I

107TH CONGRESS

1ST SESSION H. R. 907

To amend title 49, United States Code, to promote air carrier competition,

to establish consumer protections for airline passengers, and for other

purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 7, 2001

Mr. DINGELL introduced the following bill; which was referred to the

Committee on Transportation and Infrastructure

A BILL

To amend title 49, United States Code, to promote air carrier competition, to establish consumer protections for

airline passengers, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Airline Competition and Passenger Rights Act of 2001’’.

6 (b) TABLE OF CONTENTS.—

Sec. 1. Short title; table of contents.

Sec. 2. Amendments to title 49, United States Code.

TITLE I—AIR CARRIER COMPETITION

Sec. 101. Consideration of unfair practices in issuance of certificates for foreign

air transportation.
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Sec. 102. Unfair methods of competition.

Sec. 103. Approval of slot transfers.

Sec. 104. Joint venture agreements between air carriers.

Sec. 105. Regulation of dominant air carriers.

Sec. 106. Reallocation of airport slots, gates, and facilities following air carrier

mergers and acquisitions.

Sec. 107. Internet airline reservation systems.

Sec. 108. Federal policies on slots at high density airports.

TITLE II—AIRLINE PASSENGER PROTECTION

Sec. 201. Fair treatment of airline passengers.

Sec. 202. Clarification regarding enforcement of State laws.

Sec. 203. Airline passenger protection.

1 SEC. 2. AMENDMENTS TO TITLE 49, UNITED STATES CODE.

2 Except as otherwise specifically provided, whenever in

3 this Act an amendment or repeal is expressed in terms

4 of an amendment to, or repeal of, a section or other provi5 sion of law, the reference shall be considered to be made

6 to a section or other provision of title 49, United States

7 Code.

8 TITLE I—AIR CARRIER

9 COMPETITION

10 SEC. 101. CONSIDERATION OF UNFAIR PRACTICES IN

11 ISSUANCE OF CERTIFICATES FOR FOREIGN

12 AIR TRANSPORTATION.

13 Section 41102(d) is amended—

14 (1) by striking ‘‘The Secretary’’ and inserting

15 the following:

16 ‘‘(1) SUBMISSION OF DECISIONS TO PRESI17 DENT.—The Secretary’’;

18 (2) by adding at the end the following:
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1 ‘‘(2) CONSIDERATION OF UNFAIR PRACTICES.—

2 Before issuing a certificate under subsection (a) au3 thorizing an air carrier to provide foreign air trans4 portation, the Secretary shall consider whether the

5 air carrier has engaged in any unfair or deceptive

6 practice or unfair method of competition in air

7 transportation or the sale of air transportation in

8 the preceding 5-year period.’’; and

9 (3) by aligning paragraph (1) (as designated by

10 paragraph (1) of this section) with paragraph (2)

11 (as added by paragraph (2) of this section).

12 SEC. 102. UNFAIR METHODS OF COMPETITION.

13 (a) CODE SHARE AGREEMENTS.—Section 41712 is

14 amended by adding at the end the following:

15 ‘‘(c) CODE SHARE AGREEMENTS.—

16 ‘‘(1) IN GENERAL.—It shall be an unfair meth17 od of competition under subsection (a) for a major

18 air carrier to prohibit, limit, or otherwise restrict a

19 code share partner of the major air carrier from en20 tering into a code share agreement with another air

21 carrier or foreign air carrier.

22 ‘‘(2) DEFINITIONS.—In this section, the fol23 lowing definitions apply:

24 ‘‘(A) CODE SHARE AGREEMENT.—The

25 term ‘code share agreement’ means an agree-
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1 ment under which an air carrier’s designator

2 code is used to identify a flight operated by an3 other air carrier or foreign air carrier.

4 ‘‘(B) CODE SHARE PARTNER.—The term

5 ‘code share partner’, with respect to a major air

6 carrier, means an air carrier or foreign air car7 rier that has entered into a code share agree8 ment with the major air carrier.

9 ‘‘(C) MAJOR AIR CARRIER.—The term

10 ‘major air carrier’ has the meaning given such

11 term in section 41720(a).’’.

12 (b) PENALTIES.—Section 46301(a) is amended by

13 adding at the end the following:

14 ‘‘(8) MAXIMUM PENALTY FOR ENGAGING IN UN15 FAIR METHODS OF COMPETITION.—Notwithstanding

16 paragraph (1), the maximum civil penalty that may

17 be assessed against an air carrier for violating sec18 tion 41712 by engaging, with respect to air trans19 portation on any route, in an unfair method of com20 petition against another air carrier shall be

21 $10,000.’’.

22 SEC. 103. APPROVAL OF SLOT TRANSFERS.

23 Section 41714 is amended by adding at the end the

24 following:

25 ‘‘(l) SLOT TRANSFERS.—
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1 ‘‘(1) APPROVAL REQUIRED.—After the date of

2 enactment of this subsection, an air carrier may

3 transfer a slot to another air carrier only if the

4 transfer is approved by the Secretary.

5 ‘‘(2) CONSIDERATIONS.—In determining wheth6 er to approve the transfer of a slot under paragraph

7 (1), the Secretary shall consider—

8 ‘‘(A) the competitive effects of the trans9 fer;

10 ‘‘(B) whether the price to be paid for the

11 slot is above or below the market price for simi12 lar slots; and

13 ‘‘(C) whether any air carrier was denied an

14 opportunity to purchase the slot and, if so, the

15 reasons for the denial.

16 ‘‘(3) ANNUAL REPORTS.—Not later than 1 year

17 after the date of enactment of this subsection, and

18 annually thereafter, the Secretary shall transmit to

19 Congress a report on the approval and disapproval

20 of slot transfers under this subsection.’’.

21 SEC. 104. JOINT VENTURE AGREEMENTS BETWEEN AIR

22 CARRIERS.

23 Section 41720 is amended by adding at the end the

24 following:

25 ‘‘(i) STUDY OF JOINT VENTURE AGREEMENTS.—
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1 ‘‘(1) IN GENERAL.—The Secretary shall con2 duct a study of joint venture agreements between air

3 carriers to determine whether such agreements con4 stitute an unfair method of competition within the

5 meaning of section 41712.

6 ‘‘(2) CONTENTS.—In conducting the study, the

7 Secretary shall assess—

8 ‘‘(A) whether air carriers act as competi9 tors with their code share partners;

10 ‘‘(B) whether joint venture agreements be11 tween air carriers result in unfair competitive

12 advantages; and

13 ‘‘(C) such other factors as the Secretary

14 determines appropriate.

15 ‘‘(3) REPORTS.—

16 ‘‘(A) INITIAL REPORT.—Not later than 9

17 months after the date of enactment of this sub18 section, the Secretary shall transmit to Con19 gress a report on the results of the study.

20 ‘‘(B) UPDATES.—The Secretary shall up21 date the study every 4 years and transmit an

22 updated report to Congress.’’.

23 SEC. 105. REGULATION OF DOMINANT AIR CARRIERS.

24 (a) IN GENERAL.—Subchapter I of chapter 417 is

25 amended by adding at the end the following:
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1 ‘‘§ 41722. Regulation of dominant air carriers

2 ‘‘(a) INVESTIGATIONS.—Not later than 90 days after

3 the date of enactment of this section, and biennially there4 after, the Secretary of Transportation shall conduct an in5 vestigation of each hub airport to determine whether, in

6 the preceding 5 years, a dominant air carrier at the air7 port, if any, has—

8 ‘‘(1) charged higher than average fares for

9 interstate air transportation to or from the airport;

10 ‘‘(2) engaged in an unfair method of competi11 tion in response to a new entrant air carrier at the

12 airport; or

13 ‘‘(3) limited competition by a new entrant air

14 carrier at the airport by restricting the access of the

15 new entrant to gates, slots, or other essential facili16 ties at the airport on reasonable and competitive

17 terms.

18 ‘‘(b) ORDERS.—

19 ‘‘(1) IN GENERAL.—If the Secretary determines

20 that a dominant air carrier at a hub airport has en21 gaged in an act described in subsection (a), the Sec22 retary, after providing notice and an opportunity for

23 a hearing, may order the carrier to increase opportu24 nities for competition at the airport.
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1 ‘‘(2) TYPES OF ACTIONS.—An order issued

2 under paragraph (1) may require a dominant air

3 carrier at a hub airport—

4 ‘‘(A) to reduce fares for interstate air

5 transportation to or from the airport;

6 ‘‘(B) to offer reduced fares for air trans7 portation to or from the airport for a specific

8 number of seats on specific routes;

9 ‘‘(C) to offer rebates to passengers of the

10 carrier who have been charged excessive fares

11 for air transportation to or from the airport;

12 ‘‘(D) to make gates, slots, and other facili13 ties at the airport available to other air carriers

14 on reasonable and competitive terms;

15 ‘‘(E) to make adjustments in the carrier’s

16 frequent flyer program;

17 ‘‘(F) to make adjustments in the carrier’s

18 corporate discount arrangements and com19 parable corporate arrangements; and

20 ‘‘(G) to take such other actions as the Sec21 retary determines appropriate.

22 ‘‘(c) NON-HUB AIRPORTS.—On the initiative of the

23 Secretary or in response to a complaint filed with the Sec24 retary, the Secretary may conduct an inquiry described in

25 subsection (a) at an airport other than a hub airport and
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1 may order the dominant air carrier at the airport, if any,

2 to take actions described in subsection (b).

3 ‘‘(d) CONSIDERATIONS.—In determining whether to

4 require a dominant air carrier to reduce a fare for air

5 transportation under subsection (b), the Secretary shall

6 consider among other factors—

7 ‘‘(1) whether the fare or average fare is higher

8 than the fare or average fare charged by the carrier

9 on other routes in air transportation of comparable

10 distances;

11 ‘‘(2) whether the fare or average fare has in12 creased by a significant amount in excess of any in13 crease in the cost to operate flights on the route;

14 and

15 ‘‘(3) whether the range of fares specified on the

16 route offers a reasonable balance and a fair alloca17 tion of costs between passengers who are primarily

18 price sensitive and passengers who are primarily

19 time sensitive.

20 ‘‘(e) DEFINITIONS.—In this section, the following

21 definitions apply:

22 ‘‘(1) AIR TRANSPORTATION.—The term ‘air

23 transportation’ includes intrastate air transpor24 tation.
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1 ‘‘(2) DOMINANT AIR CARRIER.—The term ‘dom2 inant air carrier’, with respect to an airport, means

3 an air carrier that accounts for more than 40 per4 cent of the total annual boardings at the airport in

5 the preceding 2-year period or a shorter period spec6 ified in paragraph (4).

7 ‘‘(3) HUB AIRPORT.—The term ‘hub airport’

8 means an airport that each year has at least .25

9 percent of the total annual boardings in the United

10 States.

11 ‘‘(4) NEW ENTRANT AIR CARRIER.—The term

12 ‘new entrant air carrier’, with respect to a airport,

13 means an air carrier that accounts for less than 10

14 percent of the total annual boardings at the airport

15 in the preceding 2-year period or in a shorter period

16 specified by the Secretary if the carrier has operated

17 at the airport less than 2 years.’’.

18 (b) CONFORMING AMENDMENT.—The analysis for

19 subchapter I of chapter 417 is amended by adding at the

20 end the following:

‘‘41722. Regulation of dominant air carriers.’’.
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1 SEC. 106. REALLOCATION OF AIRPORT SLOTS, GATES, AND

2 FACILITIES FOLLOWING AIR CARRIER MERG3 ERS AND ACQUISITIONS.

4 (a) IN GENERAL.—Subchapter I of chapter 417, as

5 amended by section 105(a) of this Act, is amended by add6 ing at the end the following:

7 ‘‘§ 41723. Reallocation of airport slots, gates, and fa8 cilities following air carrier mergers and

9 acquisitions

10 ‘‘(a) MERGERS AND ACQUISITIONS RESULTING IN

11 DOMINANT AIR CARRIERS.—If, after January 1, 2001, a

12 major air carrier acquires the assets or voting securities

13 of any other air carrier (or a substantial portion of such

14 assets or voting securities), the Secretary of Transpor15 tation shall conduct a review of the airports served by the

16 air carrier established as result of such acquisition to de17 termine whether the air carrier is a dominant air carrier

18 at any of such airports.

19 ‘‘(b) REALLOCATION OF SLOTS, GATES, AND FACILI20 TIES.—If the Secretary determines under subsection (a)

21 that an air carrier is a dominant air carrier at an airport,

22 the Secretary shall—

23 ‘‘(1) issue an order requiring the operator of

24 the airport to reallocate (including by modification

25 of existing contracts, as necessary) 10 percent of the

26 airport gates and facilities that are leased to the
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1 dominant air carrier to new entrant air carriers (if

2 there is sufficient demand for such gates and facili3 ties by new entrant air carriers); and

4 ‘‘(2) if the airport is a high density airport, re5 allocate 20 percent of the slots of the dominant air

6 carrier to new entrant air carriers (if there is suffi7 cient demand for such slots by new entrant air car8 riers).

9 ‘‘(c) DEADLINE.—The reallocation of slots and air10 port gates and facilities under subsection (b) shall be com11 pleted not later than 1 year after the date of the acquisi12 tion referred to in subsection (a).

13 ‘‘(d) NONCOMPLIANCE BY AIRPORTS.—

14 ‘‘(1) PENALTY FOR NONCOMPLIANCE.—

15 ‘‘(A) FIRST YEAR.—If an airport does not

16 comply with an order issued under subsection

17 (b)(1), the Secretary shall withhold, on the first

18 day of the first fiscal year following the date of

19 such noncompliance, 5 percent of the amount

20 required to be apportioned to the airport for

21 such fiscal year under section 47114.

22 ‘‘(B) SUBSEQUENT YEARS.—On the first

23 day of each fiscal year following a fiscal year

24 for which the Secretary withholds amounts

25 from the apportionment of an airport under
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1 subparagraph (A), the Secretary shall withhold

2 10 percent of the amount required to be appor3 tioned to the airport for such fiscal year under

4 section 47114 unless the airport complies with

5 the order referred to in subparagraph (A)

6 throughout the preceding fiscal year.

7 ‘‘(2) EFFECT OF NONCOMPLIANCE.—Funds

8 withheld from the apportionment of an airport under

9 paragraph (1) shall be added to the discretionary

10 fund.

11 ‘‘(e) DEFINITIONS.—In this section, the following

12 definitions apply:

13 ‘‘(1) AIRPORT FACILITIES.—The term ‘airport

14 facilities’ includes ticket counters, office space, space

15 to house computers, and aprons at airports.

16 ‘‘(2) DOMINANT AIR CARRIER.—The term ‘dom17 inant air carrier’ means—

18 ‘‘(A) with respect to a high density airport,

19 an air carrier that has (or is projected in the

20 following year to have) at least 20 percent of

21 the annual passenger boardings at the airport;

22 and

23 ‘‘(B) with respect to an airport other than

24 a high density airport, an air carrier that ac25 counts for (or is projected in the following year
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1 to account for) at least 40 percent of the an2 nual passenger boardings at the airport.

3 ‘‘(3) NEW ENTRANT AIR CARRIER.—The term

4 ‘new entrant air carrier’, with respect to a airport,

5 means an air carrier that accounts for less than 10

6 percent of the total annual boardings at the airport.

7 ‘‘(4) HIGH DENSITY AIRPORT; SLOT.—The

8 terms ‘high density airport’ and ‘slot’ have meanings

9 given such terms by section 41714(h).

10 ‘‘(5) MAJOR AIR CARRIER.—The term ‘major

11 air carrier’ has the meaning given such term by sec12 tion 41720.’’.

13 (b) CONFORMING AMENDMENT.—The analysis for

14 subchapter I of chapter 417, as amended by section

15 105(b) of this Act, is amended by adding at the end the

16 following:

‘‘41723. Reallocation of airport slots, gates, and facilities following air carrier

mergers and acquisitions.’’.

17 SEC. 107. INTERNET AIRLINE RESERVATION SYSTEMS.

18 (a) STUDY.—The Comptroller General shall conduct

19 a study on how air carrier competition would be affected

20 by the establishment of an airline reservation system on

21 the Internet by a group of major air carriers.

22 (b) CONTENTS.—The study shall include an analysis

23 of how an airline reservation system described in sub24 section (a) would affect the method by which consumers
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1 purchase tickets for air transportation, including the ef2 fects of such a system on ticket agents.

3 (c) REPORTS.—Not later than 90 days after the date

4 of enactment of this Act, the Comptroller General shall

5 transmit to Congress a report on the results of the study.

6 SEC. 108. FEDERAL POLICIES ON SLOTS AT HIGH DENSITY

7 AIRPORTS.

8 (a) STUDY.—The Comptroller General shall conduct

9 a study on current and evolving Federal policies on slots

10 at high density airports.

11 (b) CONTENTS.—In conducting the study, the Comp12 troller General shall assess—

13 (1) the significance of Department of Transpor14 tation policies and practices on the control and allo15 cation of slots at high density airports, including the

16 impact of permitting air carriers to control slots on

17 air carrier competition, system capacity, and indus18 try restructuring; and

19 (2) the potential for replacing airline ticket

20 taxes with scarcity-reflective pricing of slots (includ21 ing appropriate policies to preserve competition and

22 service to small- and medium-sized communities).

23 (c) REPORT.—Not later than 18 months after the

24 date of enactment of this Act, the Comptroller General
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1 shall transmit to Congress a report on the results of the

2 study.

3 TITLE II—AIRLINE PASSENGER

4 PROTECTION

5 SEC. 201. FAIR TREATMENT OF AIRLINE PASSENGERS.

6 Section 41712, as amended by section 102(a) of this

7 Act, is amended by adding at the end the following:

8 ‘‘(d) SPECIFIC PRACTICES.—For purposes of sub9 section (a), the terms ‘unfair or deceptive practice’ and

10 ‘unfair method of competition’ include each of the fol11 lowing:

12 ‘‘(1) ACCESS TO FARES; CONSISTENTLY DE13 LAYED FLIGHTS.—Regardless of the method used by

14 a consumer to contact an air carrier or foreign air

15 carrier, the failure of the carrier—

16 ‘‘(A) to inform the consumer of the lowest

17 available fare from the carrier for the air trans18 portation requested by the consumer on the

19 date and in the class of service specified by the

20 consumer, as well as the number of seats avail21 able at that fare;

22 ‘‘(B) to provide the consumer with full ac23 cess to all fares for air transportation provided

24 by the carrier; or
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1 ‘‘(C) to inform the consumer if the air

2 transportation requested by the consumer in3 cludes a flight segment that in the preceding

4 calendar month, at least 40 percent of the time,

5 was either canceled or delayed by 30 minutes or

6 more past the flight segment’s scheduled arrival

7 time.

8 ‘‘(2) PRICING POLICIES.—Any action of an air

9 carrier or foreign air carrier—

10 ‘‘(A) to prohibit a person (including a gov11 ernmental entity) that purchases air transpor12 tation from only using a portion of the air

13 transportation purchased (including using the

14 air transportation purchased only for 1-way

15 travel instead of round-trip travel); or

16 ‘‘(B) to assess an additional fee on or

17 charge to—

18 ‘‘(i) such a person; or

19 ‘‘(ii) any ticket agent that sold the air

20 transportation to such person.

21 ‘‘(3) TERMINATION OF TICKET AGENTS.—In

22 the case of a termination, cancellation, nonrenewal,

23 or substantial change in the competitive cir24 cumstances of the appointment of a ticket agent by
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1 an air carrier or foreign air carrier, the failure of

2 the air carrier or foreign air carrier—

3 ‘‘(A) to provide the ticket agent with writ4 ten notice, and a full statement of reasons for

5 the action, on or before the 90th day preceding

6 the action; and

7 ‘‘(B) to provide the ticket agent with at

8 least 60 days to correct any deficiency claimed

9 in the written notice,

10 except in cases of insolvency, an assignment for the

11 benefit of creditors, bankruptcy, or nonpayment of

12 sums due under the appointment.’’.

13 SEC. 202. CLARIFICATION REGARDING ENFORCEMENT OF

14 STATE LAWS.

15 Section 41713(b)(1) is amended by striking ‘‘related

16 to a price, route, or service of an air carrier that may pro17 vide air transportation under this subpart’’ and inserting

18 ‘‘that directly prescribes a price, route, or level of service

19 for air transportation provided by an air carrier under this

20 subpart’’.

21 SEC. 203. AIRLINE PASSENGER PROTECTION.

22 (a) IN GENERAL.—Subchapter I of chapter 417, as

23 amended by section 106(a) of this Act, is amended by add24 ing at the end the following:
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1 ‘‘§ 41724. Air carrier passenger protection

2 ‘‘(a) EMERGENCY PLANS.—

3 ‘‘(1) IN GENERAL.—An air carrier shall ensure

4 access to necessary services and conditions, including

5 food, water, restroom facilities, and the ability to

6 deplane in the event of a weather or other emer7 gency, for all passengers boarded on a flight seg8 ment of the air carrier in air transportation.

9 ‘‘(2) SUBMITTAL OF PLANS.—The Secretary of

10 Transportation shall require each air carrier to sub11 mit to the Secretary an emergency plan containing

12 a detailed description of actions that will be taken

13 by the carrier to comply with paragraph (1).

14 ‘‘(3) FAILURE TO SUBMIT PLANS.—The Sec15 retary shall suspend the authority of an air carrier

16 to provide air transportation if the carrier fails to

17 submit a plan in accordance with paragraph (2).

18 The suspension shall continue until the carrier sub19 mits the plan.

20 ‘‘(4) REGULATIONS.—Not later than 180 days

21 after the date of enactment of this section, the Sec22 retary shall issue final regulations to require plans

23 under paragraph (2).

24 ‘‘(b) RIGHT TO EXIT AIRCRAFT.—No air carrier op25 erating an aircraft in air transportation shall prevent or

26 hinder (including by failing to assist) any passenger from
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1 exiting the aircraft (under the same circumstances as any

2 member of the flight crew is permitted to exit the aircraft)

3 if—

4 ‘‘(1) the aircraft is parked at an airport ter5 minal gate with access to ramp or other facilities

6 through which passengers are customarily boarded

7 and deplaned;

8 ‘‘(2) the aircraft has remained at the gate more

9 than 1 hour past its scheduled departure time; and

10 ‘‘(3) the captain of the aircraft has not been in11 formed by air traffic control authorities that the air12 craft can be cleared for departure within 15 min13 utes.

14 ‘‘(c) DELAY, CANCELLATION, OR DIVERSION.—

15 ‘‘(1) EXPLANATION REQUIRED.—An announce16 ment by an air carrier of (A) a delay or cancellation

17 of a flight segment, or (B) a diversion of a flight

18 segment to an airport other than the airport at

19 which the flight segment is scheduled to land, shall

20 include an explanation of the reason or reasons for

21 the delay, cancellation, or diversion.

22 ‘‘(2) PROHIBITION ON FALSE OR MISLEADING

23 EXPLANATIONS.—No air carrier shall provide an ex24 planation under paragraph (1) that the air carrier

25 knows or has reason to know is false or misleading.
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1 ‘‘(3) TIMELINESS OF INFORMATION.—

2 ‘‘(A) IN GENERAL.—An air carrier shall

3 provide a passenger with timely notice of a

4 delay or cancellation of the flight segment.

5 ‘‘(B) INFORMATION MONITORS AT AIR6 PORTS.—In complying with subparagraph (A),

7 an air carrier shall ensure that information

8 monitors at the airport concerned display timely

9 and accurate arrival and departure information.

10 ‘‘(C) ADVANCE NOTICE OF DELAYS AND

11 CANCELLATIONS.—In complying with subpara12 graph (A), an air carrier, whenever practicable,

13 shall attempt to provide a passenger with notice

14 of a delay or cancellation of a flight segment

15 before the passenger departs for the airport.

16 ‘‘(4) REGULATIONS.—Not later than 1 year

17 after the date of enactment of this section, the Sec18 retary shall issue regulations to carry out this sub19 section.

20 ‘‘(d) EXCESSIVE DEPARTURE AND ARRIVAL

21 DELAY.—

22 ‘‘(1) LIABILITY IMPOSED.—An air carrier shall

23 be liable to each passenger on a flight segment of

24 the air carrier in air transportation for an excessive

25 departure or arrival delay of the aircraft.
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1 ‘‘(2) AMOUNT OF LIABILITY.—

2 ‘‘(A) DELAYS OF MORE THAN 2 BUT LESS

3 THAN 3 HOURS.—If the excessive departure or

4 arrival delay is more than 2 but less than 3

5 hours, the amount of liability under paragraph

6 (1) shall be 200 percent of the price paid by the

7 passenger for transportation by the air carrier.

8 ‘‘(B) DELAYS OF 3 HOURS OR MORE.—If

9 the excessive departure or arrival delay is 3

10 hours or more, the amount of liability under

11 paragraph (1) shall be—

12 ‘‘(i) the amount determined under

13 subparagraph (A), plus

14 ‘‘(ii) an additional 100 percent of the

15 price paid by the passenger for such trans16 portation multiplied by the number of

17 hours (or portion thereof) that such period

18 exceeds 3 hours.

19 ‘‘(3) EXCESSIVE DEPARTURE OR ARRIVAL

20 DELAY.—In paragraph (1), the term ‘excessive de21 parture or arrival delay’ means a period of time in

22 excess of 2 hours—

23 ‘‘(A) in the case of departure delay, begin24 ning when the door of an aircraft is closed at

25 an airport and ending when the aircraft takes
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1 off from the airport or when the door of the air2 craft is open for deplaning of passengers at the

3 airport; and

4 ‘‘(B) in the case of arrival delay, beginning

5 upon touchdown of an aircraft at an airport

6 and ending when the door of the aircraft is

7 open for deplaning of passengers at the airport.

8 ‘‘(4) TREATMENT OF CERTAIN DELAYS.—Not9 withstanding paragraph (3), a departure delay in ex10 cess of 2 hours shall not be treated as an excessive

11 departure delay for purposes of paragraph (1) if the

12 Administrator of the Federal Aviation Administra13 tion determines that the departure delay was the re14 sult of—

15 ‘‘(A) an air traffic control directive and

16 that the carrier did not receive notification that

17 it would receive such directive prior to the

18 scheduled departure time of the flight; or

19 ‘‘(B) a mechanical problem with the air20 craft or other safety concern.

21 ‘‘(e) OVERBOOKING.—

22 ‘‘(1) COMPENSATION.—In addition to com23 pensation required on the date of enactment of this

24 subsection under part 250 of title 14, Code of Fed25 eral Regulations, an air carrier shall provide, at a
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1 minimum, to a passenger who is denied boarding in2 voluntarily from an oversold flight segment in air

3 transportation on which the passenger has a con4 firmed seat—

5 ‘‘(A) alternate transportation to the pas6 senger’s final destination;

7 ‘‘(B) reasonable and immediate compensa8 tion for food; and

9 ‘‘(C) if the scheduled departure time of the

10 alternate transportation is not within the same

11 day as the passenger’s originally scheduled de12 parture time, reasonable and immediate com13 pensation for hotel costs.

14 ‘‘(2) CHECK IN TIME.—A passenger shall be eli15 gible for involuntary denied boarding compensation

16 under this section and applicable regulations of the

17 Department of Transportation with respect to a

18 flight segment of an air carrier if the passenger

19 checks in for the flight segment at the appropriate

20 airport gate at any time before the door of the air21 craft for the flight segment is closed at the airport

22 gate.

23 ‘‘(3) REGULATIONS.—Not later than 90 days

24 after the date of enactment of this section, the Sec25 retary shall modify regulations contained in part 250
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1 of title 14, Code of Federal Regulations, to conform

2 with the requirements of this subsection and to ad3 just the maximum dollar amounts specified in sec4 tion 250.5 of such title to account for inflation.’’.

5 (b) CONFORMING AMENDMENT.—The analysis for

6 subchapter I of chapter 417, as amended by section

7 106(b) of this Act, is amended by adding at the end the

8 following:

‘‘41724. Airline passenger rights.’’.

9 (c) PASSENGER RIGHTS PUBLICATION.—Not later

10 than 180 days after the date of enactment of this Act,

11 the Secretary shall, by rule—

12 (1) issue a statement that outlines consumer

13 rights of air passengers, including each of the rights

14 specified in section 41724 of title 49, United States

15 Code, as added by this section; and

16 (2) requires an air carrier to provide the state17 ment to each passenger of the carrier, by con18 spicuous written material included—

19 (A) on a safety placard given to the pas20 senger on board an aircraft;

21 (B) on information available to the pas22 senger at each ticket counter of the air carrier;

23 and

24 (C) on or with the passenger’s ticket.

Æ