158 
ommendation made by the Director under subpara-
graph (A)(iii) in writing and retain records related 
to any further investigations or corrective actions 
taken in response to the recommendation. 
‘‘(5) INCIDENT REPORTS.—If the Director de-
termines there is a substantial likelihood that a vio-
lation of an order, regulation, or standard of the 
Agency or any other provision of Federal law relat-
ing to aviation safety has occurred that requires im-
mediate corrective action, the Director shall report 
the potential violation expeditiously to the Adminis-
trator and the Inspector General of the Department 
of Transportation. 
‘‘(6) REPORTING OF CRIMINAL VIOLATIONS TO 
INSPECTOR GENERAL.—If the Director has reason-
able grounds to believe that there has been a viola-
tion of Federal criminal law, the Director shall re-
port the violation expeditiously to the Inspector Gen-
eral. 
‘‘(7) ANNUAL
REPORTS
TO
CONGRESS.—Not 
later than October 1 of each year, the Director shall 
submit to Congress a report containing— 
‘‘(A) information on the number of submis-
sions of complaints and information received by
159 
the Director under paragraph (3)(A)(i) in the 
preceding 12-month period; 
‘‘(B) summaries of those submissions; 
‘‘(C) summaries of further investigations 
and corrective actions recommended in response 
to the submissions; and 
‘‘(D) summaries of the responses of the 
Administrator to such recommendations.’’. 
SEC. 335. DUTY PERIODS AND FLIGHT TIME LIMITATIONS 
APPLICABLE TO FLIGHT CREWMEMBERS. 
(a) RULEMAKING ON APPLICABILITY OF PART 121 
DUTY PERIODS AND FLIGHT TIME LIMITATIONS TO PART 
91 OPERATIONS.—Not later than 180 days after the date 
of enactment of this Act, the Administrator of the Federal 
Aviation Administration shall initiate a rulemaking pro-
ceeding, if such a proceeding has not already been initi-
ated, to require a flight crewmember who is employed by 
an air carrier conducting operations under part 121 of 
title 14, Code of Federal Regulations, and who accepts 
an additional assignment for flying under part 91 of such 
title from the air carrier or from any other air carrier con-
ducting operations under part 121 or 135 of such title, 
to apply the period of the additional assignment (regard-
less of whether the assignment is performed by the flight 
crewmember before or after an assignment to fly under
160 
part 121 of such title) toward any limitation applicable 
to the flight crewmember relating to duty periods or flight 
times under part 121 of such title. 
(b) RULEMAKING ON APPLICABILITY OF PART 135 
DUTY PERIODS AND FLIGHT TIME LIMITATIONS TO PART 
91 OPERATIONS.—Not later than 1 year after the date 
of enactment of this Act, the Administrator shall initiate 
a rulemaking proceeding to require a flight crewmember 
who is employed by an air carrier conducting operations 
under part 135 of title 14, Code of Federal Regulations, 
and who accepts an additional assignment for flying under 
part 91 of such title from the air carrier or any other air 
carrier conducting operations under part 121 or 135 of 
such title, to apply the period of the additional assignment 
(regardless of whether the assignment is performed by the 
flight crewmember before or after an assignment to fly 
under part 135 of such title) toward any limitation appli-
cable to the flight crewmember relating to duty periods 
or flight times under part 135 of such title. 
(c) SEPARATE
RULEMAKING
PROCEEDINGS
RE-
QUIRED.—The rulemaking proceeding required under sub-
section (b) shall be separate from the rulemaking pro-
ceeding required under subsection (a).
161 
SEC. 336. CERTAIN EXISTING FLIGHT TIME LIMITATIONS 
AND REST REQUIREMENTS. 
(a) IN GENERAL.—Notwithstanding any interpreta-
tion issued by the Administrator of the Federal Aviation 
Administration, the requirements regarding sections 263 
and 267(d) of part 135 of title 14, Code of Federal Regu-
lations, for part 135 certificate holders providing air am-
bulance services and pilots and flight crewmembers of all- 
cargo aircraft regarding certain flight times and rest peri-
ods shall remain in effect as such requirements were in 
effect on January 1, 2011. 
(b) RESTRICTION ON REGULATIONS.—The Adminis-
trator may not issue, finalize, or implement a rule regard-
ing sections 263 and 267(d) of part 135 of title 14, Code 
of Federal Regulations, as proposed in docket No. FAA– 
2010–1259, Interpretations of Rest Requirements, pub-
lished in the Federal Register on December 23, 2010, or 
any similar rule regarding such sections for part 135 cer-
tificate holders providing air ambulance services and pilots 
and flight crewmembers of all-cargo aircraft. 
SEC. 337. DISCLOSURE AND USE OF INFORMATION. 
(a) IN GENERAL.—Chapter 447 (as amended by this 
Act) is further amended by adding at the end the fol-
lowing:
162 
‘‘§ 44734. Disclosure and use of information 
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of law, and except as provided in this section, the 
following reports and data shall not be subject to discovery 
or subpoena or admitted into evidence in a Federal or 
State court proceeding or considered for other purposes 
in any such proceeding: 
‘‘(1) A report developed under the Aviation 
Safety Action Program. 
‘‘(2) Data produced or collected under the 
Flight Operational Quality Assurance Program. 
‘‘(3) A report developed under the Line Oper-
ations Safety Audit Program. 
‘‘(4) Hazard identification, risk assessment, 
risk control, and safety assurance data produced or 
collected for purposes of— 
‘‘(A) assessing and improving aviation 
safety; or 
‘‘(B) developing and implementing a safety 
management system acceptable to the Adminis-
trator. 
‘‘(5) Reports, analyses, and directed studies 
based in whole or in part on reports or data de-
scribed in paragraphs (1) through (4), including 
those prepared under the Aviation Safety Informa-
tion Analysis and Sharing Program.
163 
‘‘(b) PROTECTION OF VOLUNTARILY SUBMITTED IN-
FORMATION.—Any report or data described in subsection 
(a) that is voluntarily provided to the Federal Aviation Ad-
ministration shall be considered to be voluntarily sub-
mitted information within the meaning of section 40123, 
and shall not be disclosed to the public pursuant to section 
552(b)(3)(B) of title 5. 
‘‘(c) FAA REPORTS.—Notwithstanding any other 
provision of this section, the Administrator of the Federal 
Aviation Administration may release documents to the 
public that include summaries, aggregations, or statistical 
analyses based on reports or data described in subsection 
(a). 
‘‘(d) SAFETY RECOMMENDATIONS.—Nothing in this 
section shall be construed to prevent the National Trans-
portation Safety Board, in connection with an ongoing ac-
cident investigation, from referring to relevant information 
contained in reports or data described in subsection (a) 
in making safety recommendations. 
‘‘(e) WAIVER.—Subsection (a) shall not apply with 
respect to a report developed, or data produced or col-
lected, by or on behalf of a person if that person waives 
the privileges provided under subsection (a). A waiver 
under this subsection shall be made in writing or occa-
164 
sioned by the person’s own use of the information in pre-
senting a claim or defense.’’. 
(b) CLERICAL AMENDMENT.—The analysis for such 
chapter (as amended by this Act) is further amended by 
adding at the end the following: 
‘‘44734. Disclosure and use of information.’’. 
SEC. 338. LIABILITY PROTECTION FOR PERSONS IMPLE-
MENTING SAFETY MANAGEMENT SYSTEMS. 
(a) IN GENERAL.—Chapter 447 (as amended by this 
Act) is further amended by adding at the end the fol-
lowing: 
‘‘§ 44735. Liability protection for persons imple-
menting safety management systems 
‘‘(a) PERSONS IMPLEMENTING SAFETY MANAGE-
MENT SYSTEMS.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of law, a person that is required by the 
Administrator of the Federal Aviation Administra-
tion to implement a safety management system may 
not be held liable for damages in connection with a 
claim filed in a State or Federal court (including a 
claim for compensatory, punitive, contributory, or in-
demnity damages) relating to the person’s prepara-
tion or implementation of, or an event or occurrence 
contemplated by, the safety management system.
165 
‘‘(2) LIMITATION.—Nothing in this section 
shall relieve a person from liability for damages re-
sulting from the person’s own willful or reckless acts 
or omissions as demonstrated by clear and con-
vincing evidence. 
‘‘(b) ACCOUNTABLE EXECUTIVES.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of law, a person who is employed by a per-
son described in subsection (a) and who is respon-
sible for performing the functions of an accountable 
executive pursuant to a safety management system 
required by the Administrator— 
‘‘(A) shall be deemed to be acting in the 
person’s official capacity as an officer or em-
ployee of the person described in subsection (a) 
when performing such functions; and 
‘‘(B) except as provided in paragraph (2), 
may not be held personally liable for damages 
in connection with a claim filed in a State or 
Federal court (including a claim for compen-
satory, punitive, contributory, or indemnity 
damages) relating to the person’s responsibil-
ities pursuant to the safety management sys-
tem.
166 
‘‘(2) LIMITATION.—Nothing in this subsection 
shall relieve a person performing the functions of an 
accountable executive pursuant to a safety manage-
ment system from personal liability for damages re-
sulting from the person’s willful or reckless acts or 
omissions as demonstrated by clear and convincing 
evidence.’’. 
(b) CLERICAL AMENDMENT.—The analysis for such 
chapter (as amended by this Act) is further amended by 
adding at the end the following: 
‘‘44735. Liability protection for persons implementing safety management sys-
tems.’’. 
TITLE IV—AIR SERVICE 
IMPROVEMENTS 
Subtitle A—Essential Air Service 
SEC. 401. ESSENTIAL AIR SERVICE MARKETING. 
Section 41733(c)(1) is amended— 
(1) by redesignating subparagraph (E) as sub-
paragraph (F); 
(2) by striking ‘‘and’’ at the end of subpara-
graph (D); and 
(3) by inserting after subparagraph (D) the fol-
lowing: 
‘‘(E) whether the air carrier has included a 
plan in its proposal to market its services to the 
community; and’’.
167 
SEC. 402. NOTICE TO COMMUNITIES PRIOR TO TERMI-
NATION OF ELIGIBILITY FOR SUBSIDIZED ES-
SENTIAL AIR SERVICE. 
Section 41733 is amended by adding at the end the 
following: 
‘‘(f) NOTICE TO COMMUNITIES PRIOR TO TERMI-
NATION OF ELIGIBILITY.— 
‘‘(1) IN GENERAL.—The Secretary shall notify 
each community receiving basic essential air service 
for which compensation is being paid under this sub-
chapter on or before the 45th day before issuing any 
final decision to end the payment of such compensa-
tion due to a determination by the Secretary that 
providing such service requires a rate of subsidy per 
passenger in excess of the subsidy cap. 
‘‘(2) PROCEDURES TO AVOID TERMINATION.— 
The Secretary shall establish, by order, procedures 
by which each community notified of an impending 
loss of subsidy under paragraph (1) may work di-
rectly with an air carrier to ensure that the air car-
rier is able to submit a proposal to the Secretary to 
provide essential air service to such community for 
an amount of compensation that would not exceed 
the subsidy cap.
168 
‘‘(3) ASSISTANCE
PROVIDED.—The Secretary 
shall provide, by order, to each community notified 
under paragraph (1) information regarding— 
‘‘(A) the procedures established pursuant 
to paragraph (2); and 
‘‘(B) the maximum amount of compensa-
tion that could be provided under this sub-
chapter to an air carrier serving such commu-
nity that would comply with the subsidy cap. 
‘‘(4) SUBSIDY
CAP
DEFINED.—In this sub-
section, the term ‘subsidy cap’ means the subsidy 
cap established by section 332 of Public Law 106– 
69 (113 Stat. 1022).’’. 
SEC. 403. ESSENTIAL AIR SERVICE CONTRACT GUIDELINES. 
(a) 
COMPENSATION
GUIDELINES.—Section 
41737(a)(1) is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (B); 
(2) in subparagraph (C) by striking the period 
at the end and inserting a semicolon; and 
(3) by adding at the end the following: 
‘‘(D) include provisions under which the Sec-
retary may encourage an air carrier to improve air 
service for which compensation is being paid under 
this subchapter by incorporating financial incentives
169 
in an essential air service contract based on specified 
performance goals, including goals related to improv-
ing on-time performance, reducing the number of 
flight cancellations, establishing convenient connec-
tions to flights providing service beyond hub air-
ports, and increasing marketing efforts; and 
‘‘(E) include provisions under which the Sec-
retary may execute a long-term essential air service 
contract to encourage an air carrier to provide air 
service to an eligible place if it would be in the pub-
lic interest to do so.’’. 
(b) DEADLINE FOR ISSUANCE OF REVISED GUID-
ANCE.—Not later than 18 months after the date of enact-
ment of this Act, the Secretary of Transportation shall 
issue revised guidelines governing the rate of compensa-
tion payable under subchapter II of chapter 417 of title 
49, United States Code, that incorporate the amendments 
made by this section. 
(c) REPORT.—Not later than 2 years after the date 
of issuance of revised guidelines pursuant to subsection 
(b), the Secretary shall submit to the Committee on 
Transportation and Infrastructure of the House of Rep-
resentatives and the Committee on Commerce, Science, 
and Transportation of the Senate a report on the extent 
to which the revised guidelines have been implemented and
170 
the impact, if any, such implementation has had on air 
carrier performance and community satisfaction with air 
service for which compensation is being paid under sub-
chapter II of chapter 417 of title 49, United States Code. 
SEC. 404. ESSENTIAL AIR SERVICE REFORM. 
(a) 
AUTHORIZATION.—Section 
41742(a)(1) 
is 
amended— 
(1) by striking ‘‘the sum of $50,000,000 is’’ 
and inserting ‘‘the following sums are’’; and 
(2) by striking ‘‘subchapter for each fiscal 
year.’’ and inserting ‘‘subchapter: 
‘‘(A) $50,000,000 for each fiscal year 
through fiscal year 2013. 
‘‘(B) The amount necessary, as determined 
by the Secretary, to carry out the essential air 
service program in Alaska and Hawaii for fiscal 
year 2014 and each fiscal year thereafter.’’. 
(b) ADDITIONAL FUNDS.—Section 41742(a)(2) is 
amended by striking ‘‘there is authorized to be appro-
priated $77,000,000 for each fiscal year’’ and inserting 
‘‘there is authorized to be appropriated out of the Airport 
and Airway Trust Fund established under section 9502 
of the Internal Revenue Code of 1986 $97,500,000 for 
fiscal year 2011, $60,000,000 for fiscal year 2012, and 
$30,000,000 for fiscal year 2013’’.
172 
41742(a)(4)(A), the Secretary may make agreements to 
provide assistance under this section.’’. 
SEC. 406. ADJUSTMENTS TO COMPENSATION FOR SIGNIFI-
CANTLY INCREASED COSTS. 
(a) 
EMERGENCY
ACROSS-THE-BOARD
ADJUST-
MENT.—Subject to the availability of funds, the Secretary 
of Transportation may increase the rates of compensation 
payable to air carriers under subchapter II of chapter 417 
of title 49, United States Code, to compensate such car-
riers for increased aviation fuel costs without regard to 
any agreement or requirement relating to the renegoti-
ation of contracts or any notice requirement under section 
41734 of such title. 
(b) EXPEDITED PROCESS FOR ADJUSTMENTS TO IN-
DIVIDUAL CONTRACTS.— 
(1) IN GENERAL.—Section 41734(d) is amend-
ed by striking ‘‘continue to pay’’ and all that follows 
through ‘‘compensation sufficient’’ and inserting 
‘‘provide the carrier with compensation sufficient’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to compensation to air 
carriers for air service provided after the 30th day 
following the date of enactment of this Act. 
(c) SUBSIDY CAP.—Subject to the availability of 
funds, the Secretary may waive, on a case-by-case basis,
173 
the subsidy-per-passenger cap established by section 332 
of Public Law 106–69 (113 Stat. 1022). A waiver issued 
under this subsection shall remain in effect for a limited 
period of time, as determined by the Secretary. 
SEC. 407. REPEAL OF EAS LOCAL PARTICIPATION PRO-
GRAM. 
Section 41747, and the item relating to section 
41747 in the analysis for chapter 417, are repealed. 
SEC. 408. SUNSET OF ESSENTIAL AIR SERVICE PROGRAM. 
(a) IN GENERAL.—Subchapter II of chapter 417 is 
amended by adding at the end the following: 
‘‘§ 41749. Sunset 
‘‘(a) IN GENERAL.—Except as provided in subsection 
(b), the authority of the Secretary of Transportation to 
carry out the essential air service program under this sub-
chapter shall sunset on October 1, 2013. 
‘‘(b) ALASKA AND HAWAII.—The Secretary may con-
tinue to carry out the essential air service program under 
this subchapter in Alaska and Hawaii following the sunset 
date specified in subsection (a).’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 417 is amended by inserting after the item relat-
ing to section 41748 the following: 
‘‘41749. Sunset.’’.
174 
Subtitle B—Passenger Air Service 
Improvements 
SEC. 421. SMOKING PROHIBITION. 
(a) IN GENERAL.—Section 41706 is amended— 
(1) in the section heading by striking ‘‘sched-
uled’’ and inserting ‘‘passenger’’; and 
(2) by striking subsections (a) and (b) and in-
serting the following: 
‘‘(a) SMOKING PROHIBITION IN INTERSTATE AND 
INTRASTATE AIR TRANSPORTATION.—An individual may 
not smoke— 
‘‘(1) in an aircraft in scheduled passenger inter-
state or intrastate air transportation; or 
‘‘(2) in an aircraft in nonscheduled passenger 
interstate or intrastate air transportation, if a flight 
attendant is a required crewmember on the aircraft 
(as determined by the Administrator of the Federal 
Aviation Administration). 
‘‘(b) SMOKING
PROHIBITION
IN
FOREIGN
AIR 
TRANSPORTATION.—The Secretary of Transportation 
shall require all air carriers and foreign air carriers to pro-
hibit smoking— 
‘‘(1) in an aircraft in scheduled passenger for-
eign air transportation; and
175 
‘‘(2) in an aircraft in nonscheduled passenger 
foreign air transportation, if a flight attendant is a 
required crewmember on the aircraft (as determined 
by the Administrator or a foreign government).’’. 
(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 417 is amended by striking the item relating to section 
41706 and inserting the following: 
‘‘41706. Prohibitions against smoking on passenger flights.’’. 
SEC. 422. MONTHLY AIR CARRIER REPORTS. 
(a) IN GENERAL.—Section 41708 is amended by 
adding at the end the following: 
‘‘(c) DIVERTED AND CANCELLED FLIGHTS.— 
‘‘(1) MONTHLY REPORTS.—The Secretary shall 
require an air carrier referred to in paragraph (2) 
to file with the Secretary a monthly report on each 
flight of the air carrier that is diverted from its 
scheduled destination to another airport and each 
flight of the air carrier that departs the gate at the 
airport at which the flight originates but is cancelled 
before wheels-off time. 
‘‘(2) APPLICABILITY.—An air carrier that is re-
quired to file a monthly airline service quality per-
formance report pursuant to part 234 of title 14, 
Code of Federal Regulations, shall be subject to the 
requirement of paragraph (1).
176 
‘‘(3) CONTENTS.—A monthly report filed by an 
air carrier under paragraph (1) shall include, at a 
minimum, the following information: 
‘‘(A) For a diverted flight— 
‘‘(i) the flight number of the diverted 
flight; 
‘‘(ii) the scheduled destination of the 
flight; 
‘‘(iii) the date and time of the flight; 
‘‘(iv) the airport to which the flight 
was diverted; 
‘‘(v) wheels-on time at the diverted 
airport; 
‘‘(vi) the time, if any, passengers 
deplaned the aircraft at the diverted air-
port; and 
‘‘(vii) if the flight arrives at the sched-
uled destination airport— 
‘‘(I) the gate-departure time at 
the diverted airport; 
‘‘(II) the wheels-off time at the 
diverted airport; 
‘‘(III) the wheels-on time at the 
scheduled arrival airport; and