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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 951 Introduced in House (IH)]

106th CONGRESS
  1st Session
                                H. R. 951

To amend title 49, United States Code, to provide assistance and slots 
 with respect to air carrier service between high density airports and 
airports not receiving sufficient air service, to improve jet aircraft 
        service to underserved markets, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 3, 1999

  Mr. Duncan introduced the following bill; which was referred to the 
             Committee on Transportation and Infrastructure

_______________________________________________________________________

                                 A BILL

 
To amend title 49, United States Code, to provide assistance and slots 
 with respect to air carrier service between high density airports and 
airports not receiving sufficient air service, to improve jet aircraft 
        service to underserved markets, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Airline Service Improvement Act of 
1999''.

     TITLE I--SERVICE TO AIRPORTS NOT RECEIVING SUFFICIENT SERVICE

SEC. 101. AVAILABILITY OF SLOTS.

    (a) Period of Effectiveness.--
            (1) Slots for foreign air transportation.--Section 41714(b) 
        of title 49, United States Code, is amended by striking 
        paragraph (4).
            (2) Slots for new entrants.--Section 41714(c) of such title 
        is amended--
                    (A) by striking ``(1) In general.--'';
                    (B) by striking paragraph (2); and
                    (C) by moving the text of paragraph (1) so that it 
                follows the subsection heading and its margin is 
                aligned with the margin for subsection (g).
    (b) Slots for Airports Not Receiving Sufficient Service.--Section 
41714 of such title is amended--
            (1) by striking subsections (e) and (f) and inserting the 
        following:
    ``(e) Slots for Airports Not Receiving Sufficient Service.--
            ``(1) Exemptions.--Notwithstanding part D of chapter 491 of 
        this title, 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 air carriers to provide nonstop 
        air transportation using jet aircraft that comply with the 
        stage 3 noise levels of part 36 of such title 14 between a high 
        density airport and an airport that had less than 2,000,000 
        enplanements in the most recent year for which such enplanement 
        data is available or between a high density airport and an 
        airport that does not have such nonstop transportation on the 
        date on which the application for an exemption is filed.
            ``(2) Limitations.--No more than 2 exemptions per hour may 
        be granted under this subsection for slots at any high density 
        airport, and no more than 6 exemptions per day may be granted 
        under this subsection for slots at Ronald Reagan Washington 
        National Airport. An exemption may be granted under this 
        subsection for a slot at Ronald Reagan Washington National 
        Airport only if the flight utilizing such slot begins or ends 
        within 1,250 miles of the Airport and a stage 3 aircraft is 
        used for such flight.
            ``(3) Application.--An air carrier interested in an 
        exemption under this subsection shall submit to the Secretary 
        an application for such exemption. No application may be 
        submitted to the Secretary before the last day of the 30-day 
        period beginning on the date of the enactment of this 
        paragraph.
            ``(4) Deadline for decision.--Notwithstanding any other 
        provision of law, the Secretary shall make a decision with 
        regard to granting an exemption under this subsection on or 
        before the 120th day following the date of the application for 
        the exemption. If the Secretary does not make the decision on 
        or before such 120th day, the air carrier applying for the 
        service may provide such service until the Secretary makes the 
        decision or the Administrator of the Federal Aviation 
        Administration determines that providing such service would 
        have an adverse effect on air safety.
            ``(5) Period of effectiveness.--An exemption granted under 
        this subsection may remain in effect only while the air carrier 
        for whom the exemption is granted continues to provide nonstop 
        air transportation between the airport for which the exemption 
        was granted under paragraph (1) and the high density airport.
    ``(f) Treatment of Certain Commuter Air Carriers.--The Secretary 
shall treat all commuter air carriers that have cooperative agreements, 
including code share agreements with other air carriers, equally for 
determining eligibility for exemptions under this section regardless of 
the form of the corporate relationship between the commuter air carrier 
and the other air carrier.''.

SEC. 102. FUNDING FOR AIR CARRIER SERVICE TO AIRPORTS NOT RECEIVING 
              SUFFICIENT SERVICE.

    (a) Funding for Small Community Air Service.--Section 41742(b) of 
title 49, United States Code, is amended to read as follows:
    ``(b) Funding for Small Community Air Service.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, from moneys credited to the account established under 
        section 45303(a), including the funds derived from fees imposed 
        under the authority contained in section 45301(a)--
                    ``(A) not to exceed $45,000,000 for each fiscal 
                year beginning after September 30, 1999, shall be used 
                to carry out the essential air service program under 
                this subchapter; and
                    ``(B) not to exceed $5,000,000 for such fiscal year 
                shall be used--
                            ``(i) for assisting an air carrier to 
                        subsidize service to and from an underserved 
                        airport for a period not to exceed 3 years; and
                            ``(ii) for assisting an underserved airport 
                        to obtain jet aircraft service to and from the 
                        underserved airport and to promote passenger 
                        usage of that service.
            ``(2) Rural air safety.--Any funds that are made available 
        by paragraph (1) for a fiscal year and that the Secretary 
        determines will not be obligated or expended before the last 
        day of such fiscal year shall be available to the Administrator 
        for use under this subchapter in improving rural air safety at 
        airports with less than 100,000 annual boardings.
            ``(3) Allocation of additional funding.--If, for a fiscal 
        year beginning after September 30, 1999, more than $50,000,000 
        is made available under subsection (a) to carry out the small 
        community air service program, \1/2\ of the amounts in excess 
        of $50,000,000 shall be used for the purposes specified in 
        paragraph (1)(B), in addition to amounts made available for 
        such purposes under paragraph (1)(B).
            ``(4) Authorization of appropriations.--In addition to 
        amounts made available under paragraph (1), there is authorized 
        to be appropriated to the Secretary of Transportation for each 
        fiscal year beginning after September 30, 1999, $15,000,000--
                    ``(A) to provide assistance to an air carrier to 
                subsidize service to and from an underserved airport 
                for a period not to exceed 3 years; and
                    ``(B) to provide assistance to an underserved 
                airport to obtain jet aircraft service to and from the 
                underserved airport and to promote passenger usage of 
                that service.
            ``(5) Priority criteria for assisting airports not 
        receiving sufficient service.--In providing assistance to 
        airports under paragraphs (1)(B) and (4), the Administrator 
        shall give priority to those airports for which a community 
        will provide, from local sources (other than airport revenues), 
        a portion of the cost of the activity to be assisted.
            ``(6) Underserved aiport defined.--In this subsection, the 
        term `underserved airport' means a nonhub airport or small hub 
        airport (as such terms are defined in section 41714(e)) that 
        the Secretary determines is not receiving sufficient air 
        carrier service.''.
    (b) Conforming Amendments.--Chapter 417 of such title is amended--
            (1) section 41742 is amended--
                    (A) in the section heading by striking 
                ``Essential'' and inserting ``Small community''; and
                    (B) in each of subsections (a) and (c) by striking 
                ``essential air'' and inserting ``small community''; 
                and
            (2) in the analysis for such chapter by striking the item 
        relating to section 41742 and inserting the following:

``41742. Small community air service authorization.''.

SEC. 103. WAIVER OF LOCAL CONTRIBUTION.

    Section 41736(b) of title 49, United States Code, is amended by 
adding at the end the following:
``Paragraph (4) shall not apply to any place for which a proposal was 
approved or that was designated as eligible under this section in the 
period beginning on October 1, 1991, and ending on December 31, 
1997.''.

            TITLE II--REGIONAL AIR SERVICE INCENTIVE PROGRAM

SEC. 201. AMENDMENT OF TITLE 49, UNITED STATES CODE.

    (a) In General.--Chapter 417 of title 49, United States Code, is 
amended by adding at the end the following:

        ``SUBCHAPTER III--REGIONAL AIR SERVICE INCENTIVE PROGRAM

``Sec. 41761. Purpose
    ``The purpose of this subchapter is to improve service by jet 
aircraft to underserved markets by providing assistance, in the form of 
loan guarantees, to commuter air carriers that purchase regional jet 
aircraft for use in serving those markets.
``Sec. 41762. Definitions
    ``In this subchapter, the following definitions apply:
            ``(1) Aircraft purchase loan.--The term `aircraft purchase 
        loan' means any loan made for the purchase of commercial 
        transport aircraft, including spare parts normally associated 
        with the aircraft.
            ``(2) 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.
            ``(3) 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.
            ``(4) Nonhub airport.--The term `nonhub airport' means an 
        airport that each year has at least 2,500 passenger boardings, 
        but less than .05 percent of the total annual boardings in the 
        United States.
            ``(5) 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 60.
            ``(6) Small hub airport.--The term `small hub airport' 
        means an airport that each year has at least .05 percent, but 
        less than .25 percent, of the total annual boardings in the 
        United States.
            ``(7) Underserved airport.--The term `underserved airport' 
        means an airport that--
                    ``(A) is a nonhub airport or a small hub airport;
                    ``(B) is not within a 40-mile radius of another 
                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.
``Sec. 41763. Loan guarantees
    ``(a) In General.--Subject to advance appropriations, the Secretary 
of Transportation may guarantee any lender against loss of principal or 
interest on any aircraft purchase loan made by that lender to a 
commuter air carrier or new entrant air carrier.
    ``(b) Form, Terms, and Conditions.--A guarantee shall be made under 
subsection (a)--
            ``(1) in such form and on such terms and conditions; and
            ``(2) pursuant to such regulations;
as the Secretary considers to be necessary and consistent with this 
subchapter.
    ``(c) Treatment of Certain Commuter Air Carriers.--The Secretary 
shall treat all commuter air carriers that have cooperative agreements, 
including code share agreements with other air carriers, equally for 
determining eligibility for guarantees under this section regardless of 
the form of the corporate relationship between the commuter air carrier 
and the other air carrier.
``Sec. 41764. Conditions and limitations
    ``(a) Limitations on Funds.--Subject to subsection (d), no loan 
guarantee shall be made under this subchapter--
            ``(1) extending to more than the unpaid interest and 80 
        percent of the unpaid principal of any loan;
            ``(2) on any loan or combination of loans for more than 80 
        percent of the purchase price of the aircraft, including spare 
        parts, to be purchased with the loan or loan combination;
            ``(3) on any loan with respect to which terms permit 
        repayment more than 15 years after the date the loan is made;
            ``(4) in any case in which the total face amount of the 
        loan and any other loans to the same air carrier or corporate 
        predecessor of that air carrier that are guaranteed and 
        outstanding under the terms of this subchapter exceed 
        $100,000,000.
    ``(b) Conditions for Making Loans.--Subject to subsection (c), the 
Secretary of Transportation may only make a loan guarantee under this 
subchapter if--
            ``(1) the Secretary finds that the aircraft to be purchased 
        with the loan is a regional jet aircraft to be used by the 
commuter air carrier or new entrant air carrier;
            ``(2) the commuter air carrier or new entrant air carrier 
        agrees to use the aircraft to provide at least 2 round-trips 
        per day 5 days per week to the underserved airport; and
            ``(3) the Secretary finds that the prospective earning 
        power of the commuter air carrier or new entrant air carrier, 
        together with the character and value of the security pledged, 
        furnish--
                    ``(A) reasonable assurances of the air carrier's 
                ability and intention to repay the loan within the term 
                of the loan--
                            ``(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 loan guarantee; and
                    ``(B) reasonable protection to the United States.
    ``(c) Requirement.--Subject to subsection (d), no loan guarantee 
may be made under this subchapter on any loan or combination of loans 
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.
    ``(d) Other Limitations.--
            ``(1) On purchase of regional jet aircraft.--No loan 
        guarantee shall be made by the Secretary under this subchapter 
        on any loan for the purchase of a regional jet aircraft unless 
        the commuter air carrier or new entrant air carrier agrees that 
        it will provide scheduled passenger air transportation to the 
        underserved airport for which the aircraft is purchased, or to 
        another underserved airport, for a period of not less than 24 
        consecutive months after the aircraft is placed in service.
            ``(2) On subordination.--No loan guarantee made under this 
        subchapter may be subordinated to another debt of the carrier 
        or to any other claims against the carrier.
            ``(3) To protect interests of united states.--No loan may 
        be guaranteed under this subchapter unless the Secretary 
        determines that the lender is responsible and that adequate 
        provision is made for servicing the loan on reasonable terms 
        and protecting the financial interests of the United States.
``Sec. 41765. Payment of losses
    ``(a) In General.--If, as a result of a default by a carrier under 
a loan guaranteed under this subchapter and after the holder of the 
loan has made such further collection efforts as the Secretary of 
Transportation may require, the Secretary determines that the holder 
has suffered a loss, the Secretary shall pay the holder the amount of 
the loss under the guarantee contract. Upon making the payment, the 
Secretary shall be subrogated to all the rights of the recipient of the 
payment.
    ``(b) Enforcement of United States Rights.--The Attorney General 
shall take such action as may be necessary to enforce any right 
accruing to the United States as a result of the issuance of any 
guarantee under this subchapter.
    ``(c) Limitation on Statutory Construction.--Nothing in this 
subchapter shall be construed as precluding any forbearance for the 
carrier which may be agreed upon by the parties to the guaranteed loan 
and approved by the Secretary.
    ``(d) Authority of Secretary.--Notwithstanding any other provision 
of law relating to the acquisition, handling, or disposal of property 
by the United States, the Secretary may complete, recondition, 
reconstruct, renovate, repair, maintain, operate, or sell any property 
acquired under this subchapter.
``Sec. 41766. Fees
    ``The Secretary of Transportation shall prescribe and collect from 
a lending institution a reasonable administrative fee in connection 
with each loan guaranteed under this subchapter.
``Sec. 41767. 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 Federal 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 Federal Government shall exercise the duties and 
functions 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 the loan guarantee program conducted under this subchapter as the 
Comptroller General may require to carry out the duties of the 
Comptroller General under chapter 7 of title 31.
``Sec. 41768. Payments; administrative expenses
    ``(a) Payments.--Payments to lenders required as a consequence of 
any loan guarantee made under this subchapter may be made from funds 
appropriated pursuant to the authorization under section 202 of the 
Airline Service Improvement Act of 1999.
    ``(b) 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 to cover 
administrative expenses of the loan guarantee program under this 
subchapter.
``Sec. 41769. Termination
    ``The authority of the Secretary of Transportation under section 
41763 shall terminate on the date that is 5 years after the date of the 
enactment of this subchapter.''.
    (b) Conforming Amendment.--The analysis for chapter 417 of such 
title is amended by adding at the end the following:

        ``SUBCHAPTER III--REGIONAL AIR SERVICE INCENTIVE PROGRAM

``41761. Purpose.
``41762. Definitions.
``41763. Loan guarantees.
``41764. Conditions and limitations.
``41765. Payment of losses.
``41766. Fees.
``41767. Use of Federal facilities and assistance.
``41768. Payments; administrative expenses.
``41769. Termination.''.

SEC. 202. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated for the cost of loan 
guarantee commitments authorized in subchapter III of chapter 417 of 
title 49, United States Code, $120,000,000 per fiscal year for fiscal 
years 2000, 2001, 2002, 2003, and 2004.

                   TITLE III--CONTRACT TOWER PROGRAM

SEC. 301. CONTRACT TOWERS.

    Section 47124(b) of title 49, United States Code, is amended by 
adding at the end the following:
            ``(3) Nonqualifying air traffic control towers.--
                    ``(A) In general.--The Secretary shall establish a 
                program to contract for air traffic control services at 
                not more than 20 level I air traffic control towers, as 
                defined by the Administrator of the Federal Aviation 
                Administration, that do not qualify for the program 
                established under subsection (a) and continued under 
                paragraph (1).
                    ``(B) Priority.--In selecting facilities to 
                participate in the program under this paragraph, the 
                Administrator shall give priority to the following:
                            ``(i) Air traffic control towers that are 
                        participating in the program continued under 
                        paragraph (1) but have been notified that they 
                        will be terminated from such program because 
                        the Administrator has determined that the 
                        benefit-to-cost ratio for their continuation in 
                        such program is less than 1.
                            ``(ii) Level I air traffic control towers 
                        of the Federal Aviation Administration that are 
                        closed as a result of the air traffic 
                        controllers strike in 1981.
                            ``(iii) Air traffic control towers that are 
                        located at airports that receive air service 
                        from an air carrier that is receiving 
                        compensation under the essential air service 
                        program of subchapter II of chapter 417.
                            ``(iv) Air traffic control towers located 
                        at airports that are prepared to assume 
                        responsibility for tower construction and 
                        maintenance costs.
                            ``(v) Air traffic control towers that are 
                        located at airports with safety or operational 
                        problems related to topography, weather, runway 
                        configuration, or mix of aircraft.
                    ``(C) Costs exceeding benefits.--If the costs of 
                operating a control tower under the program established 
                under this paragraph exceed the benefits, the airport 
                sponsor or State or local government having 
                jurisdiction over the airport shall pay the portion of 
                the costs that exceed such benefits.
                    ``(D) Authorization of appropriations.--There is 
                authorized to be appropriated $6,000,000 per fiscal 
                year to carry out this paragraph.''.
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