prove the proposed transfer of the slots for which approval
was sought under subsection (a).
‘‘(d) APPROVAL STANDARD IF COMPETING PROPOS-
ALS.—If 1 or more proposals to obtain slots or a portion
of such slots are submitted to the Secretary pursuant to
subsection (b), the Secretary, subject to subsection (h),
shall approve the proposed transfer of slots for which ap-
proval was sought under subsection (a) or the proposal
or proposals submitted under subsection (b) which the
Secretary determines provide the maximum enhancement
of competition among air carriers, unless the Secretary de-
termines that the proposed transfer or proposal or propos-
als, as the case may be, do not include a purchase price
or other consideration that is fair.
‘‘(e) PURCHASE PRICE FACTORS.—In making a de-
termination as to fairness of a purchase price or other con-
sideration under subsection (d), the Secretary shall con-
sider the following factors (among others):
‘‘(1) The price paid or other consideration pro-
vided to obtain the slots by the air carrier seeking
to transfer the slots.
‘‘(2) The period of time the air carrier has used
the slots and the funds expended by the air carrier
for marketing and for capital improvements, facili-
ties, and equipment in order to use the slots.
‘‘(f) OPPORTUNITY TO MODIFY PROPOSALS.—If the
purchase price or other consideration included in a pro-
posal for transfer is determined not to be fair under sub-
section (d), the Secretary shall provide the person submit-
ting the proposal a reasonable opportunity to modify the
proposal in order that a fair price or other consideration
may be offered. If, after being provided the opportunity
to modify the proposal, the price or other consideration
offered by the person is still not determined by the Sec-
retary to be fair, the Secretary may approve in accordance
with subsection (d) the proposed transfer for which ap-
proval was sought under subsection (a) or any other pro-
posal or proposals for such transfer submitted pursuant
to subsection (b).
‘‘(g) EQUAL CONSIDERATION OF PROPOSALS TO OB-
TAIN PORTIONS
OF SLOTS.—In considering proposals
under this section, the Secretary shall give the same con-
sideration to proposals to obtain only a portion of the slots
that the air carrier is seeking to transfer as the Secretary
gives to proposals to obtain all such slots.
‘‘(h) LIMITATION ON STATUTORY CONSTRUCTION.—
Nothing in this title shall be construed as limiting or oth-
erwise affecting any authority of the Secretary, the Ad-
ministrator, or the Attorney General to amend, modify,
revoke, or terminate the right of an air carrier to use or
have a slot or hold a certificate issued under section 401
of this Act.
‘‘(i) DEFINITIONS.—As used in this section, the fol-
lowing definitions apply:
‘‘(1) HIGH DENSITY AIRPORT.—The term ‘high
density airport’ means an airport at which the Ad-
ministrator limits the number of instrument flight
rule takeoffs and landings of aircraft.
‘‘(2) SLOT.—The term ‘slot’ means a reserva-
tion for an instrument flight rule takeoff or landing
by an air carrier of an aircraft in air transpor-
tation.’’.
SEC. 103. REDUCTION OF UNITED STATES CITIZENSHIP
VOTING 
INTEREST 
OWNERSHIP 
REQUIRE-
MENT.
(a) IN GENERAL.—Title IV of the Federal Aviation
Act of 1958 (49 U.S.C. App. 1371–1389) is further
amended by adding at the end the following new section:
‘‘SEC. 421. REDUCTION OF UNITED STATES CITIZENSHIP
VOTING 
INTEREST 
OWNERSHIP 
REQUIRE-
MENT.
‘‘(a) GENERAL RULE.—Notwithstanding the require-
ment of section 101(16) of this Act that at least 75 per-
cent of the stock of an air carrier be owned or controlled
by persons who are citizens of the United States or of one
of its possessions, a person who is not a citizen of the
United States may purchase stock of a corporation or as-
sociation which is, or owns or controls, an air carrier with-
out regard to whether or not such purchase would result
in the corporation or association failing to meet the stock
ownership and control requirement of section 101(16) if
the Secretary of Transportation finds—
‘‘(1) with respect to nonvoting shares of stock,
that after the purchase no person who is not a citi-
zen of the United States would have the power to
exercise control over the air carrier;
‘‘(2) with respect to voting shares of stock—
‘‘(A) that the air service agreement be-
tween the United States and the foreign coun-
try of which the purchaser is a citizen is a pro-
competitive agreement which, at a minimum, al-
lows those air carriers designated by the United
States to provide air service from any point in
the United States to any significant air service
point in the foreign country;
‘‘(B) that after the purchase, the presi-
dent, chairman of the board of directors, chief
operating officer, and two-thirds or more of the
board of directors of the corporation or associa-
‘‘(e) REGULATIONS.—If a plan described in sub-
section (a) is not submitted within 180 days after the date
of the enactment of this title, or if the Secretary dis-
approves a plan submitted in accordance with subsection
(b), or if the Secretary determines that a plan approved
under this section is not being implemented in a manner
which provides satisfactory protection for all persons who
hold airline tickets described in subsection (b), the Sec-
retary shall issue regulations requiring all covered air car-
riers to provide air transportation for persons who hold
such tickets. Such regulations must be issued within 90
days after the expiration of such 180-day period, the date
of disapproval of such plan, or the date of such determina-
tion, as the case may be.
‘‘SEC. 1702. FREQUENT FLYER PROGRAMS.
‘‘Not later than 180 days after the date of the enact-
ment of this title, the Secretary shall initiate a rulemaking
proceeding—
‘‘(1) to consider methods of ensuring that each
air carrier makes enough seats available for persons
redeeming frequent flyer awards to meet anticipated
demand;
‘‘(2) to consider requirements to ensure that
such air carrier gives members of its frequent flyer
program adequate notice of any material change in
such program; and
‘‘(3) to consider whether or not frequent flyer
mileage obtained under a frequent flyer program of
a covered air carrier should be transferable to an-
other passenger who is a member of such program
as a means of reducing the anticompetitive effects of
such programs.
‘‘SEC. 1703. DEFINITIONS.
‘‘For the purposes of this title, the following defini-
tions apply:
‘‘(1) AIRLINE TICKET.—The term ‘airline tick-
et’ means any written instrument that embodies a
contract of carriage between an air carrier and a
passenger thereof for air transportation.
‘‘(2) COVERED AIR CARRIER.—The term ‘cov-
ered air carrier’ means an air carrier which, in the
most recent calendar year for which data is avail-
able, accounted for at least 1 percent of the sched-
uled passenger revenues derived from interstate and
overseas air transportation in such year.’’.
(b) CONFORMING AMENDMENT TO TABLE OF CON-
TENTS.—The table of contents contained in the first sec-
tion of the Federal Aviation Act of 1958 is amended by
adding at the end the following:
‘‘TITLE XVII—AIRLINE PASSENGER PROTECTION