H. R. 1758—369
(2) The pay of an employee of an air carrier having regularly
assigned duties on aircraft in at least 2 States is subject to the
income tax laws of only the following:
(A) the State or political subdivision of the State that
is the residence of the employee.
(B) the State or political subdivision of the State in which
the employee earns more than 50 percent of the pay received
by the employee from the carrier.
§ 40117. Passenger facility fees
(a) DEFINITIONS.—In this section—
(1) ‘‘airport’’, ‘‘commercial service airport’’, and ‘‘public
agency’’ have the same meanings given those terms in section
47102 of this title.
(2) ‘‘eligible agency’’ means a public agency that controls
a commercial service airport.
(3) ‘‘eligible airport-related project’’ means a project—
(A) for airport development or airport planning under
subchapter I of chapter 471 of this title;
(B) for terminal development described in section
47110(d) of this title;
(C) for airport noise capability planning under section
47505 of this title;
(D) to carry out noise compatibility measures eligible
for assistance under section 47504 of this title, whether
or not a program for those measures has been approved
under section 47504; and
(E) for constructing gates and related areas at which
passengers board or exit aircraft.
(4) ‘‘passenger facility fee’’ means a fee imposed under
this section.
(5) ‘‘passenger facility revenue’’ means revenue derived
from a passenger facility fee.
(b) GENERAL AUTHORITY.—(1) The Secretary of Transportation
may authorize under this section an eligible agency to impose
a passenger facility fee of $1, $2, or $3 on each paying passenger
of an air carrier or foreign air carrier boarding an aircraft at
an airport the agency controls to finance an eligible airport-related
project, including making payments for debt service on indebtedness
incurred to carry out the project, to be carried out in connection
with the airport or any other airport the agency controls.
(2) A State, political subdivision of a State, or authority of
a State or political subdivision that is not the eligible agency
may not regulate or prohibit the imposition or collection of a pas-
senger facility fee or the use of the passenger facility revenue.
(3) A passenger facility fee may be imposed on a passenger
of an air carrier or foreign air carrier originating or connecting
at the commercial service airport that the agency controls.
(c) APPLICATIONS.—(1) An eligible agency must submit to the
Secretary an application for authority to impose a passenger facility
fee. The application shall contain information and be in the form
that the Secretary may require by regulation.
(2) Before submitting an application, the eligible agency must
provide reasonable notice to, and an opportunity for consultation
with, air carriers and foreign air carriers operating at the airport.
The Secretary shall prescribe regulations that define reasonable
notice and contain at least the following requirements:
H. R. 1758—370
(A) The agency must provide written notice of individual
projects being considered for financing by a passenger facility
fee and the date and location of a meeting to present the
projects to air carriers and foreign air carriers operating at
the airport.
(B) Not later than 30 days after written notice is provided
under subparagraph (A) of this paragraph, each air carrier
and foreign air carrier operating at the airport must provide
to the agency written notice of receipt of the notice. Failure
of a carrier to provide the notice may be deemed certification
of agreement with the project by the carrier under subpara-
graph (D) of this paragraph.
(C) Not later than 45 days after written notice is provided
under subparagraph (A) of this paragraph, the agency must
conduct a meeting to provide air carriers and foreign air carriers
with descriptions of projects and justifications and a detailed
financial plan for projects.
(D) Not later than 30 days after the meeting, each air
carrier and foreign air carrier must provide to the agency
certification of agreement or disagreement with projects (or
total plan for the projects). Failure to provide the certification
is deemed certification of agreement with the project by the
carrier. A certification of disagreement is void if it does not
contain the reasons for the disagreement.
(3) After receiving an application, the Secretary shall provide
notice and an opportunity to air carriers, foreign air carriers, and
other interested persons to comment on the application. The Sec-
retary shall make a final decision on the application not later
than 120 days after receiving it.
(d) LIMITATIONS ON APPROVING APPLICATIONS.—The Secretary
may approve an application that an eligible agency has submitted
under subsection (c) of this section to finance a specific project
only if the Secretary finds, based on the application, that—
(1) the amount and duration of the proposed passenger
facility fee will result in revenue (including interest and other
returns on the revenue) that is not more than the amount
necessary to finance the specific project; and
(2) each project is an eligible airport-related project that
will—
(A) preserve or enhance capacity, safety, or security
of the national air transportation system;
(B) reduce noise resulting from an airport that is part
of the system; or
(C) provide an opportunity for enhanced competition
between or among air carriers and foreign air carriers.
(e) LIMITATIONS
ON IMPOSING FEES.—(1) An eligible agency
may impose a passenger facility fee only—
(A) if the Secretary approves an application that the agency
has submitted under subsection (c) of this section; and
(B) subject to terms the Secretary may prescribe to carry
out the objectives of this section.
(2) A passenger facility fee may not be collected from a pas-
senger—
(A) for more than 2 boardings on a one-way trip or a
trip in each direction of a round trip;
H. R. 1758—371
(B) for the boarding to an eligible place under subchapter
II of chapter 417 of this title for which essential air service
compensation is paid under subchapter II; and
(C) for a project the Secretary does not approve under
this section before October 1, 1993, if, during the fiscal year
ending September 30, 1993, the amount available for obligation
under subchapter II of chapter 417 of this title is less than
$38,600,000, except that this clause—
(i) does not apply if the amount available for obligation
under subchapter II of chapter 417 of this title is less
than $38,600,000 because of sequestration or other general
appropriations reductions applied proportionately to appro-
priations accounts throughout an appropriation law; and
(ii) does not affect the authority of the Secretary to
approve the imposition of a fee or the use of revenues,
derived from a fee imposed under an approval made under
this section, by a public agency that has received an
approval to impose a fee under this section before Septem-
ber 30, 1993, regardless of whether the fee is being imposed
on September 30, 1993.
(f) LIMITATIONS
ON CONTRACTS, LEASES, AND USE AGREE-
MENTS.—(1) A contract between an air carrier or foreign air carrier
and an eligible agency made at any time may not impair the
authority of the agency to impose a passenger facility fee or to
use the passenger facility revenue as provided in this section.
(2) A project financed with a passenger facility fee may not
be subject to an exclusive long-term lease or use agreement of
an air carrier or foreign air carrier, as defined by regulations
of the Secretary.
(3) A lease or use agreement of an air carrier or foreign air
carrier related to a project whose construction or expansion was
financed with a passenger facility fee may not restrict the eligible
agency from financing, developing, or assigning new capacity at
the airport with passenger facility revenue.
(g) TREATMENT OF REVENUE.—(1) Passenger facility revenue
is not airport revenue for purposes of establishing a price under
a contract between an eligible agency and an air carrier or foreign
air carrier.
(2) An eligible agency may not include in its price base the
part of the capital costs of a project paid for by using passenger
facility revenue to establish a price under a contract between the
agency and an air carrier or foreign air carrier.
(3) For a project for terminal development, gates and related
areas, or a facility occupied or used by at least one air carrier
or foreign air carrier on an exclusive or preferential basis, a price
payable by an air carrier or foreign air carrier using the facilities
must at least equal the price paid by an air carrier or foreign
air carrier using a similar facility at the airport that was not
financed with passenger facility revenue.
(h) COMPLIANCE.—(1) As necessary to ensure compliance with
this section, the Secretary shall prescribe regulations requiring
recordkeeping and auditing of accounts maintained by an air carrier
or foreign air carrier and its agent collecting a passenger facility
fee and by the eligible agency imposing the fee.
(2) The Secretary periodically shall audit and review the use
by an eligible agency of passenger facility revenue. After review
and a public hearing, the Secretary may end any part of the
H. R. 1758—372
authority of the agency to impose a passenger facility fee to the
extent the Secretary decides that the revenue is not being used
as provided in this section.
(3) The Secretary may set off amounts necessary to ensure
compliance with this section against amounts otherwise payable
to an eligible agency under subchapter I of chapter 471 of this
title if the Secretary decides a passenger facility fee is excessive
or that passenger facility revenue is not being used as provided
in this section.
(i) REGULATIONS.—The Secretary shall prescribe regulations
necessary to carry out this section. The regulations—
(1) may prescribe the time and form by which a passenger
facility fee takes effect; and
(2) shall—
(A) require an air carrier or foreign air carrier and
its agent to collect a passenger facility fee that an eligible
agency imposes under this section;
(B) establish procedures for handling and remitting
money collected;
(C) ensure that the money, less a uniform amount
the Secretary determines reflects the average necessary
and reasonable expenses (net of interest accruing to the
carrier and agent after collection and before remittance)
incurred in collecting and handling the fee, is paid promptly
to the eligible agency for which they are collected; and
(D) require that the amount collected for any air
transportation be noted on the ticket for that air transpor-
tation.
§ 40118. Government-financed air transportation
(a) TRANSPORTATION
BY
AIR
CARRIERS
HOLDING
CERTIFI-
CATES.—A department, agency, or instrumentality of the United
States Government shall take necessary steps to ensure that the
transportation of passengers and property by air is provided by
an air carrier holding a certificate under section 41102 of this
title if—
(1) the department, agency, or instrumentality—
(A) obtains the transportation for itself or in carrying
out an arrangement under which payment is made by
the Government or payment is made from amounts pro-
vided for the use of the Government; or
(B) provides the transportation to or for a foreign coun-
try 
or 
international 
or 
other 
organization 
without
reimbursement;
(2) the transportation is authorized by the certificate or
by regulation or exemption of the Secretary of Transportation;
and
(3) the air carrier is—
(A) available, if the transportation is between a place
in the United States and a place outside the United States;
or
(B) reasonably available, if the transportation is
between 2 places outside the United States.
(b) TRANSPORTATION BY FOREIGN AIR CARRIERS.—This section
does not preclude the transportation of passengers and property
by a foreign air carrier if the transportation is provided under
a bilateral or multilateral air transportation agreement to which
H. R. 1758—373
the Government and the government of a foreign country are parties
if the agreement—
(1) is consistent with the goals for international aviation
policy of section 40101(e) of this title; and
(2) provides for the exchange of rights or benefits of similar
magnitude.
(c) PROOF.—The Comptroller General shall allow the expendi-
ture of an appropriation for transportation in violation of this
section only when satisfactory proof is presented showing the neces-
sity for the transportation.
(d) TRANSPORTATION
BY FOREIGN AIR CARRIERS.—Notwith-
standing subsections (a) and (c) of this section, any amount appro-
priated to the Secretary of State, the Director of the United States
Information Agency, the Director of the United States International
Development Cooperation Agency, or the Director of the Arms Con-
trol and Disarmament Agency may be used to pay for the transpor-
tation of an officer or employee of the Department of State or
one of those agencies, a dependent of the officer or employee,
and accompanying baggage, by a foreign air carrier when the
transportation is between 2 places outside the United States.
(e) RELATIONSHIP TO OTHER LAWS.—This section does not affect
the application of the antidiscrimination provisions of this part.
§ 40119. Security and research and development activities
(a) GENERAL REQUIREMENTS.—The Administrator of the Federal
Aviation Administration shall conduct research (including behav-
ioral research) and development activities appropriate to develop,
modify, test, and evaluate a system, procedure, facility, or device
to protect passengers and property against acts of criminal violence
and aircraft piracy.
(b) DISCLOSURE.—(1) Notwithstanding section 552 of title 5,
the Administrator shall prescribe regulations prohibiting disclosure
of information obtained or developed in carrying out security or
research and development activities under section 44501(a) or (c),
44502(a)(1) or (3), (b), or (c), 44504, 44505, 44507, 44508, 44511,
44512, 44513, 44901, 44903(a), (b), (c), or (e), 44905, 44912, 44935,
44936, or 44938(a) or (b) of this title if the Administrator decides
disclosing the information would—
(A) be an unwarranted invasion of personal privacy;
(B) reveal a trade secret or privileged or confidential
commercial or financial information; or
(C) be detrimental to the safety of passengers in air
transportation.
(2) Paragraph (1) of this subsection does not authorize informa-
tion to be withheld from a committee of Congress authorized to
have the information.
(c) TRANSFERS OF DUTIES AND POWERS PROHIBITED.—Except
as otherwise provided by law, the Administrator may not transfer
a duty or power under this section to another department, agency,
or instrumentality of the United States Government.
§ 40120. Relationship to other laws
(a) NONAPPLICATION.—Except as provided in the International
Navigational Rules Act of 1977 (33 U.S.C. 1601 et seq.), the naviga-
tion and shipping laws of the United States and the rules for
the prevention of collisions do not apply to aircraft or to the naviga-
tion of vessels related to those aircraft.
H. R. 1758—374
(b) EXTENDING APPLICATION OUTSIDE UNITED STATES.—The
President may extend (in the way and for periods the President
considers necessary) the application of this part to outside the
United States when—
(1) an international arrangement gives the United States
Government authority to make the extension; and
(2) the President decides the extension is in the national
interest.
(c) ADDITIONAL REMEDIES.—A remedy under this part is in
addition to any other remedies provided by law.
SUBPART II—ECONOMIC REGULATION
CHAPTER 411—AIR CARRIER CERTIFICATES
Sec.
41101.
Requirement for a certificate.
41102.
General, temporary, and charter air transportation certificates of air car-
riers.
41103.
All-cargo air transportation certificates of air carriers.
41104.
Additional limitations and requirements of charter air carriers.
41105.
Transfers of certificates.
41106.
Airlift service.
41107.
Transportation of mail.
41108.
Applications for certificates.
41109.
Terms of certificates.
41110.
Effective periods and amendments, modifications, suspensions, and revoca-
tions of certificates.
41111.
Simplified procedure to apply for, amend, modify, suspend, and transfer
certificates.
41112.
Liability insurance and financial responsibility.
§ 41101. Requirement for a certificate
(a) GENERAL.—Except as provided in this chapter or another
law—
(1) an air carrier may provide air transportation only if
the air carrier holds a certificate issued under this chapter
authorizing the air transportation;
(2) a charter air carrier may provide charter air transpor-
tation only if the charter air carrier holds a certificate issued
under this chapter authorizing the charter air transportation;
and
(3) an air carrier may provide all-cargo air transportation
only if the air carrier holds a certificate issued under this
chapter authorizing the all-cargo air transportation.
(b) THROUGH SERVICE AND JOINT TRANSPORTATION.—A citizen
of the United States providing transportation in a State of pas-
sengers or property as a common carrier for compensation with
aircraft capable of carrying at least 30 passengers, under authority
granted by the appropriate State authority—
(1) may provide transportation for passengers and property
that includes through service by the citizen over its routes
in the State and in air transportation by an air carrier or
foreign air carrier; and
(2) subject to sections 41309 and 42111 of this title, may
make an agreement with an air carrier or foreign air carrier
to provide the joint transportation.
(c) PROPRIETARY OR EXCLUSIVE RIGHT NOT CONFERRED.—A cer-
tificate issued under this chapter does not confer a proprietary
or exclusive right to use airspace, an airway of the United States,
or an air navigation facility.
H. R. 1758—375
§ 41102. General, temporary, and charter air transportation
certificates of air carriers
(a) ISSUANCE.—The Secretary of Transportation may issue a
certificate of public convenience and necessity to a citizen of the
United States authorizing the citizen to provide any part of the
following air transportation the citizen has applied for under section
41108 of this title:
(1) air transportation as an air carrier.
(2) temporary air transportation as an air carrier for a
limited period.
(3) charter air transportation as a charter air carrier.
(b) FINDINGS REQUIRED FOR ISSUANCE.—(1) Before issuing a
certificate under subsection (a) of this section, the Secretary must
find that the citizen is fit, willing, and able to provide the transpor-
tation to be authorized by the certificate and to comply with this
part and regulations of the Secretary.
(2) In addition to the findings under paragraph (1) of this
subsection, the Secretary, before issuing a certificate under sub-
section (a) of this section for foreign air transportation, must find
that the transportation is consistent with the public convenience
and necessity.
(c) TEMPORARY CERTIFICATES.—The Secretary may issue a cer-
tificate under subsection (a) of this section for interstate air
transportation (except the transportation of passengers) or foreign
air transportation for a temporary period of time (whether the
application is for permanent or temporary authority) when the
Secretary decides that a test period is desirable—
(1) to decide if the projected services, efficiencies, methods,
and prices and the projected results will materialize and remain
for a sustained period of time; or
(2) to evaluate the new transportation.
(d) FOREIGN AIR TRANSPORTATION.—The Secretary shall submit
each decision authorizing the provision of foreign air transportation
to the President under section 41307 of this title.
§ 41103. All-cargo air transportation certificates of air car-
riers
(a) APPLICATIONS.—A citizen of the United States may apply
to the Secretary of Transportation for a certificate authorizing the
citizen to provide all-property air transportation. The application
must contain information and be in the form the Secretary by
regulation requires.
(b) ISSUANCE.—Not later than 180 days after an application
for a certificate is filed under this section, the Secretary shall
issue the certificate to a citizen of the United States authorizing
the citizen, as an air carrier, to provide any part of the all-cargo
air transportation applied for unless the Secretary finds that the
citizen is not fit, willing, and able to provide the all-cargo air
transportation to be authorized by the certificate and to comply
with regulations of the Secretary.
(c) TERMS.—The Secretary may impose terms the Secretary
considers necessary when issuing a certificate under this section.
However, the Secretary may not impose terms that restrict the
places served or prices charged by the holder of the certificate.
(d) EXEMPTIONS AND STATUS.—A citizen issued a certificate
under this section—
H. R. 1758—376
(1) is exempt in providing the transportation under the
certificate from the requirements of—
(A) section 41101(a)(1) of this title and regulations
or procedures prescribed under section 41101(a)(1); and
(B) other provisions of this part and regulations or
procedures prescribed under those provisions when the Sec-
retary finds under regulations of the Secretary that the
exemption is appropriate; and
(2) is an air carrier under this part except to the extent
the carrier is exempt under this section from a requirement
of this part.
§ 41104. Additional limitations and requirements of charter
air carriers
(a) RESTRICTIONS.—The Secretary of Transportation may pre-
scribe a regulation or issue an order restricting the marketability,
flexibility, accessibility, or variety of charter air transportation pro-
vided under a certificate issued under section 41102 of this title
only to the extent required by the public interest. A regulation
prescribed or order issued under this subsection may not be more
restrictive than a regulation related to charter air transportation
that was in effect on October 1, 1978.
(b) ALASKA.—An air carrier holding a certificate issued under
section 41102 of this title may provide charter air transportation
between places in Alaska only to the extent the Secretary decides
the transportation is required by public convenience and necessity.
The Secretary may make that decision when issuing, amending,
or modifying the certificate. This subsection does not apply to a
certificate issued under section 41102 to a citizen of the United
States who, before July 1, 1977—
(1) maintained a principal place of business in Alaska;
and
(2) conducted air transport operations between places in
Alaska with aircraft with a certificate for gross takeoff weight
of more than 40,000 pounds.
(c) SUSPENSIONS.—(1) The Secretary shall suspend for not more
than 30 days any part of the certificate of a charter air carrier
if the Secretary decides that the failure of the carrier to comply
with the requirements described in sections 41110(e) and 41112
of this title, or a regulation or order of the Secretary under section
41110(e) or 41112, requires immediate suspension in the interest
of the rights, welfare, or safety of the public. The Secretary may
act under this paragraph without notice or a hearing.
(2) The Secretary shall begin immediately a hearing to decide
if the certificate referred to in paragraph (1) of this subsection
should be amended, modified, suspended, or revoked. Until the
hearing is completed, the Secretary may suspend the certificate
for additional periods totaling not more than 60 days. If the Sec-
retary decides that the carrier is complying with the requirements
described in sections 41110(e) and 41112 of this title and regulations
and orders under sections 41110(e) and 41112, the Secretary imme-
diately may end the suspension period and proceeding begun under
this subsection. However, the Secretary is not prevented from
imposing a civil penalty on the carrier for violating the requirements
described in section 41110(e) or 41112 or a regulation or order
under section 41110(e) or 41112.
H. R. 1758—377
§ 41105. Transfers of certificates
(a) GENERAL.—A certificate issued under section 41102 of this
title may be transferred only when the Secretary of Transportation
approves the transfer as being consistent with the public interest.
(b) CERTIFICATION TO CONGRESS.—When a certificate is trans-
ferred, the Secretary shall certify to the Committee on Commerce,
Science, and Transportation of the Senate and the Committee on
Public Works and Transportation of the House of Representatives
that the transfer is consistent with the public interest. The Sec-
retary shall include with the certification a report analyzing the
effects of the transfer on—
(1) the viability of each carrier involved in the transfer;
(2) competition in the domestic airline industry; and
(3) the trade position of the United States in the inter-
national air transportation market.
§ 41106. Airlift service
(a) GENERAL.—(1) Except as provided in subsection (b) of this
section, the transportation of passengers or property by transport
category aircraft in interstate air transportation obtained by the
Secretary of Defense or the Secretary of a military department
through a contract of at least 31 days for airlift service in the
United States may be provided only by an air carrier that—
(A) has aircraft in the civil reserve air fleet or offers to
place the aircraft in that fleet; and
(B) holds a certificate issued under section 41102 of this
title.
(2) The Secretary of Transportation shall act as expeditiously
as possible on an application for a certificate under section 41102
of this title to provide airlift service.
(b) EXCEPTION.—When the Secretary of Defense decides that
no air carrier holding a certificate under section 41102 is capable
of providing, and willing to provide, the airlift service, the Secretary
of Defense may make a contract to provide the service with an
air carrier not having a certificate.
§ 41107. Transportation of mail
When the United States Postal Service finds that the needs
of the Postal Service require the transportation of mail by aircraft
in foreign air transportation or between places in Alaska, in addition
to the transportation of mail authorized under certificates in effect,
the Postal Service shall certify that finding to the Secretary of
Transportation with a statement about the additional transpor-
tation and facilities necessary to provide the additional transpor-
tation. A copy of each certification and statement shall be posted
for at least 20 days in the office of the Secretary. After notice
and an opportunity for a hearing, the Secretary shall issue a new
certificate under section 41102 of this title, or amend or modify
an existing certificate under section 41110(a)(2)(A) of this title,
to provide the additional transportation and facilities if the Sec-
retary finds the additional transportation is required by the public
convenience and necessity.
§ 41108. Applications for certificates
(a) FORM, CONTENTS, AND PROOF OF SERVICE.—To be issued
a certificate of public convenience and necessity under section 41102
H. R. 1758—378
of this title, a citizen of the United States must apply to the
Secretary of Transportation. The application must—
(1) be in the form and contain information required by
regulations of the Secretary; and
(2) be accompanied by proof of service on interested persons
as required by regulations of the Secretary and on each commu-
nity that may be affected by the issuance of the certificate.
(b) NOTICE, RESPONSE, AND ACTIONS
ON APPLICATIONS.—(1)
When an application is filed, the Secretary shall post a notice
of the application in the office of the Secretary and give notice
of the application to other persons as required by regulations of
the Secretary. An interested person may file a response with the
Secretary opposing or supporting the issuance of the certificate.
Not later than 90 days after the application is filed, the Secretary
shall—
(A) provide an opportunity for a public hearing on the
application;
(B) begin the procedure under section 41111 of this title;
or
(C) dismiss the application on its merits.
(2) An order of dismissal issued by the Secretary under para-
graph (1)(C) of this subsection is a final order and may be reviewed
judicially under section 46110 of this title.
(3) If the Secretary provides an opportunity for a hearing under
paragraph (1)(A) of this subsection, an initial or recommended
decision shall be issued not later than 150 days after the date
the Secretary provides the opportunity. The Secretary shall issue
a final order on the application not later than 90 days after the
decision is issued. However, if the Secretary does not act within
the 90-day period, the initial or recommended decision on an
application to provide—
(A) interstate air transportation is a final order and may
be reviewed judicially under section 46110 of this title; and
(B) foreign air transportation shall be submitted to the
President under section 41307 of this title.
(4) If the Secretary acts under paragraph (1)(B) of this sub-
section, the Secretary shall issue a final order on the application
not later than 180 days after beginning the procedure on the
application.
(5) If a citizen applying for a certificate does not meet the
procedural schedule adopted by the Secretary in a proceeding, the
Secretary may extend the period for acting under paragraphs (3)
and (4) of this subsection by a period equal to the period of delay
caused by the citizen. In addition to an extension under this para-
graph, an initial or recommended decision under paragraph (3)
of this subsection may be delayed for not more than 30 days
in extraordinary circumstances.
(c) PROOF REQUIREMENTS.—(1) A citizen applying for a certifi-
cate must prove that the citizen is fit, willing, and able to provide
the transportation referred to in section 41102 of this title and
to comply with this part.
(2) A person opposing a citizen applying for a certificate must
prove that the transportation referred to in section 41102(b)(2)
of this title is not consistent with the public convenience and neces-
sity. The transportation is deemed to be consistent with the public
convenience and necessity unless the Secretary finds, by a prepon-
H. R. 1758—380
in paragraph (4) of this subsection, under section 41111 of this
title, the Secretary may—
(A) amend, modify, or suspend any part of a certificate
if the Secretary finds the public convenience and necessity
require amendment, modification, or suspension; and
(B) revoke any part of a certificate if the Secretary finds
that the holder of the certificate intentionally does not comply
with this chapter, sections 41308–41310(a), 41501, 41503,
41504, 41506, 41510, 41511, 41701, 41702, 41705–41709, 41711,
41712, and 41731–41742, chapter 419, subchapter II of chapter
421, and section 46301(b) of this title, a regulation or order
of the Secretary under any of those provisions, or a term
of its certificate.
(3) The Secretary may revoke a certificate under paragraph
(2)(B) of this subsection only if the holder of the certificate does
not comply, within a reasonable time the Secretary specifies, with
an order to the holder requiring compliance.
(4) A certificate to provide foreign air transportation may not
be amended, modified, suspended, or revoked under section 41111
of this title if the holder of the certificate requests an oral evi-
dentiary hearing or the Secretary finds, under all the facts and
circumstances, that the hearing is required in the public interest.
(b) ALL-CARGO AIR TRANSPORTATION.—The Secretary may order
that a certificate issued under section 41103 of this title authorizing
all-cargo air transportation is ineffective if, after notice and an
opportunity for a hearing, the Secretary finds that the transpor-
tation is not provided to the minimum extent specified by the
Secretary.
(c) FOREIGN AIR TRANSPORTATION.—(1) Notwithstanding sub-
section (a)(2)–(4) of this section, after notice and a reasonable oppor-
tunity for the affected air carrier to present its views, but without
a hearing, the Secretary may suspend or revoke the authority
of an air carrier to provide foreign air transportation to a place
under a certificate issued under section 41102 of this title if the
carrier—
(A) notifies the Secretary, under section 41734(a) of this
title or a regulation of the Secretary, that it intends to suspend
all transportation to that place; or
(B) does not provide regularly scheduled transportation
to the place for 90 days immediately before the date the Sec-
retary notifies the carrier of the action the Secretary proposes.
(2) Paragraph (1)(B) of this subsection does not apply to a
place provided seasonal transportation comparable to the transpor-
tation provided during the prior year.
(d) TEMPORARY CERTIFICATES.—On application or on the initia-
tive of the Secretary, the Secretary may—
(1) review the performance of an air carrier issued a certifi-
cate under section 41102(c) of this title on the basis that the
air carrier will provide innovative or low-priced air transpor-
tation under the certificate; and
(2) amend, modify, suspend, or revoke the certificate or
authority under subsection (a)(2) or (c) of this section if the
air carrier has not provided, or is not providing, the transpor-
tation.
(e) CONTINUING REQUIREMENTS.—After notice and an oppor-
tunity for a hearing, the Secretary shall amend, modify, suspend,
H. R. 1758—381
or revoke any part of a certificate issued under section 41102
of this title if the Secretary finds that the air carrier—
(1) is not fit, willing, and able to continue to provide the
transportation authorized by the certificate and to comply with
this part and regulations of the Secretary; or
(2) does not file reports necessary for the Secretary to
decide if the carrier is complying with the requirements of
clause (1) of this subsection.
(f) ILLEGAL IMPORTATION OF CONTROLLED SUBSTANCES.—The
Secretary—
(1) in consultation with appropriate departments, agencies,
and instrumentalities of the United States Government, shall
reexamine immediately the fitness of an air carrier that—
(A) violates the laws and regulations of the United
States related to the illegal importation of a controlled
substance; or
(B) does not adopt available measures to prevent the
illegal importation of a controlled substance into the United
States on its aircraft; and
(2) when appropriate, shall amend, modify, suspend, or
revoke the certificate of the carrier issued under this chapter.
(g) RESPONSES.—An interested person may file a response with
the Secretary opposing or supporting the amendment, modification,
suspension, or revocation of a certificate under subsection (a) of
this section.
§ 41111. Simplified procedure to apply for, amend, modify,
suspend, and transfer certificates
(a) GENERAL REQUIREMENTS.—(1) The Secretary of Transpor-
tation shall prescribe regulations that simplify the procedure for—
(A) acting on an application for a certificate to provide
air transportation under section 41102 of this title; and
(B) amending, modifying, suspending, or transferring any
part of that certificate under section 41105 or 41110(a) or
(c) of this title.
(2) Regulations under this section shall provide for notice and
an opportunity for each interested person to file appropriate written
evidence and argument. An oral evidentiary hearing is not required
to be provided under this section.
(b) WHEN SIMPLIFIED PROCEDURE USED.—The Secretary may
use the simplified procedure to act on an application for a certificate
to provide air transportation under section 41102 of this title,
or to amend, modify, suspend, or transfer any part of that certificate
under section 41105 or 41110(a) or (c) of this title, when the Sec-
retary decides the use of the procedure is in the public interest.
(c) CONTENTS.—(1) To the extent the Secretary finds prac-
ticable, regulations under this section shall include each standard
the Secretary will apply when—
(A) deciding whether to use the simplified procedure; and
(B) making a decision on an action in which the procedure
is used.
(2) The regulations may provide that written evidence and
argument may be filed under section 41108(b) of this title as a
part of a response opposing or supporting the issuance of a
certificate.
H. R. 1758—382
§ 41112. Liability insurance and financial responsibility
(a) LIABILITY INSURANCE.—The Secretary of Transportation
may issue a certificate to a citizen of the United States to provide
air transportation as an air carrier under section 41102 of this
title only if the citizen complies with regulations and orders of
the Secretary governing the filing of an insurance policy or self-
insurance plan approved by the Secretary. The policy or plan must
be sufficient to pay, not more than the amount of the insurance,
for bodily injury to, or death of, an individual or for loss of, or
damage to, property of others, resulting from the operation or
maintenance of the aircraft under the certificate. A certificate does
not remain in effect unless the carrier complies with this subsection.
(b) FINANCIAL RESPONSIBILITY.—To protect passengers and
shippers using an aircraft operated by an air carrier issued a
certificate under section 41102 of this title, the Secretary may
require the carrier to file a performance bond or equivalent security
in the amount and on terms the Secretary prescribes. The bond
or security must be sufficient to ensure the carrier adequately
will pay the passengers and shippers when the transportation the
carrier agrees to provide is not provided. The Secretary shall pre-
scribe the amounts to be paid under this subsection.
CHAPTER 413—FOREIGN AIR TRANSPORTATION
Sec.
41301.
Requirement for a permit.
41302.
Permits of foreign air carriers.
41303.
Transfers of permits.
41304.
Effective periods and amendments, modifications, suspensions, and revoca-
tions of permits.
41305.
Applications for permits.
41306.
Simplified procedure to apply for, amend, modify, and suspend permits.
41307.
Presidential review of actions about foreign air transportation.
41308.
Exemption from the antitrust laws.
41309.
Cooperative agreements and requests.
41310.
Discriminatory practices.
§ 41301. Requirement for a permit
A foreign air carrier may provide foreign air transportation
only if the foreign air carrier holds a permit issued under this
chapter authorizing the foreign air transportation.
§ 41302. Permits of foreign air carriers
The Secretary of Transportation may issue a permit to a person
(except a citizen of the United States) authorizing the person to
provide foreign air transportation as a foreign air carrier if the
Secretary finds that—
(1) the person is fit, willing, and able to provide the foreign
air transportation to be authorized by the permit and to comply
with this part and regulations of the Secretary; and
(2)(A) the person is qualified, and has been designated
by the government of its country, to provide the foreign air
transportation under an agreement with the United States
Government; or
(B) the foreign air transportation to be provided under
the permit will be in the public interest.
H. R. 1758—383
§ 41303. Transfers of permits
A permit issued under section 41302 of this title may be trans-
ferred only when the Secretary of Transportation approves the
transfer because the transfer is in the public interest.
§ 41304. Effective periods and amendments, modifications,
suspensions, and revocations of permits
(a) GENERAL.—The Secretary of Transportation may prescribe
the period during which a permit issued under section 41302 of
this title is in effect. After notice and an opportunity for a hearing,
the Secretary may amend, modify, suspend, or revoke the permit
if the Secretary finds that action to be in the public interest.
(b) SUSPENSIONS AND RESTRICTIONS.—Without a hearing, but
subject to the approval of the President, the Secretary—
(1) may suspend summarily the permits of foreign air car-
riers of a foreign country, or amend, modify, or limit the oper-
ations of the foreign air carriers under the permits, when
the Secretary finds—
(A) the action is in the public interest; and
(B) the government, an aeronautical authority, or a
foreign air carrier of the foreign country, over the objection
of the United States Government, has—
(i) limited or denied the operating rights of an
air carrier; or
(ii) engaged in unfair, discriminatory, or restrictive
practices that have a substantial adverse competitive
impact on an air carrier related to air transportation
to, from, through, or over the territory of the foreign
country; and
(2) to make this subsection effective, may restrict oper-
ations between the United States and the foreign country by
a foreign air carrier of a third country.
(c) ILLEGAL IMPORTATION OF CONTROLLED SUBSTANCES.—The
Secretary—
(1) in consultation with appropriate departments, agencies,
and instrumentalities of the Government, shall reexamine
immediately the fitness of a foreign air carrier that—
(A) violates the laws and regulations of the United
States related to the illegal importation of a controlled
substance; or
(B) does not adopt available measures to prevent the
illegal importation of a controlled substance into the United
States on its aircraft; and
(2) when appropriate, shall amend, modify, suspend, or
revoke the permit of the carrier issued under this chapter.
(d) RESPONSES.—An interested person may file a response with
the Secretary opposing or supporting the amendment, modification,
suspension, or revocation of a permit under subsection (a) of this
section.
§ 41305. Applications for permits
(a) FORM, CONTENTS, NOTICE, RESPONSE, AND ACTIONS
ON
APPLICATIONS.—(1) A person must apply in writing to the Secretary
of Transportation to be issued a permit under section 41302 of
this title. The Secretary shall prescribe regulations to require that
the application be—
(A) verified;