I
106TH CONGRESS
1ST SESSION
H. R. 1679
To amend title 49, United States Code, to provide assistance and slots
with respect to air carrier service between high density airports and
certain small and nonhub airports that have unreasonably high airfares,
to improve jet aircraft service to markets that have unreasonably high
airfares, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 4, 1999
Mr. SWEENEY introduced the following bill; which was referred to the
Committee on Transportation and Infrastructure
A BILL
To amend title 49, United States Code, to provide assistance
and slots with respect to air carrier service between
high density airports and certain small and nonhub air-
ports that have unreasonably high airfares, to improve
jet aircraft service to markets that have unreasonably
high airfares, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Airfare Relief Act of
1999’’.
TITLE I—SERVICE TO AIRPORTS
NOT RECEIVING SUFFICIENT
SERVICE
SEC. 101. AVAILABILITY OF SLOTS.
(a) PERIOD OF EFFECTIVENESS.—
(1) SLOTS
FOR
FOREIGN
AIR
TRANSPOR-
TATION.—Section 41714(b) of title 49, United
States Code, is amended by striking paragraph (4).
(2) SLOTS
FOR
NEW
ENTRANTS.—Section
41714(c) of such title is amended—
(A) by striking ‘‘(1) IN GENERAL.—’’;
(B) by striking paragraph (2); and
(C) by moving the text of paragraph (1) so
that it follows the subsection heading and its
margin is aligned with the margin for sub-
section (g).
(b) SLOTS
FOR AIRPORTS WITH UNREASONABLY
HIGH
AIRFARES.—Section 41714 of such title is
amended—
(1) by striking subsections (e) and (f) and in-
serting the following:
‘‘(e) SLOTS FOR AIRPORTS WITH UNREASONABLY
HIGH AIRFARES.—
‘‘(1) EXEMPTIONS.—Notwithstanding part D of
chapter 491 of this title, the Secretary may by order
grant exemptions from the requirements under sub-
parts K and S of part 93 of title 14, Code of Fed-
eral Regulations (pertaining to slots at high density
airports), to enable air carriers to provide nonstop
air transportation using jet aircraft that comply with
the stage 3 noise levels of part 36 of such title 14
between a high density airport and a small hub air-
port or nonhub airport that has unreasonably high
airfares.
‘‘(2) LIMITATIONS.—No more than 4 exemp-
tions per hour may be granted under this subsection
for slots at any high density airport, and no more
than 6 exemptions per day may be granted under
this subsection for slots at Ronald Reagan Wash-
ington National Airport. An exemption may be
granted under this subsection for a slot at Ronald
Reagan Washington National Airport only if the
flight utilizing such slot begins or ends within 1,250
miles of the Airport and a stage 3 aircraft is used
for such flight.
‘‘(3) APPLICATION.—An air carrier interested
in an exemption under this subsection shall submit
to the Secretary an application for such exemption.
No application may be submitted to the Secretary
before the last day of the 30-day period beginning
on the date of the enactment of this paragraph.
‘‘(4) 
DEADLINE
FOR
DECISION.—Notwith-
standing any other provision of law, the Secretary
shall make a decision with regard to granting an ex-
emption under this subsection on or before the
120th day following the date of the application for
the exemption. If the Secretary does not make the
decision on or before such 120th day, the air carrier
applying for the service may provide such service
until the Secretary makes the decision or the Admin-
istrator of the Federal Aviation Administration de-
termines that providing such service would have an
adverse effect on air safety.
‘‘(5) PERIOD OF EFFECTIVENESS.—An exemp-
tion granted under this subsection may remain in ef-
fect only while the air carrier for whom the exemp-
tion is granted continues to provide nonstop air
transportation between the airport that has unrea-
sonably high airfares and the high density airport.
‘‘(6) DEFINITIONS.—In this subsection, the fol-
lowing definitions apply:
‘‘(A) 
NONHUB
AIRPORT.—The 
term
‘nonhub airport’ means an airport that each
year has at least 2,500 passenger boardings but
less than .05 percent of the total annual
boardings in the United States.
‘‘(B) SMALL
HUB
AIRPORT.—The term
‘small hub airport’ means an airport that each
year has at least .05 percent but less than .25
percent of the total annual boardings in the
United States.
‘‘(C) UNREASONABLY
HIGH
AIRFARE.—
The term ‘unreasonably high airfare’, as used
with respect to an airport, means that the air-
fare listed in the table entitled ‘Top 1,000 City-
Pair Market Summarized by City’, contained in
the Domestic Airline Fares Consumer Report of
the Department of Transportation, for one or
more markets for which the airport is a part of
has an average yield listed in such table that is
more than 19 cents.’’.
SEC. 102. FUNDING FOR AIR CARRIER SERVICE TO AIR-
PORTS NOT RECEIVING SUFFICIENT SERV-
ICE.
(a) FUNDING FOR SMALL COMMUNITY AIR SERV-
ICE.—Section 41742(b) of title 49, United States Code,
is amended to read as follows:
‘‘(b) FUNDING FOR SMALL COMMUNITY AIR SERV-
ICE.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law, from moneys credited to the ac-
count established under section 45303(a), including
the funds derived from fees imposed under the au-
thority contained in section 45301(a)—
‘‘(A) not to exceed $45,000,000 for each
fiscal year beginning after September 30, 1999,
shall be used to carry out the essential air serv-
ice program under this subchapter; and
‘‘(B) not to exceed $5,000,000 for such fis-
cal year shall be used—
‘‘(i) for assisting an air carrier to sub-
sidize service to and from an small hub or
nonhub airport that has unreasonably high
airfares for a period not to exceed 3 years;
and
‘‘(ii) for assisting such an airport to
obtain jet aircraft service to and from the
airport and to promote passenger usage of
that service.
‘‘(2) RURAL AIR SAFETY.—Any funds that are
made available by paragraph (1) for a fiscal year
and that the Secretary determines will not be obli-
gated or expended before the last day of such fiscal
year shall be available to the Administrator for use
under this subchapter in improving rural air safety
at airports with less than 100,000 annual boardings.
‘‘(3) ALLOCATION OF ADDITIONAL FUNDING.—
If, for a fiscal year beginning after September 30,
1999, more than $50,000,000 is made available
under subsection (a) to carry out the small commu-
nity air service program, 1⁄2 of the amounts in excess
of $50,000,000 shall be used for the purposes speci-
fied in paragraph (1)(B), in addition to amounts
made available for such purposes under paragraph
(1)(B).
‘‘(4) AUTHORIZATION OF APPROPRIATIONS.—In
addition to amounts made available under paragraph
(1), there is authorized to be appropriated to the
Secretary of Transportation for each fiscal year be-
ginning after September 30, 1999, $15,000,000—
‘‘(A) to provide assistance to an air carrier
to subsidize service to and from a small hub or
nonhub airport that has unreasonably high air-
fares for a period not to exceed 3 years; and
‘‘(B) to provide assistance to such an air-
port to obtain jet aircraft service to and from
the airport and to promote passenger usage of
that service.
‘‘(5) PRIORITY CRITERIA FOR ASSISTING AIR-
PORTS
NOT
RECEIVING
SUFFICIENT
SERVICE.—In
providing assistance to airports under paragraphs
(1)(B) and (4), the Administrator shall give priority
to those airports for which a community will provide,
from local sources (other than airport revenues), a
portion of the cost of the activity to be assisted.
‘‘(6) DEFINITIONS.—In this subsection, the
terms ‘nonhub airport’, ‘small hub airport’, and ‘un-
reasonably high airfare’ have the meaning such
terms have in section 41714(e)(6).’’.
(b) CONFORMING AMENDMENTS.—Chapter 417 of
such title is amended—
(1) section 41742 is amended—
(A) in the section heading by striking ‘‘Es-
sential’’ and inserting ‘‘Small commu-
nity’’; and
(B) in each of subsections (a) and (c) by
striking ‘‘essential air’’ and inserting ‘‘small
community’’; and
(2) in the analysis for such chapter by striking
the item relating to section 41742 and inserting the
following:
‘‘41742. Small community air service authorization.’’.
SEC. 103. JOINT FARES AND INTERLINE AGREEMENTS.
(a) Subchapter I of chapter 417 is amended by add-
ing at the end the following:
‘‘§ 41717. Joint fares and interline agreements for do-
mestic transportation
‘‘(a) DEFINITIONS.—In this section, the following
definitions apply:
‘‘(1) QUALIFYING
AIR
CARRIER.—The term
‘qualifying air carrier’ means an air carrier that op-
erates under a certificate of public convenience and
necessity under chapter 411 of this title.
‘‘(2) HIGH AIRFARE AIRPORT.—The term ‘high
airfare airport’ means a commercial service airport
that is a nonhub airport (as defined in section
41731 of this title) or a small hub airport (as de-
fined in section 41731 of this title) that has unrea-
sonably 
high 
airfares 
as 
defined 
in 
section
41714(e)(6).
‘‘(3) ESSENTIAL AIRPORT FACILITY.—The term
‘essential airport facility’ means a large hub airport
(as defined in section 41731 of this title) in the con-
tiguous 48 States.
‘‘(b) SECRETARY MAY COMPEL JOINT FARE STRUC-
TURE.—If the Secretary of Transportation determines
that it is necessary to enhance competition at a high air-
fare airport, the Secretary may require an air carrier that
serves an essential airport facility to enter into a joint-
fare or interline agreement, that the Secretary determines
is reasonable, with a qualifying air carrier that serves the
high airfare airport to facilitate air transportation in the
market.’’.
TITLE II—REGIONAL AIR
SERVICE INCENTIVE PROGRAM
SEC. 201. AMENDMENT OF TITLE 49, UNITED STATES CODE.
(a) IN GENERAL.—Chapter 417 of title 49, United
States Code, is amended by adding at the end the fol-
lowing:
‘‘SUBCHAPTER III—REGIONAL AIR SERVICE
INCENTIVE PROGRAM
‘‘§ 41761. Purpose
‘‘The purpose of this subchapter is to improve service
by jet aircraft to underserved markets by providing assist-
ance, in the form of loan guarantees, to commuter air car-
riers that purchase regional jet aircraft for use in serving
those markets.
‘‘§ 41762. Definitions
‘‘In this subchapter, the following definitions apply:
‘‘(1) AIRCRAFT
PURCHASE
LOAN.—The term
‘aircraft purchase loan’ means any loan made for the
purchase of commercial transport aircraft, including
spare parts normally associated with the aircraft.
‘‘(2) COMMUTER
AIR
CARRIER.—The term
‘commuter air carrier’ means an air carrier that pri-
marily operates aircraft designed to have a max-
imum passenger seating capacity of 90 or less in ac-
cordance with published flight schedules.
‘‘(3) NEW ENTRANT AIR CARRIER.—The term
‘new entrant air carrier’ means an air carrier that
has been providing air transportation according to a
published schedule for less than 5 years, including
any person that has received authority from the Sec-
retary to provide air transportation but is not pro-
viding air transportation.
‘‘(4) NONHUB
AIRPORT.—The term ‘nonhub
airport’ means an airport that each year has at least
2,500 passenger boardings, but less than .05 percent
of the total annual boardings in the United States.
‘‘(5) REGIONAL JET AIRCRAFT.—The term ‘re-
gional jet aircraft’ means a civil aircraft—
‘‘(A) powered by jet propulsion; and
‘‘(B) designed to have a maximum pas-
senger seating capacity of not less than 30 nor
more than 90.
‘‘(6) SMALL HUB AIRPORT.—The term ‘small
hub airport’ means an airport that each year has at
least .05 percent, but less than .25 percent, of the
total annual boardings in the United States.
‘‘(7) HIGH AIRFARE AIRPORT.—The term ‘high
airfare airport’ means a nonhub airport or small hub
airport that has unreasonably high airfares as de-
fined in section 41714(e)(6).
‘‘§ 41763. Loan guarantees
‘‘(a) IN GENERAL.—Subject to advance appropria-
tions, the Secretary of Transportation may guarantee any
lender against loss of principal or interest on any aircraft
purchase loan made by that lender to a commuter air car-
rier or new entrant air carrier.
‘‘(b) FORM, TERMS, AND CONDITIONS.—A guarantee
shall be made under subsection (a)—
‘‘(1) in such form and on such terms and condi-
tions; and
‘‘(2) pursuant to such regulations;
as the Secretary considers to be necessary and consistent
with this subchapter.
‘‘(c) TREATMENT OF CERTAIN COMMUTER AIR CAR-
RIERS.—The Secretary shall treat all commuter air car-
riers that have cooperative agreements, including code
share agreements with other air carriers, equally for deter-
mining eligibility for guarantees under this section regard-
less of the form of the corporate relationship between the
commuter air carrier and the other air carrier.
‘‘§ 41764. Conditions and limitations
‘‘(a) LIMITATIONS ON FUNDS.—Subject to subsection
(d), no loan guarantee shall be made under this
subchapter—
‘‘(1) extending to more than the unpaid interest
and 80 percent of the unpaid principal of any loan;
‘‘(2) on any loan or combination of loans for
more than 80 percent of the purchase price of the
aircraft, including spare parts, to be purchased with
the loan or loan combination;
‘‘(3) on any loan with respect to which terms
permit repayment more than 15 years after the date
the loan is made;
‘‘(4) in any case in which the total face amount
of the loan and any other loans to the same air car-
rier or corporate predecessor of that air carrier that
are guaranteed and outstanding under the terms of
this subchapter exceed $100,000,000.
‘‘(b) CONDITIONS FOR MAKING LOANS.—Subject to
subsection (c), the Secretary of Transportation may only
make a loan guarantee under this subchapter if—
‘‘(1) the Secretary finds that the aircraft to be
purchased with the loan is a regional jet aircraft to
be used by the commuter air carrier or new entrant
air carrier;
‘‘(2) the commuter air carrier or new entrant
air carrier agrees to use the aircraft to provide at
least 2 round-trips per day 5 days per week to the
high airfare airport; and
‘‘(3) the Secretary finds that the prospective
earning power of the commuter air carrier or new
entrant air carrier, together with the character and
value of the security pledged, furnish—
‘‘(A) reasonable assurances of the air car-
rier’s ability and intention to repay the loan
within the term of the loan—
‘‘(i) to continue its operations as an
air carrier; and
‘‘(ii) to the extent that the Secretary
determines to be necessary, to continue its
operations as an air carrier between the
same route or routes being operated by the
air carrier at the time of the loan guar-
antee; and
‘‘(B) reasonable protection to the United
States.
‘‘(c) REQUIREMENT.—Subject to subsection (d), no
loan guarantee may be made under this subchapter on any
loan or combination of loans for the purchase of any re-
gional jet aircraft that does not comply with the stage 3
noise levels of part 36 of title 14 of the Code of Federal
Regulations, as in effect on January 1, 1999.
‘‘(d) OTHER LIMITATIONS.—
‘‘(1) ON
PURCHASE
OF
REGIONAL
JET
AIR-
CRAFT.—No loan guarantee shall be made by the
Secretary under this subchapter on any loan for the
purchase of a regional jet aircraft unless the com-
muter air carrier or new entrant air carrier agrees
that it will provide scheduled passenger air transpor-
tation to the high airfare airport for which the air-
craft is purchased, or to another underserved air-
port, for a period of not less than 24 consecutive
months after the aircraft is placed in service.
‘‘(2) ON SUBORDINATION.—No loan guarantee
made under this subchapter may be subordinated to
another debt of the carrier or to any other claims
against the carrier.
‘‘(3) TO
PROTECT
INTERESTS
OF
UNITED
STATES.—No loan may be guaranteed under this
subchapter unless the Secretary determines that the
lender is responsible and that adequate provision is
made for servicing the loan on reasonable terms and
protecting the financial interests of the United
States.
‘‘§ 41765. Payment of losses
‘‘(a) IN GENERAL.—If, as a result of a default by
a carrier under a loan guaranteed under this subchapter
and after the holder of the loan has made such further
collection efforts as the Secretary of Transportation may
require, the Secretary determines that the holder has suf-
fered a loss, the Secretary shall pay the holder the amount
of the loss under the guarantee contract. Upon making
the payment, the Secretary shall be subrogated to all the
rights of the recipient of the payment.
‘‘(b) ENFORCEMENT OF UNITED STATES RIGHTS.—
The Attorney General shall take such action as may be
necessary to enforce any right accruing to the United
States as a result of the issuance of any guarantee under
this subchapter.
‘‘(c) LIMITATION ON STATUTORY CONSTRUCTION.—
Nothing in this subchapter shall be construed as pre-
cluding any forbearance for the carrier which may be
agreed upon by the parties to the guaranteed loan and
approved by the Secretary.
‘‘(d) AUTHORITY OF SECRETARY.—Notwithstanding
any other provision of law relating to the acquisition, han-
dling, or disposal of property by the United States, the
Secretary may complete, recondition, reconstruct, ren-
ovate, repair, maintain, operate, or sell any property ac-
quired under this subchapter.
‘‘§ 41766. Fees
‘‘The Secretary of Transportation shall prescribe and
collect from a lending institution a reasonable administra-
tive fee in connection with each loan guaranteed under this
subchapter.
‘‘§ 41767. Use of Federal facilities and assistance
‘‘(a) USE OF FEDERAL FACILITIES.—To permit the
Secretary of Transportation to make use of such expert
advice and services as the Secretary may require in car-
rying out this subchapter, the Secretary may use available
services and facilities of other agencies and instrumental-
ities of the Federal Government—
‘‘(1) with the consent of the appropriate Fed-
eral officials; and
‘‘(2) on a reimbursable basis.
‘‘(b) ASSISTANCE.—The head of each appropriate de-
partment or agency of the Federal Government shall exer-
cise the duties and functions of that head in such manner
as to assist in carrying out the policy specified in section
41761.
‘‘(c) OVERSIGHT.—The Secretary shall make avail-
able to the Comptroller General of the United States such
information with respect to the loan guarantee program
conducted under this subchapter as the Comptroller Gen-
eral may require to carry out the duties of the Comptroller
General under chapter 7 of title 31.
‘‘§ 41768. Payments; administrative expenses
‘‘(a) PAYMENTS.—Payments to lenders required as a
consequence of any loan guarantee made under this sub-
chapter may be made from funds appropriated pursuant
to the authorization under section 202 of the Airfare Re-
lief Act of 1999.
‘‘(b) ADMINISTRATIVE EXPENSES.—In carrying out
this subchapter, the Secretary shall use funds made avail-
able by appropriations to the Department of Transpor-
tation for the purpose of administration to cover adminis-
trative expenses of the loan guarantee program under this
subchapter.
‘‘§ 41769. Termination
‘‘The authority of the Secretary of Transportation
under section 41763 shall terminate on the date that is
5 years after the date of the enactment of this sub-
chapter.’’.
(b) CONFORMING AMENDMENT.—The analysis for
chapter 417 of such title is amended by adding at the end
the following:
‘‘SUBCHAPTER III—REGIONAL AIR SERVICE INCENTIVE PROGRAM
‘‘41761. Purpose.
‘‘41762. Definitions.
‘‘41763. Loan guarantees.
‘‘41764. Conditions and limitations.
‘‘41765. Payment of losses.
‘‘41766. Fees.
‘‘41767. Use of Federal facilities and assistance.
‘‘41768. Payments; administrative expenses.
‘‘41769. Termination.’’.
SEC. 202. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated for the cost
of loan guarantee commitments authorized in subchapter
III of chapter 417 of title 49, United States Code,
$120,000,000 per fiscal year for fiscal years 2000, 2001,
2002, 2003, and 2004.
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