110TH CONGRESS

2D SESSION S. 3536

AN ACT

To amend section 5402 of title 39, United States Code,

to modify the authority relating to United States Postal

Service air transportation contracts, 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. SHORT TITLE.

2 This Act may be cited as the ‘‘Air Carriage of Inter3 national Mail Act’’.

4 SEC. 2. AIR CARRIAGE OF INTERNATIONAL MAIL.

5 (a) CONTRACTING AUTHORITY.—Section 5402 of

6 title 39, United States Code, is amended by striking sub7 sections (b) and (c) and inserting the following:

8 ‘‘(b) INTERNATIONAL MAIL.—

9 ‘‘(1) IN GENERAL.—

10 ‘‘(A) Except as otherwise provided in this

11 subsection, the Postal Service may contract for

12 the transportation of mail by aircraft between

13 any of the points in foreign air transportation

14 only with certificated air carriers. A contract

15 may be awarded to a certificated air carrier to

16 transport mail by air between any of the points

17 in foreign air transportation that the Secretary

18 of Transportation has authorized the carrier to

19 serve either directly or through a code-share re20 lationship with one or more foreign air carriers.

21 ‘‘(B) If the Postal Service has sought of22 fers or proposals from certificated air carriers

23 to transport mail in foreign air transportation

24 between points, or pairs of points within a geo25 graphic region or regions, and has not received

26 offers or proposals that meet Postal Service re-
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1 quirements at a fair and reasonable price from

2 at least 2 such carriers, the Postal Service may

3 seek offers or proposals from foreign air car4 riers. Where service in foreign air transpor5 tation meeting the Postal Service’s require6 ments is unavailable at a fair and reasonable

7 price from at least 2 certificated air carriers, ei8 ther directly or through a code-share relation9 ship with one or more foreign air carriers, the

10 Postal Service may contract with foreign air

11 carriers to provide the service sought if, when

12 the Postal Service seeks offers or proposals

13 from foreign air carriers, it also seeks an offer

14 or proposal to provide that service from any

15 certificated air carrier providing service between

16 those points, or pairs of points within a geo17 graphic region or regions, on the same terms

18 and conditions that are being sought from for19 eign air carriers.

20 ‘‘(C) For purposes of this subsection, the

21 Postal Service shall use a methodology for de22 termining fair and reasonable prices for the

23 Postal Service designated region or regions de24 veloped in consultation with, and with the con25 currence of, certificated air carriers rep-
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1 resenting at least 51 percent of available ton

2 miles in the markets of interest.

3 ‘‘(D) For purposes of this subsection, ceil4 ing prices determined pursuant to the method5 ology used under subparagraph (C) shall be

6 presumed to be fair and reasonable if they do

7 not exceed the ceiling prices derived from—

8 ‘‘(i) a weighted average based on mar9 ket rate data furnished by the Inter10 national Air Transport Association or a

11 subsidiary unit thereof; or

12 ‘‘(ii) if such data are not available

13 from those sources, such other neutral,

14 regularly updated set of weighted average

15 market rates as the Postal Service, with

16 the concurrence of certificated air carriers

17 representing at least 51 percent of avail18 able ton miles in the markets of interest,

19 may designate.

20 ‘‘(E) If, for purposes of subparagraph

21 (D)(ii), concurrence cannot be attained, then

22 the most recently available market rate data de23 scribed in this subparagraph shall continue to

24 apply for the relevant market or markets.
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1 ‘‘(2) CONTRACT PROCESS.—The Postal Service

2 shall contract for foreign air transportation as set

3 forth in paragraph (1) through an open procurement

4 process that will provide—

5 ‘‘(A) potential offerors with timely notice

6 of business opportunities in sufficient detail to

7 allow them to make a proposal;

8 ‘‘(B) requirements, proposed terms and

9 conditions, and evaluation criteria to potential

10 offerors; and

11 ‘‘(C) an opportunity for unsuccessful

12 offerors to receive prompt feedback upon re13 quest.

14 ‘‘(3) EMERGENCY OR UNANTICIPATED CONDI15 TIONS; INADEQUATE LIFT SPACE.—The Postal Serv16 ice may enter into contracts to transport mail by air

17 in foreign air transportation with a certificated air

18 carrier or a foreign air carrier without complying

19 with the requirements of paragraphs (b)(1) and (2)

20 if—

21 ‘‘(A) emergency or unanticipated condi22 tions exist that make it impractical for the

23 Postal Service to comply with such require24 ments; or
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1 ‘‘(B) its demand for lift exceeds the space

2 available to it under existing contracts and—

3 ‘‘(i) there is insufficient time available

4 to seek additional lift using procedures

5 that comply with those requirements with6 out compromising the Postal Service’s

7 service commitments to its own customers;

8 and

9 ‘‘(ii) the Postal Service first offers

10 any certificated air carrier holding a con11 tract to carry mail between the relevant

12 points the opportunity to carry such excess

13 volumes under the terms of its existing

14 contract.

15 ‘‘(c) GOOD FAITH EFFORT REQUIRED.—The Postal

16 Service and potential offerors shall put a good-faith effort

17 into resolving disputes concerning the award of contracts

18 made under subsection (b).’’.

19 (b) CONFORMING AMENDMENTS TO TITLE 49.—

20 (1) Section 41901(a) is amended by striking

21 ‘‘39.’’ and inserting ‘‘39, and in foreign air trans22 portation under section 5402(b) and (c) of title 39.’’.

23 (2) Section 41901(b)(1) is amended by striking

24 ‘‘in foreign air transportation or’’.

25 (3) Section 41902 is amended—
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1 (A) by striking ‘‘in foreign air transpor2 tation or’’ in subsection (a);

3 (B) by striking subsection (b) and insert4 ing the following:

5 ‘‘(b) STATEMENTS ON PLACES AND SCHEDULES.—

6 Every air carrier shall file with the United States Postal

7 Service a statement showing—

8 ‘‘(1) the places between which the carrier is au9 thorized to transport mail in Alaska;

10 ‘‘(2) every schedule of aircraft regularly oper11 ated by the carrier between places described in para12 graph (1) and every change in each schedule; and

13 ‘‘(3) for each schedule, the places served by the

14 carrier and the time of arrival at, and departure

15 from, each such place.’’;

16 (C) by striking ‘‘subsection (b)(3)’’ each

17 place it appears in subsections (c)(1) and (d)

18 and inserting ‘‘subsection (b)(2)’’; and

19 (D) by striking subsections (e) and (f).

20 (4) Section 41903 is amended by striking ‘‘in

21 foreign air transportation or’’ each place it appears.

22 (5) Section 41904 is amended—

23 (A) by striking ‘‘to or in foreign

24 countries’’ in the section heading;
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1 (B) by striking ‘‘to or in a foreign coun2 try’’ and inserting ‘‘between two points outside

3 the United States’’; and

4 (C) by inserting after ‘‘transportation.’’

5 the following: ‘‘Nothing in this section shall af6 fect the authority of the Postal Service to make

7 arrangements with noncitizens for the carriage

8 of mail in foreign air transportation under sub9 sections 5402(b) and (c) of title 39.’’.

10 (6) Section 41910 is amended by striking the

11 first sentence and inserting ‘‘The United States

12 Postal Service may weigh mail transported by air13 craft between places in Alaska and make statistical

14 and administrative computations necessary in the in15 terest of mail service.’’.

16 (7) Chapter 419 is amended—

17 (A) by striking sections 41905, 41907,

18 41908, and 41911; and

19 (B) redesignating sections 41906, 41909,

20 41910, and 49112 as sections 41905, 41906,

21 41907, and 41908, respectively.

22 (8) The chapter analysis for chapter 419 is

23 amended by redesignating the items relating to sec24 tions 41906, 41909, 41910, and 49112 as relating
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1 to sections 41905, 41906, 41907, and 41908, re2 spectively.

3 (9) Section 101(f) of title 39, United States

4 Code, is amended by striking ‘‘mail and shall make

5 a fair and equitable distribution of mail business to

6 carriers providing similar modes of transportation

7 services to the Postal Service.’’ and inserting

8 ‘‘mail.’’.

9 (10) Subsections (b) and (c) of section 3401 of

10 title 39, United States Code, are amended—

11 (A) by striking ‘‘at rates fixed and deter12 mined by the Secretary of Transportation in ac13 cordance with section 41901 of title 49’’ and in14 serting ‘‘or, for carriage of mail in foreign air

15 transportation, other air carriers, air taxi oper16 ators or foreign air carriers as permitted by

17 section 5402 of this title’’;

18 (B) by striking ‘‘at rates not to exceed

19 those so fixed and determined for scheduled

20 United States air carriers’’;

21 (C) by striking ‘‘scheduled’’ each place it

22 appears and inserting ‘‘certificated’’; and

23 (D) by striking the last sentence in each

24 such subsection.
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1 (11) Section 5402(a) of title 39, United States

2 Code, is amended—

3 (A) by inserting ‘‘ ‘foreign air carrier’.’’

4 after ‘‘ ‘interstate air transportation’,’’ in para5 graph (2);

6 (B) by redesignating paragraphs (7)

7 through (23) as paragraphs (8) through (24)

8 and inserting after paragraph (6) the following:

9 ‘‘(7) the term ‘certificated air carrier’ means an

10 air carrier that holds a certificate of public conven11 ience and necessity issued under section 41102(a) of

12 title 49;’’;

13 (C) by redesignating paragraphs (9)

14 through (24), as redesignated, as paragraphs

15 (10) through (25), respectively, and inserting

16 after paragraph (8) the following:

17 ‘‘(9) the term ‘code-share relationship’ means a

18 relationship pursuant to which any certificated air

19 carrier or foreign air carrier’s designation code is

20 used to identify a flight operated by another air car21 rier or foreign air carrier;’’; and

22 (D) by inserting ‘‘foreign air carrier,’’

23 after ‘‘terms’’ in paragraph (2).
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1 (c) EFFECTIVE DATE.—The amendments made by

2 this section shall take effect on October 1, 2008.

Passed the Senate September 26, 2008 (legislative

day, September 17), 2008.

Attest:

Secretary.
110TH CONGRESS

2D SESSION S. 3536

AN ACT

To amend section 5402 of title 39, United States

tracts, and for other purposes.States Postal Service air transportation conCode, to modify the authority relating to United