I
103D CONGRESS
1ST SESSION
H. R. 471
To amend the Federal Aviation Act of 1958 to enhance competition among
air carriers by prohibiting an air carrier who operates a computer res-
ervation system from discriminating against other air carriers participat-
ing in the system and among travel agents which subscribe to the
system, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 6, 1993
Mr. OBERSTAR introduced the following bill; which was referred to the
Committee on Public Works and Transportation
A BILL
To amend the Federal Aviation Act of 1958 to enhance
competition among air carriers by prohibiting an air
carrier who operates a computer reservation system from
discriminating against other air carriers participating in
the system and among travel agents which subscribe
to the system, 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 ‘‘Airline Competition
Enhancement Act of 1993’’.
SEC. 2. COMPUTER RESERVATION SYSTEMS.
(a) IN GENERAL.—Title IV of the Federal Aviation
Act of 1958 (49 U.S.C. App. 1371–1389) is amended by
adding at the end the following new section:
‘‘SEC. 420. COMPUTER RESERVATIONS SYSTEMS.
‘‘(a) PROHIBITIONS AGAINST VENDOR DISCRIMINA-
TION.—
‘‘(1) IN GENERAL.—No vendor, in the operation
of its computer reservation system, may unjustly dis-
criminate among participants in such system. For
purposes of this subsection, unjust discrimination
shall include, but not be limited to, practices prohib-
ited by this subsection. A prohibition of a practice
for which an effective date is specified in paragraph
(2) shall take effect on such date.
‘‘(2) SPECIFIED PROHIBITED CRS OPERATIONAL
PRACTICES.—No vendor, in the operation of its com-
puter reservation system, may—
‘‘(A)(i) make available to subscribers an
integrated display in which information is or-
dered or emphasized based upon factors relat-
ing to air carrier identity; or
‘‘(ii) supply information from its computer
reservations system to any person creating or
attempting to create such an integrated display
if the vendor knows or has reason to know that
such person intends to create or attempt to cre-
ate such an integrated display; except that the
prohibition contained in this clause shall not
apply to the extent that the vendor is supplying
the information to a subscriber creating, in ac-
cordance with the conditions of the exception
contained in subsection (c)(1), an integrated
display using information from the system;
‘‘(B) make available, after September 30,
1994, to a subscriber any subscriber trans-
action capability which is more functional, time-
ly, complete, accurate, reliable, secure, or effi-
cient, is easier for the subscriber to use or ac-
cess, or provides to the subscriber a different
level of confirmation of transactions, with re-
spect to one participant than with respect to
any other participant; except to the extent that
the vendor is offering the other participant the
opportunity to participate in such capability at
the same price and terms as other participants
and the participant has not accepted such offer;
‘‘(C) make available, after September 30,
1994, to a participant any participant trans-
action capability which is more functional, time-
ly, complete, accurate, reliable, secure, or effi-
information is ordered or emphasized based upon
factors relating to air carrier identity.
‘‘(4) USE OF THIRD-PARTY HARDWARE, SOFT-
WARE, AND DATA BASES.—
‘‘(A) IN GENERAL.—Except on grounds of
demonstrated technological incompatibility, no
vendor may prohibit or unreasonably restrict,
directly or indirectly—
‘‘(i) the interconnection to its com-
puter reservation system equipment of
computer hardware or software supplied by
a person other than such vendor; or
‘‘(ii) the use by a subscriber, to access
directly any other computer reservation
system or data base, of hardware and com-
munications lines supplied by any other
vendor.
‘‘(B) 
SPECIFIED
PROHIBITIONS.—The
practices prohibited by subparagraph (A) in-
clude, but are not limited to, the following:
‘‘(i) The imposition of fees in excess
of reasonable levels to certify or inter-
connect third-party equipment or to use
equipment supplied by any other vendor to
access any other computer reservation sys-
tem or data base.
‘‘(ii) Undue delays or redundant or
unnecessary testing before certifying or
interconnecting such equipment or access.
‘‘(iii) The imposition of requirements
that subscribers use the vendor’s computer
reservation system for any minimum num-
ber or percentage of the subscriber’s book-
ings.
‘‘(iv) Refusals to provide any services,
compensation, or other benefits normally
provided subscribers on account of the sub-
scriber’s using third-party equipment or
the subscriber’s using the same equipment
for access to both the vendor’s computer
reservations system and other computer
reservation systems and data bases.
‘‘(v) The termination of a subscriber
contract because of the subscriber’s use of
third-party equipment or the use of the
same equipment for access to the vendor’s
computer reservations system and any
other computer reservation systems or data
bases.
‘‘(5) EXTENSION OF CONTRACT AS CONDITION
TO PROVIDING ADDITIONAL SYSTEM COMPONENTS.—
No vendor may require, as a condition for providing
to a subscriber additional computer reservation sys-
tem components (including software and enhance-
ments), that the term of the subscriber contract for
previously provided system components be extended.
‘‘(6) USE OF SYSTEM IN SALE OF AIR TRANS-
PORTATION SERVICES.—No vendor may require use
of its computer reservation system by the subscriber
in any sale by the subscriber of air transportation
services of the vendor.
‘‘(7) USE OF SYSTEM AS CONDITION TO COM-
PENSATION
FOR
SALE
OF
SERVICES.—No vendor
may require that a subscriber use or subscribe to its
computer reservation system as a condition to the
receipt of any compensation for the sale of air trans-
portation services by the subscriber.
‘‘(8) CONDITIONAL
PRICES.—No vendor may
charge prices to subscribers conditioned in whole or
in part on the identity of air carriers whose air
transportation services are sold by the subscriber.
‘‘(b) SUBSCRIBER CONTRACT RESTRAINTS.—
‘‘(1) TERM OF CONTRACT.—
‘‘(A) GENERAL RULE.—Except as provided
in subparagraph (B), no subscriber contract
provision shall be enforceable in law or equity
after the 180th day following the date of the
enactment of this section to the extent that
such provision provides for the term of the con-
tract to be more than 3 years.
‘‘(B) GRANDFATHER OF CERTAIN EXIST-
ING
CONTRACTS.—This paragraph shall not
apply to a contract—
‘‘(i) which is in effect on the date of
the enactment of this section,
‘‘(ii) which is for a term of not more
than 5 years, and
‘‘(iii) with respect to which all parties
to the contract have agreed, in writing,
after such date of enactment and before
the 180th day following such date of enact-
ment, that the contract will be enforceable,
subject to other paragraphs of this sub-
section, until the last day of its term.
‘‘(2) OTHER PROVISIONS.—No subscriber con-
tract provision shall be enforceable in law or equity
to the extent that such provision—
‘‘(A) forms a basis for a claim of actual or
liquidated damages by the vendor in the event
of cancellation of the contract, except as
follows:
‘‘(i) damages related to the vendor’s
actual cost of removing its equipment from
the subscriber’s premises;
‘‘(ii) the unamortized share of the
vendor’s actual cost of installing such
equipment in the subscriber’s premises ex-
clusive of any element of capital invest-
ment in such equipment; and
‘‘(iii) other amounts owed to the ven-
dor by the subscriber during the unexpired
term of the contract, but in no event in-
cluding amounts which are in the nature of
a penalty for cancellation or which other-
wise become due upon cancellation;
‘‘(B) extends, or provides for the extension
of, the contract beyond its stated date of termi-
nation, whether because of the addition or dele-
tion of equipment or because of some other
event;
‘‘(C) provides an expiration date later than
the earliest expiration date of any other con-
tract for computer reservations services or
equipment between the same subscriber and
vendor;
‘‘(D) directly or indirectly requires that the
subscriber use the vendor’s computer reserva-
tions system for a minimum volume of trans-
actions, whether measured as an absolute num-
ber, a percentage of total transactions of any
kind, or otherwise (including making failure to
comply with such a requirement a breach or
violation of the contract or a ground for termi-
nation of the contract); and
‘‘(E) directly or indirectly requires the sub-
scriber to use a minimum number or ratio of
system components based upon or related to the
number of system components leased from an-
other vendor (including making failure to com-
ply with such a requirement a breach or viola-
tion of the contract or a ground for termination
of the contract).
‘‘(c) PROHIBITION OF SUBSCRIBER MODIFICATION
OF INFORMATION.—No subscriber may use computer soft-
ware or hardware to modify information in a computer
reservation system or derived from a computer reservation
system in such a way as to produce—
‘‘(1) integrated displays of such information in
which information is ordered or emphasized based
on factors relating to air carrier identity, except that
the subscriber may use the software or hardware to
create such displays of air transportation services—
‘‘(A) if, before such use, the displays have
been requested by a customer of the subscriber
in writing;
‘‘(B) if the request is kept on file by the
subscriber until there has been a period of at
least 2 years in which the customer has not
purchased any services from the subscriber; and
‘‘(C) if the software or hardware is used
only with respect to such customer; or
‘‘(2) displays of such information which provide
subscriber transaction capability which violates sub-
section (a)(2)(B) or participant transaction capabil-
ity which violates subsection (a)(2)(C).
‘‘(d) REPORTING.—
‘‘(1) QUARTERLY
REPORTS.—Not later than
the last day of the 1st calendar quarter following the
date of the enactment of this section and of each
calendar quarter following such 1st calendar quarter
and ending on or before December 31, 1994, each
vendor shall submit to the Secretary a report de-
scribing the manner in which the vendor proposes to
achieve and is achieving compliance with subsections
(a)(2)(A), (a)(2)(B), (a)(2)(C), and (a)(2)(D).
‘‘(2) REPORT
OF
SECRETARY.—On or before
September 30, 1993, the Secretary shall transmit to
the Committee on Public Works and Transportation
of the House of Representatives and the Committee
on Commerce, Science, and Transportation of the
Senate a report, based on the reports filed by ven-
dors pursuant to paragraph (1) of this subsection—
‘‘(A) which describes the progress which
each vendor has made in achieving compliance
with subsections (a)(2)(A), (a)(2)(B), (a)(2)(C),
and (a)(2)(D);
‘‘(B) which compares and contrasts the
participant transaction capabilities and sub-
scriber transaction capabilities, including the
protocols of each vendor with each participant;
and
‘‘(C) which includes a tentative finding by
the Secretary as to whether each vendor is
making satisfactory progress toward, and is
likely to achieve, compliance with each of such
subsections in accordance with any time limit
contained in such subsection.
The Secretary shall provide each vendor a copy of
the report transmitted under this paragraph within
30 days after the date of such transmittal.
‘‘(3) SUPPLEMENTAL VENDOR REPORT.—If the
report transmitted under paragraph (2) includes a
finding of the Secretary that a vendor is not making
satisfactory progress toward, or is not likely to
achieve, 
compliance 
with 
subsection 
(a)(2)(A),
(a)(2)(B), (a)(2)(C), or (a)(2)(D) in accordance with
any time limit contained in such subsection, the Sec-
retary shall require the vendor to submit to the Sec-
retary a supplemental report describing the manner
in which the vendor proposes to achieve compliance
with such subsection.
‘‘(4) MAINTENANCE
OF
RECORDS.—Not later
than 90 days after the date of the enactment of this
section, the Secretary shall issue regulations requir-
ing each vendor to maintain such information con-
cerning its computer reservation system as the Sec-
retary determines is necessary to enable the Sec-
retary to determine whether or not the vendor is
making progress toward achieving compliance, or is
in compliance, with this section. Such regulations
shall establish the form and substance of the infor-
mation to be maintained.
‘‘(e) MONITORING
OF
PARTICIPANT
FEES.—Not
later than June 30, 1993, and each March 31 thereafter,
the Secretary shall transmit, to the Committee on Public
Works and Transportation of the House of Representa-
tives and the Committee on Commerce, Science, and
Transportation of the Senate, a report on the participant
fees charged by vendors during the preceding calendar
year, including whether such fees represent an increase
or decrease over the fees charged previously and whether,
in the opinion of the Secretary, such fees are reasonable.
‘‘(f) SPECIAL RULES FOR CERTAIN VIOLATIONS.—
‘‘(1) APPLICABILITY.—The procedures and time
limits set forth in this subsection shall apply to any
complaint filed with the Secretary alleging a viola-
tion of this section (including any regulation issued
to carry out this section or otherwise relating to
computer reservation systems).
‘‘(2) DEADLINE FOR DECISION WITH RESPECT
TO A COMPLAINT.—Not later than the 90th day fol-
lowing the date of the filing of a complaint to which
this subsection applies, the Secretary shall issue—
‘‘(A) on the basis of the information filed
with respect to the complaint and any other in-
formation available to the Secretary, an order
which determines that there is not a material
‘‘(a) Prohibitions against vendor discrimination.
‘‘(b) Subscriber contract restraints.
‘‘(c) Prohibition of subscriber modification of information.
‘‘(d) Reporting.
‘‘(e) Monitoring of participant fees.
‘‘(f) Special rules for certain nonfee violations.
‘‘(g) Treatment of certain reduced CRS services.
‘‘(h) Definitions.’’.
SEC. 3. RULEMAKING ON RANDOM TESTING FOR PROHIB-
ITED DRUGS.
Not later than 1 year after the date of the enactment
of this Act, the Secretary of Transportation shall complete
a rulemaking proceeding and issue a final decision on
whether there should be a reduction in the annualized rate
of random testing for prohibited drugs now required by
the Secretary for personnel engaged in aviation activities.
SEC. 4. CLARIFICATION OF PFC APPLICABILITY.
Section 1113(e)(1) of the Federal Aviation Act of
1958 (49 U.S.C. App. 1513(e)(1)) is amended by adding
at the end thereof the following new sentence: ‘‘After the
date of the enactment of this sentence, no public agency
authority shall collect a fee authorized to be imposed
under this subsection from a passenger enplaning at an
airport if the passenger did not pay for the air transpor-
tation which resulted in such enplanement, including any
case in which the passenger obtained the ticket for the
air transportation with a frequent flier award coupon
without monetary payment.’’.