I 

111TH CONGRESS 

1ST SESSION H. R. 831 

To direct the Comptroller General to conduct a study of the legal requirements and policies followed by the Department of Transportation in 

deciding whether to approve international alliances between air carriers 

and foreign air carriers and grant exemptions from the antitrust laws 

in connection with such international alliances, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 3, 2009 

Mr. OBERSTAR introduced the following bill; which was referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by 

the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To direct the Comptroller General to conduct a study of 

the legal requirements and policies followed by the Department of Transportation in deciding whether to approve international alliances between air carriers and 

foreign air carriers and grant exemptions from the antitrust laws in connection with such international alliances, 

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, 


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1 SECTION 1. ANTITRUST EXEMPTIONS. 

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

3 a study of the legal requirements and policies followed by 

4 the Department in deciding whether to approve inter5 national alliances under section 41309 of title 49, United 

6 States Code, and grant exemptions from the antitrust laws 

7 under section 41308 of such title in connection with such 

8 international alliances. 

9 (b) ISSUES TO BE CONSIDERED.—In conducting the 

10 study under subsection (a), the Comptroller General, at 

11 a minimum, shall examine the following: 

12 (1) Whether granting exemptions from the anti13 trust laws in connection with international alliances 

14 has resulted in public benefits, including an analysis 

15 of whether such benefits could have been achieved by 

16 international alliances not receiving exemptions from 

17 the antitrust laws. 

18 (2) Whether granting exemptions from the anti19 trust laws in connection with international alliances 

20 has resulted in reduced competition, increased prices 

21 in markets, or other adverse effects. 

22 (3) Whether international alliances that have 

23 been granted exemptions from the antitrust laws 

24 have implemented pricing or other practices with re25 spect to the hub airports at which the alliances oper26 ate that have resulted in increased costs for conVerDate Nov 24 2008 01:04 Feb 06, 2009 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H831.IH H831

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1 sumers or foreclosed competition by rival (nonalli2 ance) air carriers at such airports. 

3 (4) Whether increased network size resulting 

4 from additional international alliance members will 

5 adversely affect competition between international 

6 alliances. 

7 (5) The areas in which immunized international 

8 alliances compete and whether there is sufficient 

9 competition among immunized international alliances 

10 to ensure that consumers will receive benefits of at 

11 least the same magnitude as those that consumers 

12 would receive if there were no immunized inter13 national alliances. 

14 (6) The minimum number of international alli15 ances that is necessary to ensure robust competition 

16 and benefits to consumers on major international 

17 routes. 

18 (7) Whether the different regulatory and anti19 trust responsibilities of the Secretary and the Attor20 ney General with respect to international alliances 

21 have created any significant conflicting agency rec22 ommendations, such as the conditions imposed in 

23 granting exemptions from the antitrust laws. 

24 (8) Whether, from an antitrust standpoint, re25 quests for exemptions from the antitrust laws in 


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1 connection with international alliances should be 

2 treated as mergers, and therefore be exclusively sub3 ject to a traditional merger analysis by the Attorney 

4 General and be subject to advance notification re5 quirements and a confidential review process similar 

6 to those required under section 7A of the Clayton 

7 Act (15 U.S.C. 18a). 

8 (9) Whether the Secretary should amend, mod9 ify, or revoke any exemption from the antitrust laws 

10 granted by the Secretary in connection with an 

11 international alliance. 

12 (c) REPORT.—Not later than one year after the date 

13 of enactment of this Act, the Comptroller General shall 

14 submit to the Secretary of Transportation, the Committee 

15 on Transportation and Infrastructure of the House of 

16 Representatives, and the Committee on Commerce, 

17 Science, and Transportation of the Senate a report on the 

18 results of the study under subsection (a), including any 

19 recommendations of the Comptroller General as to wheth20 er there should be changes in the authority of the Sec21 retary under title 49, United States Code, or policy 

22 changes that the Secretary can implement administra23 tively, with respect to approving international alliances 

24 and granting exemptions from the antitrust laws in con25 nection with such international alliances. 


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1 (d) ADOPTION OF RECOMMENDED POLICY

2 CHANGES.—Not later than one year after the date of re3 ceipt of the report under subsection (c), and after pro4 viding notice and an opportunity for public comment, the 

5 Secretary shall issue a written determination as to wheth6 er the Secretary will adopt the policy changes, if any, rec7 ommended by the Comptroller General in the report or 

8 make any other policy changes with respect to approving 

9 international alliances and granting exemptions from the 

10 antitrust laws in connection with such international alli11 ances. 

12 (e) SUNSET PROVISION.— 

13 (1) IN GENERAL.—An exemption from the anti14 trust laws granted by the Secretary on or before the 

15 last day of the 3-year period beginning on the date 

16 of enactment of this Act in connection with an inter17 national alliance, including an exemption granted be18 fore the date of enactment of this Act, shall cease 

19 to be effective after such last day unless the exemp20 tion is renewed by the Secretary. 

21 (2) TIMING FOR RENEWALS.—The Secretary 

22 may not renew an exemption under paragraph (1) 

23 before the date on which the Secretary issues a writ24 ten determination under subsection (d). 


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1 (3) STANDARDS FOR RENEWALS.—The Sec2 retary shall make a decision on whether to renew an 

3 exemption under paragraph (1) based on the policies 

4 of the Department in effect after the Secretary 

5 issues a written determination under subsection (d). 

6 (f) DEFINITIONS.—In this section, the following defi7 nitions apply: 

8 (1) EXEMPTION FROM THE ANTITRUST

9 LAWS.—The term ‘‘exemption from the antitrust 

10 laws’’ means an exemption from the antitrust laws 

11 granted by the Secretary under section 41308 of 

12 title 49, United States Code. 

13 (2) IMMUNIZED INTERNATIONAL ALLIANCE.— 

14 The term ‘‘immunized international alliance’’ means 

15 an international alliance for which the Secretary has 

16 granted an exemption from the antitrust laws. 

17 (3) INTERNATIONAL ALLIANCE.—The term 

18 ‘‘international alliance’’ means a cooperative agree19 ment between an air carrier and a foreign air carrier 

20 to provide foreign air transportation subject to ap21 proval or disapproval by the Secretary under section 

22 41309 of title 49, United States Code. 

23 (4) DEPARTMENT.—The term ‘‘Department’’ 

24 means the Department of Transportation. 


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

2 the Secretary of Transportation. 

Æ 


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