H. R. 1000—32
SEC. 203. IMPROVED AIR CARRIER SERVICE TO AIRPORTS NOT
RECEIVING SUFFICIENT SERVICE.
(a) IN GENERAL.—Subchapter II of chapter 417 is amended
by adding at the end the following:
‘‘§ 41743. Airports not receiving sufficient service
‘‘(a) SMALL COMMUNITY AIR SERVICE DEVELOPMENT PILOT PRO-
GRAM.—The Secretary of Transportation shall establish a pilot
program that meets the requirements of this section for improving
air carrier service to airports not receiving sufficient air carrier
service.
‘‘(b) APPLICATION REQUIRED.—In order to participate in the
program established under subsection (a), a community or consor-
tium of communities shall submit an application to the Secretary
in such form, at such time, and containing such information as
the Secretary may require, including—
‘‘(1) an assessment of the need of the community or consor-
tium for access, or improved access, to the national air transpor-
tation system; and
‘‘(2) an analysis of the application of the criteria in sub-
section (c) to that community or consortium.
‘‘(c) CRITERIA FOR PARTICIPATION.—In selecting communities,
or consortia of communities, for participation in the program estab-
lished under subsection (a), the Secretary shall apply the following
criteria:
‘‘(1) SIZE.—For calendar year 1997, the airport serving
the community or consortium was not larger than a small
hub airport (as that term is defined in section 41731(a)(5)),
and—
‘‘(A) had insufficient air carrier service; or
‘‘(B) had unreasonably high air fares.
‘‘(2) CHARACTERISTICS.—The airport presents characteris-
tics, such as geographic diversity or unique circumstances, that
will demonstrate the need for, and feasibility of, the program
established under subsection (a).
‘‘(3) STATE LIMIT.—No more than four communities or con-
sortia of communities, or a combination thereof, may be located
in the same State.
‘‘(4) OVERALL
LIMIT.—No more than 40 communities or
consortia of communities, or a combination thereof, may be
selected to participate in the program.
‘‘(5) PRIORITIES.—The Secretary shall give priority to
communities or consortia of communities where—
‘‘(A) air fares are higher than the average air fares
for all communities;
‘‘(B) the community or consortium will provide a por-
tion of the cost of the activity to be assisted under the
program from local sources other than airport revenues;
‘‘(C) the community or consortium has established, or
will establish, a public-private partnership to facilitate air
carrier service to the public; and
‘‘(D) the assistance will provide material benefits to
a broad segment of the travelling public, including business,
educational institutions, and other enterprises, whose
access to the national air transportation system is limited.
‘‘(d) TYPES OF ASSISTANCE.—The Secretary may use amounts
made available under this section—
H. R. 1000—33
‘‘(1) to provide assistance to an air carrier to subsidize
service to and from an underserved airport for a period not
to exceed 3 years;
‘‘(2) to provide assistance to an underserved airport to
obtain service to and from the underserved airport; and
‘‘(3) to provide assistance to an underserved airport to
implement such other measures as the Secretary, in consulta-
tion with such airport, considers appropriate to improve air
service both in terms of the cost of such service to consumers
and the availability of such service, including improving air
service through marketing and promotion of air service and
enhanced utilization of airport facilities.
‘‘(e) AUTHORITY TO MAKE AGREEMENTS.—
‘‘(1) IN GENERAL.—The Secretary may make agreements
to provide assistance under this section.
‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—There is author-
ized to be appropriated to the Secretary $20,000,000 for fiscal
year 2001 and $27,500,000 for each of fiscal years 2002 and
2003 to carry out this section. Such sums shall remain available
until expended.
‘‘(f ) ADDITIONAL ACTION.—Under the pilot program established
under subsection (a), the Secretary shall work with air carriers
providing service to participating communities and major air car-
riers (as defined in section 41716(a)(2)) serving large hub airports
(as defined in section 41731(a)(3)) to facilitate joint-fare arrange-
ments consistent with normal industry practice.
‘‘(g) DESIGNATION OF RESPONSIBLE OFFICIAL.—The Secretary
shall designate an employee of the Department of Transportation—
‘‘(1) to function as a facilitator between small communities
and air carriers;
‘‘(2) to carry out this section;
‘‘(3) to ensure that the Bureau of Transportation Statistics
collects data on passenger information to assess the service
needs of small communities;
‘‘(4) to work with and coordinate efforts with other Federal,
State, and local agencies to increase the viability of service
to small communities and the creation of aviation development
zones; and
‘‘(5) to provide policy recommendations to the Secretary
and Congress that will ensure that small communities have
access to quality, affordable air transportation services.
‘‘(h) AIR SERVICE DEVELOPMENT ZONE.—The Secretary shall
designate an airport in the program as an Air Service Development
Zone and work with the community or consortium on means to
attract business to the area surrounding the airport, to develop
land use options for the area, and provide data, working with
the Department of Commerce and other agencies.’’.
(b) CONFORMING AMENDMENT.—The analysis for subchapter II
of chapter 417 is amended by adding at the end the following:
‘‘41743. Airports not receiving sufficient service.’’.
SEC. 204. PRESERVATION OF ESSENTIAL AIR SERVICE AT SINGLE CAR-
RIER DOMINATED HUB AIRPORTS.
(a) IN GENERAL.—Subchapter II of chapter 417 (as amended
by section 203 of this Act) is further amended by adding at the
end the following:
H. R. 1000—34
‘‘§ 41744. Preservation of basic essential air service at single
carrier dominated hub airports
‘‘(a) IN GENERAL.—If the Secretary of Transportation deter-
mines that extraordinary circumstances jeopardize the reliable
performance of essential air service under this subchapter from
a subsidized essential air service community to and from an essen-
tial airport facility, the Secretary may require an air carrier that
has more than 60 percent of the total annual enplanements at
the essential airport facility to take action to enable another air
carrier to provide reliable essential air service to that community.
Actions required by the Secretary under this subsection may include
interline agreements, ground services, subleasing of gates, and the
provision of any other service or facility necessary for the perform-
ance of satisfactory essential air service to that community.
‘‘(b) ESSENTIAL AIRPORT FACILITY DEFINED.—In this section,
the term ‘essential airport facility’ means a large hub airport (as
defined in section 41731) in the contiguous 48 States at which
one air carrier has more than 60 percent of the total annual
enplanements at that airport.’’.
(b) CONFORMING AMENDMENT.—The analysis for subchapter II
of chapter 417 is further amended by adding at the end the fol-
lowing:
‘‘41744. Preservation of basic essential air service at single carrier dominated hub
airports.’’.
SEC. 205. DETERMINATION OF DISTANCE FROM HUB AIRPORT.
The Secretary may provide assistance under subchapter II of
chapter 417 of title 49, United States Code, with respect to a
place that is located within 70 highway miles of a hub airport
(as defined by section 41731 of such title) if the most commonly
used highway route between the place and the hub airport exceeds
70 miles.
SEC. 206. REPORT ON ESSENTIAL AIR SERVICE.
(a) IN GENERAL.—The Secretary shall conduct an analysis of
the difficulties faced by many smaller communities in retaining
essential air service and shall develop a plan to facilitate the
retention of such service.
(b) EXAMINATION OF NORTH DAKOTA COMMUNITIES.—In con-
ducting the analysis and developing the plan under subsection
(a), the Secretary shall pay particular attention to communities
located in North Dakota.
(c) REPORT.—Not later than 60 days after the date of the
enactment of this section, the Secretary shall transmit to Congress
a report containing the analysis and plan described in subsection
(a).
SEC. 207. MARKETING PRACTICES.
(a) REVIEW OF MARKETING PRACTICES THAT ADVERSELY AFFECT
SERVICE TO SMALL OR MEDIUM COMMUNITIES.—Not later than 180
days after the date of the enactment of this Act, the Secretary
shall review the marketing practices of air carriers that may inhibit
the availability of quality, affordable air transportation services
to small- and medium-sized communities, including—
(1) marketing arrangements between airlines and travel
agents;
(2) code-sharing partnerships;
(3) computer reservation system displays;
H. R. 1000—35
(4) gate arrangements at airports;
(5) exclusive dealing arrangements; and
(6) any other marketing practice that may have the same
effect.
(b) REGULATIONS.—If the Secretary finds, after conducting the
review, that marketing practices inhibit the availability of afford-
able air transportation services to small- and medium-sized commu-
nities, then, after public notice and an opportunity for comment,
the Secretary may issue regulations that address the problem or
take other appropriate action.
(c) STATUTORY CONSTRUCTION.—Nothing in this section expands
the authority or jurisdiction of the Secretary to issue regulations
under chapter 417 of title 49, United States Code, or under any
other law.
SEC. 208. DEFINITION OF ELIGIBLE PLACE.
Section 41731(a)(1) is amended—
(1) by inserting ‘‘(i)’’ after ‘‘(A)’’;
(2) by striking ‘‘(B)’’ and inserting ‘‘(ii)’’;
(3) by striking ‘‘(C)’’ and inserting ‘‘(iii)’’;
(4) by striking ‘‘subchapter.’’ and inserting ‘‘subchapter;
or’’; and
(5) by adding at the end the following:
‘‘(B) determined, on or after October 1, 1988, and before
the date of the enactment of the Wendell H. Ford Aviation
Investment and Reform Act for the 21st Century, under
this subchapter by the Secretary to be eligible to receive
subsidized small community air service under section
41736(a).’’.
SEC. 209. MAINTAINING THE INTEGRITY OF THE ESSENTIAL AIR
SERVICE PROGRAM.
(a) AUTHORIZATION
OF APPROPRIATION.—Section 41742(a) is
amended—
(1) by striking ‘‘Out of ’’ and inserting the following:
‘‘(1) AUTHORIZATION.—Out of ’’;
(2) by adding at the end the following:
‘‘(2) ADDITIONAL FUNDS.—In addition to amounts authorized
under paragraph (1), there is authorized to be appropriated
$15,000,000 for each fiscal year to carry out the essential air
service program under this subchapter.’’; and
(3) by aligning paragraph (1) (as designated by paragraph
(1) of this subsection) with paragraph (2) (as added by para-
graph (2) of this subsection).
(b) LIMITATION
ON ADJUSTMENTS
TO LEVELS
OF SERVICE.—
Section 41733(e) is amended by striking the period at the end
and inserting ‘‘, to the extent such adjustments are to a level
not less than the basic essential air service level established under
subsection (a) for the airport that serves the community.’’.
(c) EFFECT
ON CERTAIN ORDERS.—All orders issued by the
Secretary after September 30, 1999, and before the date of the
enactment of this Act establishing, modifying, or revoking essential
air service levels shall be null and void beginning on the 90th
day following such date of enactment. During the 90-day period,
the Secretary shall reconsider such orders and shall issue new
orders consistent with the amendments made by this section.