II

106TH CONGRESS

1ST SESSION S. 477

To enhance competition among airlines and reduce airfares, and for other

purposes.

IN THE SENATE OF THE UNITED STATES

FEBRUARY 25, 1999

Mr. SCHUMER introduced the following bill; which was read twice and referred

to the Committee on Commerce, Science, and Transportation

A BILL

To enhance competition among airlines and reduce airfares,

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.

4 This Act may be cited as the ‘‘Airline Competition

5 Act of 1999’’.

6 SEC. 2. DEFINITIONS.

7 In this Act:

8 (1) AIR CARRIER.—The term ‘‘air carrier’’ has

9 the meaning given that term in section 40102(2) of

10 title 49, United States Code.
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1 (2) AIRCRAFT.—The term ‘‘aircraft’’ has the

2 meaning given that term in section 40102(6) of title

3 49, United States Code.

4 (3) AIRPORT.—The term ‘‘airport’’ has the

5 meaning given that term in section 40102(9) of title

6 49, United States Code.

7 (4) ATTORNEY GENERAL.—The term ‘‘Attorney

8 General’’ means the Attorney General of the United

9 States.

10 (5) SECRETARY.—The term ‘‘Secretary’’ means

11 the Secretary of Transportation.

12 SEC. 3. PREFERENCE FOR LOW-COMPETITION AIRPORTS.

13 (a) DEFINITIONS.—Section 41714(h) of title 49,

14 United States Code, is amended—

15 (1) by redesignating paragraphs (3) and (4) as

16 paragraphs (5) and (6), respectively; and

17 (2) by inserting after paragraph (2) the follow18 ing:

19 ‘‘(3) LARGE HUB AIRPORT.—The term ‘large

20 hub airport’ means an airport described in section

21 47134(d)(2).

22 ‘‘(4) LOW-COMPETITION AIRPORT.—The term

23 ‘low-competition airport’ means an airport that—

24 ‘‘(A) is not a large hub airport; and
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1 ‘‘(B) the Secretary determines has

2 substantially—

3 ‘‘(i) less service than the average serv4 ice at airports in the United States; or

5 ‘‘(ii) higher airfares than average air6 fares for airports in the United States.’’.

7 (b) PREFERENCE.—Section 41714(c)(1) of title 49,

8 United States Code, is amended by adding at the end the

9 following: ‘‘In granting exemptions under this paragraph,

10 the Secretary shall give preference to air transportation

11 provided to low-competition airports that are located with12 in a 500-mile radius of a high density airport.’’.

13 SEC. 4. UNFAIR COMPETITION.

14 (a) GUIDELINES.—Not later than 30 days after the

15 date of enactment of this Act, the Secretary, in consulta16 tion with the Attorney General, shall issue regulations that

17 define predatory practices and unfair methods of competi18 tion of air carriers for the purposes of applying this Act

19 to complaints of predatory practices or unfair methods of

20 competition filed under section 41712 of title 49, United

21 States Code, or any other applicable provision of law.

22 (b) DETERMINATIONS REGARDING ACTIONS

23 FILED.—

24 (1) ACTIONS FILED BEFORE THE DATE OF EN25 ACTMENT OF THIS ACT.—Not later than 9 months
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1 after the date of enactment of this Act, the Sec2 retary shall complete action on any complaint alleg3 ing a predatory practice or unfair method of com4 petition by an air carrier that was filed with the Sec5 retary under section 41712 of title 49, United States

6 Code, or any other applicable provision of law before

7 the date of enactment of this Act.

8 (2) ACTIONS FILED ON OR AFTER THE DATE

9 OF ENACTMENT OF THIS ACT.—

10 (A) IN GENERAL.—Not later than 90 days

11 after a complaint alleging a predatory practice

12 or unfair method of competition by an air car13 rier is filed with the Secretary under section

14 41712 of title 49, United States Code, or any

15 other applicable provision of law, the Secretary

16 shall make an initial finding concerning whether

17 the practice that is the subject of the complaint

18 constitutes a predatory practice or unfair meth19 od of competition.

20 (B) APPLICABILITY.—Subparagraph (A)

21 shall apply to a complaint filed with the Sec22 retary on or after the date of enactment of this

23 Act.

24 (c) RESTRAINING ORDERS.—
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1 (1) IN GENERAL.—In a manner consistent with

2 section 41712 or any other applicable provision of

3 law, the Secretary shall enjoin, pending final deter4 mination, any action of an air carrier that the Sec5 retary finds to be a predatory practice or unfair

6 method of competition under subsection (b).

7 (2) PERIOD FOR TAKING ACTION.—The Sec8 retary shall carry out the requirements of paragraph

9 (1) not later than 15 days after an initial finding is

10 made with respect to a complaint under subsection

11 (b) (or if the initial finding is made before the date

12 of enactment of this Act, not later than 15 days

13 after the date of enactment of this Act).

14 SEC. 5. LIMITS ON COMPETITION IN AVIATION INDUSTRY.

15 Not later than 1 year after the date of enactment

16 of this Act, and annually thereafter, the Secretary shall

17 transmit to Congress a report concerning barriers to

18 entry, predatory practices (including pricing), and other

19 limits on competition in the aviation industry.

20 SEC. 6. PROVISIONS TO PREVENT INCREASED AIRCRAFT

21 NOISE.

22 (a) SECRETARIAL AUTHORITY UNDER THIS ACT.—

23 Nothing in this Act or the amendments made by this Act

24 shall authorize the Secretary to take any action that would
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1 increase aircraft noise in any community in the vicinity

2 of an airport.

3 (b) STAGE 4 NOISE LEVELS.—

4 (1) PROPOSED REGULATIONS.—Section 47523

5 of title 49, United States Code, is amended by add6 ing at the end the following:

7 ‘‘(c) STAGE 4 NOISE LEVELS.—

8 ‘‘(1) PROPOSED REGULATIONS.—Not later than

9 1 year after the date of enactment of the Airline

10 Competition Act of 1999, the Secretary shall issue

11 proposed regulations that—

12 ‘‘(A) establish, in a manner consistent with

13 this chapter, stage 4 noise levels applicable to

14 aircraft designated by the Secretary as stage 4

15 aircraft; and

16 ‘‘(B) provide for the implementation of the

17 stage 4 noise level requirements by the date

18 that is 36 months after the date of issuance of

19 the proposed regulations.

20 ‘‘(2) CRITERIA FOR NOISE LEVELS.—The stage

21 4 noise levels established under this subsection

22 shall—

23 ‘‘(A) provide for a significant reduction in

24 the level of noise generated by aircraft; and
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1 ‘‘(B) be consistent with the noise levels at2 tainable through the use of the most effective

3 noise control technology available for stage 3

4 aircraft (as that term is used under section

5 47524(c)), as of January 1, 1999.’’.

6 (2) LEGISLATIVE PROPOSALS.—At the same

7 time as the Secretary issues proposed regulations

8 under section 47523(c) of title 49, United States

9 Code, as added by paragraph (1) of this subsection,

10 the Secretary shall submit to Congress such pro11 posed legislation (including amendments to chapter

12 475 of title 49, United States Code) as is necessary

13 to ensure the implementation of stage 4 noise levels

14 (as that term is used in such section 47523(c)).

15 SEC. 7. CLARIFICATION OF LEGAL STANDING.

16 Section 41713(b) of title 49, United States Code, is

17 amended by adding at the end the following:

18 ‘‘(5) This subsection shall not bar any cause of action

19 brought against an air carrier by 1 or more private parties

20 seeking to enforce any right under the common law of any

21 State or under any State statute, other than a statute pur22 porting to directly prescribe fares, routes, or levels of air

23 transportation service.’’.

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