonstop air transportation on a monopoly nonstop route to Ronald Reagan Washington National Airport; or

(5) that will produce the maximum competitive benefits, including low fares.


(c) Limitations.—

(1) Stage 3 aircraft required.—An exemption may not be granted under this section with respect to any aircraft that is not a Stage 3 aircraft (as defined by the Secretary).

(2) General exemptions.—

(A) Hourly limitation.—The exemptions granted—

(i) under subsections (a) and (b) and departures authorized under subsection (g)(2) may not be for operations between the hours of 10:00 p.m. and 7:00 a.m.; and

(ii) under subsections (a), (b), and (g) may not increase the number of operations at Ronald Reagan Washington National Airport in any 1-hour period during the hours between 7:00 a.m. and 9:59 p.m. by more than 5 operations.


(B) Use of existing slots.—A non-limited incumbent air carrier utilizing an exemption authorized under subsection (g)(3) for an arrival permitted between the hours of 10:01 p.m. and 11:00 p.m. under this section shall discontinue use of an existing slot during the same time period the arrival exemption is operated.


(3) Allocation of within-perimeter exemptions.—Of the exemptions granted under subsection (b)—

(A) without regard to the criteria contained in subsection (b)(1), six shall be for air transportation to small hub airports and nonhub airports;

(B) ten shall be for air transportation to medium hub and smaller airports; and

(C) four shall be for air transportation to airports without regard to their size.


(4) Applicability to exemption no. 5133.—Nothing in this section affects Exemption No. 5133, as from time-to-time amended and extended.


(d) Application Procedures.—The Secretary shall establish procedures to ensure that all requests for exemptions under this section are granted or denied within 90 days after the date on which the request is made.

(e) Applicability of Certain Laws.—Neither the request for, nor the granting of an exemption, under this section shall be considered for purposes of any Federal law a major Federal action significantly affecting the quality of the human environment.

(f) Commuters Defined.—For purposes of aircraft operations at Ronald Reagan Washington National Airport under subpart K of part 93 of title 14, Code of Federal Regulations, the term "commuters" means aircraft operations using aircraft having a certificated maximum seating capacity of 76 or less.

(g) Additional Slot Exemptions.—

(1) Increase in slot exemptions.—Not later than 90 days after the date of enactment of the FAA Modernization and Reform Act of 2012, the Secretary shall grant, by order 16 exemptions from—

(A) the application of sections 49104(a)(5), 49109, and 41714 to air carriers to operate limited frequencies and aircraft on routes between Ronald Reagan Washington National Airport and airports located beyond the perimeter described in section 49109; and

(B) the requirements of subparts K and S of part 93, Code of Federal Regulations.


(2) New entrants and limited incumbents.—Of the slot exemptions made available under paragraph (1), the Secretary shall make 8 available to limited incumbent air carriers or new entrant air carriers (as such terms are defined in section 41714(h)). Such exemptions shall be allocated pursuant to the application process established by the Secretary under subsection (d). The Secretary shall consider the extent to which the exemptions will—

(A) provide air transportation with domestic network benefits in areas beyond the perimeter described in section 49109;

(B) increase competition in multiple markets;

(C) not reduce travel options for communities served by small hub airports and medium hub airports within the perimeter described in section 49109;

(D) not result in meaningfully increased travel delays;

(E) enhance options for nonstop travel to and from the beyond-perimeter airports that will be served as a result of those exemptions;

(F) have a positive impact on the overall level of competition in the markets that will be served as a result of those exemptions; or

(G) produce public benefits, including the likelihood that the service to airports located beyond the perimeter described in section 49109 will result in lower fares, higher capacity, and a variety of service options.


(3) Improved network slots.—Of the slot exemptions made available under paragraph (1), the Secretary shall make 8 available to incumbent air carriers qualifying for status as a non-limited incumbent carrier at Ronald Reagan Washington National Airport as of the date of enactment of the FAA Modernization and Reform Act of 2012. Each such non-limited incumbent air carrier—

(A) may operate up to a maximum of 2 of the newly authorized slot exemptions;

(B) prior to exercising an exemption made available under paragraph (1), shall discontinue the use of a slot for service between Ronald Reagan Washington National Airport and a large hub airport within the perimeter as described in section 49109, and operate, in place of such service, service between Ronald Reagan Washington National Airport and an airport located beyond the perimeter described in section 49109;

(C) shall be entitled to return of the slot by the Secretary if use of the exemption made available to the carrier under paragraph (1) is discontinued;

(D) shall have sole discretion concerning the use of an exemption made available under paragraph (1), including the initial or any subsequent beyond perimeter destinations to be served; and

(E) shall file a notice of intent with the Secretary and subsequent notices of intent, when appropriate, to inform the Secretary of any change in circumstances concerning the use of any exemption made available under paragraph (1).


(4) Notices of intent.—Notices of intent under paragraph (3)(E) shall specify the beyond perimeter destination to be served and the slots the carrier shall discontinue using to serve a large hub airport located within the perimeter.

(5) Conditions.—Beyond-perimeter flight operations carried out by an air carrier using an exemption granted under this subsection shall be subject to the following conditions:

(A) An air carrier may not operate a multi-aisle or widebody aircraft in conducting such operations.

(B) An air carrier granted an exemption under this subsection is prohibited from transferring the rights to its beyond-perimeter exemptions pursuant to section 41714(j).


(h) Scheduling Priority.—In administering this section, the Secretary shall—

(1) afford a scheduling priority to operations conducted by new entrant air carriers and limited incumbent air carriers over operations conducted by other air carriers granted additional slot exemptions under subsection (g) for service to airports located beyond the perimeter described in section 49109;

(2) afford a scheduling priority to slot exemptions currently held by new entrant air carriers and limited incumbent air carriers for service to airports located beyond the perimeter described in section 49109, to the extent necessary to protect viability of such service; and

(3) consider applications from foreign air carriers that are certificated by the government of Canada if such consideration is required by the bilateral aviation agreement between the United States and Canada and so long as the conditions and limitations under this section apply to such foreign air carriers.

(Added Pub. L. 106–181, title II, §231(e)(1), Apr. 5, 2000, 114 Stat. 112; amended Pub. L. 108–176, title IV, §§425, 426(a), Dec. 12, 2003, 117 Stat. 2555; Pub. L. 112–95, title IV, §414(a), (b), Feb. 14, 2012, 126 Stat. 90, 92.)

References in Text

The date of enactment of the FAA Modernization and Reform Act of 2012, referred to in subsec. (g)(1), (3), is the date of enactment of Pub. L. 112–95, which was approved Feb. 14, 2012.

Amendments

2012—Subsec. (c)(2). Pub. L. 112–95, §414(b), amended par. (2) generally. Prior to amendment, text read as follows: "The exemptions granted under subsections (a) and (b) may not be for operations between the hours of 10:00 p.m. and 7:00 a.m. and may not increase the number of operations at Ronald Reagan Washington National Airport in any 1-hour period during the hours between 7:00 a.m. and 9:59 p.m. by more than 3 operations."

Subsecs. (g), (h). Pub. L. 112–95, §414(a), added subsecs. (g) and (h).

2003—Subsec. (a). Pub. L. 108–176, §425(a), substituted "24 exemptions" for "12 exemptions" in introductory provisions.

Subsec. (b). Pub. L. 108–176, §425(b), in introductory provisions, substituted "20 exemptions" for "12 exemptions" and struck out "that were designated as medium hub or smaller airports" before "within the perimeter established".

Subsec. (c)(2). Pub. L. 108–176, §425(c)(1), substituted "3 operations" for "two operations".

Subsec. (c)(3)(A). Pub. L. 108–176, §425(c)(2)(A), substituted "without regard to the criteria contained in subsection (b)(1), six" for "four" and struck out "and" at end.

Subsec. (c)(3)(B). Pub. L. 108–176, §425(c)(2)(B), substituted "ten" for "eight" and "; and" for period at end.

Subsec. (c)(3)(C). Pub. L. 108–176, §425(c)(2)(C), added subpar. (C).

Subsec. (d). Pub. L. 108–176, §425(d), amended heading and text of subsec. (d) generally. Prior to amendment, text read as follows:

"(1) Deadline for submission.—All requests for exemptions under this section must be submitted to the Secretary not later than the 30th day following the date of the enactment of this subsection.

"(2) Deadline for comments.—All comments with respect to any request for an exemption under this section must be submitted to the Secretary not later than the 45th day following the date of the enactment of this subsection.

"(3) Deadline for final decision.—Not later than the 90th day following the date of the enactment of this Act, the Secretary shall make a decision regarding whether to approve or deny any request that is submitted to the Secretary in accordance with paragraph (1)."

Subsec. (f). Pub. L. 108–176, §426(a), added subsec. (f).

Effective Date of 2003 Amendment

Amendment by Pub. L. 108–176 applicable only to fiscal years beginning after Sept. 30, 2003, except as otherwise specifically provided, see section 3 of Pub. L. 108–176, set out as a note under section 106 of this title.

Effective Date

Section applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as an Effective Date of 2000 Amendments note under section 106 of this title.

Regulations

Pub. L. 108–176, title IV, §426(b), Dec. 12, 2003, 117 Stat. 2556, provided that: "The Administrator of the Federal Aviation Administration shall revise regulations to take into account the amendment made by subsection (a) [amending this section]."

General Aviation Flights at Ronald Reagan Washington National Airport

Pub. L. 108–176, title VIII, §823, Dec. 12, 2003, 117 Stat. 2595, provided that:

"(a) Security Plan.—The Secretary of Homeland Security shall develop and implement a security plan to permit general aviation aircraft to land and take off at Ronald Reagan Washington National Airport.

"(b) Landings and Takeoffs.—The Administrator of the Federal Aviation Administration shall allow general aviation aircraft that comply with the requirements of the security plan to land and take off at the Airport except during any period that the President suspends the plan developed under subsection (a) due to national security concerns.

"(c) Report.—If the President suspends the security plan developed under subsection (a), the President shall submit to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure a report on the reasons for the suspension not later than 30 days following the first day of the suspension. The report may be submitted in classified form."

§41719. Air service termination notice

(a) In General.—An air carrier may not terminate interstate air transportation from a nonhub airport included on the Secretary of Transportation's latest published list of such airports, unless such air carrier has given the Secretary at least 45 days' notice before such termination.

(b) Exceptions.—The requirements of subsection (a) shall not apply when—

(1) the carrier involved is experiencing a sudden or unforeseen financial emergency, including natural weather related emergencies, equipment-related emergencies, and strikes;

(2) the termination of transportation is made for seasonal purposes only;

(3) the carrier involved has operated at the affected nonhub airport for 180 days or less;

(4) the carrier involved provides other transportation by jet from another airport serving the same community as the affected nonhub airport; or

(5) the carrier involved makes alternative arrangements, such as a change of aircraft size, or other types of arrangements with a part 121 or part 135 air carrier, that continues uninterrupted service from the affected nonhub airport.


(c) Waivers for Regional/Commuter Carriers.—Before January 1, 1995, the Secretary shall establish terms and conditions under which regional/commuter carriers can be excluded from the termination notice requirement.

(d) Definitions.—In this section, the following definitions apply:

(1) Part 121 air carrier.—The term "part 121 air carrier" means an air carrier to which part 121 of title 14, Code of Federal Regulations, applies.

(2) Part 135 air carrier.—The term "part 135 air carrier" means an air carrier to which part 135 of title 14, Code of Federal Regulations, applies.

(3) Regional/commuter carriers.—The term "regional/commuter carrier" means—

(A) a part 135 air carrier; or

(B) a part 121 air carrier that provides air transportation exclusively with aircraft having a seating capacity of no more than 70 passengers.


(4) Termination.—The term "termination" means the cessation of all service at an airport by an air carrier.

(Added Pub. L. 103–305, title II, §207(a), Aug. 23, 1994, 108 Stat. 1587, §41715; amended Pub. L. 103–429, §6(53), Oct. 31, 1994, 108 Stat. 4385; Pub. L. 104–287, §5(73), Oct. 11, 1996, 110 Stat. 3396; renumbered §41719, Pub. L. 106–181, title II, §231(b)(1), Apr. 5, 2000, 114 Stat. 108; Pub. L. 108–176, title II, §225(b)(1), Dec. 12, 2003, 117 Stat. 2528.)

Historical and Revision Notes

This amends 49:41715(a) to conform to the style of title 49.

Amendments

2003—Subsec. (d). Pub. L. 108–176 redesignated pars. (2) to (5) as (1) to (4), respectively, and struck out former par. (1) which defined "nonhub airport".

2000Pub. L. 106–181 renumbered section 41715 of this title as this section.

1996—Subsec. (a). Pub. L. 104–287 substituted "Secretary of Transportation's" for "Secretary's".

1994—Subsec. (d)(1). Pub. L. 103–429 substituted "41731(a)(4)" for "41731(a)(3)".

Effective Date of 2003 Amendment

Amendment by Pub. L. 108–176 applicable only to fiscal years beginning after Sept. 30, 2003, except as otherwise specifically provided, see section 3 of Pub. L. 108–176, set out as a note under section 106 of this title.

Effective Date

Pub. L. 103–305, title II, §207(d), Aug. 23, 1994, 108 Stat. 1588, provided that: "The amendments made by this section [enacting this section and amending section 46301 of this title] shall take effect on February 1, 1995."

§41720. Joint venture agreements

(a) Definitions.—In this section, the following definitions apply:

(1) Joint venture agreement.—The term "joint venture agreement" means an agreement between two or more major air carriers on or after January 1, 1998, with regard to (A) code-sharing, blocked-space arrangements, long-term wet leases (as defined in section 207.1 of title 14, Code of Federal Regulations) of a substantial number (as defined by the Secretary by regulation) of aircraft, or frequent flyer programs, or (B) any other cooperative working arrangement (as defined by the Secretary by regulation) between 2 or more major air carriers that affects more than 15 percent of the total number of available seat miles offered by the major air carriers.

(2) Major air carrier.—The term "major air carrier" means a passenger air carrier that is certificated under chapter 411 of this title and included in Carrier Group III under criteria contained in section 04 of part 241 of title 14, Code of Federal Regulations.


(b) Submission of Joint Venture Agreement.—At least 30 days before a joint venture agreement may take effect, each of the major air carriers that entered into the agreement shall submit to the Secretary—

(1) a complete copy of the joint venture agreement and all related agreements; and

(2) other information and documentary material that the Secretary may require by regulation.


(c) Extension of Waiting Period.—

(1) In general.—The Secretary may extend the 30-day period referred to in subsection (b) until—

(A) in the case of a joint venture agreement with regard to code-sharing, the 150th day following the last day of such period; and

(B) in the case of any other joint venture agreement, the 60th day following the last day of such period.


(2) Publication of reasons for extension.—If the Secretary extends the 30-day period referred to in subsection (b), the Secretary shall publish in the Federal Register the Secretary's reasons for making the extension.


(d) Termination of Waiting Period.—At any time after the date of submission of a joint venture agreement under subsection (b), the Secretary may terminate the waiting periods referred to in subsections (b) and (c) with respect to the agreement.

(e) Regulations.—The effectiveness of a joint venture agreement may not be delayed due to any failure of the Secretary to issue regulations to carry out this section.

(f) Memorandum To Prevent Duplicative Reviews.—Promptly after the date of enactment of this section, the Secretary shall consult with the Assistant Attorney General of the Antitrust Division of the Department of Justice in order to establish, through a written memorandum of understanding, preclearance procedures to prevent unnecessary duplication of effort by the Secretary and the Assistant Attorney General under this section and the antitrust laws of the United States, respectively.

(g) Prior Agreements.—With respect to a joint venture agreement entered into before the date of enactment of this section as to which the Secretary finds that—

(1) the parties submitted the agreement to the Secretary before such date of enactment; and

(2) the parties submitted all information on the agreement requested by the Secretary,


the waiting period described in paragraphs (2) and (3) shall begin on the date, as determined by the Secretary, on which all such information was submitted and end on the last day to which the period could be extended under this section.

(h) Limitation on Statutory Construction.—The authority granted to the Secretary under this section shall not in any way limit the authority of the Attorney General to enforce the antitrust laws as defined in the first section of the Clayton Act (15 U.S.C. 12).

(Added Pub. L. 105–277, div. C, title I, §110(f)(1), Oct. 21, 1998, 112 Stat. 2681–588, §41716; renumbered §41720 and amended Pub. L. 106–181, title II, §231(b)(1), title VII, §709, Apr. 5, 2000, 114 Stat. 108, 159.)

References in Text

The date of enactment of this section, referred to in subsecs. (f) and (g), is the date of enactment of Pub. L. 105–277, which was approved Oct. 21, 1998.

Codification

Pub. L. 105–277, §110(f)(1), which directed amendment of subchapter I of chapter 417 by adding this section at the end, without specifying a Code title or Act, was executed by adding this section at the end of this subchapter to reflect the probable intent of Congress.

Amendments

2000Pub. L. 106–181, §231(b)(1), renumbered section 41716 of this title as this section.

Subsec. (a)(1). Pub. L. 106–181, §709, substituted "an agreement between two or more major air carriers" for "an agreement entered into by a major air carrier".

Effective Date of 2000 Amendment

Amendment by Pub. L. 106–181 applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as a note under section 106 of this title.

§41721. Reports by carriers on incidents involving animals during air transport

(a) In General.—An air carrier that provides scheduled passenger air transportation shall submit monthly to the Secretary a report on any incidents involving the loss, injury, or death of an animal (as defined by the Secretary of Transportation) during air transport provided by the air carrier. The report shall be in such form and contain such information as the Secretary determines appropriate.

(b) Training of Air Carrier Employees.—The Secretary shall work with air carriers to improve the training of employees with respect to the air transport of animals and the notification of passengers of the conditions under which the air transport of animals is conducted.

(c) Sharing of Information.—The Secretary and the Secretary of Agriculture shall enter into a memorandum of understanding to ensure the sharing of information that the Secretary receives under subsection (a).

(d) Publication of Data.—The Secretary shall publish data on incidents and complaints involving the loss, injury, or death of an animal during air transport in a manner comparable to other consumer complaint and incident data.

(e) Air Transport.—For purposes of this section, the air transport of an animal includes the entire period during which an animal is in the custody of an air carrier, from check-in of the animal prior to departure until the animal is returned to the owner or guardian of the animal at the final destination of the animal.

(Added Pub. L. 106–181, title VII, §710(a), Apr. 5, 2000, 114 Stat. 159.)

Effective Date

Section applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as an Effective Date of 2000 Amendments note under section 106 of this title.

§41722. Delay reduction actions

(a) Scheduling Reduction Meetings.—The Secretary of Transportation may request that air carriers meet with the Administrator of the Federal Aviation Administration to discuss flight reductions at severely congested airports to reduce overscheduling and flight delays during hours of peak operation if—

(1) the Administrator determines that it is necessary to convene such a meeting; and

(2) the Secretary determines that the meeting is necessary to meet a serious transportation need or achieve an important public benefit.


(b) Meeting Conditions.—Any meeting under subsection (a)—

(1) shall be chaired by the Administrator;

(2) shall be open to all scheduled air carriers; and

(3) shall be limited to discussions involving the airports and time periods described in the Administrator's determination.


(c) Flight Reduction Targets.—Before any such meeting is held, the Administrator shall establish flight reduction targets for the meeting and notify the attending air carriers of those targets not less than 48 hours before the meeting.

(d) Delay Reduction Offers.—An air carrier attending the meeting shall make any offer to meet a flight reduction target to the Administrator rather than to another carrier.

(e) Transcript.—The Administrator shall ensure that a transcript of the meeting is kept and made available to the public not later than 3 business days after the conclusion of the meeting.

(Added Pub. L. 108–176, title IV, §422(a), Dec. 12, 2003, 117 Stat. 2552.)

Effective Date

Section applicable only to fiscal years beginning after Sept. 30, 2003, except as otherwise specifically provided, see section 3 of Pub. L. 108–176, set out as an Effective Date of 2003 Amendment note under section 106 of this title.

Schedule Reduction

Pub. L. 112–95, title IV, §413, Feb. 14, 2012, 126 Stat. 89, provided that:

"(a) In General.—If the Administrator of the Federal Aviation Administration determines that—

"(1) the aircraft operations of air carriers during any hour at an airport exceed the hourly maximum departure and arrival rate established by the Administrator for such operations; and

"(2) the operations in excess of the maximum departure and arrival rate for such hour at such airport are likely to have a significant adverse effect on the safe and efficient use of navigable airspace,

the Administrator shall convene a meeting of such carriers to reduce pursuant to section 41722 of title 49, United States Code, on a voluntary basis, the number of such operations so as not to exceed the maximum departure and arrival rate.

"(b) No Agreement.—If the air carriers participating in a meeting with respect to an airport under subsection (a) are not able to agree to a reduction in the number of flights to and from the airport so as not to exceed the maximum departure and arrival rate, the Administrator shall take such action as is necessary to ensure such reduction is implemented.

"(c) Subsequent Schedule Increases.—Subsequent to any reduction in operations under subsection (a) or (b) at an airport, if the Administrator determines that the hourly number of aircraft operations at that airport is less than the amount that can be handled safely and efficiently, the Administrator shall ensure that priority is given to United States air carriers in permitting additional aircraft operations with respect to that hour."

§41723. Notice concerning aircraft assembly

The Secretary of Transportation shall require, beginning after the last day of the 18-month period following the date of enactment of this section, an air carrier using an aircraft to provide scheduled passenger air transportation to display a notice, on an information placard available to each passenger on the aircraft, that informs the passengers of the nation in which the aircraft was finally assembled.

(Added Pub. L. 108–176, title VIII, §810(a), Dec. 12, 2003, 117 Stat. 2590.)

References in Text

The date of enactment of this section, referred to in text, is the date of enactment of Pub. L. 108–176, which was approved Dec. 12, 2003.

Effective Date

Section applicable only to fiscal years beginning after Sept. 30, 2003, except as otherwise specifically provided, see section 3 of Pub. L. 108–176, set out as an Effective Date of 2003 Amendment note under section 106 of this title.

§41724. Musical instruments

(a) In General.—

(1) Small instruments as carry-on baggage.—An air carrier providing air transportation shall permit a passenger to carry a violin, guitar, or other musical instrument in the aircraft cabin, without charging the passenger a fee in addition to any standard fee that carrier may require for comparable carry-on baggage, if—

(A) the instrument can be stowed safely in a suitable baggage compartment in the aircraft cabin or under a passenger seat, in accordance with the requirements for carriage of carry-on baggage or cargo established by the Administrator; and

(B) there is space for such stowage at the time the passenger boards the aircraft.


(2) Larger instruments as carry-on baggage.—An air carrier providing air transportation shall permit a passenger to carry a musical instrument that is too large to meet the requirements of paragraph (1) in the aircraft cabin, without charging the passenger a fee in addition to the cost of the additional ticket described in subparagraph (E), if—

(A) the instrument is contained in a case or covered so as to avoid injury to other passengers;

(B) the weight of the instrument, including the case or covering, does not exceed 165 pounds or the applicable weight restrictions for the aircraft;

(C) the instrument can be stowed in accordance with the requirements for carriage of carry-on baggage or cargo established by the Administrator;

(D) neither the instrument nor the case contains any object not otherwise permitted to be carried in an aircraft cabin because of a law or regulation of the United States; and

(E) the passenger wishing to carry the instrument in the aircraft cabin has purchased an additional seat to accommodate the instrument.


(3) Large instruments as checked baggage.—An air carrier shall transport as baggage a musical instrument that is the property of a passenger traveling in air transportation that may not be carried in the aircraft cabin if—

(A) the sum of the length, width, and height measured in inches of the outside linear dimensions of the instrument (including the case) does not exceed 150 inches or the applicable size restrictions for the aircraft;

(B) the weight of the instrument does not exceed 165 pounds or the applicable weight restrictions for the aircraft; and

(C) the instrument can be stowed in accordance with the requirements for carriage of carry-on baggage or cargo established by the Administrator.


(b) Regulations.—Not later than 2 years after the date of enactment of this section, the Secretary shall issue final regulations to carry out subsection (a).

(c) Effective Date.—The requirements of this section shall become effective on the date of issuance of the final regulations under subsection (b).

(Added Pub. L. 112–95, title IV, §403(a), Feb. 14, 2012, 126 Stat. 84.)

References in Text

The date of enactment of this section, referred to in subsec. (b), is the date of enactment of Pub. L. 112–95, which was approved Feb. 14, 2012.

Final regulations, referred to in subsecs. (b) and (c), were issued Dec. 29, 2014, effective Mar. 6, 2015. See 80 F.R. 161.

§41725. Prohibition on certain cell phone voice communications

(a) Prohibition.—The Secretary of Transportation shall issue regulations—

(1) to prohibit an individual on an aircraft from engaging in voice communications using a mobile communications device during a flight of that aircraft in scheduled passenger interstate or intrastate air transportation; and

(2) that exempt from the prohibition described in paragraph (1) any—

(A) member of the flight crew on duty on an aircraft;

(B) flight attendant on duty on an aircraft; and

(C) Federal law enforcement officer acting in an official capacity.


(b) Definitions.—In this section, the following definitions apply:

(1) Flight.—The term "flight" means, with respect to an aircraft, the period beginning when the aircraft takes off and ending when the aircraft lands.

(2) Mobile communications device.—

(A) In general.—The term "mobile communications device" means any portable wireless telecommunications equipment utilized for the transmission or reception of voice data.

(B) Limitation.—The term "mobile communications device" does not include a phone installed on an aircraft.

(Added Pub. L. 115–254, div. B, title IV, §403(a), Oct. 5, 2018, 132 Stat. 3328.)

§41726. Strollers

(a) In General.—Except as provided in subsection (b), a covered air carrier shall not deny a passenger the ability to check a stroller at the departure gate if the stroller is being used by a passenger to transport a child traveling on the same flight as the passenger.

(b) Exception.—Subsection (a) shall not apply in instances where the size or weight of the stroller poses a safety or security risk.

(c) Covered Air Carrier Defined.—In this section, the term "covered air carrier" means an air carrier or a foreign air carrier as those terms are defined in section 40102 of title 49, United States Code.

(Added Pub. L. 115–254, div. B, title IV, §412(a), Oct. 5, 2018, 132 Stat. 3331.)

SUBCHAPTER II—SMALL COMMUNITY AIR SERVICE

§41731. Definitions

(a) General.—In this subchapter—

(1) "eligible place" means a place in the United States that—

(A)(i)(I) was an eligible point under section 419 of the Federal Aviation Act of 1958 before October 1, 1988;

(II) received scheduled air transportation at any time after January 1, 1990; and

(III) is not listed in Department of Transportation Orders 89–9–37 and 89–12–52 as a place ineligible for compensation under this subchapter; or

(ii) was determined, on or after October 1, 1988, and before the date of the enactment of the FAA Extension, Safety, and Security Act of 2016 (Public Law 114–190), under this subchapter by the Secretary of Transportation to be eligible to receive subsidized small community air service under section 41736(a);

(B) had an average of 10 enplanements per service day or more, as determined by the Secretary, during the most recent fiscal year beginning after September 30, 2012;

(C) had an average subsidy per passenger of less than $1,000 during the most recent fiscal year, as determined by the Secretary; and

(D) is a community that, at any time during the period between September 30, 2010, and September 30, 2011, inclusive—

(i) received essential air service for which compensation was provided to an air carrier under this subchapter; or

(ii) received a 90-day notice of intent to terminate essential air service and the Secretary required the air carrier to continue to provide such service to the community.


(2) "enhanced essential air service" means scheduled air transportation to an eligible place of a higher level or quality than basic essential air service described in section 41732 of this title.


(b) Limitation on Authority To Decide a Place Not an Eligible Place.—The Secretary may not decide that a place described in subsection (a)(1) of this section is not an eligible place on any basis that is not specifically stated in this subchapter.

(c) Exception for Locations in Alaska and Hawaii.—Subparagraphs (B), (C), and (D) of subsection (a)(1) shall not apply with respect to locations in the State of Alaska or the State of Hawaii.

(d) Exceptions for Locations More Than 175 Driving Miles From the Nearest Large or Medium Hub Airport.—Subsection (a)(1)(B) shall not apply with respect to locations that are more than 175 driving miles from the nearest large or medium hub airport.

(e) Waivers.—For fiscal year 2013 and each fiscal year thereafter, the Secretary may waive, on an annual basis, subsection (a)(1)(B) with respect to a location if the location demonstrates to the Secretary's satisfaction that the reason the location averages fewer than 10 enplanements per day is due to a temporary decline in enplanements.

(f) Definition.—For purposes of subsection (a)(1)(B), the term "enplanements" means the number of passengers enplaning, at an eligible place, on flights operated by the subsidized essential air service carrier.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1143; Pub. L. 106–181, title II, §208, Apr. 5, 2000, 114 Stat. 95; Pub. L. 108–176, title II, §225(b)(2), Dec. 12, 2003, 117 Stat. 2529; Pub. L. 112–27, §6, Aug. 5, 2011, 125 Stat. 271; Pub. L. 112–95, title IV, §§421, 422, Feb. 14, 2012, 126 Stat. 96, 97; Pub. L. 115–254, div. B, title IV, §453(a), Oct. 5, 2018, 132 Stat. 3348.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41731(a)(1) 49 App.:1389(a)(1). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §419(a); added Oct. 24, 1978, Pub. L. 95–504, §33(a), 92 Stat. 1732; Dec. 8, 1983, Pub. L. 98–213, §10, 97 Stat. 1461; Oct. 4, 1984, Pub. L. 98–443, §9(r), 98 Stat. 1708; restated Dec. 30, 1987, Pub. L. 100–223, §202(a)(1), (2), (b)(1), 101 Stat. 1507, 1508; restated Nov. 5, 1990, Pub. L. 101–508, §9113(a), 104 Stat. 1388–363.
41731(a)(2) 49 App.:1389(k)(2). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §419(k)(2)–(5); added Oct. 24, 1978, Pub. L. 95–504, §33(a), 92 Stat. 1732; Dec. 8, 1983, Pub. L. 98–213, §10, 97 Stat. 1461; Oct. 4, 1984, Pub. L. 98–443, §9(r), 98 Stat. 1708; restated Dec. 30, 1987, Pub. L. 100–223, §202(a)(1), (2), (b)(1), 101 Stat. 1507, 1517.
41731(a)(3) 49 App.:1389(k)(3).
41731(a)(4) 49 App.:1389(k)(4).
41731(a)(5) 49 App.:1389(k)(5).
41731(b) 49 App.:1389(a)(2).

In this subchapter (except subsection (a)(1)(A) of this section), the word "place" is substituted for "point" for clarity and consistency in the revised title.

In subsection (a)(1)(A), the words "was an eligible point . . . before October 1, 1988" are substituted for "is defined as an eligible point . . . as in effect before October 1, 1988" for clarity and to eliminate unnecessary words.

In subsection (a)(2), the words "described in section 41732 of this title" are added for clarity.

In subsection (a)(3)–(5), the word "boardings" is substituted for "enplanements" for clarity and consistency in the revised title.

References in Text

Section 419 of the Federal Aviation Act of 1958, referred to in subsec. (a)(1)(A)(i), is section 419 of Pub. L. 85–726, which was classified to section 1389 of former Title 49, Transportation, and was repealed and reenacted as this subchapter by Pub. L. 103–272, §§1(e), 7(b), July 5, 1994, 108 Stat. 1143, 1379.

The date of the enactment of the FAA Extension, Safety, and Security Act of 2016, referred to in subsec. (a)(1)(A)(ii), is the date of enactment of Pub. L. 114–190, which was approved July 15, 2016.

Amendments

2018—Subsec. (a)(1)(A)(ii). Pub. L. 115–254 substituted "FAA Extension, Safety, and Security Act of 2016 (Public Law 114–190)," for "Wendell H. Ford Aviation Investment and Reform Act for the 21st Century,".

2012—Subsec. (a)(1)(B). Pub. L. 112–95, §421(1), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: "is located not less than 90 miles from the nearest medium or large hub airport; and".

Subsec. (a)(1)(D). Pub. L. 112–95, §422, added subpar. (D).

Subsec. (c). Pub. L. 112–95, §421(2), amended subsec. (c) generally. Prior to amendment, text read as follows: "Subsections (a)(1)(B) and (a)(1)(C) shall not apply with respect to a location in the State of Alaska."

Subsec. (d). Pub. L. 112–95, §421(3), amended subsec. (d) generally. Prior to amendment, text read as follows: "The Secretary may waive subsection (a)(1)(B) with respect to a location if the Secretary determines that the geographic characteristics of the location result in undue difficulty in accessing the nearest medium or large hub airport."

Subsecs. (e), (f). Pub. L. 112–95, §421(4), added subsecs. (e) and (f).

2011—Subsec. (a)(1). Pub. L. 112–27, §6(a), redesignated cls. (i) to (iii) of subpar. (A) as subcls. (I) to (III), respectively, redesignated subpars. (A) and (B) as cls. (i) and (ii), respectively, inserted "(A)" before "(i)(I)" in subcl. (I) of cl. (i), substituted "was determined" for "determined", "Secretary of Transportation" for "Secretary", and semicolon for period at end in cl. (ii) of subpar. (A), and added subpars. (B) and (C).

Subsec. (b). Pub. L. 112–27, §6(b), substituted "Secretary" for "Secretary of Transportation" and "on any basis" for "on the basis of a passenger subsidy at that place or on another basis".

Subsecs. (c), (d). Pub. L. 112–27, §6(c), added subsecs. (c) and (d).

2003—Subsec. (a)(3) to (5). Pub. L. 108–176 struck out pars. (3) to (5) which defined "hub airport", "nonhub airport", and "small hub airport", respectively.

2000—Subsec. (a)(1). Pub. L. 106–181 redesignated subpars. (A), (B), and (C) as cls. (i), (ii), and (iii), respectively, of subpar (A) and added subpar. (B).

Effective Date of 2003 Amendment

Amendment by Pub. L. 108–176 applicable only to fiscal years beginning after Sept. 30, 2003, except as otherwise specifically provided, see section 3 of Pub. L. 108–176, set out as a note under section 106 of this title.

Effective Date of 2000 Amendment

Amendment by Pub. L. 106–181 applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as a note under section 106 of this title.

Code-Sharing Pilot Program

Pub. L. 108–176, title IV, §406, Dec. 12, 2003, 117 Stat. 2545, provided that:

"(a) In General.—The Secretary of Transportation shall establish a pilot program under which the Secretary may require air carriers providing service with compensation under subchapter II of chapter 417 of title 49, United States Code, and major air carriers (as defined in section 41716(a)(2) of such title) serving large hub airports (as defined in section 40102 of such title) to participate in multiple code-share arrangements consistent with normal industry practice whenever and wherever the Secretary determines that such multiple code-sharing arrangements would improve air transportation services.

"(b) Limitation.—The Secretary may not require air carriers to participate in the pilot program under this section for more than 10 communities receiving service under subchapter II of chapter 417 of title 49, United States Code."

Measurement of Highway Miles for Purposes of Determining Eligibility of Essential Air Service Subsidies

Pub. L. 108–176, title IV, §409, Dec. 12, 2003, 117 Stat. 2547, as amended by Pub. L. 110–190, §4(d)(1), Feb. 28, 2008, 122 Stat. 644; Pub. L. 110–330, §5(k), Sept. 30, 2008, 122 Stat. 3719; Pub. L. 111–69, §5(k), Oct. 1, 2009, 123 Stat. 2055; Pub. L. 111–249, §5(k), Sept. 30, 2010, 124 Stat. 2628; Pub. L. 112–30, title II, §205(k), Sept. 16, 2011, 125 Stat. 358; Pub. L. 112–91, §5(k), Jan. 31, 2012, 126 Stat. 4; Pub. L. 112–95, title IV, §431, Feb. 14, 2012, 126 Stat. 100; Pub. L. 114–55, title I, §102(g), Sept. 30, 2015, 129 Stat. 523; Pub. L. 114–141, title I, §102(f), Mar. 30, 2016, 130 Stat. 323; Pub. L. 114–190, title I, §1102(g), July 15, 2016, 130 Stat. 617; Pub. L. 115–63, title I, §102(g), Sept. 29, 2017, 131 Stat. 1169; Pub. L. 115–141, div. M, title I, §102(f), Mar. 23, 2018, 132 Stat. 1046; Pub. L. 115–254, div. B, title IV, §457, Oct. 5, 2018, 132 Stat. 3350, provided that:

"(a) Request for Secretarial Review.—An eligible place (as defined in section 41731 of title 49, United States Code) with respect to which the Secretary has, in the 2-year period ending on the date of enactment of this Act [Dec. 12, 2003], eliminated (or tentatively eliminated) compensation for essential air service to such place, or terminated (or tentatively terminated) the compensation eligibility of such place for essential air service, under section 332 of the Department of Transportation and Related Agencies Appropriations Act, 2000 [Pub. L. 106–69] (49 U.S.C. 41731 note), section 205 of the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century [Pub. L. 106–181] (49 U.S.C. 41731 note), or any prior law of similar effect based on the highway mileage of such place from the nearest hub airport (as defined in section 40102 of such title), may request the Secretary to review such action.

"(b) Determination of Mileage.—In reviewing an action under subsection (a), the highway mileage between an eligible place and the nearest medium hub airport or large hub airport is the highway mileage of the most commonly used route between the place and the medium hub airport or large hub airport. In identifying such route, the Secretary shall identify the most commonly used route for a community by—

"(1) consulting with the Governor of a State or the Governor's designee; and

"(2) considering the certification of the Governor of a State or the Governor's designee as to the most commonly used route.

"(c) Eligibility Determination.—Not later than 60 days after receiving a request under subsection (a), the Secretary shall—

"(1) determine whether the eligible place would have been subject to an elimination of compensation eligibility for essential air service, or termination of the eligibility of such place for essential air service, under the provisions of law referred to in subsection (a) based on the determination of the highway mileage of such place from the nearest medium hub airport or large hub airport under subsection (b); and

"(2) issue a final order with respect to the eligibility of such place for essential air service compensation under subchapter II of chapter 417 of title 49, United States Code.

"(d) Limitation on Period of Final Order.—A final order issued under subsection (c) shall terminate on September 30, 2023."

[Pub. L. 110–190, §4(d)(2), Feb. 28, 2008, 122 Stat. 644, provided that: "The amendment made by paragraph (1) [amending section 409(d) of Pub. L. 108–176, set out above] shall take effect on September 29, 2007, and shall apply with respect to any final order issued under section 409(c) of such Act [section 409(c) of Pub. L. 108–176, set out above] that was in effect on such date."]

Marketing Practices

Pub. L. 106–181, title II, §207, Apr. 5, 2000, 114 Stat. 94, provided that:

"(a) Review of Marketing Practices That Adversely Affect Service to Small or Medium Communities.—Not later than 180 days after the date of the enactment of this Act [Apr. 5, 2000], the Secretary [of Transportation] shall review the marketing practices of air carriers that may inhibit the availability of quality, affordable air transportation services to small- and medium-sized communities, including—

"(1) marketing arrangements between airlines and travel agents;

"(2) code-sharing partnerships;

"(3) computer reservation system displays;

"(4) gate arrangements at airports;

"(5) exclusive dealing arrangements; and

"(6) any other marketing practice that may have the same effect.

"(b) Regulations.—If the Secretary finds, after conducting the review, that marketing practices inhibit the availability of affordable air transportation services to small- and medium-sized communities, then, after public notice and an opportunity for comment, the Secretary may issue regulations that address the problem or take other appropriate action.

"(c) Statutory Construction.—Nothing in this section expands the authority or jurisdiction of the Secretary to issue regulations under chapter 417 of title 49, United States Code, or under any other law."

Restrictions on Essential Air Service Subsidies

Pub. L. 106–181, title II, §205, Apr. 5, 2000, 114 Stat. 94, provided that: "The Secretary [of Transportation] may provide assistance under subchapter II of chapter 417 of title 49, United States Code, with respect to a place that is located within 70 highway miles of a hub airport (as defined by section 41731 of such title) if the most commonly used highway route between the place and the hub airport exceeds 70 miles."

Pub. L. 106–69, title III, §332, Oct. 9, 1999, 113 Stat. 1022, provided that: "Hereafter, notwithstanding 49 U.S.C. 41742, no essential air service subsidies shall be provided to communities in the 48 contiguous States that are located fewer than 70 highway miles from the nearest large or medium hub airport, or that require a rate of subsidy per passenger in excess of $200 unless such point is greater than 210 miles from the nearest large or medium hub airport."

[Pub. L. 112–95, title IV, §426(c), (d), Feb. 14, 2012, 126 Stat. 99, as amended by Pub. L. 115–254, div. B, title IV, §458, title V, §539(s)(2), Oct. 5, 2018, 132 Stat. 3350, 3372, provided that:

["(c) Subsidy Cap.—Subject to the availability of funds, the Secretary of Transportation may waive, on a case-by-case basis, the subsidy-per-passenger cap established by section 332 of the Department of Transportation and Related Agencies Appropriations Act, 2000 (Public Law 106–69; 113 Stat. 1022) [set out above]. A waiver issued under this subsection shall remain in effect for a limited period of time, as determined by the Secretary.

["(d) Reduction in Subsidy-per-passenger.—

["(1) In general.—The Secretary shall waive application of the subsidy-per-passenger cap described under subsection (c) if the Secretary finds that the community's subsidy-per-passenger for a fiscal year is lower than the subsidy-per-passenger for any of the 3 previous fiscal years.

["(2) Exception.—The Secretary shall waive application of the subsidy-per-passenger cap if the subsidy-per-passenger for a fiscal year is less than 10 percent higher than the highest subsidy-per-passenger from any of the 3 previous fiscal years. The Secretary may only waive application of the subsidy-per-passenger cap under this paragraph once per community.

["(3) Rule of construction.—Nothing in this subsection shall be construed to limit the Secretary's ability under subsection (c) to waive application of the subsidy-per-passenger cap."]

Provisions similar to those in section 332 of Pub. L. 106–69, set out above, were contained in the following prior appropriation acts:

Pub. L. 105–277, div. A, §101(g) [title III, §334], Oct. 21, 1998, 112 Stat. 2681–439, 2681-471.

Pub. L. 105–66, title III, §336, Oct. 27, 1997, 111 Stat. 1447.

§41732. Basic essential air service

(a) General.—Basic essential air service provided under section 41733 of this title is scheduled air transportation of passengers and cargo—

(1) to a hub airport that has convenient connecting or single-plane air service to a substantial number of destinations beyond that airport; or

(2) to a small hub or nonhub airport, when in Alaska or when the nearest hub airport is more than 400 miles from an eligible place.


(b) Minimum Requirements.—Basic essential air service shall include at least the following:

(1)(A) for a place not in Alaska, 2 daily round trips 6 days a week, with not more than one intermediate stop on each flight; or

(B) for a place in Alaska, a level of service at least equal to that provided in 1976 or 2 round trips a week, whichever is greater, except that the Secretary of Transportation and the appropriate State authority of Alaska may agree to a different level of service after consulting with the affected community.

(2) flights at reasonable times considering the needs of passengers with connecting flights at the airport and at prices that are not excessive compared to the generally prevailing prices of other air carriers for like service between similar places.

(3) for a place not in Alaska, service provided in an aircraft with an effective capacity of at least 15 passengers if the average daily boardings at the place in any calendar year from 1976-1986 were more than 11 passengers unless—

(A) that level-of-service requirement would require paying compensation in a fiscal year under section 41733(d) or 41734(d) or (e) of this title for the place when compensation otherwise would not have been paid for that place in that year; or

(B) the affected community agrees with the Secretary in writing to the use of smaller aircraft to provide service to the place.


(4) service accommodating the estimated passenger and property traffic at an average load factor, for each class of traffic considering seasonal demands for the service, of not more than—

(A) 50 percent; or

(B) 60 percent when service is provided by aircraft with more than 14 passenger seats.


(5) service provided in aircraft with at least 2 engines and using 2 pilots, unless scheduled air transportation has not been provided to the place in aircraft with at least 2 engines and using 2 pilots for at least 60 consecutive operating days at any time since October 31, 1978.

(6) service provided by pressurized aircraft when the service is provided by aircraft that regularly fly above 8,000 feet in altitude.


(c) Waivers.—Notwithstanding section 41733(e), upon request by an eligible place, the Secretary may waive, in whole or in part, subsections (a) and (b) of this section or subsections (a) through (c) of section 41734. A waiver issued under this subsection shall remain in effect for a limited period of time, as determined by the Secretary.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1144; Pub. L. 115–254, div. B, title IV, §456, Oct. 5, 2018, 132 Stat. 3350.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41732(a) 49 App.:1389(k)(1) (1st sentence). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §419(k)(1); added Oct. 24, 1978, Pub. L. 95–504, §33(a), 92 Stat. 1732; Dec. 8, 1983, Pub. L. 98–213, §10, 97 Stat. 1461; Oct. 4, 1984, Pub. L. 98–443, §9(r), 98 Stat. 1708; restated Dec. 30, 1987, Pub. L. 100–223, §202(a)(1), (2), (b)(1), 101 Stat. 1507, 1516.
41732(b) 49 App.:1389(k)(1) (last sentence).

In subsection (a), before clause (1), the words "provided under section 41733 of this title" are added for clarity. In clause (2), the words "from an eligible place" are added for clarity.

In subsection (b), before clause (1), the words "Basic essential air service" are substituted for "Such transportation" for clarity and consistency in the revised title. In clause (1)(B), the word "1976" is substituted for "calendar year 1976" to eliminate unnecessary words. The words "appropriate State authority of Alaska" are substituted for "State agency of the State of Alaska" for clarity and consistency with the source provisions restated in section 41734(a) of the revised title. The words "agree to a different level of service" are substituted for "otherwise specified under an agreement" for clarity. In clause (2), the word "prices" is substituted for "rates, fares, and charges" and "fares" because of the definition of "price" in section 40102(a) of the revised title. In clause (3), before subclause (A), the word "boardings" is substituted for "enplanements" for clarity and consistency in the revised title. The words "from 1976-1986" are substituted for "beginning after December 31, 1975, and ending on or before December 31, 1986" to eliminate unnecessary words. In subclause (B), the words "affected community" are substituted for "community concerned" for consistency with the source provisions restated in clause (1)(B) of this section. In clause (5), the words "for at least 60 consecutive operating days" are substituted for "on each of 60 consecutive operating days" for clarity.

Amendments

2018—Subsec. (c). Pub. L. 115–254 added subsec. (c).

§41733. Level of basic essential air service

(a) Decisions Made Before October 1, 1988.—For each eligible place for which a decision was made before October 1, 1988, under section 419 of the Federal Aviation Act of 1958, establishing the level of essential air transportation, the level of basic essential air service for that place shall be the level established by the Secretary of Transportation for that place by not later than December 29, 1988.

(b) Decisions Not Made Before October 1, 1988.—(1) The Secretary shall decide on the level of basic essential air service for each eligible place for which a decision was not made before October 1, 1988, establishing the level of essential air transportation, when the Secretary receives notice that service to that place will be provided by only one air carrier. The Secretary shall make the decision by the last day of the 6-month period beginning on the date the Secretary receives the notice. The Secretary may impose notice requirements necessary to carry out this subsection. Before making a decision, the Secretary shall consider the views of any interested community and the appropriate State authority of the State in which the community is located.

(2) Until the Secretary has made a decision on a level of basic essential air service for an eligible place under this subsection, the Secretary, on petition by an appropriate representative of the place, shall prohibit an air carrier from ending, suspending, or reducing air transportation to that place that appears to deprive the place of basic essential air service.

(c) Availability of Compensation.—(1) If the Secretary decides that basic essential air service will not be provided to an eligible place without compensation, the Secretary shall provide notice that an air carrier may apply to provide basic essential air service to the place for compensation under this section. In selecting an applicant, the Secretary shall consider, among other factors—

(A) the demonstrated reliability of the applicant in providing scheduled air service;

(B) the contractual and marketing arrangements the applicant has made with a larger carrier to ensure service beyond the hub airport;

(C) the interline arrangements that the applicant has made with a larger carrier to allow passengers and cargo of the applicant at the hub airport to be transported by the larger carrier through one reservation, ticket, and baggage check-in;

(D) the preferences of the actual and potential users of air transportation at the eligible place, giving substantial weight to the views of the elected officials representing the users;

(E) whether the air carrier has included a plan in its proposal to market its services to the community; and

(F) for an eligible place in Alaska, the experience of the applicant in providing, in Alaska, scheduled air service, or significant patterns of non-scheduled air service under an exemption granted under section 40109(a) and (c)–(h) of this title.


(2) Under guidelines prescribed under section 41737(a) of this title, the Secretary shall pay the rate of compensation for providing basic essential air service under this section and section 41734 of this title.

(d) Compensation Payments.—The Secretary shall pay compensation under this section at times and in the way the Secretary decides is appropriate. The Secretary shall end payment of compensation to an air carrier for providing basic essential air service to an eligible place when the Secretary decides the compensation is no longer necessary to maintain basic essential air service to the place.

(e) Review.—The Secretary shall review periodically the level of basic essential air service for each eligible place. Based on the review and consultations with an interested community and the appropriate State authority of the State in which the community is located, the Secretary may make appropriate adjustments in the level of service, to the extent such adjustments are to a level not less than the basic essential air service level established under subsection (a) for the airport that serves the community.

(f) Notice to Communities Prior to Termination of Eligibility.—

(1) In general.—The Secretary shall notify each community receiving basic essential air service for which compensation is being paid under this subchapter on or before the 45th day before issuing any final decision to end the payment of such compensation due to a determination by the Secretary that providing such service requires a rate of subsidy per passenger in excess of the subsidy cap.

(2) Procedures to avoid termination.—The Secretary shall establish, by order, procedures by which each community notified of an impending loss of subsidy under paragraph (1) may work directly with an air carrier to ensure that the air carrier is able to submit a proposal to the Secretary to provide essential air service to such community for an amount of compensation that would not exceed the subsidy cap.

(3) Assistance provided.—The Secretary shall provide, by order, information to each community notified under paragraph (1) regarding—

(A) the procedures established pursuant to paragraph (2); and

(B) the maximum amount of compensation that could be provided under this subchapter to an air carrier serving such community that would comply with basic essential air service and the subsidy cap.


(g) Proposals of State and Local Governments to Restore Eligibility.—

(1) In general.—If the Secretary, after the date of enactment of this subsection, ends payment of compensation to an air carrier for providing basic essential air service to an eligible place because the Secretary has determined that providing such service requires a rate of subsidy per passenger in excess of the subsidy cap or that the place is no longer an eligible place pursuant to section 41731(a)(1)(B), a State or local government may submit to the Secretary a proposal for restoring compensation for such service. Such proposal shall be a joint proposal of the State or local government and an air carrier.

(2) Determination by secretary.—The Secretary shall issue an order restoring the eligibility of the otherwise eligible place to receive basic essential air service by an air carrier for compensation under subsection (c) if—

(A) a State or local government submits to the Secretary a proposal under paragraph (1); and

(B) the Secretary determines that—

(i) the rate of subsidy per passenger under the proposal does not exceed the subsidy cap;

(ii) the proposal is likely to result in an average number of enplanements per day that will satisfy the requirement in section 41731(a)(1)(B); and

(iii) the proposal is consistent with the legal and regulatory requirements of the essential air service program.


(h) Subsidy Cap Defined.—In this section, the term "subsidy cap" means the subsidy-per-passenger cap established by section 332 of the Department of Transportation and Related Agencies Appropriations Act, 2000 (Public Law 106–69; 113 Stat. 1022).

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1145; Pub. L. 106–181, title II, §209(b), Apr. 5, 2000, 114 Stat. 95; Pub. L. 112–95, title IV, §§423–425, Feb. 14, 2012, 126 Stat. 97, 98.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41733(a) 49 App.:1389(b)(1)(A) (less last sentence last 24 words), (C). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §419(b)(1), (3), (4), (9); added Oct. 24, 1978, Pub. L. 95–504, §33(a), 92 Stat. 1732; Dec. 8, 1983, Pub. L. 98–213, §10, 97 Stat. 1461; Oct. 4, 1984, Pub. L. 98–443, §9(r), 98 Stat. 1708; restated Dec. 30, 1987, Pub. L. 100–223, §202(a)(1), (2), (b)(1), 101 Stat. 1507, 1508, 1509, 1511.
41733(b)(1) 49 App.:1389(b)(1)(A) (last sentence last 24 words), (B).
41733(b)(2) 49 App.:1389(b)(9).
41733(c) 49 App.:1389(b)(3).
41733(d) 49 App.:1389(b)(4).
41733(e) 49 App.:1389(b)(1)(D).

In subsection (a), the words "the level of basic essential air service for that place shall be the level established by the Secretary of Transportation for that place" are substituted for "Such determination shall be made" because the determinations for those places have been made. The words "by not later than December 29, 1988" are substituted for "no later than the last day of the 1-year period beginning on December 30, 1987" for clarity. The words "and only after consideration of the views of any interested community and the State agency of the State in which such community is located" and 49 App.:1389(b)(1)(C) are omitted as executed.

In subsections (b)(1) and (e), the words "appropriate State authority" are substituted for "State agency" for clarity and consistency with the source provisions restated in section 41734(a) of the revised title.

In section (b)(2), the words "that appears to deprive" are substituted for "which reasonably appears to deprive" to eliminate an unnecessary word.

In subsection (c)(1), before clause (A), the words "an air carrier may apply to provide basic essential air service to the place for compensation" are substituted for "applications may be submitted by any air carrier that is willing to provide such service to such point for compensation" for clarity and to eliminate unnecessary words.

References in Text

Section 419 of the Federal Aviation Act of 1958, referred to in subsec. (a), is section 419 of Pub. L. 85–726, which was classified to section 1389 of former Title 49, Transportation, and was repealed and reenacted as this subchapter by Pub. L. 103–272, §§1(e), 7(b), July 5, 1994, 108 Stat. 1143, 1379.

The date of enactment of this subsection, referred to in subsec. (g)(1), is the date of enactment of Pub. L. 112–95, which was approved Feb. 14, 2012.

Section 332 of the Department of Transportation and Related Agencies Appropriations Act, 2000, referred to in subsec. (h), is section 332 of Pub. L. 106–69, which is set out as a note under section 41731 of this title.

Amendments

2012—Subsec. (c)(1)(E), (F). Pub. L. 112–95, §423, added subpar. (E) and redesignated former subpar. (E) as (F).

Subsec. (f). Pub. L. 112–95, §424, added subsec. (f).

Subsecs. (g), (h). Pub. L. 112–95, §425, added subsecs. (g) and (h).

2000—Subsec. (e). Pub. L. 106–181 inserted before period at end ", to the extent such adjustments are to a level not less than the basic essential air service level established under subsection (a) for the airport that serves the community".

Effective Date of 2000 Amendment

Amendment by Pub. L. 106–181 applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as a note under section 106 of this title.

Seasonal Service

Pub. L. 115–254, div. B, title IV, §451(b), Oct. 5, 2018, 132 Stat. 3347, provided that: "The Secretary of Transportation may consider the flexibility of current operational dates and airport accessibility to meet local community needs when issuing requests for proposal of essential air service at seasonal airports."

Effect on Certain Orders

Pub. L. 106–181, title II, §209(c), Apr. 5, 2000, 114 Stat. 95, provided that: "All orders issued by the Secretary [of Transportation] after September 30, 1999, and before the date of the enactment of this Act [Apr. 5, 2000] establishing, modifying, or revoking essential air service levels shall be null and void beginning on the 90th day following such date of enactment. During the 90-day period, the Secretary shall reconsider such orders and shall issue new orders consistent with the amendments made by this section [amending this section and section 41742 of this title]."

§41734. Ending, suspending, and reducing basic essential air service

(a) Notice Required.—An air carrier may end, suspend, or reduce air transportation to an eligible place below the level of basic essential air service established for that place under section 41733 of this title only after giving the Secretary of Transportation, the appropriate State authority, and the affected communities at least 90 days' notice before ending, suspending, or reducing that transportation.

(b) Continuation of Service for 30 Days After Notice Period.—If at the end of the notice period under subsection (a) of this section the Secretary has not found another air carrier to provide basic essential air service to the eligible place, the Secretary shall require the carrier providing notice to continue to provide basic essential air service to the place for an additional 30-day period or until another carrier begins to provide basic essential air service to the place, whichever occurs first.

(c) Continuation of Service for Additional 30-Day Periods.—If at the end of the 30-day period under subsection (b) of this section the Secretary decides another air carrier will not provide basic essential air service to the place on a continuing basis, the Secretary shall require the carrier providing service to continue to provide service for additional 30-day periods until another carrier begins providing service on a continuing basis. At the end of each 30-day period, the Secretary shall decide if another carrier will provide service on a continuing basis.

(d) Continuation of Compensation After Notice Period.—If an air carrier receiving compensation under section 41733 of this title for providing basic essential air service to an eligible place is required to continue to provide service to the place under this section after the 90-day notice period under subsection (a) of this section, the Secretary shall provide the carrier with compensation sufficient—

(1) to pay for the fully allocated actual cost to the carrier of performing the basic essential air service that was being provided when the 90-day notice was given under subsection (a) of this section plus a reasonable return on investment that is at least 5 percent of operating costs; and

(2) to provide the carrier an additional return that recognizes the demonstrated additional lost profits from opportunities foregone and the likelihood that those lost profits increase as the period during which the carrier is required to provide the service continues.


(e) Compensation to Air Carriers Originally Providing Service Without Compensation.—If the Secretary requires an air carrier providing basic essential air service to an eligible place without compensation under section 41733 of this title to continue providing that service after the 90-day notice period required by subsection (a) of this section, the Secretary shall provide the carrier with compensation after the end of the 90-day notice period that is sufficient—

(1) to pay for the fully allocated actual cost to the carrier of performing the basic essential air service that was being provided when the 90-day notice was given under subsection (a) of this section plus a reasonable return on investment that is at least 5 percent of operating costs; and

(2) to provide the carrier an additional return that recognizes the demonstrated additional lost profits from opportunities foregone and the likelihood that those lost profits increase as the period during which the carrier is required to provide the service continues.


(f) Finding Replacement Carriers.—When the Secretary requires an air carrier to continue to provide basic essential air service to an eligible place, the Secretary shall continue to make every effort to find another carrier to provide at least that basic essential air service to the place on a continuing basis.

(g) Transfer of Authority.—If an air carrier, providing basic essential air service under section 41733 of this title between an eligible place and an airport at which the Administrator of the Federal Aviation Administration limits the number of instrument flight rule takeoffs and landings of aircraft, provides notice under subsection (a) of this section of an intention to end, suspend, or reduce that service and another carrier is found to provide the service, the Secretary shall require the carrier providing notice to transfer any operational authority the carrier has to land or take off at that airport related to the service to the eligible place to the carrier that will provide the service, if—

(1) the carrier that will provide the service needs the authority; and

(2) the authority to be transferred is being used to provide air service to another eligible place.


(h) Nonconsideration of Slot Availability.—In determining what is basic essential air service and in selecting an air carrier to provide such service, the Secretary shall not consider as a factor whether slots at a high density airport are available for providing such service.

(i) Exemption From Hold-In Requirements.—If, after the date of enactment of this subsection, an air carrier commences air transportation to an eligible place that is not receiving scheduled passenger air service as a result of the failure of the eligible place to meet requirements contained in an appropriations Act, the air carrier shall not be subject to the requirements of subsections (b) and (c) with respect to such air transportation.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1146; Pub. L. 103–305, title II, §206(c), Aug. 23, 1994, 108 Stat. 1587; Pub. L. 103–429, §6(81), Oct. 31, 1994, 108 Stat. 4388; Pub. L. 108–176, title IV, §401, Dec. 12, 2003, 117 Stat. 2542; Pub. L. 112–95, title IV, §426(b)(1), Feb. 14, 2012, 126 Stat. 98.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41734(a) 49 App.:1389(b)(2). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §419(b)(2), (5)–(8); added Oct. 24, 1978, Pub. L. 95–504, §33(a), 92 Stat. 1732; Dec. 8, 1983, Pub. L. 98–213, §10, 97 Stat. 1461; Oct. 4, 1984, Pub. L. 98–443, §9(r), 98 Stat. 1708; restated Dec. 30, 1987, Pub. L. 100–223, §202(a)(1), (2), (b)(1), 101 Stat. 1507, 1509, 1510.
41734(b) 49 App.:1389(b)(5) (1st sentence).
41734(c) 49 App.:1389(b)(5) (last sentence).
41734(d) 49 App.:1389(b)(6)(A).
41734(e) 49 App.:1389(b)(6)(B).
41734(f) 49 App.:1389(b)(8).
41734(g) 49 App.:1389(b)(7).

In subsection (b), the words "If at the end of the notice period under subsection (a) of this section" are substituted for "If an air carrier has provided notice to the Secretary under paragraph (2) of such air carrier's intention to suspend, terminate, or reduce service to any eligible point below the level of basic essential air service to such point, and if at the conclusion of the applicable period of notice" for clarity and to eliminate unnecessary words.

In subsection (c), the words "either with or without compensation" are omitted as unnecessary. The words "shall require the carrier providing service to continue to provide service for additional 30-day periods" are substituted for "shall extend such requirement for such additional 30-day periods . . . as may be necessary to continue basic essential air service to such eligible point", and the words "the Secretary shall decide if another carrier will provide service on a continuing basis" are substituted for "making the same determination", for clarity.

In subsections (d)(1) and (e)(1), the word "fair" is omitted as being included in "reasonable".

In subsection (d), before clause (1), the words "basic essential air service" are substituted for "air transportation" and "such transportation" for consistency with the source provisions restated in this section. The words "to continue to provide service to the place under this section after the 90-day notice period under subsection (a) of this section" are substituted for "to continue service to such point beyond the date on which such carrier would, but for paragraph (5), be able to suspend, terminate, or reduce such service below the level of basic essential air service to such point" to eliminate unnecessary words.

In subsection (e), before clause (1), the words "basic essential air service" are substituted for "air transportation" for consistency with the source provisions restated in this section. The words "after the end of the 90-day notice period that is" are substituted for "then" for clarity.

In subsection (f), the words "basic essential air service" are substituted for "air transportation which such air carrier has proposed to terminate, reduce, or suspend" for consistency with the source provisions restated in this section.

In subsection (g)(2), the words "the authority to be transferred is being used only to provide air service to the eligible place" are substituted for "unless . . . such authority is being used to provide air service with respect to more than 1 eligible point" for clarity and because of the restatement.

References in Text

The date of enactment of this subsection, referred to in subsec. (i), is the date of enactment of Pub. L. 108–176, which was approved Dec. 12, 2003.

Amendments

2012—Subsec. (d). Pub. L. 112–95, in introductory provisions, substituted "provide the carrier with compensation sufficient—" for "continue to pay that compensation after the last day of that period. The Secretary shall pay the compensation until the Secretary finds another carrier to provide the service to the place or the 90th day after the end of that notice period, whichever is earlier. If, after the 90th day after the end of the 90-day notice period, the Secretary has not found another carrier to provide the service, the carrier required to continue to provide that service shall receive compensation sufficient—".

2003—Subsec. (i). Pub. L. 108–176 added subsec. (i).

1994—Subsec. (g)(2). Pub. L. 103–429 amended par. (2) generally. Prior to amendment, par. (2) read as follows: "the authority to be transferred is being used only to provide air service to the eligible place."

Subsec. (h). Pub. L. 103–305 added subsec. (h).

Effective Date of 2012 Amendment

Pub. L. 112–95, title IV, §426(b)(2), Feb. 14, 2012, 126 Stat. 98, provided that: "The amendment made by paragraph (1) [amending this section] shall apply to compensation to air carriers for air service provided after the 30th day following the date of enactment of this Act [Feb. 14, 2012]."

Effective Date of 2003 Amendment

Amendment by Pub. L. 108–176 applicable only to fiscal years beginning after Sept. 30, 2003, except as otherwise specifically provided, see section 3 of Pub. L. 108–176, set out as a note under section 106 of this title.

Effective Date of 1994 Amendment

Amendment by Pub. L. 103–429 effective July 5, 1994, see section 9 of Pub. L. 103–429, set out as a note under section 321 of this title.

Definitions

For definitions of the terms "slot" and "high density airport" used in subsec. (h) of this section, see section 41714(h) of this title.

§41735. Enhanced essential air service

(a) Proposals.—(1) A State or local government may submit a proposal to the Secretary of Transportation for enhanced essential air service to an eligible place for which basic essential air service is being provided under section 41733 of this title. The proposal shall—

(A) specify the level and type of enhanced essential air service the State or local government considers appropriate; and

(B) include an agreement related to compensation required for the proposed service.


(2) The agreement submitted under paragraph (1)(B) of this subsection shall provide that—

(A) the State or local government or a person pay 50 percent of the compensation required for the proposed service and the United States Government pay the remaining 50 percent; or

(B)(i) the Government pay 100 percent of the compensation; and

(ii) if the proposed service is not successful for at least a 2-year period under the criteria prescribed by the Secretary under paragraph (3) of this subsection, the eligible place is not eligible for air service or air transportation for which compensation is paid by the Secretary under this subchapter.


(3) The Secretary shall prescribe by regulation objective criteria for deciding whether enhanced essential air service to an eligible place under this section is successful in terms of—

(A) increasing passenger usage of the airport facilities at the place; and

(B) reducing the amount of compensation provided by the Secretary under this subchapter for that service.


(b) Decisions.—Not later than 90 days after receiving a proposal under subsection (a) of this section, the Secretary shall—

(1) approve the proposal if the Secretary decides the proposal is reasonable; or

(2) if the Secretary decides the proposal is not reasonable, disapprove the proposal and notify the State or local government of the disapproval and the reasons for the disapproval.


(c) Compensation Payments.—(1) The Secretary shall pay compensation under this section when and in the way the Secretary decides is appropriate. Compensation for enhanced essential air service under this section may be paid only for the costs incurred in providing air service to an eligible place that are in addition to the costs incurred in providing basic essential air service to the place under section 41733 of this title. The Secretary shall continue to pay compensation under this section only as long as—

(A) the air carrier maintains the level of enhanced essential air service;

(B) the State or local government or person agreeing to pay compensation under this section continues to pay the compensation; and

(C) the Secretary decides the compensation is necessary to maintain the service to the place.


(2) The Secretary may require the State or local government or person agreeing to pay compensation under this section to make advance payments or provide other security to ensure that timely payments are made.

(d) Review.—(1) The Secretary shall review periodically the enhanced essential air service provided to each eligible place under this section.

(2) For service for which the Government pays 50 percent of the compensation, based on the review and consultation with the affected community and the State or local government or person paying the remaining 50 percent of the compensation, the Secretary shall make appropriate adjustments in the type and level of service to the place.

(3) For service for which the Government pays 100 percent of the compensation, based on the review and consultation with the State or local government submitting the proposal, the Secretary shall decide whether the service has succeeded for at least a 2-year period under the criteria prescribed under subsection (a)(3) of this section. If unsuccessful, the place is not eligible for air service or air transportation for which compensation is paid by the Secretary under this subchapter.

(e) Ending, Suspending, and Reducing Air Transportation.—An air carrier may end, suspend, or reduce air transportation to an eligible place below the level of enhanced essential air service established for that place by the Secretary under this section only after giving the Secretary, the affected community, and the State or local government or person paying compensation for that service at least 30 days' notice before ending, suspending, or reducing the service. This subsection does not relieve the carrier of an obligation under section 41734 of this title.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1148.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41735(a) 49 App.:1389(c)(1), (3)(C). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §419(c); added Oct. 24, 1978, Pub. L. 95–504, §33(a), 92 Stat. 1732; Dec. 8, 1983, Pub. L. 98–213, §10, 97 Stat. 1461; Oct. 4, 1984, Pub. L. 98–443, §9(r), 98 Stat. 1708; restated Dec. 30, 1987, Pub. L. 100–223, §202(a)(1), (2), (b)(1), 101 Stat. 1507, 1512.
41735(b) 49 App.:1389(c)(2).
41735(c) 49 App.:1389(c)(5)–(7).
41735(d) 49 App.:1389(c)(3)(A), (B).
41735(e) 49 App.:1389(c)(4).

In subsections (a)(2)(B)(ii) and (d)(3), the words "air service or air transportation for which compensation is paid" are substituted for "air service for which compensation is payable" for consistency with the source provisions restated in sections 41733 and 41736 of the revised title.

In subsection (a)(3), the word "prescribe" is substituted for "establish" for consistency in the revised title.

In subsection (b), before clause (1), the words "issue a decision" are omitted as unnecessary because of the restatement.

In subsection (c)(1)(B), the words "State or local government or person agreeing to pay compensation under this section" are substituted for "government or person agreeing to pay any non-Federal share" for clarity.

In subsection (c)(2), the words "State or local government or person agreeing to pay compensation under this section" are substituted for "non-Federal payments for enhanced essential air service under this subsection" for clarity.

In subsection (d)(2), the words "For service for which the Government pays 50 percent of the compensation" are substituted for "If the enhanced essential air service approved under this subsection is to be at a 50 percent Federal share" because of the restatement. The words "the remaining 50 percent" are substituted for "the non-Federal" for clarity and consistency in this section.

In subsection (d)(3), the words "For service for which the Government pays 100 percent of the compensation" are substituted for "If the enhanced essential air service approved under this subsection is to be at a 100 percent Federal share" because of the restatement.

§41736. Air transportation to noneligible places

(a) Proposals and Decisions.—(1) A State or local government may propose to the Secretary of Transportation that the Secretary provide compensation to an air carrier to provide air transportation to a place that is not an eligible place under this subchapter. Not later than 90 days after receiving a proposal under this section, the Secretary shall—

(A) decide whether to designate the place as eligible to receive compensation under this section; and

(B)(i) approve the proposal if the State or local government or a person is willing and able to pay 50 percent of the compensation for providing the transportation, and notify the State or local government of the approval; or

(ii) disapprove the proposal if the Secretary decides the proposal is not reasonable under paragraph (2) of this subsection, and notify the State or local government of the disapproval and the reasons for the disapproval.


(2) In deciding whether a proposal is reasonable, the Secretary shall consider, among other factors—

(A) the traffic-generating potential of the place;

(B) the cost to the United States Government of providing the proposed transportation; and

(C) the distance of the place from the closest hub airport.


(b) Approval for Certain Air Transportation.—Notwithstanding subsection (a)(1)(B) of this section, the Secretary shall approve a proposal under this section to compensate an air carrier for providing air transportation to a place in the 48 contiguous States or the District of Columbia and designate the place as eligible for compensation under this section if—

(1) at any time before October 23, 1978, the place was served by a carrier holding a certificate under section 401 of the Federal Aviation Act of 1958;

(2) the place is more than 50 miles from the nearest small hub airport or an eligible place;

(3) the place is more than 150 miles from the nearest hub airport; and

(4) the State or local government submitting the proposal or a person is willing and able to pay 25 percent of the cost of providing the compensated transportation.


Paragraph (4) does not apply to any community approved for service under this section during the period beginning October 1, 1991, and ending December 31, 1997.

(c) Level of Air Transportation.—(1) If the Secretary designates a place under subsection (a)(1) of this section as eligible for compensation under this section, the Secretary shall decide, not later than 6 months after the date of the designation, on the level of air transportation to be provided under this section. Before making a decision, the Secretary shall consider the views of any interested community, the appropriate State authority of the State in which the place is located, and the State or local government or person agreeing to pay compensation for the transportation under subsection (b)(4) of this section.

(2) After making the decision under paragraph (1) of this subsection, the Secretary shall provide notice that any air carrier that is willing to provide the level of air transportation established under paragraph (1) for a place may submit an application to provide the transportation. In selecting an applicant, the Secretary shall consider, among other factors—

(A) the factors listed in section 41733(c)(1) of this title; and

(B) the views of the State or local government or person agreeing to pay compensation for the transportation.


(d) Compensation Payments.—(1) The Secretary shall pay compensation under this section when and in the way the Secretary decides is appropriate. The Secretary shall continue to pay compensation under this section only as long as—

(A) the air carrier maintains the level of air transportation established by the Secretary under subsection (c)(1) of this section;

(B) the State or local government or person agreeing to pay compensation for transportation under this section continues to pay that compensation; and

(C) the Secretary decides the compensation is necessary to maintain the transportation to the place.


(2) The Secretary may require the State or local government or person agreeing to pay compensation under this section to make advance payments or provide other security to ensure that timely payments are made.

(e) Review.—The Secretary shall review periodically the level of air transportation provided under this section. Based on the review and consultation with any interested community, the appropriate State authority of the State in which the community is located, and the State or local government or person paying compensation under this section, the Secretary may make appropriate adjustments in the level of transportation.

(f) Withdrawal of Eligibility Designations.—After providing notice and an opportunity for interested persons to comment, the Secretary may withdraw the designation of a place under subsection (a)(1) of this section as eligible to receive compensation under this section if the place has received air transportation under this section for at least 2 years and the Secretary decides the withdrawal would be in the public interest. The Secretary by regulation shall prescribe standards for deciding whether the withdrawal of a designation under this subsection is in the public interest. The standards shall include the factors listed in subsection (a)(2) of this section.

(g) Ending, Suspending, and Reducing Air Transportation.—An air carrier providing air transportation for compensation under this section may end, suspend, or reduce that transportation below the level of transportation established by the Secretary under this section only after giving the Secretary, the affected community, and the State or local government or person paying compensation under this section at least 30 days' notice before ending, suspending, or reducing the transportation.

(h) Sunset.—

(1) Proposals.—No proposal under subsection (a) may be accepted by the Secretary after the date of enactment of this subsection.

(2) Program.—The Secretary may not provide any compensation under this section after the date that is 2 years after the date of enactment of this subsection.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1149; Pub. L. 106–181, title II, §202, Apr. 5, 2000, 114 Stat. 91; Pub. L. 115–254, div. B, title IV, §453(b), Oct. 5, 2018, 132 Stat. 3348.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41736(a) 49 App.:1389(d)(1), (2)(A), (C). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §419(d); added Oct. 24, 1978, Pub. L. 95–504, §33(a), 92 Stat. 1732; Dec. 8, 1983, Pub. L. 98–213, §10, 97 Stat. 1461; Oct. 4, 1984, Pub. L. 98–443, §9(r), 98 Stat. 1708; restated Dec. 30, 1987, Pub. L. 100–223, §202(a)(1), (2), (b)(1), 101 Stat. 1507, 1513.
41736(b) 49 App.:1389(d)(2)(B).
41736(c)(1) 49 App.:1389(d)(3)(A).
41736(c)(2) 49 App.:1389(d)(4).
41736(d) 49 App.:1389(d)(5), (7), (8).
41736(e) 49 App.:1389(d)(3)(B).
41736(f) 49 App.:1389(d)(2)(D).
41736(g) 49 App.:1389(d)(6).

In subsection (a)(1), before clause (A), the words "that the Secretary provide compensation to an air carrier to provide air transportation" are substituted for "for compensated air transportation in accordance with this subsection" for clarity. In clause (B)(i), the word "transportation" is substituted for "proposed compensated air transportation" to eliminate unnecessary words.

In subsections (c)–(g), the word "transportation" is substituted for "service" for consistency with the source provisions restated in subsections (a) and (b) of this section.

In subsections (c)(1) and (e), the words "appropriate State authority" are substituted for "State agency" for clarity and consistency with the source provisions restated in section 41734(a) of the revised title.

In subsection (d), the text of 49 App.:1389(d)(5) is omitted as unnecessary because of the restatement.

In subsection (f), the word "prescribe" is substituted for "establish" for consistency in the revised title and with other titles of the United States Code.

References in Text

Section 401 of the Federal Aviation Act of 1958, referred to in subsec. (b)(1), is section 401 of Pub. L. 85–726, which was classified to section 1371 of former Title 49, Transportation, and was repealed by Pub. L. 103–272, §7(b), July 5, 1994, 108 Stat. 1379, the first section of which enacted subtitles II, III, and V to X of Title 49, Transportation. For disposition of section 1371 of former Title 49, see Table at the beginning of Title 49.

The date of enactment of this subsection, referred to in subsec. (h), is the date of enactment of Pub. L. 115–254, which was approved Oct. 5, 2018.

Amendments

2018—Subsec. (h). Pub. L. 115–254 added subsec. (h).

2000—Subsec. (b). Pub. L. 106–181 inserted concluding provisions.

Effective Date of 2000 Amendment

Amendment by Pub. L. 106–181 applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as a note under section 106 of this title.

§41737. Compensation guidelines, limitations, and claims

(a) Compensation Guidelines.—(1) The Secretary of Transportation shall prescribe guidelines governing the rate of compensation payable under this subchapter. The guidelines shall be used to determine the reasonable amount of compensation required to ensure the continuation of air service or air transportation under this subchapter. The guidelines shall—

(A) provide for a reduction in compensation when an air carrier does not provide service or transportation agreed to be provided;

(B) consider amounts needed by an air carrier to promote public use of the service or transportation for which compensation is being paid;

(C) include expense elements based on representative costs of air carriers providing scheduled air transportation of passengers, property, and mail on aircraft of the type the Secretary decides is appropriate for providing the service or transportation for which compensation is being provided;

(D) include provisions under which the Secretary may encourage an air carrier to improve air service for which compensation is being paid under this subchapter by incorporating financial incentives in an essential air service contract based on specified performance goals, including goals related to improving on-time performance, reducing the number of flight cancellations, establishing reasonable fares (including joint fares beyond the hub airport), establishing convenient connections to flights providing service beyond hub airports, and increasing marketing efforts; and

(E) include provisions under which the Secretary may execute a long-term essential air service contract to encourage an air carrier to provide air service to an eligible place if it would be in the public interest to do so.


(2) Promotional amounts described in paragraph (1)(B) of this subsection shall be a special, segregated element of the compensation provided to a carrier under this subchapter.

(b) Required Finding.—The Secretary may pay compensation to an air carrier for providing air service or air transportation under this subchapter only if the Secretary finds the carrier is able to provide the service or transportation in a reliable way.

(c) Claims.—Not later than 15 days after receiving a written claim from an air carrier for compensation under this subchapter, the Secretary shall—

(1) pay or deny the United States Government's share of a claim; and

(2) if denying the claim, notify the carrier of the denial and the reasons for the denial.


(d) Authority To Make Agreements and Incur Obligations.—(1) The Secretary may make agreements and incur obligations from the Airport and Airway Trust Fund established under section 9502 of the Internal Revenue Code of 1986 (26 U.S.C. 9502) to pay compensation under this subchapter. An agreement by the Secretary under this subsection is a contractual obligation of the Government to pay the Government's share of the compensation.

(2) Not more than $38,600,000 is available to the Secretary out of the Fund for each of the fiscal years ending September 30, 1993–1998, to incur obligations under this section. Amounts made available under this section remain available until expended.

(e) Adjustments to Account for Significantly Increased Costs.—

(1) In general.—If the Secretary determines that air carriers are experiencing significantly increased costs in providing air service or air transportation for which compensation is being paid under this subchapter, the Secretary may increase the rates of compensation payable under this subchapter without regard to any agreement or requirement relating to the renegotiation of contracts or any notice requirement under section 41734.

(2) Readjustment if costs subsequently decline.—If an adjustment is made under paragraph (1), and total unit costs subsequently decrease to at least the total unit cost reflected in the compensation rate, then the Secretary may reverse the adjustment previously made under paragraph (1) without regard to any agreement or requirement relating to the renegotiation of contracts or any notice requirement under section 41734.

(3) Significantly increased costs defined.—In this subsection, the term "significantly increased costs" means a total unit cost increase (but not increases in individual unit costs) of 10 percent or more in relation to the total unit cost reflected in the compensation rate, based on the carrier's internal audit of its financial statements if such cost increase is incurred for a period of at least 2 consecutive months.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1151; Pub. L. 108–176, title IV, §402(a), Dec. 12, 2003, 117 Stat. 2543; Pub. L. 112–95, title IV, §427(a), Feb. 14, 2012, 126 Stat. 99.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41737(a) 49 App.:1389(f). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §419(e)(2)–(g); added Oct. 24, 1978, Pub. L. 95–504, §33(a), 92 Stat. 1732; Dec. 8, 1983, Pub. L. 98–213, §10, 97 Stat. 1461; Oct. 4, 1984, Pub. L. 98–443, §9(r), 98 Stat. 1708; restated Dec. 30, 1987, Pub. L. 100–223, §202(a)(1), (2), (b)(1), 101 Stat. 1507, 1515.
41737(b) 49 App.:1389(e)(2).
41737(c) 49 App.:1389(g).
41737(d) 49 App.:1389(l). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §419(l); added Nov. 5, 1990, Pub. L. 101–508, §9113(b)(1), 104 Stat. 1388–363.

In subsection (a)(1), before clause (A), the word "prescribe" is substituted for "establish" to eliminate an executed word. The words "air service or air transportation under this subchapter" are substituted for "air service under this section" for consistency with the source provisions restated in sections 41733, 41735, and 41736 of the revised title. In clause (C), the words "the service or transportation for which compensation is being provided" are substituted for "such service" for clarity.

In subsection (a)(2), the words "compensation provided to a carrier under this subchapter" are substituted for "required compensation" for clarity.

In subsection (b), the words "air service or air transportation" are substituted for "air service" for consistency with the source provisions restated in sections 41733, 41735, and 41736 of the revised title.

In subsection (d)(2), the reference to fiscal year 1992 is omitted as obsolete.

Amendments

2012—Subsec. (a)(1)(D), (E). Pub. L. 112–95 added subpars. (D) and (E).

2003—Subsec. (e). Pub. L. 108–176 added subsec. (e).

Effective Date of 2003 Amendment

Pub. L. 108–176, title IV, §402(b), Dec. 12, 2003, 117 Stat. 2543, provided that: "The amendment made by subsection (a) [amending this section] shall take effect 30 days after the date of enactment of this Act [Dec. 12, 2003]."

Emergency Across-the-Board Adjustment to Compensation for Significantly Increased Costs

Pub. L. 112–95, title IV, §426(a), Feb. 14, 2012, 126 Stat. 98; Pub. L. 115–254, div. B, title V, §539(s)(1), Oct. 5, 2018, 132 Stat. 3371, provided that: "Subject to the availability of funds, the Secretary of Transportation may increase the rates of compensation payable to air carriers under subchapter II of chapter 417 of title 49, United States Code, to compensate such carriers for increased aviation fuel costs without regard to any agreement or requirement relating to the renegotiation of contracts or any notice requirement under section 41734 of such title."

Deadline for Issuance of Revised Guidance

Pub. L. 112–95, title IV, §427(b), Feb. 14, 2012, 126 Stat. 99, provided that: "Not later than 1 year after the date of enactment of this Act [Feb. 14, 2012], the Secretary of Transportation shall issue revised guidelines governing the rate of compensation payable under subchapter II of chapter 417 that incorporate the amendments made by this section [amending this section]."

§41738. Fitness of air carriers

Notwithstanding section 40109(a) and (c)–(h) of this title, an air carrier may provide air service to an eligible place or air transportation to a place designated under section 41736 of this title only when the Secretary of Transportation decides that—

(1) the carrier is fit, willing, and able to perform the service or transportation; and

(2) aircraft used to provide the service or transportation, and operations related to the service or transportation, conform to the safety standards prescribed by the Administrator of the Federal Aviation Administration.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1152.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41738 49 App.:1389(e)(1). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §419(e)(1); added Oct. 24, 1978, Pub. L. 95–504, §33(a), 92 Stat. 1732; Dec. 8, 1983, Pub. L. 98–213, §10, 97 Stat. 1461; Oct. 4, 1984, Pub. L. 98–443, §9(r), 98 Stat. 1708; restated Dec. 30, 1987, Pub. L. 100–223, §202(a)(1), (2), (b)(1), 101 Stat. 1507, 1515.

In this section, before clause (1), the words "air transportation to a place" are substituted for "service to a point" for consistency with the source provisions restated in sections 41733, 41735, and 41736 of the revised title. In clauses (1) and (2), the words "service or transportation" are substituted for "such service" for consistency with the source provisions restated in sections 41733, 41735, and 41736 of the revised title.

§41739. Air carrier obligations

If at least 2 air carriers make an agreement to operate under or use a single carrier designator code to provide air transportation, the carrier whose code is being used shares responsibility with the other carriers for the quality of transportation provided the public under the code by the other carriers.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1152.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41739 49 App.:1389(i). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §419(i); added Oct. 24, 1978, Pub. L. 95–504, §33(a), 92 Stat. 1732; Dec. 8, 1983, Pub. L. 98–213, §10, 97 Stat. 1461; Oct. 4, 1984, Pub. L. 98–443, §9(r), 98 Stat. 1708; restated Dec. 30, 1987, Pub. L. 100–223, §202(a)(1), (2), (b)(1), 101 Stat. 1507, 1516.

The words "quality of transportation" are substituted for "quality of service" for clarity and consistency in this section.

§41740. Joint proposals

The Secretary of Transportation shall encourage the submission of joint proposals, including joint fares, by 2 or more air carriers for providing air service or air transportation under this subchapter through arrangements that maximize the service or transportation to and from major destinations beyond the hub.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1152; Pub. L. 108–176, title IV, §403, Dec. 12, 2003, 117 Stat. 2543.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41740 49 App.:1389(j). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §419(j); added Oct. 24, 1978, Pub. L. 95–504, §33(a), 92 Stat. 1732; Dec. 8, 1983, Pub. L. 98–213, §10, 97 Stat. 1461; Oct. 4, 1984, Pub. L. 98–443, §9(r), 98 Stat. 1708; restated Dec. 30, 1987, Pub. L. 100–223, §202(a)(1), (2), (b)(1), 101 Stat. 1507, 1516.

The words "air service or air transportation" are substituted for "air service", and the words "the service or transportation" are substituted for "service", for consistency with the source provisions restated in sections 41733, 41735, and 41736 of the revised title.

Amendments

2003Pub. L. 108–176 inserted ", including joint fares," after "joint proposals".

Effective Date of 2003 Amendment

Amendment by Pub. L. 108–176 applicable only to fiscal years beginning after Sept. 30, 2003, except as otherwise specifically provided, see section 3 of Pub. L. 108–176, set out as a note under section 106 of this title.

§41741. Insurance

The Secretary of Transportation may pay an air carrier compensation under this subchapter only when the carrier files with the Secretary an insurance policy or self-insurance plan approved by the Secretary. The policy or plan must be sufficient to pay for bodily injury to, or death of, an individual, or for loss of or damage to property of others, resulting from the operation of aircraft, but not more than the amount of the policy or plan limits.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1152.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41741 49 App.:1389(h). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §419(h); added Oct. 24, 1978, Pub. L. 95–504, §33(a), 92 Stat. 1732; Dec. 8, 1983, Pub. L. 98–213, §10, 97 Stat. 1461; Oct. 4, 1984, Pub. L. 98–443, §9(r), 98 Stat. 1708; restated Dec. 30, 1987, Pub. L. 100–223, §202(a)(1), (2), (b)(1), 101 Stat. 1507, 1516.

The words "The Secretary of Transportation may pay . . . only when" are substituted for "An air carrier shall not receive . . . unless" for clarity. The words "approved by the Secretary" are substituted for "complies with regulations or orders issued by the Secretary governing the filing and approval" to eliminate unnecessary words. The words "The policy or plan must be sufficient to pay . . . but not more than the amount of the policy or plan limits" are substituted for "in the amount prescribed by the Secretary which are conditioned to pay, within the amount of such insurance, amounts" because of the restatement. The words "for which such air carrier may become liable" are omitted as unnecessary. The word "individual" is substituted for "person" because it is more precise. The word "operation" is substituted for "operation or maintenance" because it is inclusive.

§41742. Essential air service authorization

(a) In General.—

(1) Authorization.—Out of the amounts received by the Federal Aviation Administration credited to the account established under section 45303 of this title or otherwise provided to the Administration, the sum of $50,000,000 for each fiscal year is authorized and shall be made available immediately for obligation and expenditure to carry out the essential air service program under this subchapter.

(2) Additional funds.—In addition to amounts authorized under paragraph (1), there is authorized to be appropriated out of the Airport and Airway Trust Fund (established under section 9502 of the Internal Revenue Code of 1986) $155,000,000 for fiscal year 2018, $158,000,000 for fiscal year 2019, $161,000,000 for fiscal year 2020, $165,000,000 for fiscal year 2021, $168,000,000 for fiscal year 2022, and $172,000,000 for fiscal year 2023 to carry out the essential air service program under this subchapter of which not more than $12,000,000 per fiscal year may be used for the marketing incentive program for communities and for State marketing assistance.

(3) Authorization for additional employees.—In addition to amounts authorized under paragraphs (1) and (2), there are authorized to be appropriated such sums as may be necessary for the Secretary of Transportation to hire and employ 4 additional employees for the office responsible for carrying out the essential air service program.


(b) Distribution of Additional Funds.—Notwithstanding any other provision of law, in any fiscal year in which funds credited to the account established under section 45303, including the funds derived from fees imposed under the authority contained in section 45301(a), exceed the $50,000,000 made available under subsection (a)(1), such funds shall be made available immediately for obligation and expenditure to carry out the essential air service program under this subchapter.

(c) Availability of Funds.—The funds made available under this section shall remain available until expended.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1152; Pub. L. 104–264, title II, §278(c), Oct. 9, 1996, 110 Stat. 3249; Pub. L. 106–181, title II, §209(a), Apr. 5, 2000, 114 Stat. 95; Pub. L. 108–176, title IV, §404, Dec. 12, 2003, 117 Stat. 2543; Pub. L. 112–30, title II, §209, Sept. 16, 2011, 125 Stat. 359; Pub. L. 112–91, §9, Jan. 31, 2012, 126 Stat. 5; Pub. L. 112–95, title IV, §428, Feb. 14, 2012, 126 Stat. 99; Pub. L. 114–55, title I, §107, Sept. 30, 2015, 129 Stat. 524; Pub. L. 114–141, title I, §107, Mar. 30, 2016, 130 Stat. 324; Pub. L. 114–190, title I, §1107, July 15, 2016, 130 Stat. 618; Pub. L. 115–63, title I, §104(a), Sept. 29, 2017, 131 Stat. 1170; Pub. L. 115–141, div. M, title I, §104(a), Mar. 23, 2018, 132 Stat. 1047; Pub. L. 115–254, div. B, title IV, §451(a), Oct. 5, 2018, 132 Stat. 3347.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
41742 49 App.:1389(m). Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, §419(m); added Oct. 24, 1978, Pub. L. 95–504, §33(a), 92 Stat. 1732; Dec. 8, 1983, Pub. L. 98–213, §10, 97 Stat. 1461; Oct. 4, 1984, Pub. L. 98–443, §9(r), 98 Stat. 1708; restated Dec. 30, 1987, Pub. L. 100–223, §202(a)(1), (2), (b)(1), 101 Stat. 1507, 1517; Nov. 5, 1990, Pub. L. 101–508, §9113(b)(1), 104 Stat. 1388–363.

References in Text

Section 9502 of the Internal Revenue Code of 1986, referred to in subsec. (a)(2), is classified to section 9502 of Title 26, Internal Revenue Code.

Amendments

2018—Subsec. (a)(2). Pub. L. 115–254 substituted "$155,000,000 for fiscal year 2018, $158,000,000 for fiscal year 2019, $161,000,000 for fiscal year 2020, $165,000,000 for fiscal year 2021, $168,000,000 for fiscal year 2022, and $172,000,000 for fiscal year 2023" for "$150,000,000 for fiscal year 2011, $143,000,000 for fiscal year 2012, $118,000,000 for fiscal year 2013, $107,000,000 for fiscal year 2014, $93,000,000 for fiscal year 2015, $175,000,000 for each of fiscal years 2016 and 2017, and $150,000,000 for fiscal year 2018".

Pub. L. 115–141 substituted "2016 and 2017, and $150,000,000 for fiscal year 2018" for "2016 and 2017, and $74,794,521 for the period beginning on October 1, 2017, and ending on March 31, 2018,".

2017—Subsec. (a)(2). Pub. L. 115–63 substituted "$175,000,000 for each of fiscal years 2016 and 2017, and $74,794,521 for the period beginning on October 1, 2017, and ending on March 31, 2018," for "and $175,000,000 for each of fiscal years 2016 and 2017".

2016—Subsec. (a)(2). Pub. L. 114–190 substituted "fiscal year 2014, $93,000,000 for fiscal year 2015, and $175,000,000 for each of fiscal years 2016 and 2017" for "fiscal year 2014, $93,000,000 for fiscal year 2015, and $122,708,333 for the period beginning on October 1, 2015, and ending on July 15, 2016,".

Pub. L. 114–141 substituted "$122,708,333 for the period beginning on October 1, 2015, and ending on July 15, 2016," for "$77,500,000 for the period beginning on October 1, 2015, and ending on March 31, 2016,".

2015—Subsec. (a)(2). Pub. L. 114–55 substituted "$93,000,000 for fiscal year 2015, and $77,500,000 for the period beginning on October 1, 2015, and ending on March 31, 2016," for "and $93,000,000 for fiscal year 2015".

2012—Subsec. (a)(1). Pub. L. 112–95, §428(a)(1), inserted "for each fiscal year" before "is authorized" and substituted "under this subchapter" for "under this subchapter for each fiscal year".

Subsec. (a)(2). Pub. L. 112–95, §428(a)(2), substituted ", $143,000,000 for fiscal year 2012, $118,000,000 for fiscal year 2013, $107,000,000 for fiscal year 2014, and $93,000,000 for fiscal year 2015" for "and $54,699,454 for the period beginning on October 1, 2011, and ending on February 17, 2012,".

Pub. L. 112–91 substituted "and $54,699,454 for the period beginning on October 1, 2011, and ending on February 17, 2012," for "and $50,309,016 for the period beginning on October 1, 2011, and ending on January 31, 2012,".

Subsec. (b). Pub. L. 112–95, §428(b), amended subsec. (b) generally. Prior to amendment, text read as follows: "Notwithstanding any other provision of law, moneys credited to the account established under section 45303(a) of this title, including the funds derived from fees imposed under the authority contained in section 45301(a) of this title, shall be used to carry out the essential air service program under this subchapter. Notwithstanding section 47114(g) of this title, any amounts from those fees that are not obligated or expended at the end of the fiscal year for the purpose of funding the essential air service program under this subchapter shall be made available to the Administration for use in improving rural air safety under subchapter I of chapter 471 of this title and shall be used exclusively for projects at rural airports under this subchapter."

Subsec. (c). Pub. L. 112–95, §428(c), added subsec. (c).

2011—Subsec. (a)(2). Pub. L. 112–30 substituted "there is authorized to be appropriated out of the Airport and Airway Trust Fund (established under section 9502 of the Internal Revenue Code of 1986) $150,000,000 for fiscal year 2011 and $50,309,016 for the period beginning on October 1, 2011, and ending on January 31, 2012," for "there is authorized to be appropriated $77,000,000 for each fiscal year".

2003—Subsec. (a)(2). Pub. L. 108–176, §404(1), substituted "$77,000,000" for "$15,000,000" and inserted "of which not more than $12,000,000 per fiscal year may be used for the marketing incentive program for communities and for State marketing assistance" before period at end.

Subsec. (a)(3). Pub. L. 108–176, §404(2), added par. (3).

Subsec. (c). Pub. L. 108–176, §404(3), struck out heading and text of subsec. (c). Text read as follows: "Notwithstanding subsections (a) and (b), in fiscal year 1997, amounts in excess of $75,000,000 that are collected in fees pursuant to section 45301(a)(1) of this title shall be available for the essential air service program under this subchapter, in addition to amounts specifically provided for in appropriations Acts."

2000—Subsec. (a). Pub. L. 106–181 designated existing provisions as par. (1), inserted heading, realigned margins, and added par. (2).

1996Pub. L. 104–264 amended section generally, substituting provisions relating to essential air service authorization for provisions stating that this subchapter was not effective after Sept. 30, 1998.

Effective Date of 2003 Amendment

Amendment by Pub. L. 108–176 applicable only to fiscal years beginning after Sept. 30, 2003, except as otherwise specifically provided, see section 3 of Pub. L. 108–176, set out as a note under section 106 of this title.

Effective Date of 2000 Amendment

Amendment by Pub. L. 106–181 applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as a note under section 106 of this title.

Effective Date of 1996 Amendment

Amendment by Pub. L. 104–264 effective on date that is 30 days after Oct. 9, 1996, see section 203 of Pub. L. 104–264, set out as a note under section 106 of this title.

Except as otherwise specifically provided, amendment by Pub. L. 104–264 applicable only to fiscal years beginning after Sept. 30, 1996, and not to be construed as affecting funds made available for a fiscal year ending before Oct. 1, 1996, see section 3 of Pub. L. 104–264, set out as a note under section 106 of this title.

Funding for Essential Air Service Program

Pub. L. 112–55, div. C, title I, Nov. 18, 2011, 125 Stat. 644, provided in part: "That no funds made available under section 41742 of title 49, United States Code, and no funds made available in this Act [div. C of Pub. L. 112–55, see Tables for classification] or any other Act in any fiscal year, shall be available to carry out the essential air service program under sections 41731 through 41742 of such title 49 in communities in the 48 contiguous States unless the community received subsidized essential air service or received a 90-day notice of intent to terminate service and the Secretary required the air carrier to continue to provide service to the community at any time between September 30, 2010, and September 30, 2011, inclusive".

Findings

Pub. L. 104–264, title II, §278(b), Oct. 9, 1996, 110 Stat. 3249, provided that: "Congress finds that—

"(1) air service in rural areas is essential to a national and international transportation network;

"(2) the rural air service infrastructure supports the safe operation of all air travel;

"(3) rural air service creates economic benefits for all air carriers by making the national aviation system available to passengers from rural areas;

"(4) rural air service has suffered since deregulation;

"(5) the essential air service program under the Department of Transportation—

"(A) provides essential airline access to rural and isolated rural communities throughout the Nation;

"(B) is necessary for the economic growth and development of rural communities;

"(C) is a critical component of the national and international transportation system of the United States; and

"(D) has endured serious funding cuts in recent years; and

"(6) a reliable source of funding must be established to maintain air service in rural areas and the essential air service program."

§41743. Airports not receiving sufficient service

(a) Small Community Air Service Development Program.—The Secretary of Transportation shall establish a program that meets the requirements of this section for improving air carrier service to airports not receiving sufficient air carrier service.

(b) Application Required.—In order to participate in the program established under subsection (a), a community or consortium of communities shall submit an application to the Secretary in such form, at such time, and containing such information as the Secretary may require, including—

(1) an assessment of the need of the community or consortium for access, or improved access, to the national air transportation system; and

(2) an analysis of the application of the criteria in subsection (c) to that community or consortium.


(c) Criteria for Participation.—In selecting communities, or consortia of communities, for participation in the program established under subsection (a), the Secretary shall apply the following criteria:

(1) Size.—On the date of submission of the relevant application under subsection (b), the airport serving the community or consortium—

(A) is not larger than a small hub airport, as determined using the Department of Transportation's most recently published classification; and

(B) has—

(i) insufficient air carrier service; or

(ii) unreasonably high air fares.


(2) Characteristics.—The airport presents characteristics, such as geographic diversity or unique circumstances, that will demonstrate the need for, and feasibility of, the program established under subsection (a).

(3) State limit.—Not more than 4 communities or consortia of communities, or a combination thereof, from the same State may be selected to participate in the program in any fiscal year.

(4) Overall limit.—

(A) In general.—No more than 40 communities or consortia of communities, or a combination thereof, may be selected to participate in the program in each year for which funds are appropriated for the program.

(B) Same projects.—Except as provided in subparagraph (C), no community, consortia of communities, or combination thereof may participate in the program in support of the same project more than once in a 10-year period, but any community, consortia of communities, or combination thereof may apply, subsequent to such participation, to participate in the program in support of a different project at any time.

(C) Exception.—The Secretary may waive the limitation under subparagraph (B) related to projects that are the same if the Secretary determines that the community or consortium spent little or no money on its previous project or encountered industry or environmental challenges, due to circumstances that were reasonably beyond the control of the community or consortium.


(5) Priorities.—The Secretary shall give priority to communities or consortia of communities where—

(A) air fares are higher than the average air fares for all communities;

(B) the community or consortium will provide a portion of the cost of the activity to be assisted under the program from local sources other than airport revenues;

(C) the community or consortium has established, or will establish, a public-private partnership to facilitate air carrier service to the public;

(D) the assistance will provide material benefits to a broad segment of the travelling public, including business, educational institutions, and other enterprises, whose access to the national air transportation system is limited;

(E) the assistance will be used to help restore scheduled passenger air service that has been terminated;

(F) the assistance will be used in a timely fashion; and

(G) multiple communities cooperate to submit a regional or multistate application to consolidate air service into one regional airport.


(d) Types of Assistance.—The Secretary may use amounts made available under this section—

(1) to provide assistance to an air carrier to subsidize service to and from an underserved airport for a period not to exceed 3 years;

(2) to provide assistance to an underserved airport to obtain service to and from the underserved airport; and

(3) to provide assistance to an underserved airport to implement such other measures as the Secretary, in consultation with such airport, considers appropriate to improve air service both in terms of the cost of such service to consumers and the availability of such service, including improving air service through marketing and promotion of air service and enhanced utilization of airport facilities.


(e) Authority To Make Agreements.—

(1) In general.—The Secretary may make agreements to provide assistance under this section. The Secretary may amend the scope of a grant agreement at the request of the community or consortium and any participating air carrier, and may limit the scope of a grant agreement to only the elements using grant assistance or to only the elements achieved, if the Secretary determines that the amendment is reasonably consistent with the original purpose of the project.

(2) Authorization of appropriations.—There is authorized to be appropriated to the Secretary $10,000,000 for each of fiscal years 2018 through 2023 to carry out this section. Such sums shall remain available until expended.


(f) Additional Action.—Under the program established under subsection (a), the Secretary shall work with air carriers providing service to participating communities and major air carriers (as defined in section 41716(a)(2)) serving large hub airports to facilitate joint-fare arrangements consistent with normal industry practice.

(g) Designation of Responsible Official.—The Secretary shall designate an employee of the Department of Transportation—

(1) to function as a facilitator between small communities and air carriers;

(2) to carry out this section;

(3) to ensure that the Bureau of Transportation Statistics collects data on passenger information to assess the service needs of small communities;

(4) to work with and coordinate efforts with other Federal, State, and local agencies to increase the viability of service to small communities and the creation of aviation development zones; and

(5) to provide policy recommendations to the Secretary and Congress that will ensure that small communities have access to quality, affordable air transportation services.


(h) Air Service Development Zone.—The Secretary shall designate an airport in the program as an Air Service Development Zone and work with the community or consortium on means to attract business to the area surrounding the airport, to develop land use options for the area, and provide data, working with the Department of Commerce and other agencies.

(Added Pub. L. 106–181, title II, §203(a), Apr. 5, 2000, 114 Stat. 92; amended Pub. L. 108–11, title II, §2708, Apr. 16, 2003, 117 Stat. 601; Pub. L. 108–176, title II, §225(b)(3), title IV, §412, Dec. 12, 2003, 117 Stat. 2529, 2551; Pub. L. 110–330, §5(b), Sept. 30, 2008, 122 Stat. 3718; Pub. L. 111–69, §5(b), Oct. 1, 2009, 123 Stat. 2055; Pub. L. 111–249, §5(b), Sept. 30, 2010, 124 Stat. 2628; Pub. L. 112–30, title II, §205(b), Sept. 16, 2011, 125 Stat. 358; Pub. L. 112–91, §5(b), Jan. 31, 2012, 126 Stat. 4; Pub. L. 112–95, title IV, §429, Feb. 14, 2012, 126 Stat. 100; Pub. L. 114–190, title I, §1102(e), July 15, 2016, 130 Stat. 617; Pub. L. 115–63, title I, §104(b), Sept. 29, 2017, 131 Stat. 1170; Pub. L. 115–141, div. M, title I, §104(b), Mar. 23, 2018, 132 Stat. 1047; Pub. L. 115–254, div. B, title IV, §455, Oct. 5, 2018, 132 Stat. 3349.)

Amendments

2018—Subsec. (c)(1). Pub. L. 115–254, §455(a)(1), added par. (1) and struck out former par. (1). Prior to amendment, text read as follows: "For calendar year 1997, the airport serving the community or consortium was not larger than a small hub airport, and—

"(A) had insufficient air carrier service; or

"(B) had unreasonably high air fares."

Subsec. (c)(4). Pub. L. 115–254, §455(a)(2), added par. (4) and struck out former par. (4). Prior to amendment, text read as follows: "No more than 40 communities or consortia of communities, or a combination thereof, may be selected to participate in the program in each year for which funds are appropriated for the program. No community, consortia of communities, nor combination thereof may participate in the program in support of the same project more than once, but any community, consortia of communities, or combination thereof may apply, subsequent to such participation, to participate in the program in support of a different project."

Subsec. (c)(5)(E) to (G). Pub. L. 115–254, §455(a)(3), added subpar. (E) and redesignated former subpars. (E) and (F) as (F) and (G), respectively.

Subsec. (e)(1). Pub. L. 115–254, §455(b), inserted at end "The Secretary may amend the scope of a grant agreement at the request of the community or consortium and any participating air carrier, and may limit the scope of a grant agreement to only the elements using grant assistance or to only the elements achieved, if the Secretary determines that the amendment is reasonably consistent with the original purpose of the project."

Subsec. (e)(2). Pub. L. 115–254, §455(c), amended par. (2) generally. Prior to amendment, text read as follows: "There is authorized to be appropriated to the Secretary $6,000,000 for each of fiscal years 2012 through 2017 and $10,000,000 for fiscal year 2018 to carry out this section. Such sums shall remain available until expended."

Pub. L. 115–141 substituted "2012 through 2017 and $10,000,000 for fiscal year 2018" for "2012 through 2017 and $4,986,301 for the period beginning on October 1, 2017, and ending on March 31, 2018,".

2017—Subsec. (e)(2). Pub. L. 115–63 inserted "and $4,986,301 for the period beginning on October 1, 2017, and ending on March 31, 2018," after "fiscal years 2012 through 2017".

2016—Subsec. (e)(2). Pub. L. 114–190 substituted "2017" for "2015".

2012—Subsec. (c)(5)(F). Pub. L. 112–95, §429(a), added subpar. (F).

Subsec. (e)(2). Pub. L. 112–95, §429(b), amended par. (2) generally. Prior to amendment, par. (2) provided for authorization of appropriations for fiscal years 2001 through 2011 and for the portion of fiscal year 2012 ending before Feb. 18, 2012.

Pub. L. 112–91 substituted "and $2,295,082 for the portion of fiscal year 2012 ending before February 18, 2012," for "and $2,016,393 for the portion of fiscal year 2012 ending before February 1, 2012,".

2011—Subsec. (e)(2). Pub. L. 112–30 substituted "$35,000,000 for each of fiscal years 2004 through 2011, and $2,016,393 for the portion of fiscal year 2012 ending before February 1, 2012," for "and $35,000,000 for each of fiscal years 2004 through 2011".

2010—Subsec. (e)(2). Pub. L. 111–249 substituted "2011" for "2010".

2009—Subsec. (e)(2). Pub. L. 111–69 substituted "2010" for "2009".

2008—Subsec. (e)(2). Pub. L. 110–330 substituted "2009" for "2008".

2003—Subsec. (a). Pub. L. 108–176, §412(1), (2), struck out "Pilot" before "Program" in heading and "pilot" before "program" in text.

Subsec. (c)(1). Pub. L. 108–176, §225(b)(3)(A), struck out "(as that term is defined in section 41731(a)(5))" after "small hub airport" in introductory provisions.

Subsec. (c)(3). Pub. L. 108–176, §412(3)(A), added par. (3) and struck out heading and text of former par. (3). Text read as follows: "No more than four communities or consortia of communities, or a combination thereof, may be located in the same State."

Subsec. (c)(4). Pub. L. 108–176, §412(3)(B), inserted at end "No community, consortia of communities, nor combination thereof may participate in the program in support of the same project more than once, but any community, consortia of communities, or combination thereof may apply, subsequent to such participation, to participate in the program in support of a different project."

Pub. L. 108–11 inserted before period at end "in each year for which funds are appropriated for the program".

Subsec. (c)(5)(E). Pub. L. 108–176, §412(3)(C), added subpar. (E).

Subsec. (e)(2). Pub. L. 108–176, §412(4), substituted "fiscal year 2001," for "fiscal year 2001 and" and inserted ", and $35,000,000 for each of fiscal years 2004 through 2008" after "2003".

Subsec. (f). Pub. L. 108–176, §§225(b)(3)(B), 412(5), struck out "pilot" after "Under the" and "(as defined in section 41731(a)(3))" after "large hub airports".

Effective Date of 2010 Amendment

Amendment by Pub. L. 111–249 effective Oct. 1, 2010, see section 5(l) of Pub. L. 111–249, set out as a note under section 40117 of this title.

Effective Date of 2008 Amendment

Amendment by Pub. L. 110–330 effective Oct. 1, 2008, see section 5(l) of Pub. L. 110–330, set out as a note under section 40117 of this title.

Effective Date of 2003 Amendment

Amendment by Pub. L. 108–176 applicable only to fiscal years beginning after Sept. 30, 2003, except as otherwise specifically provided, see section 3 of Pub. L. 108–176, set out as a note under section 106 of this title.

Effective Date

Section applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as an Effective Date of 2000 Amendments note under section 106 of this title.

§41744. Preservation of basic essential air service at single carrier dominated hub airports

(a) In General.—If the Secretary of Transportation determines that extraordinary circumstances jeopardize the reliable performance of essential air service under this subchapter from a subsidized essential air service community to and from an essential airport facility, the Secretary may require an air carrier that has more than 60 percent of the total annual enplanements at the essential airport facility to take action to enable another air carrier to provide reliable essential air service to that community. Actions required by the Secretary under this subsection may include interline agreements, ground services, subleasing of gates, and the provision of any other service or facility necessary for the performance of satisfactory essential air service to that community.

(b) Essential Airport Facility Defined.—In this section, the term "essential airport facility" means a large hub airport in the contiguous 48 States at which one air carrier has more than 60 percent of the total annual enplanements at that airport.

(Added Pub. L. 106–181, title II, §204(a), Apr. 5, 2000, 114 Stat. 93; amended Pub. L. 108–176, title II, §225(b)(4), Dec. 12, 2003, 117 Stat. 2529.)

Amendments

2003—Subsec. (b). Pub. L. 108–176 struck out "(as defined in section 41731)" after "large hub airport".

Effective Date of 2003 Amendment

Amendment by Pub. L. 108–176 applicable only to fiscal years beginning after Sept. 30, 2003, except as otherwise specifically provided, see section 3 of Pub. L. 108–176, set out as a note under section 106 of this title.

Effective Date

Section applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as an Effective Date of 2000 Amendments note under section 106 of this title.

§41745. Community and regional choice programs

(a) Alternate Essential Air Service Pilot Program.—

(1) Establishment.—The Secretary of Transportation shall establish an alternate essential air service pilot program in accordance with the requirements of this section.

(2) Assistance to eligible places.—In carrying out the program, the Secretary, instead of paying compensation to an air carrier to provide essential air service to an eligible place, may provide assistance directly to a unit of local government having jurisdiction over the eligible place or a State within the boundaries of which the eligible place is located.

(3) Use of assistance.—A unit of local government or State receiving assistance for an eligible place under the program may use the assistance for any of the following purposes:

(A) To provide assistance to air carriers that will use smaller equipment to provide the service and to consider increasing the frequency of service using such smaller equipment if the Secretary determines that passenger safety would not be compromised by the use of such smaller equipment and if the State or unit of local government waives the minimum service requirements under section 41732(b).

(B) To provide assistance to an air carrier to provide on-demand air taxi service to and from the eligible place.

(C) To provide assistance to a person to provide scheduled or on-demand surface transportation to and from the eligible place and an airport in another place.

(D) In combination with other units of local government in the same region, to provide transportation services to and from all the eligible places in that region at an airport or other transportation center that can serve all the eligible places in that region.

(E) To purchase aircraft to provide transportation to and from the eligible place or to purchase a fractional share in an aircraft to provide such transportation after the effective date of a rule the Secretary issues relating to fractional ownership.

(F) To pay for other transportation or related services that the Secretary may permit.


(b) Community Flexibility Pilot Program.—

(1) In general.—The Secretary shall establish a pilot program for not more than 10 eligible places or consortia of units of local government.

(2) Election.—Under the program, the sponsor of an airport serving an eligible place may elect to forego any essential air service for which compensation is being provided under this subchapter for a 10-year period in exchange for a grant from the Secretary equal in value to twice the compensation paid to provide such service in the most recent 12-month period.

(3) Grant.—Notwithstanding any other provision of law, the Secretary shall make a grant to each airport sponsor participating in the program for use on any project that—

(A) is eligible for assistance under chapter 471 and complies with the requirements of that chapter;

(B) is located on the airport property; or

(C) will improve airport facilities in a way that would make such facilities more usable for general aviation.


(c) Fractionally Owned Aircraft.—After the effective date of the rule referred to in subsection (a)(3)(E), only those operating rules that relate to an aircraft that is fractionally owned apply when an aircraft described in subsection (a)(3)(E) is used to provide transportation described in subsection (a)(3)(E).

(d) Applications.—

(1) In general.—An entity seeking to participate in a program under this section shall submit to the Secretary an application in such form and containing such information as the Secretary may require.

(2) Required information.—At a minimum, the application shall include—

(A) a statement of the amount of compensation or assistance required; and

(B) a description of how the compensation or assistance will be used.


(e) Participation Requirements.—An eligible place for which compensation or assistance is provided under this section in a fiscal year shall not be eligible in that fiscal year for the essential air service that it would otherwise be entitled to under this subchapter.

(f) Subsequent Participation.—A unit of local government participating in the program under this subsection (a) in a fiscal year shall not be prohibited from participating in the basic essential air service program under this subchapter in a subsequent fiscal year if such unit is otherwise eligible to participate in such program.

(g) Funding.—Amounts appropriated or otherwise made available to carry out the essential air service program under this subchapter shall be available to carry out this section.

(Added Pub. L. 108–176, title IV, §405, Dec. 12, 2003, 117 Stat. 2544.)

Effective Date

Section applicable only to fiscal years beginning after Sept. 30, 2003, except as otherwise specifically provided, see section 3 of Pub. L. 108–176, set out as an Effective Date of 2003 Amendment note under section 106 of this title.

§41746. Tracking service

The Secretary of Transportation shall require a carrier that provides essential air service to an eligible place and that receives compensation for such service under this subchapter to report not less than semiannually—

(1) the percentage of flights to and from the place that arrive on time as defined by the Secretary; and

(2) such other information as the Secretary considers necessary to evaluate service provided to passengers traveling to and from such place.

(Added Pub. L. 108–176, title IV, §407, Dec. 12, 2003, 117 Stat. 2545.)

Effective Date

Section applicable only to fiscal years beginning after Sept. 30, 2003, except as otherwise specifically provided, see section 3 of Pub. L. 108–176, set out as an Effective Date of 2003 Amendment note under section 106 of this title.

[§41747. Repealed. Pub. L. 112–95, title IV, §430, Feb. 14, 2012, 126 Stat. 100]

Section, added Pub. L. 108–176, title IV, §408(a), Dec. 12, 2003, 117 Stat. 2546, related to the EAS local participation program.

§41748. Marketing program

(a) In General.—The Secretary of Transportation shall establish a marketing incentive program for eligible places that receive subsidized service by an air carrier under section 41733. Under the program, the sponsor of the airport serving such an eligible place may receive a grant of not more than $50,000 in a fiscal year to develop and implement a marketing plan to increase passenger boardings and the level of passenger usage of its airport facilities.

(b) Matching Requirement; Success Bonuses—

(1) In general.—Except as provided in paragraphs (2) and (3), not less than 25 percent of the publicly financed costs associated with a marketing plan to be developed and implemented under this section shall come from non-Federal sources. For purposes of this section—

(A) the non-Federal portion of the publicly financed costs may be derived from contributions in kind; and

(B) matching contributions from a State or unit of local government may not be derived, directly or indirectly, from Federal funds, but the use by the State or unit of local government of proceeds from the sale of bonds to provide the matching contribution is not considered to be a contribution derived directly or indirectly from Federal funds, without regard to the Federal income tax treatment of interest paid on those bonds or the Federal income tax treatment of those bonds.


(2) Bonus for 25-percent increase in usage.—Except as provided in paragraph (3), if, after any 12-month period during which a marketing plan has been in effect under this section with respect to an eligible place, the Secretary determines that the marketing plan has increased average monthly boardings, or the level of passenger usage, at the airport serving the eligible place, by 25 percent or more, then only 10 percent of the publicly financed costs associated with the marketing plan shall be required to come from non-Federal sources under this subsection for the following 12-month period.

(3) Bonus for 50-percent increase in usage.—If, after any 12-month period during which a marketing plan has been in effect under this section with respect to an eligible place, the Secretary determines that the marketing plan has increased average monthly boardings, or the level of passenger usage, at the airport serving the eligible place, by 50 percent or more, then no portion of the publicly financed costs associated with the marketing plan shall be required to come from non-Federal sources under this subsection for the following 12-month period.

(Added Pub. L. 108–176, title IV, §410(b), Dec. 12, 2003, 117 Stat. 2548.)

Codification

Another section 410(b) of Pub. L. 108–176 amended the table of sections at the beginning of this chapter.

Effective Date

Section applicable only to fiscal years beginning after Sept. 30, 2003, except as otherwise specifically provided, see section 3 of Pub. L. 108–176, set out as an Effective Date of 2003 Amendment note under section 106 of this title.

Incentive Program

Pub. L. 108–176, title IV, §410(a), Dec. 12, 2003, 117 Stat. 2548, provided that: "The purposes of this section [enacting this section] are—

"(1) to enable essential air service communities to increase boardings and the level of passenger usage of airport facilities at an eligible place by providing technical, financial, and other marketing assistance to such communities and to States;

"(2) to reduce subsidy costs under subchapter II of this chapter [probably means chapter 417 of title 49, United States Code] as a consequence of such increased usage; and

"(3) to provide such communities with opportunities to obtain, retain, and improve transportation services."

SUBCHAPTER III—REGIONAL AIR SERVICE INCENTIVE PROGRAM

§41761. Purpose

The purpose of this subchapter is to improve service by jet aircraft to underserved markets by providing assistance, in the form of Federal credit instruments, to commuter air carriers that purchase regional jet aircraft for use in serving those markets.

(Added Pub. L. 106–181, title II, §210(a), Apr. 5, 2000, 114 Stat. 96.)

Effective Date

Section applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as an Effective Date of 2000 Amendments note under section 106 of this title.

§41762. Definitions

In this subchapter, the following definitions apply:

(1) Air carrier.—The term "air carrier" means any air carrier holding a certificate of public convenience and necessity issued by the Secretary of Transportation under section 41102.

(2) Aircraft purchase.—The term "aircraft purchase" means the purchase of commercial transport aircraft, including spare parts normally associated with the aircraft.

(3) Capital reserve subsidy amount.—The term "capital reserve subsidy amount" means the amount of budget authority sufficient to cover estimated long-term cost to the United States Government of a Federal credit instrument, calculated on a net present value basis, excluding administrative costs and any incidental effects on Government receipts or outlays in accordance with provisions of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).

(4) Commuter air carrier.—The term "commuter air carrier" means an air carrier that primarily operates aircraft designed to have a maximum passenger seating capacity of 75 or less in accordance with published flight schedules.

(5) Federal credit instrument.—The term "Federal credit instrument" means a secured loan, loan guarantee, or line of credit authorized to be made under this subchapter.

(6) Financial obligation.—The term "financial obligation" means any note, bond, debenture, or other debt obligation issued by an obligor in connection with the financing of an aircraft purchase, other than a Federal credit instrument.

(7) 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 Security and Exchange Commission and issued under the Security Act of 1933 (15 U.S.C. 77a et seq.)), including—

(A) a qualified retirement plan (as defined in section 4974(c) of the Internal Revenue Code of 1986) that is a qualified institutional buyer; and

(B) a governmental plan (as defined in section 414(d) of the Internal Revenue Code of 1986) that is a qualified institutional buyer.


(8) Line of credit.—The term "line of credit" means an agreement entered into by the Secretary with an obligor under section 41763(d) to provide a direct loan at a future date upon the occurrence of certain events.

(9) Loan guarantee.—The term "loan guarantee" means any guarantee or other pledge by the Secretary under section 41763(c) to pay all or part of any of the principal of and interest on a loan or other debt obligation issued by an obligor and funded by a lender.

(10) New entrant air carrier.—The term "new entrant air carrier" means an air carrier that has been providing air transportation according to a published schedule for less than 5 years, including any person that has received authority from the Secretary to provide air transportation but is not providing air transportation.

(11) 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 venture, trust, or governmental entity, agency, or instrumentality.

(12) Regional jet aircraft.—The term "regional jet aircraft" means a civil aircraft—

(A) powered by jet propulsion; and

(B) designed to have a maximum passenger seating capacity of not less than 30 nor more than 75.


(13) Secured loan.—The term "secured loan" means a direct loan funded by the Secretary in connection with the financing of an aircraft purchase under section 41763(b).

(14) Underserved market.—The term "underserved market" means a passenger air transportation market (as defined by the Secretary) that—

(A) is served (as determined by the Secretary) by a nonhub airport or a small hub airport;

(B) is not within a 40-mile radius of an airport that each year has at least .25 percent of the total annual boardings in the United States; and

(C) the Secretary determines does not have sufficient air service.

(Added Pub. L. 106–181, title II, §210(a), Apr. 5, 2000, 114 Stat. 96; amended Pub. L. 108–176, title II, §225(b)(5), Dec. 12, 2003, 117 Stat. 2529.)

References in Text

The Federal Credit Reform Act of 1990, referred to in par. (3), is title V of Pub. L. 93–344, as added by Pub. L. 101–508, title XIII, §13201(a), Nov. 5, 1990, 104 Stat. 1388–609, as amended, which is classified generally to subchapter III (§661 et seq.) of chapter 17A of Title 2, The Congress. For complete classification of this Act to the Code, see Short Title note set out under section 621 of Title 2 and Tables.

The Security Act of 1933, referred to in par. (7), probably means the Securities Act of 1933, title I of act May 27, 1933, ch. 38, 48 Stat. 74, as amended, which is classified generally to subchapter I (§77a et seq.) of chapter 2A of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 77a of Title 15 and Tables.

Sections 414(d) and 4974(c) of the Internal Revenue Code of 1986, referred to in par. (7), are classified to sections 414(d) and 4974(c), respectively, of Title 26, Internal Revenue Code.

Amendments

2003—Pars. (11) to (16). Pub. L. 108–176 redesignated pars. (12), (13), (14), and (16) as (11), (12), (13), and (14), respectively, and struck out former pars. (11) and (15), which defined "nonhub airport" and "small hub airport", respectively.

Effective Date of 2003 Amendment

Amendment by Pub. L. 108–176 applicable only to fiscal years beginning after Sept. 30, 2003, except as otherwise specifically provided, see section 3 of Pub. L. 108–176, set out as a note under section 106 of this title.

Effective Date

Section applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as an Effective Date of 2000 Amendments note under section 106 of this title.

§41763. Federal credit instruments

(a) In General.—Subject to this section and section 41766, the Secretary of Transportation may enter into agreements with one or more obligors to make available Federal credit instruments, the proceeds of which shall be used to finance aircraft purchases.

(b) Secured Loans.—

(1) Terms and limitations.—

(A) In general.—A secured loan under this section with respect to an aircraft purchase shall be on such terms and conditions and contain such covenants, representatives, warranties, and requirements (including requirements for audits) as the Secretary determines appropriate.

(B) Maximum amount.—No secured loan may be made under this section—

(i) that extends to more than 50 percent of the purchase price (including the value of any manufacturer credits, post-purchase options, or other discounts) of the aircraft, including spare parts, to be purchased; or

(ii) that, when added to the remaining balance on any other Federal credit instruments made under this subchapter, provides more than $100,000,000 of outstanding credit to any single obligor.


(C) Final payment date.—The final payment on the secured loan shall not be due later than 18 years after the date of execution of the loan agreement.

(D) Subordination.—The secured loan may be subordinate to claims of other holders of obligations in the event of bankruptcy, insolvency, or liquidation of the obligor as determined appropriate by the Secretary.

(E) Fees.—The Secretary, subject to appropriations, may establish fees at a level sufficient to cover all or a portion of the administrative costs to the United States Government of making a secured loan under this section. The proceeds of such fees shall be deposited in an account to be used by the Secretary for the purpose of administering the program established under this subchapter and shall be available upon deposit until expended.


(2) Repayment.—

(A) Schedule.—The Secretary shall establish a repayment schedule for each secured loan under this section based on the projected cash flow from aircraft revenues and other repayment sources.

(B) Commencement.—Scheduled loan repayments of principal and interest on a secured loan under this section shall commence no later than 3 years after the date of execution of the loan agreement.


(3) Prepayment.—

(A) Use of excess revenue.—After satisfying scheduled debt service requirements on all financial obligations and secured loans and all deposit requirements under the terms of any trust agreement, bond resolution, or similar agreement securing financial obligations, the secured loan may be prepaid at anytime without penalty.

(B) Use of proceeds of refinancing.—The secured loan may be prepaid at any time without penalty from proceeds of refinancing from non-Federal funding sources.


(c) Loan Guarantees.—

(1) In general.—A loan guarantee under this section with respect to a loan made for an aircraft purchase shall be made in such form and on such terms and conditions and contain such covenants, representatives, warranties, and requirements (including requirements for audits) as the Secretary determines appropriate.

(2) Maximum amount.—No loan guarantee shall be made under this section—

(A) that extends to more than the unpaid interest and 50 percent of the unpaid principal on any loan;

(B) that, for any loan or combination of loans, extends to more than 50 percent of the purchase price (including the value of any manufacturer credits, post-purchase options, or other discounts) of the aircraft, including spare parts, to be purchased with the loan or loan combination;

(C) on any loan with respect to which terms permit repayment more than 15 years after the date of execution of the loan; or

(D) that, when added to the remaining balance on any other Federal credit instruments made under this subchapter, provides more than $100,000,000 of outstanding credit to any single obligor.


(3) Fees.—The Secretary, subject to appropriations, may establish fees at a level sufficient to cover all or a portion of the administrative costs to the United States Government of making a loan guarantee under this section. The proceeds of such fees shall be deposited in an account to be used by the Secretary for the purpose of administering the program established under this subchapter and shall be available upon deposit until expended.


(d) Lines of Credit.—

(1) In general.—Subject to the requirements of this subsection, the Secretary may enter into agreements to make available lines of credit to one or more obligors in the form of direct loans to be made by the Secretary at future dates on the occurrence of certain events for any aircraft purchase selected under this section.

(2) Terms and limitations.—

(A) In general.—A line of credit under this subsection with respect to an aircraft purchase shall be on such terms and conditions and contain such covenants, representatives, warranties, and requirements (including requirements for audits) as the Secretary determines appropriate.

(B) Maximum amount.—

(i) Total amount.—The amount of any line of credit shall not exceed 50 percent of the purchase price (including the value of any manufacturer credits, post-purchase options, or other discounts) of the aircraft, including spare parts.

(ii) 1–year draws.—The amount drawn in any year shall not exceed 20 percent of the total amount of the line of credit.


(C) Draws.—Any draw on the line of credit shall represent a direct loan.

(D) Period of availability.—The line of credit shall be available not more than 5 years after the aircraft purchase date.

(E) Rights of third-party creditors.—

(i) Against united states government.—A third-party creditor of the obligor shall not have any right against the United States Government with respect to any draw on the line of credit.

(ii) Assignment.—An obligor may assign the line of credit to one or more lenders or to a trustee on the lender's behalf.


(F) Subordination.—A direct loan under this subsection may be subordinate to claims of other holders of obligations in the event of bankruptcy, insolvency, or liquidation of the obligor as determined appropriate by the Secretary.

(G) Fees.—The Secretary, subject to appropriations, may establish fees at a level sufficient to cover all of a portion of the administrative costs to the United States Government of providing a line of credit under this subsection. The proceeds of such fees shall be deposited in an account to be used by the Secretary for the purpose of administering the program established under this subchapter and shall be available upon deposit until expended.


(3) Repayment.—

(A) Schedule.—The Secretary shall establish a repayment schedule for each direct loan under this subsection.

(B) Commencement.—Scheduled loan repayments of principal or interest on a direct loan under this subsection shall commence no later than 3 years after the date of the first draw on the line of credit and shall be repaid, with interest, not later than 18 years after the date of the first draw.


(e) Risk Assessment.—Before entering into an agreement under this section to make available a Federal credit instrument, the Secretary, in consultation with the Director of the Office of Management and Budget, shall determine an appropriate capital reserve subsidy amount for the Federal credit instrument based on such credit evaluations as the Secretary deems necessary.

(f) Conditions.—Subject to subsection (h), the Secretary may only make a Federal credit instrument available under this section if the Secretary finds that—

(1) the aircraft to be purchased with the Federal credit instrument is a regional jet aircraft needed to improve the service and efficiency of operation of a commuter air carrier or new entrant air carrier;

(2) the commuter air carrier or new entrant air carrier enters into a legally binding agreement that requires the carrier to use the aircraft to provide service to underserved markets; and

(3) the prospective earning power of the commuter air carrier or new entrant air carrier, together with the character and value of the security pledged, including the collateral value of the aircraft being acquired and any other assets or pledges used to secure the Federal credit instrument, furnish—

(A) reasonable assurances of the air carrier's ability and intention to repay the Federal credit instrument within the terms established by the Secretary—

(i) to continue its operations as an air carrier; and

(ii) to the extent that the Secretary determines to be necessary, to continue its operations as an air carrier between the same route or routes being operated by the air carrier at the time of the issuance of the Federal credit instrument; and


(B) reasonable protection to the United States.


(g) Limitation on Combined Amount of Federal Credit Instruments.—The Secretary shall not allow the combined amount of Federal credit instruments available for any aircraft purchase under this section to exceed—

(1) 50 percent of the cost of the aircraft purchase; or

(2) $100,000,000 for any single obligor.


(h) Requirement.—Subject to subsection (i), no Federal credit instrument may be made under this section for the purchase of any regional jet aircraft that does not comply with the stage 3 noise levels of part 36 of title 14 of the Code of Federal Regulations, as in effect on January 1, 1999.

(i) Other Limitations.—No Federal credit instrument shall be made by the Secretary under this section for the purchase of a regional jet aircraft unless the commuter air carrier or new entrant air carrier enters into a legally binding agreement that requires the carrier to provide scheduled passenger air transportation to the underserved market for which the aircraft is purchased for a period of not less than 36 consecutive months after the date that aircraft is placed in service.

(Added Pub. L. 106–181, title II, §210(a), Apr. 5, 2000, 114 Stat. 97.)

Effective Date

Section applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as an Effective Date of 2000 Amendments note under section 106 of this title.

§41764. Use of Federal facilities and assistance

(a) Use of Federal Facilities.—To permit the Secretary of Transportation to make use of such expert advice and services as the Secretary may require in carrying out this subchapter, the Secretary may use available services and facilities of other agencies and instrumentalities of the United States Government—

(1) with the consent of the appropriate Federal officials; and

(2) on a reimbursable basis.


(b) Assistance.—The head of each appropriate department or agency of the United States Government shall exercise the duties and powers of that head in such manner as to assist in carrying out the policy specified in section 41761.

(c) Oversight.—The Secretary shall make available to the Comptroller General of the United States such information with respect to any Federal credit instrument made under this subchapter as the Comptroller General may require to carry out the duties of the Comptroller General under chapter 7 of title 31, United States Code.

(Added Pub. L. 106–181, title II, §210(a), Apr. 5, 2000, 114 Stat. 101.)

Effective Date

Section applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as an Effective Date of 2000 Amendments note under section 106 of this title.

§41765. Administrative expenses

In carrying out this subchapter, the Secretary shall use funds made available by appropriations to the Department of Transportation for the purpose of administration, in addition to the proceeds of any fees collected under this subchapter, to cover administrative expenses of the Federal credit instrument program under this subchapter.

(Added Pub. L. 106–181, title II, §210(a), Apr. 5, 2000, 114 Stat. 101.)

Effective Date

Section applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as an Effective Date of 2000 Amendments note under section 106 of this title.

§41766. Funding

Of the amounts appropriated under section 106(k) for each of fiscal years 2001 through 2003, such sums as may be necessary may be used to carry out this subchapter, including administrative expenses.

(Added Pub. L. 106–181, title II, §210(a), Apr. 5, 2000, 114 Stat. 101.)

Effective Date

Section applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as an Effective Date of 2000 Amendments note under section 106 of this title.

§41767. Termination

(a) Authority To Issue Federal Credit Instruments.—The authority of the Secretary of Transportation to issue Federal credit instruments under section 41763 shall terminate on the date that is 5 years after the date of the enactment of this subchapter.

(b) Continuation of Authority To Administer Program for Existing Federal Credit Instruments.—On and after the termination date, the Secretary shall continue to administer the program established under this subchapter for Federal credit instruments issued under this subchapter before the termination date until all obligations associated with such instruments have been satisfied.

(Added Pub. L. 106–181, title II, §210(a), Apr. 5, 2000, 114 Stat. 101.)

References in Text

The date of the enactment of this subchapter, referred to in subsec. (a), is the date of enactment of Pub. L. 106–181, which was approved Apr. 5, 2000.

Effective Date

Section applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as an Effective Date of 2000 Amendments note under section 106 of this title.