H. R. 1758—384
(B) in a certain form and contain certain information;
(C) served on interested persons; and
(D) accompanied by proof of service on those persons.
(2) When an application is filed, the Secretary shall post a
notice of the application in the office of the Secretary and give
notice of the application to other persons as required by regulations
of the Secretary. An interested person may file a response with
the Secretary opposing or supporting the issuance of the permit.
The Secretary shall act on an application as expeditiously as pos-
sible.
(b) TERMS.—The Secretary may impose terms for providing
foreign air transportation under the permit that the Secretary
finds may be required in the public interest.
§ 41306. Simplified procedure to apply for, amend, modify,
and suspend permits
(a) REGULATIONS.—The Secretary of Transportation shall pre-
scribe regulations that simplify the procedure for—
(1) acting on an application for a permit to provide foreign
air transportation under section 41302 of this title; and
(2) amending, modifying, or suspending any part of that
permit under section 41304(a) or (b) of this title.
(b) NOTICE AND OPPORTUNITY TO RESPOND.—Regulations under
this section shall provide for notice and an opportunity for each
interested person to file appropriate written evidence and argument.
An oral evidentiary hearing is not required to be provided under
this section.
§ 41307. Presidential review of actions about foreign air
transportation
The Secretary of Transportation shall submit to the President
for review each decision of the Secretary to issue, deny, amend,
modify, suspend, revoke, or transfer a certificate issued under sec-
tion 41102 of this title authorizing an air carrier, or a permit
issued under section 41302 of this title authorizing a foreign air
carrier, to provide foreign air transportation. The President may
disapprove the decision of the Secretary only if the reason for
disapproval is based on foreign relations or national defense consid-
erations that are under the jurisdiction of the President. The Presi-
dent may not disapprove a decision of the Secretary if the reason
is economic or related to carrier selection. A decision of the Sec-
retary—
(1) is void if the President disapproves the decision and
publishes the reasons (to the extent allowed by national secu-
rity) for disapproval not later than 60 days after it is submitted
to the President; or
(2)(A) takes effect as a decision of the Secretary if the
President does not disapprove the decision not later than 60
days after the decision is submitted to the President; and
(B) when effective, may be reviewed judicially under section
46110 of this title.
§ 41308. Exemption from the antitrust laws
(a) DEFINITION.—In this section, ‘‘antitrust laws’’ has the same
meaning given that term in the first section of the Clayton Act
(15 U.S.C. 12).
H. R. 1758—385
(b) EXEMPTION AUTHORIZED.—When the Secretary of Transpor-
tation decides it is required by the public interest, the Secretary,
as part of an order under section 41309 or 42111 of this title,
may exempt a person affected by the order from the antitrust
laws to the extent necessary to allow the person to proceed with
the transaction specifically approved by the order and with any
transaction necessarily contemplated by the order.
(c) EXEMPTION REQUIRED.—In an order under section 41309
of this title approving an agreement, request, modification, or can-
cellation, the Secretary, on the basis of the findings required under
section 41309(b)(1), shall exempt a person affected by the order
from the antitrust laws to the extent necessary to allow the person
to proceed with the transaction specifically approved by the order
and with any transaction necessarily contemplated by the order.
§ 41309. Cooperative agreements and requests
(a) FILING.—An air carrier or foreign air carrier may file with
the Secretary of Transportation a true copy of or, if oral, a true
and complete memorandum of, an agreement (except an agreement
related to interstate air transportation), or a request for authority
to discuss cooperative arrangements (except arrangements related
to interstate air transportation), and any modification or cancella-
tion of an agreement, between the air carrier or foreign air carrier
and another air carrier, a foreign carrier, or another carrier.
(b) APPROVAL.—The Secretary of Transportation shall approve
an agreement, request, modification, or cancellation referred to
in subsection (a) of this section when the Secretary finds it is
not adverse to the public interest and is not in violation of this
part. However, the Secretary shall disapprove—
(1) or, after periodic review, end approval of, an agreement,
request, modification, or cancellation, that substantially reduces
or eliminates competition unless the Secretary finds that—
(A) the agreement, request, modification, or cancella-
tion is necessary to meet a serious transportation need
or to achieve important public benefits (including inter-
national comity and foreign policy considerations); and
(B) the transportation need cannot be met or those
benefits cannot be achieved by reasonably available alter-
natives that are materially less anticompetitive; or
(2) an agreement that—
(A) is between an air carrier not directly operating
aircraft in foreign air transportation and a common carrier
subject to subtitle IV of this title; and
(B) governs the compensation the common carrier may
receive for the transportation.
(c) NOTICE AND OPPORTUNITY TO RESPOND OR FOR HEARING.—
(1) When an agreement, request, modification, or cancellation is
filed, the Secretary of Transportation shall give the Attorney Gen-
eral and the Secretary of State written notice of, and an opportunity
to submit written comments about, the filing. On the initiative
of the Secretary of Transportation or on request of the Attorney
General or Secretary of State, the Secretary of Transportation may
conduct a hearing to decide whether an agreement, request, modi-
fication, or cancellation is consistent with this part whether or
not it was approved previously.
(2) In a proceeding before the Secretary of Transportation apply-
ing standards under subsection (b)(1) of this section, a party oppos-
H. R. 1758—386
ing an agreement, request, modification, or cancellation has the
burden of proving that it substantially reduces or eliminates com-
petition and that less anticompetitive alternatives are available.
The party defending the agreement, request, modification, or can-
cellation has the burden of proving the transportation need or
public benefits.
(3) The Secretary of Transportation shall include the findings
required by subsection (b)(1) of this section in an order of the
Secretary approving or disapproving an agreement, request, modi-
fication, or cancellation.
§ 41310. Discriminatory practices
(a) PROHIBITION.—An air carrier or foreign air carrier may
not subject a person, place, port, or type of traffic in foreign air
transportation to unreasonable discrimination.
(b) REVIEW
AND NEGOTIATION
OF DISCRIMINATORY FOREIGN
CHARGES.—(1) The Secretary of Transportation shall survey charges
imposed on an air carrier by the government of a foreign country
or another foreign entity for the use of airport property or airway
property in foreign air transportation. If the Secretary of Transpor-
tation decides that a charge is discriminatory, the Secretary
promptly shall report the decision to the Secretary of State. The
Secretaries of State and Transportation promptly shall begin nego-
tiations with the appropriate government to end the discrimination.
If the discrimination is not ended in a reasonable time through
negotiation, the Secretary of Transportation shall establish a com-
pensating charge equal to the discriminatory charge. With the
approval of the Secretary of State, the Secretary of the Treasury
shall impose the compensating charge on a foreign air carrier of
that country as a condition to accepting the general declaration
of the aircraft of the foreign air carrier when it lands or takes
off.
(2) The Secretary of the Treasury shall maintain an account
to credit money collected under paragraph (1) of this subsection.
An air carrier shall be paid from the account an amount certified
by the Secretary of Transportation to compensate the air carrier
for the discriminatory charge paid to the government.
(c) ACTIONS AGAINST DISCRIMINATORY ACTIVITY.—(1) The Sec-
retary of Transportation may take actions the Secretary considers
are in the public interest to eliminate an activity of a government
of a foreign country or another foreign entity, including a foreign
air carrier, when the Secretary, on the initiative of the Secretary
or on complaint, decides that the activity—
(A) is an unjustifiable or unreasonable discriminatory,
predatory, or anticompetitive practice against an air carrier;
or
(B) imposes an unjustifiable or unreasonable restriction
on access of an air carrier to a foreign market.
(2) The Secretary of Transportation may deny, amend, modify,
suspend, revoke, or transfer under paragraph (1) of this subsection
a foreign air carrier permit or tariff under section 41302, 41303,
41304(a), 41504(c), 41507, or 41509 of this title.
(d) FILING OF, AND ACTING ON, COMPLAINTS.—(1) An air carrier
or a department, agency, or instrumentality of the United States
Government may file a complaint under subsection (c) of this section
with the Secretary of Transportation. The Secretary shall approve,
deny, or dismiss the complaint, set the complaint for a hearing
H. R. 1758—387
or investigation, or begin another proceeding proposing remedial
action not later than 60 days after receiving the complaint. The
Secretary may extend the period for acting for additional periods
totaling not more than 30 days if the Secretary decides that with
additional time it is likely that a complaint can be resolved satisfac-
torily through negotiations with the government of the foreign
country or foreign entity. The Secretary must act not later than
90 days after receiving the complaint. However, the Secretary may
extend this 90-day period for not more than an additional 90 days
if, on the last day of the initial 90-day period, the Secretary finds
that—
(A) negotiations with the government have progressed to
a point that a satisfactory resolution of the complaint appears
imminent;
(B) an air carrier has not been subjected to economic injury
by the government or entity as a result of filing the complaint;
and
(C) the public interest requires additional time before the
Secretary acts on the complaint.
(2) In carrying out paragraph (1) of this subsection and sub-
section (c) of this section, the Secretary of Transportation shall—
(A) solicit the views of the Secretaries of Commerce and
State and the United States Trade Representative;
(B) give an affected air carrier or foreign air carrier reason-
able notice and an opportunity to submit written evidence
and arguments within the time limits of this subsection; and
(C) submit to the President under section 41307 or 41509(f)
of this title actions proposed by the Secretary of Transportation.
(e) REVIEW.—(1) The Secretaries of State, the Treasury, and
Transportation and the heads of other departments, agencies, and
instrumentalities of the Government shall keep under review, to
the extent of each of their jurisdictions, each form of discrimination
or unfair competitive practice to which an air carrier is subject
when providing foreign air transportation. Each Secretary and head
shall—
(A) take appropriate action to eliminate any discrimination
or unfair competitive practice found to exist; and
(B) request Congress to enact legislation when the author-
ity to eliminate the discrimination or unfair practice is inad-
equate.
(2) The Secretary of Transportation shall report to Congress
annually on each action taken under paragraph (1) of this sub-
section and on the continuing program to eliminate discrimination
and unfair competitive practices. The Secretaries of State and the
Treasury each shall give the Secretary of Transportation informa-
tion necessary to prepare the report.
(f) REPORTS.—Not later than 30 days after acting on a complaint
under this section, the Secretary of Transportation shall report
to the Committee on Public Works and Transportation of the House
of Representatives and the Committee on Commerce, Science, and
Transportation of the Senate on action taken under this section
on the complaint.
CHAPTER 415—PRICING
Sec.
41501.
Establishing reasonable prices, classifications, rules, practices, and divi-
sions of joint prices for foreign air transportation.
H. R. 1758—388
41502.
Establishing joint prices for through routes with other common carriers.
41503.
Establishing joint prices for through routes provided by State authorized
carriers.
41504.
Tariffs for foreign air transportation.
41505.
Uniform methods for establishing joint prices, and divisions of joint prices,
applicable to commuter air carriers.
41506.
Price division filing requirements for foreign air transportation.
41507.
Authority of the Secretary of Transportation to change prices, classifica-
tions, rules, and practices for foreign air transportation.
41508.
Authority of the Secretary of Transportation to adjust divisions of joint
prices for foreign air transportation.
41509.
Authority of the Secretary of Transportation to suspend, cancel, and reject
tariffs for foreign air transportation.
41510.
Required adherence to foreign air transportation tariffs.
41511.
Special prices for foreign air transportation.
§ 41501. Establishing reasonable prices, classifications, rules,
practices, and divisions of joint prices for foreign
air transportation
Every air carrier and foreign air carrier shall establish, comply
with, and enforce—
(1) reasonable prices, classifications, rules, and practices
related to foreign air transportation; and
(2) for joint prices established for foreign air transportation,
reasonable divisions of those prices among the participating
air carriers or foreign air carriers without unreasonably
discriminating against any of those carriers.
§ 41502. Establishing joint prices for through routes with
other common carriers
(a) JOINT PRICES.—An air carrier may establish reasonable
joint prices and through service with another common carrier. How-
ever, an air carrier not directly operating aircraft in air transpor-
tation (except an air express company) may not establish under
this section a joint price for the transportation of property with
a common carrier subject to subtitle IV of this title.
(b) PRICES, CLASSIFICATIONS, RULES, AND PRACTICES AND DIVI-
SIONS
OF JOINT PRICES.—For through service by an air carrier
and a common carrier subject to subtitle IV of this title, the partici-
pating carriers shall establish—
(1) reasonable prices and reasonable classifications, rules,
and practices affecting those prices or the value of the transpor-
tation provided under those prices; and
(2) for joint prices established for the through service,
reasonable divisions of those joint prices among the participat-
ing carriers.
(c) STATEMENTS INCLUDED IN TARIFFS.—An air carrier and a
common carrier subject to subtitle IV of this title that are participat-
ing in through service and joint prices shall include in their tariffs,
filed with the Secretary of Transportation, a statement showing
the through service and joint prices.
§ 41503. Establishing joint prices for through routes pro-
vided by State authorized carriers
Subject to sections 41309 and 42111 of this title, a citizen
of the United States providing transportation under section 41101(b)
of this title may make an agreement with an air carrier or foreign
air carrier for joint prices for that transportation. The joint prices
agreed to must be the lowest of—
(1) the sum of the applicable prices for—
H. R. 1758—392
(F) whether the price will be predatory or tend to monopo-
lize competition among air carriers and foreign air carriers
in foreign air transportation;
(G) reasonably estimated or foreseeable future costs and
revenues for the air carrier or foreign air carrier for a reason-
ably limited future period during which the price would be
in effect; and
(H) other factors.
(b) SUSPENSION.—(1)(A) Pending a decision under subsection
(a)(1) of this section, the Secretary may suspend a tariff and the
use of a price contained in the tariff or a classification, rule, or
practice affecting that price.
(B) The Secretary may suspend a tariff of a foreign air carrier
and the use of a price, classification, rule, or practice when the
suspension is in the public interest.
(2) A suspension becomes effective when the Secretary files
with the tariff and delivers to the air carrier or foreign air carrier
affected by the suspension a written statement of the reasons
for the suspension. To suspend a tariff, reasonable notice of the
suspension must be given to the affected carrier.
(3) The suspension of a newly filed tariff may be for periods
totaling not more than 365 days after the date the tariff otherwise
would go into effect. The suspension of an existing tariff may
be for periods totaling not more than 365 days after the effective
date of the suspension. The Secretary may rescind at any time
the suspension of a newly filed tariff and allow the price, classifica-
tion, rule, or practice to go into effect.
(c) EFFECTIVE TARIFFS AND PRICES WHEN TARIFF IS SUSPENDED,
CANCELED, OR REJECTED.—(1) If a tariff is suspended pending the
outcome of a proceeding under subsection (a) of this section and
the Secretary does not take final action in the proceeding during
the suspension period, the tariff goes into effect at the end of
that period subject to cancellation when the proceeding is concluded.
(2)(A) During the period of suspension, or after the cancellation
or rejection, of a newly filed tariff (including a tariff that has
gone into effect provisionally), the affected air carrier or foreign
air carrier shall maintain in effect and use—
(i) the corresponding seasonal prices, or the classifications,
rules, and practices affecting those prices or the value of
transportation provided under those prices, that were in effect
for the carrier immediately before the new tariff was filed;
or
(ii) another price provided for under an applicable intergov-
ernmental agreement or understanding.
(B) If the suspended, canceled, or rejected tariff is the first
tariff of the carrier for the covered transportation, the carrier,
for the purpose of operations during the period of suspension or
pending effectiveness of a new tariff, may file another tariff contain-
ing a price or another classification, rule, or practice affecting
the price, or the value of the transportation provided under the
price, that is in effect (and not subject to a suspension order)
for any air carrier providing the same transportation.
(3) If an existing tariff is suspended or canceled, the affected
air carrier or foreign air carrier, for the purpose of operations
during the period of suspension or pending effectiveness of a new
tariff, may file another tariff containing a price or another classifica-
tion, rule, or practice affecting the price, or the value of the
H. R. 1758—393
transportation provided under the price, that is in effect (and not
subject to a suspension order) for any air carrier providing the
same transportation.
(d) RESPONSE TO REFUSAL OF FOREIGN COUNTRY TO ALLOW
AIR CARRIER TO CHARGE A PRICE.—When the Secretary finds that
the government or an aeronautical authority of a foreign country
has refused to allow an air carrier to charge a price contained
in a tariff filed and published under section 41504 of this title
for foreign air transportation to the foreign country—
(1) the Secretary, without a hearing—
(A) may suspend any existing tariff of a foreign air
carrier providing transportation between the United States
and the foreign country for periods totaling not more than
365 days after the date of the suspension; and
(B) may order the foreign air carrier to charge, during
the suspension periods, prices that are the same as those
contained in a tariff (designated by the Secretary) of an
air carrier filed and published under section 41504 of this
title for foreign air transportation to the foreign country;
and
(2) a foreign air carrier may continue to provide foreign
air transportation to the foreign country only if the government
or aeronautical authority of the foreign country allows an air
carrier to start or continue foreign air transportation to the
foreign country at the prices designated by the Secretary.
(e) STANDARD FOREIGN FARE LEVEL.—(1)(A) In this subsection,
‘‘standard foreign fare level’’ means—
(i) for a class of fares existing on October 1, 1979, the
fare between 2 places (as adjusted under subparagraph (B)
of this paragraph) filed for and allowed by the Civil Aeronautics
Board to go into effect after September 30, 1979, and before
August 13, 1980 (with seasonal fares adjusted by the percentage
difference that prevailed between seasons in 1978), or the fare
established under section 1002(j)(8) of the Federal Aviation
Act of 1958 (Public Law 85–726, 72 Stat. 731), as added by
section 24(a) of the International Air Transportation Competi-
tion Act of 1979 (Public Law 96–192, 94 Stat. 46); or
(ii) for a class of fares established after October 1, 1979,
the fare between 2 places in effect on the effective date of
the establishment of the new class.
(B) At least once every 60 days for fuel costs, and at least
once every 180 days for other costs, the Secretary shall adjust
the standard foreign fare level for the particular foreign air
transportation to which the standard foreign fare level applies
by increasing or decreasing that level by the percentage change
from the last previous period in the actual operating cost for each
available seat-mile. In adjusting a standard foreign fare level, the
Secretary may not make an adjustment to costs actually incurred.
In establishing a standard foreign fare level and making adjust-
ments in the level under this paragraph, the Secretary may use
all relevant or appropriate information reasonably available to the
Secretary.
(2) The Secretary may not decide that a proposed fare for
foreign air transportation is unreasonable on the basis that the
fare is too low or too high if the proposed fare is neither more
than 5 percent higher nor 50 percent lower than the standard
foreign fare level for the same or essentially similar class of
H. R. 1758—394
transportation. The Secretary by regulation may increase the 50
percent specified in this paragraph.
(3) Paragraph (2) of this subsection does not apply to a proposed
fare that is not more than—
(A) 5 percent higher than the standard foreign fare level
when the Secretary decides that the proposed fare may be
unreasonably discriminatory or that suspension of the fare
is in the public interest because of an unreasonable regulatory
action by the government of a foreign country that is related
to a fare proposal of an air carrier; or
(B) 50 percent lower than the standard foreign fare level
when the Secretary decides that the proposed fare may be
predatory or discriminatory or that suspension of the fare is
required because of an unreasonable regulatory action by the
government of a foreign country that is related to a fare pro-
posal of an air carrier.
(f) SUBMISSION OF ORDERS TO PRESIDENT.—The Secretary shall
submit to the President an order made under this section suspend-
ing, canceling, or rejecting a price for foreign air transportation,
and an order rescinding the effectiveness of such an order, before
publishing the order. Not later than 10 days after its submission,
the President may disapprove the order on finding disapproval
is necessary for United States foreign policy or national defense
reasons.
(g) COMPLIANCE AS CONDITION OF CERTIFICATE OR PERMIT.—
This section and compliance with an order of the Secretary under
this section are conditions to any certificate or permit held by
an air carrier or foreign air carrier. An air carrier or foreign air
carrier may provide foreign air transportation only as long as the
carrier maintains prices for that transportation that comply with
this section and orders of the Secretary under this section.
§ 41510. Required adherence to foreign air transportation
tariffs
(a) PROHIBITED ACTIONS BY AIR CARRIERS, FOREIGN AIR CAR-
RIERS, AND TICKET AGENTS.—An air carrier, foreign air carrier,
or ticket agent may not—
(1) charge or receive compensation for foreign air transpor-
tation that is different from the price specified in the tariff
of the carrier that is in effect for that transportation;
(2) refund or remit any part of the price specified in the
tariff; or
(3) extend to any person a privilege or facility, related
to a matter required by the Secretary of Transportation to
be specified in a tariff for foreign air transportation, except
as specified in the tariff.
(b) PROHIBITED ACTIONS BY ANY PERSON.—A person may not
knowingly—
(1) pay compensation for foreign air transportation of prop-
erty that is different from the price specified in the tariff
in effect for that transportation; or
(2) solicit, accept, or receive—
(A) a refund or remittance of any part of the price
specified in the tariff; or
(B) a privilege or facility, related to a matter required
by the Secretary to be specified in a tariff for foreign
H. R. 1758—395
air transportation of property, except as specified in the
tariff.
§ 41511. Special prices for foreign air transportation
(a) FREE AND REDUCED PRICING.—This chapter does not pro-
hibit an air carrier or foreign air carrier, under terms the Secretary
of Transportation prescribes, from issuing or interchanging tickets
or passes for free or reduced-price foreign air transportation to
or for the following:
(1) a director, officer, or employee of the carrier (including
a retired director, officer, or employee who is receiving retire-
ment benefits from an air carrier or foreign air carrier).
(2) a parent or the immediate family of such an officer
or employee or the immediate family of such a director.
(3) a widow, widower, or minor child of an employee of
the carrier who died as a direct result of a personal injury
sustained when performing a duty in the service of the carrier.
(4) a witness or attorney attending a legal investigation
in which the air carrier is interested.
(5) an individual injured in an aircraft accident and a
physician or nurse attending the individual.
(6) a parent or the immediate family of an individual
injured or killed in an aircraft accident when the transportation
is related to the accident.
(7) an individual or property to provide relief in a general
epidemic, pestilence, or other emergency.
(8) other individuals under other circumstances the Sec-
retary prescribes by regulation.
(b) SPACE-AVAILABLE BASIS.—Under terms the Secretary pre-
scribes, an air carrier or foreign air carrier may grant reduced-
price foreign air transportation on a space-available basis to the
following:
(1) a minister of religion.
(2) an individual who is at least 60 years of age and
no longer gainfully employed.
(3) an individual who is at least 65 years of age.
(4) an individual who has severely impaired vision or hear-
ing or another physical or mental handicap and an accompany-
ing attendant needed by that individual.
CHAPTER 417—OPERATIONS OF CARRIERS
SUBCHAPTER I—REQUIREMENTS
Sec.
41701.
Classification of air carriers.
41702.
Interstate air transportation.
41703.
Navigation of foreign civil aircraft.
41704.
Transporting property not to be transported in aircraft cabins.
41705.
Discrimination against handicapped individuals.
41706.
Prohibitions against smoking on scheduled flights.
41707.
Incorporating contract terms into written instrument.
41708.
Reports.
41709.
Records of air carriers.
41710.
Time requirements.
41711.
Air carrier management inquiry and cooperation with other authorities.
41712.
Unfair and deceptive practices and unfair methods of competition.
41713.
Preemption of authority over prices, routes, and service.
SUBCHAPTER II—SMALL COMMUNITY AIR SERVICE
41731.
Definitions.
41732.
Basic essential air service.
41733.
Level of basic essential air service.
H. R. 1758—396
41734.
Ending, suspending, and reducing basic essential air service.
41735.
Enhanced essential air service.
41736.
Air transportation to noneligible places.
41737.
Compensation guidelines, limitations, and claims.
41738.
Fitness of air carriers.
41739.
Air carrier obligations.
41740.
Joint proposals.
41741.
Insurance.
41742.
Ending effective date.
SUBCHAPTER I—REQUIREMENTS
§ 41701. Classification of air carriers
The Secretary of Transportation may establish—
(1) reasonable classifications for air carriers when required
because of the nature of the transportation provided by them;
and
(2) reasonable requirements for each class when the Sec-
retary decides those requirements are necessary in the public
interest.
§ 41702. Interstate air transportation
An air carrier shall provide safe and adequate interstate air
transportation.
§ 41703. Navigation of foreign civil aircraft
(a) PERMITTED NAVIGATION.—A foreign aircraft, not part of
the armed forces of a foreign country, may be navigated in the
United States only—
(1) if the country of registry grants a similar privilege
to aircraft of the United States;
(2) by an airman holding a certificate or license issued
or made valid by the United States Government or the country
of registry;
(3) if the Secretary of Transportation authorizes the naviga-
tion; and
(4) if the navigation is consistent with terms the Secretary
may prescribe.
(b) REQUIREMENTS FOR AUTHORIZING NAVIGATION.—The Sec-
retary may authorize navigation under this section only if the
Secretary decides the authorization is—
(1) in the public interest; and
(2) consistent with any agreement between the Government
and the government of a foreign country.
(c) PROVIDING AIR COMMERCE.—The Secretary may authorize
an aircraft permitted to navigate in the United States under this
section to provide air commerce in the United States. However,
the aircraft may take on for compensation, at a place in the United
States, passengers or cargo destined for another place in the United
States only if—
(1) specifically authorized under section 40109(g) of this
title; or
(2) under regulations the Secretary prescribes authorizing
air carriers to provide otherwise authorized air transportation
with foreign registered aircraft under lease or charter to them
without crew.
(d) PERMIT REQUIREMENTS NOT AFFECTED.—This section does
not affect section 41301 or 41302 of this title. However, a foreign
air carrier holding a permit under section 41302 does not need
H. R. 1758—397
to obtain additional authorization under this section for an oper-
ation authorized by the permit.
§ 41704. Transporting property not to be transported in air-
craft cabins
Under regulations or orders of the Secretary of Transportation,
an air carrier shall transport as baggage the property of a passenger
traveling in air transportation that may not be carried in an aircraft
cabin because of a law or regulation of the United States. The
carrier is liable to pay an amount not more than the amount
declared to the carrier by that passenger for actual loss of, or
damage to, the property caused by the carrier. The carrier may
impose reasonable charges and conditions for its liability.
§ 41705. Discrimination against handicapped individuals
In providing air transportation, an air carrier may not discrimi-
nate against an otherwise qualified individual on the following
grounds:
(1) the individual has a physical or mental impairment
that substantially limits one or more major life activities.
(2) the individual has a record of such an impairment.
(3) the individual is regarded as having such an impair-
ment.
§ 41706. Prohibitions against smoking on scheduled flights
(a) GENERAL.—An individual may not smoke in the passenger
cabin or lavatory of an aircraft on a scheduled airline flight segment
in air transportation or intrastate air transportation that is—
(1) between places in a State of the United States, the
District of Columbia, Puerto Rico, or the Virgin Islands;
(2) between a place in any jurisdiction referred to in clause
(1) of this subsection (except Alaska and Hawaii) and a place
in any other of those jurisdictions; or
(3)(A) scheduled for not more than 6 hours’ duration; and
(B)(i) between a place referred to in clause (1) of this
subsection (except Alaska and Hawaii) and Alaska or Hawaii;
or
(ii) between Alaska and Hawaii.
(b) REGULATIONS.—The Secretary of Transportation shall pre-
scribe regulations necessary to carry out this section.
§ 41707. Incorporating 
contract 
terms 
into 
written
instrument
To the extent the Secretary of Transportation prescribes by
regulation, an air carrier may incorporate by reference in a ticket
or written instrument any term of the contract for providing inter-
state air transportation.
§ 41708. Reports
(a) APPLICATION.—To the extent the Secretary of Transportation
finds necessary to carry out this subpart, this section and section
41709 of this title apply to a person controlling an air carrier
or affiliated (within the meaning of section 11343(c) of this title)
with a carrier.
(b) REQUIREMENTS.—The Secretary may require an air carrier
or foreign air carrier—
H. R. 1758—398
(1)(A) to file annual, monthly, periodical, and special
reports with the Secretary in the form and way prescribed
by the Secretary; and
(B) to file the reports under oath;
(2) to provide specific answers to questions on which the
Secretary considers information to be necessary; and
(3) to file with the Secretary a copy of each agreement,
arrangement, contract, or understanding between the carrier
and another carrier or person related to transportation affected
by this subpart.
§ 41709. Records of air carriers
(a) REQUIREMENTS.—The Secretary of Transportation shall pre-
scribe the form of records to be kept by an air carrier, including
records on the movement of traffic, receipts and expenditures of
money, and the time period during which the records shall be
kept. A carrier may keep only records prescribed or approved by
the Secretary. However, a carrier may keep additional records if
the additional records do not impair the integrity of the records
prescribed or approved by the Secretary and are not an unreason-
able financial burden on the carrier.
(b) INSPECTION.—(1) The Secretary at any time may—
(A) inspect the land, buildings, and equipment of an air
carrier or foreign air carrier when necessary to decide under
subchapter II of this chapter or section 41102, 41103, or 41302
of this title whether a carrier is fit, willing, and able; and
(B) inspect records kept or required to be kept by an
air carrier, foreign air carrier, or ticket agent.
(2) The Secretary may employ special agents or auditors to
carry out this subsection.
§ 41710. Time requirements
When a matter requiring action of the Secretary of Transpor-
tation is submitted under section 40109(a) or (c)–(h), 41309, or
42111 of this title and an evidentiary hearing—
(1) is ordered, the Secretary shall make a final decision
on the matter not later than the last day of the 12th month
that begins after the date the matter is submitted; or
(2) is not ordered, the Secretary shall make a final decision
on the matter not later than the last day of the 6th month
that begins after the date the matter is submitted.
§ 41711. Air carrier management inquiry and cooperation
with other authorities
In carrying out this subpart, the Secretary of Transportation
may—
(1) inquire into the management of the business of an
air carrier and obtain from the air carrier, and a person control-
ling, controlled by, or under common control with the carrier,
information the Secretary decides reasonably is necessary to
carry out the inquiry;
(2) confer and hold a joint hearing with a State authority;
and
(3) exchange information related to aeronautics with a
government of a foreign country through appropriate depart-
ments, agencies, and instrumentalities of the United States
Government.
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§ 41712. Unfair and deceptive practices and unfair methods
of competition
On the initiative of the Secretary of Transportation or the
complaint of an air carrier, foreign air carrier, or ticket agent,
and if the Secretary considers it is in the public interest, the
Secretary may investigate and decide whether an air carrier, foreign
air carrier, or ticket agent has been or is engaged in an unfair
or deceptive practice or an unfair method of competition in air
transportation or the sale of air transportation. If the Secretary,
after notice and an opportunity for a hearing, finds that an air
carrier, foreign air carrier, or ticket agent is engaged in an unfair
or deceptive practice or unfair method of competition, the Secretary
shall order the air carrier, foreign air carrier, or ticket agent to
stop the practice or method.
§ 41713. Preemption of authority over prices, routes, and
service
(a) DEFINITION.—In this section, ‘‘State’’ means a State, the
District of Columbia, and a territory or possession of the United
States.
(b) PREEMPTION.—(1) Except as provided in this subsection,
a State, political subdivision of a State, or political authority of
at least 2 States may not enact or enforce a law, regulation, or
other provision having the force and effect of law related to a
price, route, or service of an air carrier that may provide air
transportation under this subpart.
(2) Paragraph (1) of this subsection does not apply to air
transportation provided entirely in Alaska unless the transportation
is air transportation (except charter air transportation) provided
under a certificate issued under section 41102 of this title.
(3) This subsection does not limit a State, political subdivision
of a State, or political authority of at least 2 States that owns
or operates an airport served by an air carrier holding a certificate
issued by the Secretary of Transportation from carrying out its
proprietary powers and rights.
SUBCHAPTER II—SMALL COMMUNITY AIR SERVICE
§ 41731. Definitions
(a) GENERAL.—In this subchapter—
(1) ‘‘eligible place’’ means a place in the United States
that—
(A) was an eligible point under section 419 of the
Federal Aviation Act of 1958 before October 1, 1988;
(B) received scheduled air transportation at any time
after January 1, 1990; and
(C) is not listed in Department of Transportation
Orders 89–9–37 and 89–12–52 as a place ineligible for
compensation under this subchapter.
(2) ‘‘enhanced essential air service’’ means scheduled air
transportation to an eligible place of a higher level or quality
than basic essential air service described in section 41732 of
this title.
(3) ‘‘hub airport’’ means an airport that each year has
at least .25 percent of the total annual boardings in the United
States.
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(4) ‘‘nonhub airport’’ means an airport that each year has
less than .05 percent of the total annual boardings in the
United States.
(5) ‘‘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.
(b) LIMITATION ON AUTHORITY TO DECIDE A PLACE NOT AN
ELIGIBLE PLACE.—The Secretary of Transportation may not decide
that a place described in subsection (a)(1) of this section is not
an eligible place on the basis of a passenger subsidy at that place
or on another basis that is not specifically stated in this subchapter.
§ 41732. Basic essential air service
(a) GENERAL.—Basic essential air service provided under sec-
tion 41733 of this title is scheduled air transportation of passengers
and cargo—
(1) to a hub airport that has convenient connecting or
single-plane air service to a substantial number of destinations
beyond that airport; or
(2) to a small hub or nonhub airport, when in Alaska
or when the nearest hub airport is more than 400 miles from
an eligible place.
(b) MINIMUM REQUIREMENTS.—Basic essential air service shall
include at least the following:
(1)(A) for a place not in Alaska, 2 daily round trips 6
days a week, with not more than one intermediate stop on
each flight; or
(B) for a place in Alaska, a level of service at least equal
to that provided in 1976 or 2 round trips a week, whichever
is greater, except that the Secretary of Transportation and
the appropriate State authority of Alaska may agree to a dif-
ferent level of service after consulting with the affected commu-
nity.
(2) flights at reasonable times considering the needs of
passengers with connecting flights at the airport and at prices
that are not excessive compared to the generally prevailing
prices of other air carriers for like service between similar
places.
(3) for a place not in Alaska, service provided in an aircraft
with an effective capacity of at least 15 passengers if the
average daily boardings at the place in any calendar year
from 1976-1986 were more than 11 passengers unless—
(A) that level-of-service requirement would require pay-
ing compensation in a fiscal year under section 41733(d)
or 41734(d) or (e) of this title for the place when compensa-
tion otherwise would not have been paid for that place
in that year; or
(B) the affected community agrees with the Secretary
in writing to the use of smaller aircraft to provide service
to the place.
(4) service accommodating the estimated passenger and
property traffic at an average load factor, for each class of
traffic considering seasonal demands for the service, of not
more than—
(A) 50 percent; or
(B) 60 percent when service is provided by aircraft
with more than 14 passenger seats.