458
public interest. A regulation prescribed or order issued under this subsection
may not be more restrictive than a regulation related to charter air trans-
portation that was in effect on October 1, 1978.
(b) ALASKA.—An air carrier holding a certificate issued under section
41102 of this title may provide charter air transportation between places
in Alaska only to the extent the Secretary decides the transportation is re-
quired by public convenience and necessity. The Secretary may make that
decision when issuing, amending, or modifying the certificate. This sub-
section does not apply to a certificate issued under section 41102 to a citi-
zen of the United States who, before July 1, 1977—
(1) maintained a principal place of business in Alaska; and
(2) conducted air transport operations between places in Alaska with
aircraft with a certificate for gross takeoff weight of more than 40,000
pounds.
(c) SUSPENSIONS.—(1) The Secretary shall suspend for not more than
30 days any part of the certificate of a charter air carrier if the Secretary
decides that the failure of the carrier to comply with the requirements de-
scribed in sections 41110(e) and 41112 of this title, or a regulation or order
of the Secretary under section 41110(e) or 41112, requires immediate sus-
pension in the interest of the rights, welfare, or safety of the public. The
Secretary may act under this paragraph without notice or a hearing.
(2) The Secretary shall begin immediately a hearing to decide if the cer-
tificate referred to in paragraph (1) of this subsection should be amended,
modified, suspended, or revoked. Until the hearing is completed, the Sec-
retary may suspend the certificate for additional periods totaling not more
than 60 days. If the Secretary decides that the carrier is complying with
the requirements described in sections 41110(e) and 41112 of this title and
regulations and orders under sections 41110(e) and 41112, the Secretary
immediately may end the suspension period and proceeding begun under
this subsection. However, the Secretary is not prevented from imposing a
civil penalty on the carrier for violating the requirements described in sec-
tion 41110(e) or 41112 or a regulation or order under section 41110(e) or
41112.
§ 41105. Transfers of certificates
(a) GENERAL.—A certificate issued under section 41102 of this title may
be transferred only when the Secretary of Transportation approves the
transfer as being consistent with the public interest.
(b) CERTIFICATION TO CONGRESS.—When a certificate is transferred, the
Secretary shall certify to the Committee on Commerce, Science, and Trans-
portation of the Senate and the Committee on Public Works and Transpor-
tation of the House of Representatives that the transfer is consistent with
459
the public interest. The Secretary shall include with the certification a re-
port analyzing the effects of the transfer on—
(1) the viability of each carrier involved in the transfer;
(2) competition in the domestic airline industry; and
(3) the trade position of the United States in the international air
transportation market.
§ 41106. Airlift service
(a) GENERAL.—(1) Except as provided in subsection (b) of this section,
the transportation of passengers or property by transport category aircraft
in interstate air transportation obtained by the Secretary of Defense or the
Secretary of a military department through a contract of at least 31 days
for airlift service in the United States may be provided only by an air car-
rier that—
(A) has aircraft in the civil reserve air fleet or offers to place the
aircraft in that fleet; and
(B) holds a certificate issued under section 41102 of this title.
(2) The Secretary of Transportation shall act as expeditiously as possible
on an application for a certificate under section 41102 of this title to pro-
vide airlift service.
(b) EXCEPTION.—When the Secretary of Defense decides that no air car-
rier holding a certificate under section 41102 is capable of providing, and
willing to provide, the airlift service, the Secretary of Defense may make
a contract to provide the service with an air carrier not having a certificate.
§ 41107. Transportation of mail
When the United States Postal Service finds that the needs of the Postal
Service require the transportation of mail by aircraft in foreign air transpor-
tation or between places in Alaska, in addition to the transportation of mail
authorized under certificates in effect, the Postal Service shall certify that
finding to the Secretary of Transportation with a statement about the addi-
tional transportation and facilities necessary to provide the additional trans-
portation. A copy of each certification and statement shall be posted for at
least 20 days in the office of the Secretary. After notice and an opportunity
for a hearing, the Secretary shall issue a new certificate under section
41102 of this title, or amend or modify an existing certificate under section
41110(a)(2)(A) of this title, to provide the additional transportation and fa-
cilities if the Secretary finds the additional transportation is required by the
public convenience and necessity.
§ 41108. Applications for certificates
(a) FORM, CONTENTS, AND PROOF OF SERVICE.—To be issued a certifi-
cate of public convenience and necessity under section 41102 of this title,
460
a citizen of the United States must apply to the Secretary of Transpor-
tation. The application must—
(1) be in the form and contain information required by regulations
of the Secretary; and
(2) be accompanied by proof of service on interested persons as re-
quired by regulations of the Secretary and on each community that
may be affected by the issuance of the certificate.
(b) NOTICE, RESPONSE, AND ACTIONS ON APPLICATIONS.—(1) 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 per-
sons as required by regulations of the Secretary. An interested person may
file a response with the Secretary opposing or supporting the issuance of
the certificate. Not later than 90 days after the application is filed, the Sec-
retary shall—
(A) provide an opportunity for a public hearing on the application;
(B) begin the procedure under section 41111 of this title; or
(C) dismiss the application on its merits.
(2) An order of dismissal issued by the Secretary under paragraph (1)(C)
of this subsection is a final order and may be reviewed judicially under sec-
tion 46110 of this title.
(3) If the Secretary provides an opportunity for a hearing under para-
graph (1)(A) of this subsection, an initial or recommended decision shall be
issued not later than 150 days after the date the Secretary provides the op-
portunity. The Secretary shall issue a final order on the application not
later than 90 days after the decision is issued. However, if the Secretary
does not act within the 90-day period, the initial or recommended decision
on an application to provide—
(A) interstate air transportation is a final order and may be reviewed
judicially under section 46110 of this title; and
(B) foreign air transportation shall be submitted to the President
under section 41307 of this title.
(4) If the Secretary acts under paragraph (1)(B) of this subsection, the
Secretary shall issue a final order on the application not later than 180 days
after beginning the procedure on the application.
(5) If a citizen applying for a certificate does not meet the procedural
schedule adopted by the Secretary in a proceeding, the Secretary may ex-
tend the period for acting under paragraphs (3) and (4) of this subsection
by a period equal to the period of delay caused by the citizen. In addition
to an extension under this paragraph, an initial or recommended decision
under paragraph (3) of this subsection may be delayed for not more than
30 days in extraordinary circumstances.
461
(c) PROOF REQUIREMENTS.—(1) A citizen applying for a certificate must
prove that the citizen is fit, willing, and able to provide the transportation
referred to in section 41102 of this title and to comply with this part.
(2) A person opposing a citizen applying for a certificate must prove that
the transportation referred to in section 41102(b)(2) of this title is not con-
sistent with the public convenience and necessity. The transportation is
deemed to be consistent with the public convenience and necessity unless the
Secretary finds, by a preponderance of the evidence, that the transportation
is not consistent with the public convenience and necessity.
§ 41109. Terms of certificates
(a) GENERAL.—(1) Each certificate issued under section 41102 of this
title shall specify the type of transportation to be provided.
(2) The Secretary of Transportation—
(A) may prescribe terms for providing air transportation under the
certificate that the Secretary finds may be required in the public inter-
est; but
(B) may not prescribe a term preventing an air carrier from adding
or changing schedules, equipment, accommodations, and facilities for
providing the authorized transportation to satisfy business development
and public demand.
(3) A certificate issued under section 41102 of this title to provide foreign
air transportation shall specify the places between which the air carrier is
authorized to provide the transportation only to the extent the Secretary
considers practicable and otherwise only shall specify each general route to
be followed. The Secretary shall authorize an air carrier holding a certificate
to provide foreign air transportation to handle and transport mail of coun-
tries other than the United States.
(4) A certificate issued under section 41102 of this title to provide foreign
charter air transportation shall specify the places between which the air car-
rier is authorized to provide the transportation only to the extent the Sec-
retary considers practicable and otherwise only shall specify each geographi-
cal area in which, or between which, the transportation may be provided.
(b) MODIFYING TERMS.—(1) An air carrier may file with the Secretary
an application to modify any term of its certificate issued under section
41102 of this title to provide interstate or foreign air transportation. Not
later than 60 days after an application is filed, the Secretary shall—
(A) provide the carrier an opportunity for an oral evidentiary hearing
on the record; or
(B) begin to consider the application under section 41111 of this
title.
462
(2) The Secretary shall modify each term the Secretary finds to be incon-
sistent with the criteria under section 40101(a) and (b) of this title.
(3) An application under this subsection may not be dismissed under sec-
tion 41108(b)(1)(C) of this title.
§ 41110. Effective periods and amendments, modifications,
suspensions, and revocations of certificates
(a) GENERAL.—(1) Each certificate issued under section 41102 of this
title is effective from the date specified in it and remains in effect until—
(A) the Secretary of Transportation suspends or revokes the certifi-
cate under this section;
(B) the end of the period the Secretary specifies for an air carrier
having a certificate of temporary authority issued under section
41102(a)(2) of this title; or
(C) the Secretary certifies that transportation is no longer being pro-
vided under a certificate.
(2) On application or on the initiative of the Secretary and after notice
and an opportunity for a hearing or, except as provided in paragraph (4)
of this subsection, under section 41111 of this title, the Secretary may—
(A) amend, modify, or suspend any part of a certificate if the Sec-
retary finds the public convenience and necessity require amendment,
modification, or suspension; and
(B) revoke any part of a certificate if the Secretary finds that the
holder of the certificate intentionally does not comply with this chapter,
sections 41308–41310(a), 41501, 41503, 41504, 41506, 41510, 41511,
41701, 41702, 41705–41709, 41711, 41712, and 41731–41742, chap-
ter 419, subchapter II of chapter 421, and section 46301(b) of this
title, a regulation or order of the Secretary under any of those provi-
sions, or a term of its certificate.
(3) The Secretary may revoke a certificate under paragraph (2)(B) of
this subsection only if the holder of the certificate does not comply, within
a reasonable time the Secretary specifies, with an order to the holder requir-
ing compliance.
(4) A certificate to provide foreign air transportation may not be amend-
ed, modified, suspended, or revoked under section 41111 of this title if the
holder of the certificate requests an oral evidentiary hearing or the Sec-
retary finds, under all the facts and circumstances, that the hearing is re-
quired in the public interest.
(b) ALL-CARGO AIR TRANSPORTATION.—The Secretary may order that a
certificate issued under section 41103 of this title authorizing all-cargo air
transportation is ineffective if, after notice and an opportunity for a hear-
463
ing, the Secretary finds that the transportation is not provided to the mini-
mum extent specified by the Secretary.
(c) FOREIGN AIR TRANSPORTATION.—(1) Notwithstanding subsection
(a)(2)–(4) of this section, after notice and a reasonable opportunity for the
affected air carrier to present its views, but without a hearing, the Secretary
may suspend or revoke the authority of an air carrier to provide foreign air
transportation to a place under a certificate issued under section 41102 of
this title if the carrier—
(A) notifies the Secretary, under section 41734(a) of this title or a
regulation of the Secretary, that it intends to suspend all transpor-
tation to that place; or
(B) does not provide regularly scheduled transportation to the place
for 90 days immediately before the date the Secretary notifies the car-
rier of the action the Secretary proposes.
(2) Paragraph (1)(B) of this subsection does not apply to a place pro-
vided seasonal transportation comparable to the transportation provided
during the prior year.
(d) TEMPORARY CERTIFICATES.—On application or on the initiative of
the Secretary, the Secretary may—
(1) review the performance of an air carrier issued a certificate
under section 41102(c) of this title on the basis that the air carrier
will provide innovative or low-priced air transportation under the cer-
tificate; and
(2) amend, modify, suspend, or revoke the certificate or authority
under subsection (a)(2) or (c) of this section if the air carrier has not
provided, or is not providing, the transportation.
(e) CONTINUING REQUIREMENTS.—After notice and an opportunity for a
hearing, the Secretary shall amend, modify, suspend, or revoke any part of
a certificate issued under section 41102 of this title if the Secretary finds
that the air carrier—
(1) is not fit, willing, and able to continue to provide the transpor-
tation authorized by the certificate and to comply with this part and
regulations of the Secretary; or
(2) does not file reports necessary for the Secretary to decide if the
carrier is complying with the requirements of clause (1) of this sub-
section.
(f) ILLEGAL IMPORTATION
OF CONTROLLED SUBSTANCES.—The Sec-
retary—
(1) in consultation with appropriate departments, agencies, and in-
strumentalities of the United States Government, shall reexamine im-
mediately the fitness of an air carrier that—
464
(A) violates the laws and regulations of the United States relat-
ed to the illegal importation of a controlled substance; or
(B) does not adopt available measures to prevent the illegal im-
portation of a controlled substance into the United States on its
aircraft; and
(2) when appropriate, shall amend, modify, suspend, or revoke the
certificate of the carrier issued under this chapter.
(g) RESPONSES.—An interested person may file a response with the Sec-
retary opposing or supporting the amendment, modification, suspension, or
revocation of a certificate under subsection (a) of this section.
§ 41111. Simplified procedure to apply for, amend, modify,
suspend, and transfer certificates
(a) GENERAL REQUIREMENTS.—(1) The Secretary of Transportation
shall prescribe regulations that simplify the procedure for—
(A) acting on an application for a certificate to provide air transpor-
tation under section 41102 of this title; and
(B) amending, modifying, suspending, or transferring any part of
that certificate under section 41105 or 41110(a) or (c) of this title.
(2) Regulations under this section shall provide for notice and an oppor-
tunity for each interested person to file appropriate written evidence and ar-
gument. An oral evidentiary hearing is not required to be provided under
this section.
(b) WHEN SIMPLIFIED PROCEDURE USED.—The Secretary may use the
simplified procedure to act on an application for a certificate to provide air
transportation under section 41102 of this title, or to amend, modify, sus-
pend, or transfer any part of that certificate under section 41105 or
41110(a) or (c) of this title, when the Secretary decides the use of the pro-
cedure is in the public interest.
(c) CONTENTS.—(1) To the extent the Secretary finds practicable, regula-
tions under this section shall include each standard the Secretary will apply
when—
(A) deciding whether to use the simplified procedure; and
(B) making a decision on an action in which the procedure is used.
(2) The regulations may provide that written evidence and argument may
be filed under section 41108(b) of this title as a part of a response opposing
or supporting the issuance of a certificate.
§ 41112. Liability insurance and financial responsibility
(a) LIABILITY INSURANCE.—The Secretary of Transportation may issue
a certificate to a citizen of the United States to provide air transportation
as an air carrier under section 41102 of this title only if the citizen complies
with regulations and orders of the Secretary governing the filing of an in-
465
surance policy or self-insurance plan approved by the Secretary. The policy
or plan must be sufficient to pay, not more than the amount of the insur-
ance, for bodily injury to, or death of, an individual or for loss of, or dam-
age to, property of others, resulting from the operation or maintenance of
the aircraft under the certificate. A certificate does not remain in effect un-
less the carrier complies with this subsection.
(b) FINANCIAL RESPONSIBILITY.—To protect passengers and shippers
using an aircraft operated by an air carrier issued a certificate under sec-
tion 41102 of this title, the Secretary may require the carrier to file a per-
formance bond or equivalent security in the amount and on terms the Sec-
retary prescribes. The bond or security must be sufficient to ensure the car-
rier adequately will pay the passengers and shippers when the transpor-
tation the carrier agrees to provide is not provided. The Secretary shall pre-
scribe the amounts to be paid under this subsection.
CHAPTER 413—FOREIGN AIR TRANSPORTATION
Sec.
41301.
Requirement for a permit.
41302.
Permits of foreign air carriers.
41303.
Transfers of permits.
41304.
Effective periods and amendments, modifications, suspensions, and revocations of per-
mits.
41305.
Applications for permits.
41306.
Simplified procedure to apply for, amend, modify, and suspend permits.
41307.
Presidential review of actions about foreign air transportation.
41308.
Exemption from the antitrust laws.
41309.
Cooperative agreements and requests.
41310.
Discriminatory practices.
§ 41301. Requirement for a permit
A foreign air carrier may provide foreign air transportation only if the
foreign air carrier holds a permit issued under this chapter authorizing the
foreign air transportation.
§ 41302. Permits of foreign air carriers
The Secretary of Transportation may issue a permit to a person (except
a citizen of the United States) authorizing the person to provide foreign air
transportation as a foreign air carrier if the Secretary finds that—
(1) the person is fit, willing, and able to provide the foreign air
transportation to be authorized by the permit and to comply with this
part and regulations of the Secretary; and
(2)(A) the person is qualified, and has been designated by the gov-
ernment of its country, to provide the foreign air transportation under
an agreement with the United States Government; or
(B) the foreign air transportation to be provided under the permit
will be in the public interest.
466
§ 41303. Transfers of permits
A permit issued under section 41302 of this title may be transferred only
when the Secretary of Transportation approves the transfer because the
transfer is in the public interest.
§ 41304. Effective periods and amendments, modifications,
suspensions, and revocations of permits
(a) GENERAL.—The Secretary of Transportation may prescribe the pe-
riod during which a permit issued under section 41302 of this title is in
effect. After notice and an opportunity for a hearing, the Secretary may
amend, modify, suspend, or revoke the permit if the Secretary finds that
action to be in the public interest.
(b) SUSPENSIONS AND RESTRICTIONS.—Without a hearing, but subject
to the approval of the President, the Secretary—
(1) may suspend summarily the permits of foreign air carriers of a
foreign country, or amend, modify, or limit the operations of the for-
eign air carriers under the permits, when the Secretary finds—
(A) the action is in the public interest; and
(B) the government, an aeronautical authority, or a foreign air
carrier of the foreign country, over the objection of the United
States Government, has—
(i) limited or denied the operating rights of an air carrier;
or
(ii) engaged in unfair, discriminatory, or restrictive prac-
tices that have a substantial adverse competitive impact on an
air carrier related to air transportation to, from, through, or
over the territory of the foreign country; and
(2) to make this subsection effective, may restrict operations between
the United States and the foreign country by a foreign air carrier of
a third country.
(c) ILLEGAL IMPORTATION OF CONTROLLED SUBSTANCES.—The Sec-
retary—
(1) in consultation with appropriate departments, agencies, and in-
strumentalities of the Government, shall reexamine immediately the fit-
ness of a foreign air carrier that—
(A) violates the laws and regulations of the United States relat-
ed to the illegal importation of a controlled substance; or
(B) does not adopt available measures to prevent the illegal im-
portation of a controlled substance into the United States on its
aircraft; and
(2) when appropriate, shall amend, modify, suspend, or revoke the
permit of the carrier issued under this chapter.
467
(d) RESPONSES.—An interested person may file a response with the Sec-
retary opposing or supporting the amendment, modification, suspension, or
revocation of a permit under subsection (a) of this section.
§ 41305. Applications for permits
(a) FORM, CONTENTS, NOTICE, RESPONSE, AND ACTIONS ON APPLICA-
TIONS.—(1) A person must apply in writing to the Secretary of Transpor-
tation to be issued a permit under section 41302 of this title. The Secretary
shall prescribe regulations to require that the application be—
(A) verified;
(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 expedi-
tiously as possible.
(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 prescribe reg-
ulations that simplify the procedure for—
(1) acting on an application for a permit to provide foreign air trans-
portation 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 per-
son 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, re-
voke, or transfer a certificate issued under section 41102 of this title au-
thorizing 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
468
for disapproval is based on foreign relations or national defense consider-
ations that are under the jurisdiction of the President. The President may
not disapprove a decision of the Secretary if the reason is economic or
related to carrier selection. A decision of the Secretary—
(1) is void if the President disapproves the decision and publishes
the reasons (to the extent allowed by national security) 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 deci-
sion 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).
(b) EXEMPTION AUTHORIZED.—When the Secretary of Transportation
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 af-
fected 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 cancellation, the Sec-
retary, 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 ap-
proved 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 Sec-
retary 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 ar-
rangements (except arrangements related to interstate air transportation),
and any modification or cancellation of an agreement, between the air car-
rier or foreign air carrier and another air carrier, a foreign carrier, or an-
other carrier.
(b) APPROVAL.—The Secretary of Transportation shall approve an agree-
ment, request, modification, or cancellation referred to in subsection (a) of
this section when the Secretary finds it is not adverse to the public interest
469
and is not in violation of this part. However, the Secretary shall dis-
approve—
(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 cancellation is nec-
essary to meet a serious transportation need or to achieve impor-
tant public benefits (including international comity and foreign
policy considerations); and
(B) the transportation need cannot be met or those benefits
cannot be achieved by reasonably available alternatives 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 Sec-
retary of Transportation shall give the Attorney General 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, re-
quest, modification, or cancellation is consistent with this part whether or
not it was approved previously.
(2) In a proceeding before the Secretary of Transportation applying
standards under subsection (b)(1) of this section, a party opposing an
agreement, request, modification, or cancellation has the burden of proving
that it substantially reduces or eliminates competition and that less anti-
competitive alternatives are available. The party defending the agreement,
request, modification, or cancellation has the burden of proving the trans-
portation 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, modification, 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 un-
reasonable discrimination.
470
(b) 
REVIEW
AND
NEGOTIATION
OF
DISCRIMINATORY
FOREIGN
CHARGES.—(1) The Secretary of Transportation shall survey charges im-
posed 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 Transportation 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 negotiations with the appropriate government to end the dis-
crimination. If the discrimination is not ended in a reasonable time through
negotiation, the Secretary of Transportation shall establish a compensating
charge equal to the discriminatory charge. With the approval of the Sec-
retary of State, the Secretary of the Treasury shall impose the compensat-
ing charge on a foreign air carrier of that country as a condition to accept-
ing 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 Transpor-
tation to compensate the air carrier for the discriminatory charge paid to
the government.
(c) ACTIONS AGAINST DISCRIMINATORY ACTIVITY.—(1) The Secretary 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 an-
other 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 car-
rier 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 com-
plaint, set the complaint for a hearing 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 addi-
tional periods totaling not more than 30 days if the Secretary decides that
471
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 subsection (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 reasonable no-
tice 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 Transpor-
tation 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 authority to elimi-
nate the discrimination or unfair practice is inadequate.
(2) The Secretary of Transportation shall report to Congress annually on
each action taken under paragraph (1) of this subsection and on the con-
tinuing program to eliminate discrimination and unfair competitive prac-
tices. The Secretaries of State and the Treasury each shall give the Sec-
retary of Transportation information 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.
472
CHAPTER 415—RATES
Sec.
41501.
Establishing reasonable rates, classifications, rules, practices, and divisions of joint
rates for foreign air transportation.
41502.
Establishing joint rates for through routes with other common carriers.
41503.
Establishing joint rates for through routes provided by State authorized carriers.
41504.
Tariffs for foreign air transportation.
41505.
Uniform methods for establishing joint rates, and divisions of joint rates, applicable
to commuter air carriers.
41506.
Rate division filing requirements for foreign air transportation.
41507.
Authority of the Secretary of Transportation to change rates, classifications, rules,
and practices for foreign air transportation.
41508.
Authority of the Secretary of Transportation to adjust divisions of joint rates for for-
eign 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 fares for foreign air transportation.
§ 41501. Establishing reasonable rates, classifications, rules,
practices, and divisions of joint rates for foreign
air transportation
Every air carrier and foreign air carrier shall establish, comply with, and
enforce—
(1) reasonable rates, classifications, rules, and practices related to
foreign air transportation; and
(2) for joint rates established for foreign air transportation, reason-
able divisions of those rates among the participating air carriers or for-
eign air carriers without unreasonably discriminating against any of
those carriers.
§ 41502. Establishing joint rates for through routes with
other common carriers
(a) JOINT RATES.—An air carrier may establish reasonable joint rates
with another common carrier for through service provided under section
41101(b) of this title. However, an air carrier not directly operating aircraft
in air transportation (except an air express company) may not establish
under this section a joint rate for the transportation of property with a com-
mon carrier subject to subtitle IV of this title.
(b) RATES, CLASSIFICATIONS, RULES, AND PRACTICES AND DIVISIONS
OF JOINT RATES.—For through service by an air carrier and a common
carrier subject to subtitle IV of this title, the participating carriers shall es-
tablish—
(1) reasonable rates and reasonable classifications, rules, and prac-
tices affecting those rates or the value of the transportation provided
under those rates; and
(2) for joint rates established for the through service, reasonable di-
visions of those joint rates among the participating carriers.
473
(c) STATEMENTS INCLUDED IN TARIFFS.—An air carrier and a common
carrier subject to subtitle IV of this title that are participating in through
service and joint rates shall include in their tariffs, filed with the Secretary
of Transportation, a statement showing the through service and joint rates.
§ 41503. Establishing joint rates for through routes provided
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 rates
for that transportation. The joint rates agreed to must be the lowest of—
(1) the sum of the applicable rates for—
(A) the part of the transportation provided in the State and ap-
proved by the appropriate State authority; and
(B) the part of the transportation provided by the air carrier
or foreign air carrier;
(2) a joint rate established and filed under section 41504 of this
title; or
(3) a joint rate prescribed by the Secretary of Transportation under
section 41507 of this title.
§ 41504. Tariffs for foreign air transportation
(a) FILING AND CONTENTS.—In the way prescribed by regulation by the
Secretary of Transportation, every air carrier and foreign air carrier shall
file with the Secretary, publish, and keep open to public inspection, tariffs
showing the rates for the foreign air transportation provided between places
served by the carrier and provided between places served by the carrier and
places served by another air carrier or foreign air carrier with which
through service and joint rates have been established. A tariff—
(1) shall contain—
(A) to the extent the Secretary requires by regulation, a descrip-
tion of the classifications, rules, and practices related to the for-
eign air transportation;
(B) a statement of the rates in money of the United States; and
(C) other information the Secretary requires by regulation; and
(2) may contain—
(A) a statement of the rates in money that is not money of the
United States; and
(B) information that is required under the laws of a foreign
country in or to which the air carrier or foreign air carrier is au-
thorized to operate.
(b) CHANGES.—(1) Except as provided in paragraph (2) of this sub-
section, an air carrier or foreign air carrier may change a rate or a classi-
474
fication, rule, or practice affecting that rate or the value of the transpor-
tation provided under that rate, specified in a tariff of the carrier for for-
eign air transportation only after 30 days after the carrier has filed, pub-
lished, and posted notice of the proposed change in the same way as re-
quired for a tariff under subsection (a) of this section. However, the Sec-
retary may prescribe an alternative notice requirement, of at least 25 days,
to allow an air carrier or foreign air carrier to match a proposed change
in a passenger rate or a charge of another air carrier or foreign air carrier.
A notice under this paragraph must state plainly the change proposed and
when the change will take effect.
(2) If the effect of a proposed change would be to begin a passenger rate
that is outside of, or not covered by, the range of passenger rates specified
under section 41509(e) (2) and (3) of this title, the proposed change may
be put into effect only on the expiration of 60 days after the notice is filed
under regulations prescribed by the Secretary.
(c) REJECTION OF CHANGES.—The Secretary may reject a tariff or tariff
change that is not consistent with this section and regulations prescribed
by the Secretary. A tariff or change that is rejected is void.
§ 41505. Uniform methods for establishing joint rates, and
divisions of joint rates, applicable to commuter air
carriers
(a) DEFINITION.—In this section, ‘‘commuter air carrier’’ means an air
carrier providing transportation under section 40109(f) of this title that
provides at least 5 scheduled roundtrips a week between the same 2 places.
(b) GENERAL.—Except as provided in subsection (c) of this section, when
the Secretary of Transportation prescribes under section 41508 or 41509
of this title a uniform method generally applicable to establishing joint rates
and divisions of joint rates for and between air carriers holding certificates
issued under section 41102 of this title, the Secretary shall make that uni-
form method apply to establishing joint rates and divisions of joint rates
for and between air carriers and commuter air carriers.
(c) NOTICE REQUIRED BEFORE MODIFYING, SUSPENDING, OR ENDING
TRANSPORTATION.—A commuter air carrier that has an agreement with an
air carrier to provide transportation for passengers and property that in-
cludes through service by the commuter air carrier over the commuter air
carrier’s routes and air transportation provided by the air carrier shall give
the air carrier and the Secretary at least 90 days’ notice before modifying,
suspending, or ending the transportation. If the commuter air carrier does
not give that notice, the uniform method of establishing joint rates and divi-
sions of joint rates referred to in subsection (b) of this section does not
apply to the commuter air carrier.
475
§ 41506. Rate division filing requirements for foreign air
transportation
Every air carrier and foreign air carrier shall keep currently on file with
the Secretary of Transportation, if the Secretary requires, the established
divisions of all joint rates for foreign air transportation in which the carrier
participates.
§ 41507. Authority of the Secretary of Transportation to
change rates, classifications, rules, and practices
for foreign air transportation
(a) GENERAL.—When the Secretary of Transportation decides that a rate
charged or received by an air carrier or foreign air carrier for foreign air
transportation, or a classification, rule, or practice affecting that rate or the
value of the transportation provided under that rate, is or will be unreason-
ably discriminatory, the Secretary may—
(1) change the rate, classification, rule, or practice as necessary to
correct the discrimination; and
(2) order the air carrier or foreign air carrier to stop charging or
collecting the discriminatory rate or carrying out the discriminatory
classification, rule, or practice.
(b) WHEN SECRETARY MAY ACT.—The Secretary may act under this sec-
tion on the Secretary’s own initiative or on a complaint filed with the Sec-
retary and only after notice and an opportunity for a hearing.
§ 41508. Authority of the Secretary of Transportation to ad-
just divisions of joint rates for foreign air trans-
portation
(a) GENERAL.—When the Secretary of Transportation decides that a di-
vision between air carriers, foreign air carriers, or both, of a joint rate for
foreign air transportation is or will be unreasonable or unreasonably dis-
criminatory against any of those carriers, the Secretary shall prescribe a
reasonable division of the joint rate among those carriers. The Secretary
may order the adjustment in the division of the joint rate to be made retro-
actively to the date the complaint was filed, the date the order for an inves-
tigation was made, or a later date the Secretary decides is reasonable.
(b) WHEN SECRETARY MAY ACT.—The Secretary may act under this sec-
tion on the Secretary’s own initiative or on a complaint filed with the Sec-
retary and only after notice and an opportunity for a hearing.
§ 41509. Authority of the Secretary of Transportation to
suspend, cancel, and reject tariffs for foreign air
transportation
(a) CANCELLATION AND REJECTION.—(1) On the initiative of the Sec-
retary of Transportation or on a complaint filed with the Secretary, the Sec-
476
retary may conduct a hearing to decide whether a rate for foreign air trans-
portation contained in an existing or newly filed tariff of an air carrier or
foreign air carrier, a classification, rule, or practice affecting that rate, or
the value of the transportation provided under that rate, is lawful. The Sec-
retary may begin the hearing at once and without an answer or another for-
mal pleading by the air carrier or foreign air carrier, but only after reason-
able notice. If, after the hearing, the Secretary decides that the rate, classi-
fication, rule, or practice is or will be unreasonable or unreasonably dis-
criminatory, the Secretary may cancel or reject the tariff and prevent the
use of the rate, classification, rule, or practice.
(2) With or without a hearing, the Secretary may cancel or reject an ex-
isting or newly filed tariff of a foreign air carrier and prevent the use of
a rate, classification, rule, or practice when the Secretary decides that the
cancellation or rejection is in the public interest.
(3) In deciding whether to cancel or reject a tariff of an air carrier or
foreign air carrier under this subsection, the Secretary shall consider—
(A) the effect of the rate on the movement of traffic;
(B) the need in the public interest of adequate and efficient trans-
portation by air carriers and foreign air carriers at the lowest cost con-
sistent with providing the transportation;
(C) the standards prescribed under law related to the character and
quality of transportation to be provided by air carriers and foreign air
carriers;
(D) the inherent advantages of transportation by aircraft;
(E) the need of the air carrier and foreign air carrier for revenue
sufficient to enable the air carrier and foreign air carrier, under honest,
economical, and efficient management, to provide adequate and effi-
cient air carrier and foreign air carrier transportation;
(F) whether the rate will be predatory or tend to monopolize com-
petition among air carriers and foreign air carriers in foreign air trans-
portation;
(G) reasonably estimated or foreseeable future costs and revenues for
the air carrier or foreign air carrier for a reasonably limited future pe-
riod during which the rate 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 rate con-
tained in the tariff or a classification, rule, or practice affecting that rate.
(B) The Secretary may suspend a tariff of a foreign air carrier and the
use of a rate, classification, rule, or practice when the suspension is in the
public interest.
477
(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 suspen-
sion 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 rate,
classification, rule, or practice to go into effect.
(c) EFFECTIVE TARIFFS AND RATES WHEN TARIFF IS SUSPENDED,
CANCELED, OR REJECTED.—(1) If a tariff is suspended pending the out-
come 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 rejec-
tion, of a newly filed tariff (including a tariff that has gone into effect provi-
sionally), the affected air carrier or foreign air carrier shall maintain in ef-
fect and use—
(i) the corresponding seasonal rates, or the classifications, rules, and
practices affecting those rates or the value of transportation provided
under those rates, that were in effect for the carrier immediately before
the new tariff was filed; or
(ii) another rate provided for under an applicable intergovernmental
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 oper-
ations during the period of suspension or pending effectiveness of a new tar-
iff, may file another tariff containing a rate or another classification, rule,
or practice affecting the rate, or the value of the transportation provided
under the rate, 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 sus-
pension or pending effectiveness of a new tariff, may file another tariff con-
taining a rate or another classification, rule, or practice affecting the rate,
or the value of the transportation provided under the rate, that is in effect
(and not subject to a suspension order) for any air carrier providing the
same transportation.
478
(d) RESPONSE TO REFUSAL OF FOREIGN COUNTRY TO ALLOW AIR CAR-
RIER TO CHARGE A RATE.—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 rate contained in a tariff filed and published under
section 41504 of this title for foreign air transportation to the foreign coun-
try—
(1) the Secretary, without a hearing—
(A) may suspend any existing tariff of a foreign air carrier pro-
viding 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 sus-
pension periods, rates that are the same as those contained in a
tariff (designated by the Secretary) of an air carrier filed and pub-
lished under section 41504 of this title for foreign air transpor-
tation to the foreign country; and
(2) a foreign air carrier may continue to provide foreign air trans-
portation to the foreign country only if the government or aeronautical
authority of the foreign country allows an air carrier to start or con-
tinue foreign air transportation to the foreign country at the rates des-
ignated 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 Competition 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 per-
centage change from the last previous period in the actual operating cost
for each available seat-mile. In adjusting a standard foreign fare level, the
479
Secretary may not make an adjustment to costs actually incurred. In estab-
lishing a standard foreign fare level and making adjustments in the level
under this paragraph, the Secretary may use all relevant or appropriate in-
formation 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 per-
cent lower than the standard foreign fare level for the same or essentially
similar class of 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 discrimi-
natory 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 discrimi-
natory or that suspension of the fare is required because of an unrea-
sonable regulatory action by the government of a foreign country that
is related to a fare proposal of an air carrier.
(f) SUBMISSION OF ORDERS TO PRESIDENT.—The Secretary shall submit
to the President an order made under this section suspending, canceling,
or rejecting a rate 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 na-
tional defense reasons.
(g) COMPLIANCE AS CONDITION OF CERTIFICATE OR PERMIT.—This sec-
tion 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 trans-
portation only as long as the carrier maintains rates 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 CARRIERS,
AND TICKET AGENTS.—An air carrier, foreign air carrier, or ticket agent
may not—
480
(1) charge or receive compensation for foreign air transportation
that is different from the rate specified in the tariff of the carrier that
is in effect for that transportation;
(2) refund or remit any part of the rate 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 know-
ingly—
(1) pay compensation for foreign air transportation of property that
is different from the rate specified in the tariff in effect for that trans-
portation; or
(2) solicit, accept, or receive—
(A) a refund or remittance of any part of the rate 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 air transportation
of property, except as specified in the tariff.
§ 41511. Special fares for foreign air transportation
(a) FREE AND REDUCED FARES.—This chapter does not prohibit an air
carrier or foreign air carrier, under terms the Secretary of Transportation
prescribes, from issuing or interchanging tickets or passes for free or re-
duced-fare 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 retirement 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 per-
forming 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.
481
(8) Other individuals under other circumstances the Secretary pre-
scribes by regulation.
(b) SPACE-AVAILABLE BASIS.—Under terms the Secretary prescribes, an
air carrier or foreign air carrier may grant reduced-fare foreign air trans-
portation 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 gain-
fully employed.
(3) An individual who is at least 65 years of age.
(4) An individual who has severely impaired vision or hearing or an-
other physical or mental handicap and an accompanying 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 rates, routes, and service.
SUBCHAPTER II—SMALL COMMUNITY AIR SERVICE
41731.
Definitions.
41732.
Basic essential air service.
41733.
Level of basic essential air service.
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 Secretary de-
cides those requirements are necessary in the public interest.
482
§ 41702. Interstate air transportation
An air carrier shall provide safe and adequate interstate air transpor-
tation.
§ 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 navigation; and
(4) if the navigation is consistent with terms the Secretary may pre-
scribe.
(b) REQUIREMENTS
FOR AUTHORIZING NAVIGATION.—The Secretary
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 air-
craft permitted to navigate in the United States under this section to pro-
vide air commerce in the United States. However, the aircraft may take on
for compensation, at a place in the United States, passengers or cargo des-
tined 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 car-
riers 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 af-
fect section 41301 or 41302 of this title. However, a foreign air carrier
holding a permit under section 41302 does not need to obtain additional au-
thorization under this section for an operation 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.
483
§ 41705. Discrimination against handicapped individuals
In providing air transportation, an air carrier may not discriminate
against an otherwise qualified individual on the following grounds:
(1) The individual has a physical or mental impairment that sub-
stantially 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 impairment.
§ 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 transpor-
tation 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 prescribe reg-
ulations necessary to carry out this section.
§ 41707. Incorporating contract terms into written instru-
ment
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 interstate 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—
(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
484
(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 prescribe the
form of records to be kept by an air carrier, including records on the move-
ment of traffic, receipts and expenditures of money, and the time period
during which the records shall be kept. A carrier may keep only records pre-
scribed or approved by the Secretary. However, a carrier may keep addi-
tional 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 car-
rier is fit, willing, and able; and
(B) inspect records kept or required to be kept by an air carrier, for-
eign 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 Transportation is sub-
mitted 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 mat-
ter 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 controlling, 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
485
(3) exchange information related to aeronautics with a government
of a foreign country through appropriate departments, agencies, and
instrumentalities of the United States Government.
§ 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 con-
siders 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 competi-
tion 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, for-
eign 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 rates, 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, po-
litical 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 rate, 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 Avia-
tion Act of 1958 before October 1, 1988;
(B) received scheduled air transportation at any time after Jan-
uary 1, 1990; and
486
(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 transpor-
tation to an eligible place of a higher level or quality than basic essen-
tial 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;
(4) ‘‘nonhub airport’’ means an airport that each year has less than
.05 percent of the total annual boardings in the United States; and
(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 de-
scribed 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 section 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 author-
ity of Alaska may agree to a different level of service after consulting
with the affected community.
(2) flights at reasonable times considering the needs of passengers
with connecting flights at the airport and at rates that are not exces-
sive compared to the generally prevailing rates 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
487
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 paying com-
pensation in a fiscal year under section 41733(d) or 41734(d) or
(e) of this title for the place when compensation 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.
(5) service provided in aircraft with at least 2 engines and using 2
pilots, unless scheduled air transportation has not been provided to the
place in aircraft with at least 2 engines and using 2 pilots for at least
60 consecutive operating days at any time since October 31, 1978.
(6) service provided by pressurized aircraft when the service is pro-
vided by aircraft that regularly fly above 8,000 feet in altitude.
§ 41733. Level of basic essential air service
(a) DECISIONS MADE BEFORE OCTOBER 1, 1988.—For each eligible
place for which a decision was made before October 1, 1988, under section
419 of the Federal Aviation Act of 1958, establishing the level of essential
air transportation, the level of basic essential air service for that place shall
be the level established by the Secretary of Transportation for that place
by not later than December 29, 1988.
(b) DECISIONS NOT MADE BEFORE OCTOBER 1, 1988.—(1) The Sec-
retary shall decide on the level of basic essential air service for each eligible
place for which a decision was not made before October 1, 1988, establish-
ing the level of essential air transportation, when the Secretary receives no-
tice that service to that place will be provided by only one air carrier. The
Secretary shall make the decision by the last day of the 6-month period be-
ginning on the date the Secretary receives the notice. The Secretary may
impose notice requirements necessary to carry out this subsection. Before
making a decision, the Secretary shall consider the views of any interested
community and the appropriate State authority of the State in which the
community is located.
(2) Until the Secretary has made a decision on a level of basic essential
air service for an eligible place under this subsection, the Secretary, on peti-
tion by an appropriate representative of the place, shall prohibit an air car-
488
rier from ending, suspending, or reducing air transportation to that place
that appears to deprive the place of basic essential air service.
(c) AVAILABILITY OF COMPENSATION.—(1) If the Secretary decides that
basic essential air service will not be provided to an eligible place without
compensation, the Secretary shall provide notice that an air carrier may
apply to provide basic essential air service to the place for compensation
under this section. In selecting an applicant, the Secretary shall consider,
among other factors—
(A) the demonstrated reliability of the applicant in providing sched-
uled air service;
(B) the contractual and marketing arrangements the applicant has
made with a larger carrier to ensure service beyond the hub airport;
(C) the interline arrangements that the applicant has made with a
larger carrier to allow passengers and cargo of the applicant at the hub
airport to be transported by the larger carrier through one reservation,
ticket, and baggage check-in;
(D) the preferences of the actual and potential users of air transpor-
tation at the eligible place, giving substantial weight to the views of the
elected officials representing the users; and
(E) for an eligible place in Alaska, the experience of the applicant
in providing, in Alaska, scheduled air service, or significant patterns of
non-scheduled air service under an exemption granted under section
40109(a) and (c)–(h) of this title.
(2) Under guidelines prescribed under section 41737(a) of this title, the
Secretary shall pay the rate of compensation for providing basic essential
air service under this section and section 41734 of this title.
(d) COMPENSATION PAYMENTS.—The Secretary shall pay compensation
under this section at times and in the way the Secretary decides is appro-
priate. The Secretary shall end payment of compensation to an air carrier
for providing basic essential air service to an eligible place when the Sec-
retary decides the compensation is no longer necessary to maintain basic es-
sential air service to the place.
(e) REVIEW.—The Secretary shall review periodically the level of basic es-
sential air service for each eligible place. Based on the review and consulta-
tions with an interested community and the appropriate State authority of
the State in which the community is located, the Secretary may make ap-
propriate adjustments in the level of service.
§ 41734. Ending, suspending, and reducing basic essential
air service
(a) NOTICE REQUIRED.—An air carrier may end, suspend, or reduce air
transportation to an eligible place below the level of basic essential air serv-
489
ice established for that place under section 41733 of this title only after giv-
ing the Secretary of Transportation, the appropriate State authority, and
the affected communities at least 90 days’ notice before ending, suspending,
or reducing that transportation.
(b) CONTINUATION OF SERVICE FOR 30 DAYS AFTER NOTICE PERIOD.—
If at the end of the notice period under subsection (a) of this section the
Secretary has not found another air carrier to provide basic essential air
service to the eligible place, the Secretary shall require the carrier providing
notice to continue to provide basic essential air service to the place for an
additional 30-day period or until another carrier begins to provide basic es-
sential air service to the place, whichever occurs first.
(c) CONTINUATION OF SERVICE FOR ADDITIONAL 30-DAY PERIODS.—If
at the end of the 30-day period under subsection (b) of this section the Sec-
retary decides another air carrier will not provide basic essential air service
to the place on a continuing basis, the Secretary shall require the carrier
providing service to continue to provide service for additional 30-day periods
until another carrier begins providing service on a continuing basis. At the
end of each 30-day period, the Secretary shall decide if another carrier will
provide service on a continuing basis.
(d) CONTINUATION OF COMPENSATION AFTER NOTICE PERIOD.—If an
air carrier receiving compensation under section 41733 of this title for pro-
viding basic essential air service to an eligible place is required to continue
to provide service to the place under this section after the 90-day notice pe-
riod under subsection (a) of this section, the Secretary shall continue to pay
that compensation after the last day of that period. The Secretary shall pay
the compensation until the Secretary finds another carrier to provide the
service to the place or the 90th day after the end of that notice period,
whichever is earlier. If, after the 90th day after the end of the 90-day notice
period, the Secretary has not found another carrier to provide the service,
the carrier required to continue to provide that service shall receive com-
pensation sufficient—
(1) to pay for the fully allocated actual cost to the carrier of per-
forming the basic essential air service that was being provided when
the 90-day notice was given under subsection (a) of this section plus
a reasonable return on investment that is at least 5 percent of operat-
ing costs; and
(2) to provide the carrier an additional return that recognizes the
demonstrated additional lost profits from opportunities foregone and
the likelihood that those lost profits increase as the period during which
the carrier is required to provide the service continues.
490
(e) COMPENSATION TO AIR CARRIERS ORIGINALLY PROVIDING SERVICE
WITHOUT COMPENSATION.—If the Secretary requires an air carrier provid-
ing basic essential air service to an eligible place without compensation
under section 41733 of this title to continue providing that service after the
90-day notice period required by subsection (a) of this section, the Secretary
shall provide the carrier with compensation after the end of the 90-day no-
tice period that is sufficient—
(1) to pay for the fully allocated actual cost to the carrier of per-
forming the basic essential air service that was being provided when
the 90-day notice was given under subsection (a) of this section plus
a reasonable return on investment that is at least 5 percent of operat-
ing costs; and
(2) to provide the carrier an additional return that recognizes the
demonstrated additional lost profits from opportunities foregone and
the likelihood that those lost profits increase as the period during which
the carrier is required to provide the service continues.
(f) FINDING REPLACEMENT CARRIERS.—When the Secretary requires an
air carrier to continue to provide basic essential air service to an eligible
place, the Secretary shall continue to make every effort to find another car-
rier to provide at least that basic essential air service to the place on a con-
tinuing basis.
(g) TRANSFER OF AUTHORITY.—If an air carrier, providing basic essen-
tial air service under section 41733 of this title between an eligible place
and an airport at which the Administrator of the Federal Aviation Adminis-
tration limits the number of instrument flight rule takeoffs and landings of
aircraft, provides notice under subsection (a) of this section of an intention
to end, suspend, or reduce that service and another carrier is found to pro-
vide the service, the Secretary shall require the carrier providing notice to
transfer any operational authority the carrier has to land or take off at that
airport related to the service to the eligible place to the carrier that will pro-
vide the service, if—
(1) the carrier that will provide the service needs the authority; and
(2) the authority to be transferred is being used only to provide air
service to the eligible place.
§ 41735. Enhanced essential air service
(a) PROPOSALS.—(1) A State or local government may submit a proposal
to the Secretary of Transportation for enhanced essential air service to an
eligible place for which basic essential air service is being provided under
section 41733 of this title. The proposal shall—
(A) specify the level and type of enhanced essential air service the
State or local government considers appropriate; and
491
(B) include an agreement related to compensation required for the
proposed service.
(2) The agreement submitted under paragraph (1)(B) of this subsection
shall provide that—
(A) the State or local government or a person pay 50 percent of the
compensation required for the proposed service and the United States
Government pay the remaining 50 percent; or
(B)(i) the Government pay 100 percent of the compensation; and
(ii) if the proposed service is not successful for at least a 2-year pe-
riod under the criteria prescribed by the Secretary under paragraph (3)
of this subsection, the eligible place is not eligible for air service or air
transportation for which compensation is paid by the Secretary under
this subchapter.
(3) The Secretary shall prescribe by regulation objective criteria for decid-
ing whether enhanced essential air service to an eligible place under this sec-
tion is successful in terms of—
(A) increasing passenger usage of the airport facilities at the place;
and
(B) reducing the amount of compensation provided by the Secretary
under this subchapter for that service.
(b) DECISIONS.—Not later than 90 days after receiving a proposal under
subsection (a) of this section, the Secretary shall—
(1) approve the proposal if the Secretary decides the proposal is rea-
sonable; or
(2) if the Secretary decides the proposal is not reasonable, dis-
approve the proposal and notify the State or local government of the
disapproval and the reasons for the disapproval.
(c) COMPENSATION PAYMENTS.—(1) The Secretary shall pay compensa-
tion under this section when and in the way the Secretary decides is appro-
priate. Compensation for enhanced essential air service under this section
may be paid only for the costs incurred in providing air service to an eligible
place that are in addition to the costs incurred in providing basic essential
air service to the place under section 41733 of this title. The Secretary shall
continue to pay compensation under this section only as long as—
(A) the air carrier maintains the level of enhanced essential air serv-
ice;
(B) the State or local government or person agreeing to pay com-
pensation under this section continues to pay the compensation; and
(C) the Secretary decides the compensation is necessary to maintain
the service to the place.
492
(2) The Secretary may require the State or local government or person
agreeing to pay compensation under this section to make advance payments
or provide other security to ensure that timely payments are made.
(d) REVIEW.—(1) The Secretary shall review periodically the enhanced
essential air service provided to each eligible place under this section.
(2) For service for which the Government pays 50 percent of the com-
pensation, based on the review and consultation with the affected commu-
nity and the State or local government or person paying the remaining 50
percent of the compensation, the Secretary shall make appropriate adjust-
ments in the type and level of service to the place.
(3) For service for which the Government pays 100 percent of the com-
pensation, based on the review and consultation with the State or local gov-
ernment submitting the proposal, the Secretary shall decide whether the
service has succeeded for at least a 2-year period under the criteria pre-
scribed under subsection (a)(3) of this section. If unsuccessful, the place is
not eligible for air service or air transportation for which compensation is
paid by the Secretary under this subchapter.
(e) ENDING, SUSPENDING, AND REDUCING AIR TRANSPORTATION.—An
air carrier may end, suspend, or reduce air transportation to an eligible
place below the level of enhanced essential air service established for that
place by the Secretary under this section only after giving the Secretary,
the affected community, and the State or local government or person paying
compensation for that service at least 30 days’ notice before ending, sus-
pending, or reducing the service. This subsection does not relieve the carrier
of an obligation under section 41734 of this title.
§ 41736. Air transportation to noneligible places
(a) PROPOSALS AND DECISIONS.—(1) A State or local government may
propose to the Secretary of Transportation that the Secretary provide com-
pensation to an air carrier to provide air transportation to a place that is
not an eligible place under this subchapter. Not later than 90 days after
receiving a proposal under this section, the Secretary shall—
(A) decide whether to designate the place as eligible to receive com-
pensation under this section; and
(B)(i) approve the proposal if the State or local government or a per-
son is willing and able to pay 50 percent of the compensation for pro-
viding the transportation, and notify the State or local government of
the approval; or
(ii) disapprove the proposal if the Secretary decides the proposal is
not reasonable under paragraph (2) of this subsection, and notify the
State or local government of the disapproval and the reasons for the
disapproval.
493
(2) In deciding whether a proposal is reasonable, the Secretary shall con-
sider, among other factors—
(A) the traffic-generating potential of the place;
(B) the cost to the United States Government of providing the pro-
posed transportation; and
(C) the distance of the place from the closest hub airport.
(b) APPROVAL FOR CERTAIN AIR TRANSPORTATION.—Notwithstanding
subsection (a)(1)(B) of this section, the Secretary shall approve a proposal
under this section to compensate an air carrier for providing air transpor-
tation to a place in the 48 contiguous States or the District of Columbia
and designate the place as eligible for compensation under this section if—
(1) at any time before October 23, 1978, the place was served by
a carrier holding a certificate under section 401 of the Federal Aviation
Act of 1958;
(2) the place is more than 50 miles from the nearest small hub air-
port or an eligible place;
(3) the place is more than 150 miles from the nearest hub airport;
and
(4) the State or local government submitting the proposal or a per-
son is willing and able to pay 25 percent of the cost of providing the
compensated transportation.
(c) LEVEL OF AIR TRANSPORTATION.—(1) If the Secretary designates a
place under subsection (a)(1) of this section as eligible for compensation
under this section, the Secretary shall decide, not later than 6 months after
the date of the designation, on the level of air transportation to be provided
under this section. Before making a decision, the Secretary shall consider
the views of any interested community, the appropriate State authority of
the State in which the place is located, and the State or local government
or person agreeing to pay compensation for the transportation under sub-
section (b)(4) of this section.
(2) After making the decision under paragraph (1) of this subsection, the
Secretary shall provide notice that any air carrier that is willing to provide
the level of air transportation established under paragraph (1) for a place
may submit an application to provide the transportation. In selecting an ap-
plicant, the Secretary shall consider, among other factors—
(A) the factors listed in section 41733(c)(1) of this title; and
(B) the views of the State or local government or person agreeing
to pay compensation for the transportation.
(d) COMPENSATION PAYMENTS.—(1) The Secretary shall pay compensa-
tion under this section when and in the way the Secretary decides is appro-
494
priate. The Secretary shall continue to pay compensation under this section
only as long as—
(A) the air carrier maintains the level of air transportation estab-
lished by the Secretary under subsection (c)(1) of this section;
(B) the State or local government or person agreeing to pay com-
pensation for transportation under this section continues to pay that
compensation; and
(C) the Secretary decides the compensation is necessary to maintain
the transportation to the place.
(2) The Secretary may require the State or local government or person
agreeing to pay compensation under this section to make advance payments
or provide other security to ensure that timely payments are made.
(e) REVIEW.—The Secretary shall review periodically the level of air
transportation provided under this section. Based on the review and con-
sultation with any interested community, the appropriate State authority of
the State in which the community is located, and the State or local govern-
ment or person paying compensation under this section, the Secretary may
make appropriate adjustments in the level of transportation.
(f) WITHDRAWAL OF ELIGIBILITY DESIGNATIONS.—After providing no-
tice and an opportunity for interested persons to comment, the Secretary
may withdraw the designation of a place under subsection (a)(1) of this sec-
tion as eligible to receive compensation under this section if the place has
received air transportation under this section for at least 2 years and the
Secretary decides the withdrawal would be in the public interest. The Sec-
retary by regulation shall prescribe standards for deciding whether the with-
drawal of a designation under this subsection is in the public interest. The
standards shall include the factors listed in subsection (a)(2) of this section.
(g) ENDING, SUSPENDING, AND REDUCING AIR TRANSPORTATION.—An
air carrier providing air transportation for compensation under this section
may end, suspend, or reduce that transportation below the level of transpor-
tation established by the Secretary under this section only after giving the
Secretary, the affected community, and the State or local government or
person paying compensation under this section at least 30 days’ notice be-
fore ending, suspending, or reducing the transportation.
§ 41737. Compensation guidelines, limitations, and claims
(a) COMPENSATION GUIDELINES.—(1) The Secretary of Transportation
shall prescribe guidelines governing the rate of compensation payable under
this subchapter. The guidelines shall be used to determine the reasonable
amount of compensation required to ensure the continuation of air service
or air transportation under this subchapter. The guidelines shall—
495
(A) provide for a reduction in compensation when an air carrier does
not provide service or transportation agreed to be provided;
(B) consider amounts needed by an air carrier to promote public use
of the service or transportation for which compensation is being paid;
and
(C) include expense elements based on representative costs of air
carriers providing scheduled air transportation of passengers, property,
and mail on aircraft of the type the Secretary decides is appropriate
for providing the service or transportation for which compensation is
being provided.
(2) Promotional amounts described in paragraph (1)(B) of this subsection
shall be a special, segregated element of the compensation provided to a car-
rier under this subchapter.
(b) REQUIRED FINDING.—The Secretary may pay compensation to an air
carrier for providing air service or air transportation under this subchapter
only if the Secretary finds the carrier is able to provide the service or trans-
portation in a reliable way.
(c) CLAIMS.—Not later than 15 days after receiving a written claim from
an air carrier for compensation under this subchapter, the Secretary shall—
(1) pay or deny the United States Government’s share of a claim;
and
(2) if denying the claim, notify the carrier of the denial and the rea-
sons for the denial.
(d) AUTHORITY TO MAKE AGREEMENTS AND INCUR OBLIGATIONS.—(1)
The Secretary may make agreements and incur obligations from the Airport
and Airway Trust Fund established under section 9502 of the Internal Rev-
enue Code of 1986 (26 U.S.C. 9502) to pay compensation under this sub-
chapter. An agreement by the Secretary under this subsection is a contrac-
tual obligation of the Government to pay the Government’s share of the
compensation.
(2) Not more than $38,600,000 is available to the Secretary out of the
Fund for each of the fiscal years ending September 30, 1993–1998, to incur
obligations under this section. Amounts made available under this section
remain available until expended.
§ 41738. Fitness of air carriers
Notwithstanding section 40109(a) and (c)–(h) of this title, an air carrier
may provide air service to an eligible place or air transportation to a place
designated under section 41736 of this title only when the Secretary of
Transportation decides that—
(1) the carrier is fit, willing, and able to perform the service or
transportation; and
496
(2) aircraft used to provide the service or transportation, and oper-
ations related to the service or transportation, conform to the safety
standards prescribed by the Administrator of the Federal Aviation
Administration.
§ 41739. Air carrier obligations
If at least 2 air carriers make an agreement to operate under or use a
single carrier designator code to provide air transportation, the carrier
whose code is being used shares responsibility with the other carriers for
the quality of transportation provided the public under the code by the other
carriers.
§ 41740. Joint proposals
The Secretary of Transportation shall encourage the submission of joint
proposals by 2 or more air carriers for providing air service or air transpor-
tation under this subchapter through arrangements that maximize the serv-
ice or transportation to and from major destinations beyond the hub.
§ 41741. Insurance
The Secretary of Transportation may pay an air carrier compensation
under this subchapter only when the carrier files with the Secretary an in-
surance policy or self-insurance plan approved by the Secretary. The policy
or plan must be sufficient to pay for bodily injury to, or death of, an indi-
vidual, or for loss of or damage to property of others, resulting from the
operation of aircraft, but not more than the amount of the policy or plan
limits.
§ 41742. Ending effective date
This subchapter is not effective after September 30, 1998.
CHAPTER 419—TRANSPORTATION OF MAIL
Sec.
41901.
General authority.
41902.
Schedules for certain transportation of mail.
41903.
Duty to provide certain transportation of mail.
41904.
Noncitizens transporting mail to or in foreign countries.
41905.
Regulating air carrier transportation of foreign mail.
41906.
Emergency mail transportation.
41907.
Rates for foreign transportation of mail.
41908.
Rates for transporting mail of foreign countries.
41909.
Duty to oppose unreasonable Universal Postal Union rates.
41910.
Weighing mail.
41911.
Evidence of providing mail service.
41912.
Effect on foreign postal arrangements.
§ 41901. General authority
(a) TITLE 39.—The United States Postal Service may provide for the
transportation of mail by aircraft in interstate air transportation under sec-
tion 5402(d) and (f) of title 39.
(b) AUTHORITY TO PRESCRIBE RATES.—Except as provided in section
5402 of title 39, on the initiative of the Secretary of Transportation or on
497
petition by the Postal Service or an air carrier, the Secretary shall prescribe
and publish—
(1) after notice and an opportunity for a hearing on the record, rea-
sonable rates of compensation to be paid by the Postal Service for the
transportation of mail by aircraft in foreign air transportation or be-
tween places in Alaska, the facilities used in and useful for the trans-
portation of mail, and the services related to the transportation of mail
for each carrier holding a certificate that authorizes that transpor-
tation;
(2) the methods used, whether by aircraft-mile, pound-mile, weight,
space, or a combination of those or other methods, to determine the
rates of compensation for each air carrier or class of air carriers; and
(3) the effective date of the rates.
(c) OTHER TRANSPORTATION.—In prescribing rates under subsection (b)
of this section, the Secretary may include transportation other than by air-
craft that is incidental to transportation of mail by aircraft or necessary be-
cause of emergency conditions related to aircraft operations.
(d) AUTHORITY TO PRESCRIBE DIFFERENT RATES.—Considering condi-
tions peculiar to transportation by aircraft and to particular air carriers or
classes of air carriers, the Secretary may prescribe different rates under this
section for different air carriers or classes of air carriers and for different
classes of service. In prescribing a rate for a carrier under this section, the
Secretary shall consider, among other factors, the following:
(1) the condition that the carrier may hold and operate under a cer-
tificate authorizing the transportation of mail only by providing nec-
essary and adequate facilities and service for the transportation of
mail.
(2) standards related to the character and quality of service to be
provided that are prescribed by or under law.
(e) STATEMENTS ON RATES.—A petition for prescribing a reasonable rate
of compensation under this section must include a statement of the rate the
petitioner believes is reasonable.
(f) STATEMENTS ON REQUIRED SERVICES.—The Postal Service shall in-
troduce as part of the record in every proceeding under this section a com-
prehensive statement of the services to be required of the air carrier and
other information the Postal Service has that the Secretary considers mate-
rial to the proceeding.
(g) EXPIRATION DATE.—The authority of the Secretary under this part
and section 5402 of title 39 providing for the transportation of mail by air-
craft between places in Alaska expires on the date specified in section
5402(f) of title 39.
498
§ 41902. Schedules for certain transportation of mail
(a) REQUIREMENT.—Except as provided in section 41906 of this title and
section 5402 of title 39, an air carrier may transport mail by aircraft in
foreign air transportation or between places in Alaska only under a schedule
designated or required to be established under subsection (c) of this section
for the transportation of mail.
(b) STATEMENTS ON PLACES AND SCHEDULES.—Every air carrier shall
file with the Secretary of Transportation and the United States Postal Serv-
ice a statement showing—
(1) the places between which the carrier is authorized to provide for-
eign air transportation;
(2) the places between which the carrier is authorized to transport
mail in Alaska;
(3) every schedule of aircraft regularly operated by the carrier be-
tween places described in clauses (1) and (2) of this subsection and
every change in each schedule; and
(4) for each schedule, the places served by the carrier and the time
of arrival at, and departure from, each place.
(c) DESIGNATING AND ADDITIONAL SCHEDULES.—The Postal Service
may—
(1) designate any schedule of an air carrier filed under subsection
(b)(3) of this section for the transportation of mail between the places
between which the carrier is authorized by its certificate to transport
mail; and
(2) require the carrier to establish additional schedules for the trans-
portation of mail between those places.
(d) CHANGING SCHEDULES.—A schedule designated or required to be es-
tablished for the transportation of mail under subsection (c) of this section
may be changed only after 10 days’ notice of the change is filed as provided
in subsection (b)(3) of this section. The Postal Service may disapprove a
proposed change in a schedule or amend or modify the schedule or proposed
change.
(e) ORDERS.—An order of the Postal Service under this section may be-
come effective only after 10 days after the order is issued. A person ad-
versely affected by the order may appeal the order to the Secretary before
the end of the 10-day period under regulations the Secretary prescribes. If
the public convenience and necessity require, the Secretary may amend,
modify, suspend, or cancel the order. Pending a decision about the order,
the Secretary may postpone the effective date of the order.
499
(f) PROCEEDINGS PREFERENCES.—The Secretary shall give preference to
a proceeding under this section over all other proceedings before the Sec-
retary under this subpart.
§ 41903. Duty to provide certain transportation of mail
(a) AIR CARRIERS.—Subject to subsection (b) of this section, an air car-
rier authorized by its certificate to transport mail by aircraft in foreign air
transportation or between places in Alaska shall—
(1) provide facilities and services necessary and adequate to provide
that transportation; and
(2) transport mail between the places authorized in the certificate for
transportation of mail when required, and under regulations prescribed,
by the United States Postal Service.
(b) MAXIMUM MAIL LOAD.—The Secretary of Transportation may pre-
scribe the maximum mail load for a schedule or for an aircraft or type of
aircraft for the transportation of mail by aircraft in foreign air transpor-
tation or between places in Alaska. If the Postal Service tenders to an air
carrier mail exceeding the maximum load for transportation by the carrier
under a schedule designated or required to be established for the transpor-
tation of mail under section 41902(c) of this title, the carrier, as nearly in
accordance with the schedule as the Secretary decides is possible, shall—
(1) provide facilities sufficient to transport the mail to the extent the
Secretary decides the carrier reasonably is able to do so; and
(2) transport that mail.
§ 41904. Noncitizens transporting mail to or in foreign coun-
tries
When the United States Postal Service decides that it may be necessary
to have a person not a citizen of the United States transport mail by air-
craft to or in a foreign country, the Postal Service may make an arrange-
ment with the person, without advertising, to provide the transportation.
§ 41905. Regulating air carrier transportation of foreign
mail
An air carrier holding a certificate that authorizes foreign air transpor-
tation and transporting mail of a foreign country shall transport that mail
under the control of, and subject to regulation by, the United States Gov-
ernment.
§ 41906. Emergency mail transportation
(a) CONTRACT AUTHORITY.—In an emergency caused by a flood, fire, or
other disaster, the United States Postal Service may make a contract with-
out advertising to transport mail by aircraft to or from a locality affected
by the emergency when the available facilities of persons authorized to
transport mail to or from the locality are inadequate to meet the require-
500
ments of the Postal Service during the emergency. The contract may be only
for periods necessary to maintain mail service because of the inadequacy of
the facilities. Payment for transportation provided under the contract shall
be made at rates provided in the contract.
(b) TRANSPORTATION NOT AIR TRANSPORTATION.—Transportation pro-
vided under a contract made under subsection (a) of this section is not air
transportation within the meaning of this part.
§ 41907. Rates for foreign transportation of mail
(a) LIMITATIONS.—When air transportation is provided between the Unit-
ed States and a foreign country both by aircraft owned or operated by an
air carrier holding a certificate under chapter 411 of this title and by air-
craft owned or operated by a foreign air carrier, the United States Postal
Service may not pay to or for the account of the foreign air carrier a rate
of compensation for transporting mail by aircraft between the United States
and the foreign country that the Postal Service believes will result (over a
reasonable period determined by the Postal Service considering exchange
fluctuations and other factors) in the foreign air carrier receiving a rate of
compensation for transporting the mail that is higher than the rate—
(1) the government of a foreign country or foreign postal administra-
tion pays to air carriers for transporting mail of the foreign country
by aircraft between the foreign country and the United States; or
(2) determined by the Postal Service to be comparable to the rate
the government of a foreign country or foreign postal administration
pays to air carriers for transporting mail of the foreign country by air-
craft between the foreign country and an intermediate country on the
route of the air carrier between the foreign country and the United
States.
(b) CHANGES.—The Secretary of Transportation shall act expeditiously
on proposed changes in rates for transporting mail by aircraft in foreign
air transportation. When prescribing those rates, the Secretary shall con-
sider—
(1) the rates paid for transportation of mail under the Universal
Postal Union Convention as ratified by the United States Government;
(2) the rate-making elements used by the Universal Postal Union in
prescribing its airmail rates; and
(3) the competitive disadvantage to United States flag air carriers
resulting from foreign air carriers receiving Universal Postal Union
rates for transporting United States mail and national origin mail of
their own countries.
501
§ 41908. Rates for transporting mail of foreign countries
(a) RATE DETERMINATIONS.—The United States Postal Service shall de-
termine the rates that an air carrier holding a certificate that authorizes
foreign air transportation must charge a government of a foreign country
or foreign postal administration for transporting mail of the foreign country.
The Postal Service shall put those rates into effect under the postal conven-
tion regulating postal relations between the United States and the foreign
country or as provided under this section.
(b) CHANGES.—The Postal Service may authorize an air carrier holding
a certificate that authorizes foreign air transportation, under limitations the
Postal Service prescribes, to change the rates the carrier charges a govern-
ment of a foreign country or foreign postal administration for transporting
mail of the foreign country in the foreign country or between the foreign
country and another foreign country.
(c) COLLECTING COMPENSATION.—(1) When an air carrier holding a cer-
tificate that authorizes foreign air transportation transports mail of a for-
eign country—
(A) under an arrangement with a government of a foreign country
or foreign postal administration made or approved under this section,
the carrier must collect its compensation for the transportation from
the foreign country under the arrangement; and
(B) without having an arrangement with a government of a foreign
country or foreign postal administration consistent with this section,
the compensation collected by the United States Government for the
transportation shall be for the account of the air carrier.
(2) An air carrier holding a certificate that authorizes foreign air trans-
portation is not entitled to receive compensation from both a government
of a foreign country or foreign postal administration and the United States
Government for transporting the same mail of the foreign country.
§ 41909. Duty to oppose unreasonable Universal Postal
Union rates
The Secretary of State and the United States Postal Service shall—
(1) take appropriate action to ensure that the rates paid for trans-
porting mail under the Universal Postal Union Convention are not
higher than reasonable rates for transporting mail; and
(2) oppose any existing or proposed Universal Postal Union rate that
is higher than a reasonable rate for transporting mail.
§ 41910. Weighing mail
The United States Postal Service may weigh mail transported by aircraft
and make statistical and administrative computations necessary in the inter-
est of mail service. When the Secretary of Transportation decides that addi-
502
tional or more frequent weighings of mail are advisable or necessary to
carry out this part, the Postal Service shall provide the weighings, but it
is not required to provide them for continuous periods of more than 30
days.
§ 41911. Evidence of providing mail service
When and in the form required by the United States Postal Service, an
air carrier transporting or handling—
(1) United States mail shall submit evidence, signed by an author-
ized official, that the transportation or handling has been provided; and
(2) mail of a foreign country shall submit evidence, signed by an au-
thorized official, of the amount of mail transported or handled and the
compensation payable and received for that transportation or handling.
§ 41912. Effect on foreign postal arrangements
This part does not—
(1) affect an arrangement made by the United States Government
with the postal administration of a foreign country related to the trans-
portation of mail by aircraft; or
(2) impair the authority of the United States Postal Service to make
such an arrangement.
CHAPTER 421—LABOR-MANAGEMENT PROVISIONS
SUBCHAPTER I—EMPLOYEE PROTECTION PROGRAM
Sec.
42101.
Definitions.
42102.
Payments to eligible protected employees.
42103.
Duty to hire protected employees.
42104.
Congressional review of regulations.
42105.
Airline Employees Protective Account.
42106.
Ending effective date.
SUBCHAPTER II—MUTUAL AID AGREEMENTS AND LABOR REQUIREMENTS OF
AIR CARRIERS
42111.
Mutual aid agreements.
42112.
Labor requirements of air carriers.
SUBCHAPTER I—EMPLOYEE PROTECTION PROGRAM
§ 42101. Definitions
(a) GENERAL.—In this subchapter—
(1) ‘‘eligible protected employee’’ means a protected employee who is
deprived of employment, or who is adversely affected related to com-
pensation, because of a qualifying dislocation.
(2) ‘‘major contraction’’ means a reduction (except as provided in
subsection (b) of this section) of at least 7.5 percent in the number
of full-time employees of an air carrier within a 12-month period, ex-
cept for employees deprived of employment because of a strike or whose
employment is ended for cause.
503
(3) ‘‘protected employee’’ means an individual who on October 24,
1978, was employed for at least 4 years by an air carrier that held
a certificate under section 401 of the Federal Aviation Act of 1958,
but does not include a director or officer of a corporation.
(4) ‘‘qualifying dislocation’’ means a bankruptcy or major contrac-
tion of an air carrier holding a certificate under section 41102 of this
title when the Secretary of Transportation finds the bankruptcy or con-
traction occurred after December 31, 1978, and before January 1,
1989, the major cause of which was the change in regulatory structure
provided by the Airline Deregulation Act of 1978.
(b) MAJOR CONTRACTION.—The Secretary may find a reduction of less
than 7.5 percent of the number of full-time employees is part of a major
contraction if the Secretary decides another reduction is likely to occur with-
in the 12-month period in which the first reduction occurs that, when in-
cluded with the first reduction, will result in a total reduction of more than
7.5 percent.
§ 42102. Payments to eligible protected employees
(a) AUTHORITY TO PAY AND APPLICATIONS FOR PAYMENTS.—Subject to
amounts provided in an appropriation law, the Secretary of Labor shall
make monthly assistance payments, moving expense payments, and reim-
bursement payments as provided under this section to an eligible protected
employee whose employment is not ended for cause. The employee must
apply to receive the payments and cooperate with the Secretary in finding
other employment.
(b) NUMBER AND AMOUNT OF PAYMENTS.—(1) Subject to amounts pro-
vided in an appropriation law, an eligible protected employee shall receive
72 monthly assistance payments. However, an eligible protected employee
deprived of employment may not receive a payment after obtaining other
employment. For each class or craft of protected employees, the Secretary
of Labor, after consulting with the Secretary of Transportation, shall pre-
scribe by regulation guidelines for computing the amount of each monthly
assistance payment to be made to a member of the class or craft and what
percentage of salary that payment represents.
(2) The amount of a monthly payment payable under paragraph (1) of
this subsection to an eligible protected employee shall be reduced—
(A) by unemployment compensation the employee receives; or
(B) if the employee does not accept reasonably comparable employ-
ment, to an amount the employee would be entitled to receive if the
employee had accepted the employment.
(3) If accepting comparable employment to avoid a reduction in the
monthly assistance payment under paragraph (2) of this subsection would
504
force an eligible protected employee to relocate, the employee may decide not
to relocate. Instead of the payments provided under this section, the em-
ployee may receive the lesser of 3 payments or the maximum number of
payments that remain to be paid under paragraph (1) of this subsection.
(c) MOVING EXPENSES AND REIMBURSEMENTS.—(1) Subject to amounts
provided in an appropriation law, an eligible protected employee who relo-
cates shall receive—
(A) reasonable moving expense payments to move the employee and
the employee’s immediate family; and
(B) reimbursement payments for a loss incurred in selling the em-
ployee’s principal place of residence for less than fair market value or
in cancelling a lease on, or contract to buy, the residence.
(2) The Secretary of Labor shall decide on the amount of the moving ex-
penses and the fair market value of the residence.
§ 42103. Duty to hire protected employees
(a) REHIRING PROTECTED EMPLOYEES.—A protected employee of an air
carrier regulated by the Secretary of Transportation who was furloughed or
whose employment was ended by the carrier (except for cause) before Octo-
ber 23, 1988, is entitled to be the first employed in the occupational spe-
cialty of the employee, regardless of the employee’s age, by any other air
carrier holding a certificate under section 41102 of this title before October
24, 1978. However, the air carrier may recall its furloughed employees be-
fore hiring a protected employee of another air carrier regulated by the Sec-
retary who was furloughed or whose employment was ended by the other
carrier (except for cause) before October 23, 1988. An employee hired by
an air carrier under this section retains seniority and recall rights with the
air carrier that furloughed or ended the employment of the employee.
(b) DUTIES OF SECRETARY OF LABOR.—The Secretary of Labor—
(1) shall establish and publish periodically a list of jobs available
with an air carrier holding a certificate under section 41102 of this
title that includes necessary information and detail;
(2) shall assist eligible protected employees to find other employ-
ment;
(3) shall encourage negotiations between air carriers and representa-
tives of employees on rehiring practices and seniority; and
(4) may require an air carrier to file with the Secretary information
necessary to carry out this section.
§ 42104. Congressional review of regulations
(a) DEFINITION.—In this section, ‘‘legislative day’’ means a calendar day
on which both Houses of Congress are in session.
505
(b) SUBMISSION TO CONGRESS.—The Secretary of Labor may not pre-
scribe a regulation under this subchapter until 30 legislative days after the
regulation is submitted to the Committee on Commerce, Science, and Trans-
portation of the Senate and the Committee on Public Works and Transpor-
tation of the House of Representatives.
(c) EFFECTIVENESS
OF REGULATIONS.—A proposed regulation under
this subchapter shall be submitted to Congress and becomes effective only
if, during the period of 60 legislative days after the regulation is submitted
to Congress, either House does not pass a resolution disapproving the regu-
lation. However, if Congress adopts a resolution approving the regulation
during the 60-day period, the regulation is effective on that date.
§ 42105. Airline Employees Protective Account
The Department of Labor has an Airline Employees Protective Account
consisting of amounts appropriated to it. An amount necessary to carry out
this subchapter, including administrative expenses, may be appropriated to
the Account annually.
§ 42106. Ending effective date
This subchapter is not effective after the last day the Secretary of Labor
must make a payment under this subchapter.
SUBCHAPTER II—MUTUAL AID AGREEMENTS AND LABOR
REQUIREMENTS OF AIR CARRIERS
§ 42111. Mutual aid agreements
An air carrier that will receive payments from another air carrier under
an agreement between the air carriers for the time the one air carrier is
not providing foreign air transportation, or is providing reduced levels of
foreign air transportation, because of a labor strike must file a true copy
of the agreement with the Secretary of Transportation and have it approved
by the Secretary under section 41309 of this title. Notwithstanding section
41309, the Secretary shall approve the agreement only if it provides that—
(1) the air carrier will receive payments of not more than 60 percent
of direct operating expenses, including interest expenses, but not depre-
ciation or amortization expenses;
(2) benefits may be paid for not more than 8 weeks, and may not
be for losses incurred during the first 30 days of a strike; and
(3) on request of the striking employees, the dispute will be submit-
ted to binding arbitration under the Railway Labor Act (45 U.S.C. 151
et seq.).
§ 42112. Labor requirements of air carriers
(a) DEFINITIONS.—In this section—
(1) ‘‘copilot’’ means an employee whose duties include assisting or
relieving the pilot in manipulating an aircraft and who is qualified to
506
serve as, and has in effect an airman certificate authorizing the em-
ployee to serve as, a copilot.
(2) ‘‘pilot’’ means an employee who is—
(A) responsible for manipulating or who manipulates the flight
controls of an aircraft when under way, including the landing and
takeoff of an aircraft; and
(B) qualified to serve as, and has in effect an airman certificate
authorizing the employee to serve as, a pilot.
(b) DUTIES OF AIR CARRIERS.—An air carrier shall—
(1) maintain rates of compensation, maximum hours, and other
working conditions and relations for its pilots and copilots who are pro-
viding interstate air transportation in the 48 contiguous States and the
District of Columbia to conform with decision number 83, May 10,
1934, National Labor Board, notwithstanding any limitation in that
decision on the period of its effectiveness;
(2) maintain rates of compensation for its pilots and copilots who are
providing foreign air transportation or air transportation only in one
territory or possession of the United States; and
(3) comply with title II of the Railway Labor Act (45 U.S.C. 181
et seq.) as long as it holds its certificate.
(c) MINIMUM ANNUAL RATE OF COMPENSATION.—A minimum annual
rate under subsection (b)(2) of this section may not be less than the annual
rate required to be paid for comparable service to a pilot or copilot under
subsection (b)(1) of this section.
(d) COLLECTIVE BARGAINING.—This section does not prevent pilots or
copilots of an air carrier from obtaining by collective bargaining higher rates
of compensation or more favorable working conditions or relations.
SUBPART III—SAFETY
CHAPTER 441—REGISTRATION AND RECORDATION OF
AIRCRAFT
Sec.
44101.
Operation of aircraft.
44102.
Registration requirements.
44103.
Registration of aircraft.
44104.
Registration of aircraft components and dealers’ certificates of registration.
44105.
Suspension and revocation of aircraft certificates.
44106.
Revocation of aircraft certificates for controlled substance violations.
44107.
Recordation of conveyances, leases, and security instruments.
44108.
Validity of conveyances, leases, and security instruments.
44109.
Reporting transfer of ownership.
44110.
Information about aircraft ownership and rights.
44111.
Modifications in registration and recordation system for aircraft not providing air
transportation.
44112.
Limitation of liability.
507
§ 44101. Operation of aircraft
(a) REGISTRATION REQUIREMENT.—Except as provided in subsection (b)
of this section, a person may operate an aircraft only when the aircraft is
registered under section 44103 of this title.
(b) EXCEPTIONS.—A person may operate an aircraft in the United States
that is not registered—
(1) when authorized under section 40103(d) or 41703 of this title;
(2) when it is an aircraft of the national defense forces of the United
States and is identified in a way satisfactory to the Administrator of
the Federal Aviation Administration; and
(3) for a reasonable period of time after a transfer of ownership,
under regulations prescribed by the Administrator.
§ 44102. Registration requirements
(a) ELIGIBILITY.—An aircraft may be registered under section 44103 of
this title only when the aircraft is—
(1) not registered under the laws of a foreign country and is owned
by—
(A) a citizen of the United States;
(B) an individual citizen of a foreign country lawfully admitted
for permanent residence in the United States; or
(C) a corporation not a citizen of the United States when the
corporation is organized and doing business under the laws of the
United States or a State, and the aircraft is based and primarily
used in the United States; or
(2) an aircraft of—
(A) the United States Government; or
(B) a State, the District of Columbia, a territory or possession
of the United States, or a political subdivision of a State, territory,
or possession.
(b) DUTY TO DEFINE CERTAIN TERM.—In carrying out subsection
(a)(1)(C) of this section, the Secretary of Transportation shall define
‘‘based and primarily used in the United States’’.
§ 44103. Registration of aircraft
(a) GENERAL.—(1) On application of the owner of an aircraft that meets
the requirements of section 44102 of this title, the Administrator of the
Federal Aviation Administration shall—
(A) register the aircraft; and
(B) issue a certificate of registration to its owner.
(2) The Administrator may prescribe the extent to which an aircraft
owned by the holder of a dealer’s certificate of registration issued under sec-
tion 44104(2) of this title also is registered under this section.
508
(b) CONTROLLED SUBSTANCE VIOLATIONS.—(1) The Administrator may
not issue an owner’s certificate of registration under subsection (a)(1) of
this section to a person whose certificate is revoked under section 44106
of this title during the 5-year period beginning on the date of the revoca-
tion, except—
(A) as provided in section 44106(e)(2) of this title; or
(B) that the Administrator may issue the certificate to the person
after the one-year period beginning on the date of the revocation if the
Administrator decides that the aircraft otherwise meets the require-
ments of section 44102 of this title and that denial of a certificate for
the 5-year period—
(i) would be excessive considering the nature of the offense or
the act committed and the burden the denial places on the person;
or
(ii) would not be in the public interest.
(2) A decision of the Administrator under paragraph (1)(B)(i) or (ii) of
this subsection is within the discretion of the Administrator. That decision
or failure to make a decision is not subject to administrative or judicial
review.
(c) CERTIFICATES AS EVIDENCE.—A certificate of registration issued
under this section is—
(1) conclusive evidence of the nationality of an aircraft for inter-
national purposes, but not conclusive evidence in a proceeding under
the laws of the United States; and
(2) not evidence of ownership of an aircraft in a proceeding in which
ownership is or may be in issue.
(d) CERTIFICATES AVAILABLE FOR INSPECTION.—An operator of an air-
craft shall make available for inspection a certificate of registration for the
aircraft when requested by a United States Government, State, or local law
enforcement officer.
§ 44104. Registration of aircraft components and dealers’
certificates of registration
The Administrator of the Federal Aviation Administration may prescribe
regulations—
(1) in the interest of safety for registering and identifying an aircraft
engine, propeller, or appliance; and
(2) in the public interest for issuing, suspending, and revoking a
dealer’s certificate of registration under this chapter and for its use by
a person manufacturing, distributing, or selling aircraft.
509
§ 44105. Suspension and revocation of aircraft certificates
The Administrator of the Federal Aviation Administration may suspend
or revoke a certificate of registration issued under section 44103 of this title
when the aircraft no longer meets the requirements of section 44102 of this
title.
§ 44106. Revocation of aircraft certificates for controlled
substance violations
(a) DEFINITION.—In this section, ‘‘controlled substance’’ has the same
meaning given that term in section 102 of the Comprehensive Drug Abuse
Prevention and Control Act of 1970 (21 U.S.C. 802).
(b) REVOCATIONS.—(1) The Administrator of the Federal Aviation Ad-
ministration shall issue an order revoking the certificate of registration for
an aircraft issued to an owner under section 44103 of this title and any
other certificate of registration that the owner of the aircraft holds under
section 44103, if the Administrator finds that—
(A) the aircraft was used to carry out, or facilitate, an activity that
is punishable by death or imprisonment for more than one year under
a law of the United States or a State related to a controlled substance
(except a law related to simple possession of a controlled substance);
and
(B) the owner of the aircraft permitted the use of the aircraft know-
ing that the aircraft was to be used for the activity described in clause
(A) of this paragraph.
(2) An aircraft owner that is not an individual is deemed to have per-
mitted the use of the aircraft knowing that the aircraft was to be used for
the activity described in paragraph (1)(A) of this subsection only if a major-
ity of the individuals who control the owner of the aircraft or who are in-
volved in forming the major policy of the owner permitted the use of the
aircraft knowing that the aircraft was to be used for the activity described
in paragraph (1)(A).
(c) ADVICE TO HOLDERS AND OPPORTUNITY TO ANSWER.—Before the
Administrator revokes a certificate under subsection (b) of this section, the
Administrator shall—
(1) advise the holder of the certificate of the charges or reasons on
which the Administrator bases the proposed action; and
(2) provide the holder of the certificate an opportunity to answer the
charges and state why the certificate should not be revoked.
(d) APPEALS.—(1) A person whose certificate is revoked by the Adminis-
trator under subsection (b) of this section may appeal the revocation order
to the National Transportation Safety Board. The Board shall affirm or re-
verse the order after providing notice and a hearing on the record. In con-
510
ducting the hearing, the Board is not bound by the findings of fact of the
Administrator.
(2) When a person files an appeal with the Board under this subsection,
the order of the Administrator revoking the certificate is stayed. However,
if the Administrator advises the Board that safety in air transportation or
air commerce requires the immediate effectiveness of the order—
(A) the order remains effective; and
(B) the Board shall dispose of the appeal not later than 60 days
after notification by the Administrator under this paragraph.
(3) A person substantially affected by an order of the Board under this
subsection may seek judicial review of the order under section 46110 of this
title. The Administrator shall be made a party to that judicial proceeding.
(e) ACQUITTAL.—(1) The Administrator may not revoke, and the Board
may not affirm a revocation of, a certificate of registration under this sec-
tion on the basis of an activity described in subsection (b)(1)(A) of this sec-
tion if the holder of the certificate is acquitted of all charges related to a
controlled substance in an indictment or information arising from the
activity.
(2) If the Administrator has revoked a certificate of registration of a per-
son under this section because of an activity described in subsection
(b)(1)(A) of this section, the Administrator shall reissue a certificate to the
person if the person—
(A) subsequently is acquitted of all charges related to a controlled
substance in an indictment or information arising from the activity;
and
(B) otherwise meets the requirements of section 44102 of this title.
§ 44107. Recordation of conveyances, leases, and security in-
struments
(a) ESTABLISHMENT OF SYSTEM.—The Administrator of the Federal
Aviation Administration shall establish a system for recording—
(1) conveyances that affect an interest in civil aircraft of the United
States;
(2) leases and instruments executed for security purposes, including
conditional sales contracts, assignments, and amendments, that affect
an interest in—
(A) a specifically identified aircraft engine having at least 750
rated takeoff horsepower or its equivalent;
(B) a specifically identified aircraft propeller capable of absorb-
ing at least 750 rated takeoff shaft horsepower;
(C) an aircraft engine, propeller, or appliance maintained for in-
stallation or use in an aircraft, aircraft engine, or propeller, by or
511
for an air carrier holding a certificate issued under section 44705
of this title; and
(D) spare parts maintained by or for an air carrier holding a
certificate issued under section 44705 of this title; and
(3) releases, cancellations, discharges, and satisfactions related to a
conveyance, lease, or instrument recorded under clause (1) or (2) of
this subsection.
(b) GENERAL DESCRIPTION REQUIRED.—A lease or instrument recorded
under subsection (a)(2) (C) or (D) of this section only has to describe gen-
erally the engine, propeller, appliance, or spare part by type and designate
its location.
(c) ACKNOWLEDGMENT.—Except as the Administrator otherwise may
provide, a conveyance, lease, or instrument may be recorded under sub-
section (a) of this section only after it has been acknowledged before—
(1) a notary public; or
(2) another officer authorized under the laws of the United States,
a State, the District of Columbia, or a territory or possession of the
United States to acknowledge deeds.
(d) RECORDS AND INDEXES.—The Administrator shall—
(1) keep a record of the time and date that each conveyance, lease,
and instrument is filed and recorded with the Administrator; and
(2) record each conveyance, lease, and instrument filed with the Ad-
ministrator, in the order of their receipt, and index them by—
(A) the identifying description of the aircraft, aircraft engine,
or propeller, or location specified in a lease or instrument recorded
under subsection (a)(2) (C) or (D) of this section; and
(B) the names of the parties to each conveyance, lease, and
instrument.
§ 44108. Validity of conveyances, leases, and security instru-
ments
(a) VALIDITY BEFORE FILING.—Until a conveyance, lease, or instrument
executed for security purposes that may be recorded under section
44107(a)(1) or (2) of this title is filed for recording, the conveyance, lease,
or instrument is valid only against—
(1) the person making the conveyance, lease, or instrument;
(2) that person’s heirs and devisees; and
(3) a person having actual notice of the conveyance, lease, or instru-
ment.
(b) PERIOD OF VALIDITY.—When a conveyance, lease, or instrument is
recorded under section 44107 of this title, the conveyance, lease, or instru-
512
ment is valid from the date of filing against all persons, without other rec-
ordation, except that—
(1) a lease or instrument recorded under section 44107(a)(2)(A) or
(B) of this title is valid for a specifically identified engine or propeller
without regard to a lease or instrument previously or subsequently re-
corded under section 44107(a)(2)(C) or (D); and
(2) a lease or instrument recorded under section 44107(a)(2)(C) or
(D) of this title is valid only for items at the location designated in
the lease or instrument.
(c) APPLICABLE LAWS.—(1) The validity of a conveyance, lease, or in-
strument that may be recorded under section 44107 of this title is subject
to the laws of the State, the District of Columbia, or the territory or posses-
sion of the United States at which the conveyance, lease, or instrument is
delivered, regardless of the place at which the subject of the conveyance,
lease, or instrument is located or delivered. If the conveyance, lease, or in-
strument specifies the place at which delivery is intended, it is presumed
that the conveyance, lease, or instrument was delivered at the specified
place.
(2) This subsection does not take precedence over the Convention on the
International Recognition of Rights in Aircraft (4 U.S.T. 1830).
(d) NONAPPLICATION.—This section does not apply to—
(1) a conveyance described in section 44107(a)(1) of this title that
was made before August 22, 1938; or
(2) a lease or instrument described in section 44107(a)(2) of this
title that was made before June 20, 1948.
§ 44109. Reporting transfer of ownership
(a) FILING NOTICES.—A person having an ownership interest in an air-
craft for which a certificate of registration was issued under section 44103
of this title shall file a notice with the Secretary of the Treasury that the
Secretary requires by regulation, not later than 15 days after a sale, condi-
tional sale, transfer, or conveyance of the interest.
(b) EXEMPTIONS.—The Secretary—
(1) shall prescribe regulations that establish guidelines for exempting
a person or class from subsection (a) of this section; and
(2) may exempt a person or class under the regulations.
§ 44110. Information about aircraft ownership and rights
The Administrator of the Federal Aviation Administration may provide
by regulation for—
(1) endorsing information on each certificate of registration issued
under section 44103 of this title and each certificate issued under sec-
513
tion 44704 of this title about ownership of the aircraft for which each
certificate is issued; and
(2) recording transactions affecting an interest in, and for other
records, proceedings, and details necessary to decide the rights of a
party related to, a civil aircraft of the United States, aircraft engine,
propeller, appliance, or spare part.
§ 44111. Modifications in registration and recordation sys-
tem for aircraft not providing air transportation
(a) APPLICATION.—This section applies only to aircraft not used to pro-
vide air transportation.
(b) AUTHORITY TO MAKE MODIFICATIONS.—The Administrator of the
Federal Aviation Administration shall make modifications in the system for
registering and recording aircraft necessary to make the system more effec-
tive in serving the needs of—
(1) buyers and sellers of aircraft;
(2) officials responsible for enforcing laws related to the regulation
of controlled substances (as defined in section 102 of the Comprehen-
sive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 802));
and
(3) other users of the system.
(c) NATURE OF MODIFICATIONS.—Modifications made under subsection
(b) of this section—
(1) may include a system of titling aircraft or registering all aircraft,
even aircraft not operated;
(2) shall ensure positive, verifiable, and timely identification of the
true owner; and
(3) shall address at least each of the following deficiencies in and
abuses of the existing system:
(A) the registration of aircraft to fictitious persons.
(B) the use of false or nonexistent addresses by persons reg-
istering aircraft.
(C) the use by a person registering an aircraft of a post office
box or ‘‘mail drop’’ as a return address to evade identification of
the person’s address.
(D) the registration of aircraft to entities established to facili-
tate unlawful activities.
(E) the submission of names of individuals on applications for
registration of aircraft that are not identifiable.
(F) the ability to make frequent legal changes in the registra-
tion markings assigned to aircraft.
(G) the use of false registration markings on aircraft.
514
(H) the illegal use of ‘‘reserved’’ registration markings on air-
craft.
(I) the large number of aircraft classified as being in ‘‘self-re-
ported status’’.
(J) the lack of a system to ensure timely and adequate notice
of the transfer of ownership of aircraft.
(K) the practice of allowing temporary operation and navigation
of aircraft without the issuance of a certificate of registration.
(d) REGULATIONS.—(1) The Administrator of the Federal Aviation Ad-
ministration shall prescribe regulations to carry out this section and provide
a written explanation of how the regulations address each of the deficiencies
and abuses described in subsection (c) of this section. In prescribing the
regulations, the Administrator of the Federal Aviation Administration shall
consult with the Administrator of Drug Enforcement, the Commissioner of
Customs, other law enforcement officials of the United States Government,
representatives of State and local law enforcement officials, representatives
of the general aviation aircraft industry, representatives of users of general
aviation aircraft, and other interested persons.
(2) Regulations prescribed under this subsection shall require that—
(A) each individual listed in an application for registration of an air-
craft provide with the application the individual’s driver’s license num-
ber; and
(B) each person (not an individual) listed in an application for reg-
istration of an aircraft provide with the application the person’s tax-
payer identifying number.
§ 44112. Limitation of liability
(a) DEFINITIONS.—In this section—
(1) ‘‘lessor’’ means a person leasing for at least 30 days a civil air-
craft, aircraft engine, or propeller.
(2) ‘‘owner’’ means a person that owns a civil aircraft, aircraft en-
gine, or propeller.
(3) ‘‘secured party’’ means a person having a security interest in, or
security title to, a civil aircraft, aircraft engine, or propeller under a
conditional sales contract, equipment trust contract, chattel or cor-
porate mortgage, or similar instrument.
(b) LIABILITY.—A lessor, owner, or secured party is liable for personal
injury, death, or property loss or damage on land or water only when a civil
aircraft, aircraft engine, or propeller is in the actual possession or control
of the lessor, owner, or secured party, and the personal injury, death, or
property loss or damage occurs because of—
(1) the aircraft, engine, or propeller; or
515
(2) the flight of, or an object falling from, the aircraft, engine, or
propeller.
CHAPTER 443—INSURANCE
Sec.
44301.
Definitions.
44302.
General authority.
44303.
Coverage.
44304.
Reinsurance.
44305.
Insuring United States Government property.
44306.
Premiums and limitations on coverage and claims.
44307.
Revolving fund.
44308.
Administrative.
44309.
Civil actions.
44310.
Ending effective date.
§ 44301. Definitions
In this chapter—
(1) ‘‘American aircraft’’ means—
(A) a civil aircraft of the United States; and
(B) an aircraft owned or chartered by, or made available to—
(i) the United States Government; or
(ii) a State, the District of Columbia, a territory or posses-
sion of the United States, or a political subdivision of the
State, territory, or possession.
(2) ‘‘insurance carrier’’ means a person authorized to do aviation in-
surance business in a State, including a mutual or stock insurance
company and a reciprocal insurance association.
§ 44302. General authority
(a) INSURANCE AND REINSURANCE.—(1) Subject to subsection (b) of this
section and section 44305(a) of this title, the Secretary of Transportation
may provide insurance and reinsurance against loss or damage arising out
of any risk from the operation of an American aircraft or foreign-flag air-
craft—
(A) in foreign air commerce; or
(B) between at least 2 places, all of which are outside the United
States.
(2) An aircraft may be insured or reinsured for not more than its reason-
able value as determined by the Secretary. Insurance or reinsurance may
be provided only when the Secretary decides that the insurance cannot be
obtained on reasonable terms from an insurance carrier.
(b) PRESIDENTIAL APPROVAL.—The Secretary may provide insurance or
reinsurance under subsection (a) of this section only with the approval of
the President. The President may approve the insurance or reinsurance only
after deciding that the continued operation of the American aircraft or for-
516
eign-flag aircraft to be insured or reinsured is necessary to carry out the
foreign policy of the United States Government.
(c) CONSULTATION.—The President may require the Secretary to consult
with interested departments, agencies, and instrumentalities of the Govern-
ment before providing insurance or reinsurance under this chapter.
(d) ADDITIONAL INSURANCE.—With the approval of the Secretary, a per-
son having an insurable interest in an aircraft may insure with other under-
writers in an amount that is more than the amount insured with the Sec-
retary. However, the Secretary may not benefit from the additional insur-
ance. This subsection does not prevent the Secretary from making contracts
of coinsurance.
§ 44303. Coverage
The Secretary of Transportation may provide insurance and reinsurance
authorized under section 44302 of this title for the following:
(1) an American aircraft or foreign-flag aircraft engaged in aircraft
operations the President decides are necessary to carry out the foreign
policy of the United States Government.
(2) property transported or to be transported on aircraft referred to
in clause (1) of this section, including—
(A) shipments by express or registered mail;
(B) property owned by citizens or residents of the United
States;
(C) property—
(i) imported to, or exported from, the United States; and
(ii) bought or sold by a citizen or resident of the United
States under a contract putting the risk of loss or obligation
to provide insurance against risk of loss on the citizen or resi-
dent; and
(D) property transported between—
(i) a place in a State or the District of Columbia and a
place in a territory or possession of the United States;
(ii) a place in a territory or possession of the United States
and a place in another territory or possession of the United
States; or
(iii) 2 places in the same territory or possession of the
United States.
(3) the personal effects and baggage of officers and members of the
crew of an aircraft referred to in clause (1) of this section and of other
individuals employed or transported on that aircraft.
517
(4) officers and members of the crew of an aircraft referred to in
clause (1) of this section and other individuals employed or transported
on that aircraft against loss of life, injury, or detention.
(5) statutory or contractual obligations or other liabilities, customar-
ily covered by insurance, of an aircraft referred to in clause (1) of this
section or of the owner or operator of that aircraft.
§ 44304. Reinsurance
(a) GENERAL AUTHORITY.—To the extent the Secretary of Transpor-
tation is authorized to provide insurance under this chapter, the Secretary
may reinsure any part of the insurance provided by an insurance carrier.
The Secretary may reinsure with, transfer to, or transfer back to, the car-
rier any insurance or reinsurance provided by the Secretary under this
chapter.
(b) PREMIUM LEVELS.—The Secretary may provide reinsurance at pre-
miums not less than, or obtain reinsurance at premiums not higher than,
the premiums the Secretary establishes on similar risks or the premiums the
insurance carrier charges for the insurance to be reinsured by the Secretary,
whichever is most advantageous to the Secretary. However, the Secretary
may make allowances to the insurance carrier for expenses incurred in pro-
viding services and facilities that the Secretary considers good business
practice, except for payments by the carrier for the stimulation or solicita-
tion of insurance business.
§ 44305. Insuring United States Government property
(a) GENERAL.—With the approval of the President, a department, agen-
cy, or instrumentality of the United States Government may obtain—
(1) insurance under this chapter, including insurance for risks from
operating an aircraft in intrastate or interstate air commerce, but not
including insurance on valuables subject to sections 1 and 2 of the Gov-
ernment Losses in Shipment Act (40 U.S.C. 721, 722); and
(2) insurance for risks arising from providing goods or services di-
rectly related to and necessary for operating an aircraft covered by in-
surance obtained under clause (1) of this subsection if the aircraft is
operated—
(A) in carrying out a contract of the department, agency, or in-
strumentality; or
(B) to transport military forces or materiel on behalf of the
United States under an agreement between the Government and
the government of a foreign country.
(b) PREMIUM WAIVERS AND INDEMNIFICATION.—With the approval re-
quired under subsection (a) of this section, the Secretary of Transportation
may provide the insurance without premium at the request of the Secretary
518
of Defense or the head of a department, agency, or instrumentality des-
ignated by the President when the Secretary of Defense or the designated
head agrees to indemnify the Secretary of Transportation against all losses
covered by the insurance. The Secretary of Defense and any designated
head may make indemnity agreements with the Secretary of Transportation
under this section.
§ 44306. Premiums and limitations on coverage and claims
(a) PREMIUMS BASED ON RISK.—To the extent practical, the premium
charged for insurance or reinsurance under this chapter shall be based on
consideration of the risk involved.
(b) TIME LIMITS.—The Secretary of Transportation may provide insur-
ance and reinsurance under this chapter for a period of not more than 60
days. The period may be extended for additional periods of not more than
60 days each only if the President decides, before each additional period,
that the continued operation of the aircraft to be insured or reinsured is
necessary to carry out the foreign policy of the United States Government.
(c) MAXIMUM INSURED AMOUNT.—The insurance policy on an aircraft
insured or reinsured under this chapter shall specify a stated amount that
is not more than the value of the aircraft, as determined by the Secretary.
A claim under the policy may not be paid for more than that stated amount.
§ 44307. Revolving fund
(a) EXISTENCE, DISBURSEMENTS, APPROPRIATIONS, AND DEPOSITS.—
(1) There is a revolving fund in the Treasury. The Secretary of the Treas-
ury shall disburse from the fund payments to carry out this chapter.
(2) Necessary amounts to carry out this chapter may be appropriated to
the fund. The amounts appropriated and other amounts received in carrying
out this chapter shall be deposited in the fund.
(b) INVESTMENT.—On request of the Secretary of Transportation, the
Secretary of the Treasury may invest any part of the amounts in the revolv-
ing fund in interest-bearing securities of the United States Government.
The interest on, and the proceeds from the sale or redemption of, the securi-
ties shall be deposited in the fund.
(c) EXCESS AMOUNTS.—The balance in the revolving fund in excess of
an amount the Secretary of Transportation determines is necessary for the
requirements of the fund and for reasonable reserves to maintain the sol-
vency of the fund shall be deposited at least annually in the Treasury as
miscellaneous receipts.
(d) EXPENSES.—The Secretary of Transportation shall deposit annually
an amount in the Treasury as miscellaneous receipts to cover the expenses
the Government incurs when the Secretary of Transportation uses appro-
priated amounts in carrying out this chapter. The deposited amount shall
519
equal an amount determined by multiplying the average monthly balance of
appropriated amounts retained in the revolving fund by a percentage that
is at least the current average rate payable on marketable obligations of the
Government. The Secretary of the Treasury shall determine annually in ad-
vance the percentage applied.
§ 44308. Administrative
(a) COMMERCIAL PRACTICES.—The Secretary of Transportation may
carry out this chapter consistent with commercial practices of the aviation
insurance business.
(b) ISSUANCE OF POLICIES AND DISPOSITION OF CLAIMS.—(1) The Sec-
retary may issue insurance policies to carry out this chapter. The Secretary
may prescribe the forms, amounts insured under the policies, and premiums
charged. The Secretary may change an amount of insurance or a premium
for an existing policy only with the consent of the insured.
(2) For a claim under insurance authorized by this chapter, the Secretary
may—
(A) settle and pay the claim made for or against the United States
Government; and
(B) pay the amount of a judgment entered against the Government.
(c) UNDERWRITING AGENT.—(1) The Secretary may, and when practical
shall, employ an insurance carrier or group of insurance carriers to act as
an underwriting agent. The Secretary may use the agent to adjust claims
under this chapter, but claims may be paid only when approved by the
Secretary.
(2) The Secretary may pay reasonable compensation to an underwriting
agent for servicing insurance the agent writes for the Secretary. Compensa-
tion may include payment for reasonable expenses incurred by the agent but
may not include a payment by the agent for stimulation or solicitation of
insurance business.
(3) Except as provided by this subsection, the Secretary may not pay an
insurance broker or other person acting in a similar capacity any consider-
ation for arranging insurance when the Secretary directly insures any part
of the risk.
(d) BUDGET.—The Secretary shall submit annually a budget program for
carrying out this chapter as provided for wholly owned Government corpora-
tions under chapter 91 of title 31.
(e) ACCOUNTS.—The Secretary shall maintain a set of accounts. The
Comptroller General shall audit those accounts under chapter 35 of title 31.
Notwithstanding chapter 35, the Comptroller General shall allow credit for
expenditures under this chapter made consistent with commercial practices
520
in the aviation insurance business when shown to be necessary because of
the business activities authorized by this chapter.
§ 44309. Civil actions
(a) DISPUTED LOSSES.—A person may bring a civil action in a district
court of the United States against the United States Government when a
loss insured under this chapter is in dispute. A civil action involving the
same matter (except the action authorized by this subsection) may not be
brought against an agent, officer, or employee of the Government carrying
out this chapter. To the extent applicable, the procedure in an action
brought under section 1346(a)(2) of title 28 applies to an action under this
subsection.
(b) VENUE AND JOINDER.—(1) A civil action under subsection (a) of this
section may be brought in the judicial district for the District of Columbia
or in the judicial district in which the plaintiff or the agent of the plaintiff
resides if the plaintiff resides in the United States. If the plaintiff does not
reside in the United States, the action may be brought in the judicial dis-
trict for the District of Columbia or in the judicial district in which the At-
torney General agrees to accept service.
(2) An interested person may be joined as a party to a civil action
brought under subsection (a) of this section initially or on motion of either
party to the action.
(c) TIME REQUIREMENTS.—When an insurance claim is made under this
chapter, the period during which, under section 2401 of title 28, a civil ac-
tion must be brought under subsection (a) of this section is suspended until
60 days after the Secretary of Transportation denies the claim. The claim
is deemed to be administratively denied if the Secretary does not act on the
claim not later than 6 months after filing, unless the Secretary makes a dif-
ferent agreement with the claimant when there is good cause for an agree-
ment.
(d) INTERPLEADER.—(1) If the Secretary admits the Government owes
money under an insurance claim under this chapter and there is a dispute
about the person that is entitled to payment, the Government may bring
a civil action of interpleader in a district court of the United States against
the persons that may be entitled to payment. The action may be brought
in the judicial district for the District of Columbia or in the judicial district
in which any party resides.
(2) The district court may order a party not residing or found in the judi-
cial district in which the action is brought to appear in a civil action under
this subsection. The order shall be served in a reasonable manner decided
by the district court. If the court decides an unknown person might assert
521
a claim under the insurance that is the subject of the action, the court may
order service on that person by publication in the Federal Register.
(3) Judgment in a civil action under this subsection discharges the Gov-
ernment from further liability to the parties to the action and to all other
persons served by publication under paragraph (2) of this subsection.
§ 44310. Ending effective date
The authority of the Secretary of Transportation to provide insurance
and reinsurance under this chapter is not effective after September 30,
1997.
CHAPTER 445—FACILITIES, PERSONNEL, AND
RESEARCH
Sec.
44501.
Plans and policy.
44502.
General facilities and personnel authority.
44503.
Reducing nonessential expenditures.
44504.
Improved aircraft, aircraft engines, propellers, and appliances.
44505.
Systems, procedures, facilities, and devices.
44506.
Air traffic controllers.
44507.
Civil aeromedical research.
44508.
Research advisory committee.
44509.
Demonstration projects.
44510.
Airway science curriculum grants.
44511.
Aviation research grants.
44512.
Catastrophic failure prevention research grants.
44513.
Regional centers of air transportation excellence.
44514.
Flight service stations.
44515.
Advanced training facilities for maintenance technicians for air carrier aircraft.
§ 44501. Plans and policy
(a) LONG RANGE PLANS AND POLICY REQUIREMENTS.—The Adminis-
trator of the Federal Aviation Administration shall make long range plans
and policy for the orderly development and use of the navigable airspace,
and the orderly development and location of air navigation facilities, that
will best meet the needs of, and serve the interests of, civil aeronautics and
the national defense, except for needs of the armed forces that are peculiar
to air warfare and primarily of military concern.
(b) AIRWAY CAPITAL INVESTMENT PLAN.—The Administrator of the
Federal Aviation Administration shall review, revise, and publish a national
airways system plan, known as the Airway Capital Investment Plan, before
the beginning of each fiscal year. The plan shall set forth—
(1) for a 10-year period, the research, engineering, and development
programs and the facilities and equipment that the Administrator con-
siders necessary for a system of airways, air traffic services, and navi-
gation aids that will—
(A) meet the forecasted needs of civil aeronautics;
(B) meet the requirements that the Secretary of Defense estab-
lishes for the support of the national defense; and
522
(C) provide the highest degree of safety in air commerce;
(2) for the first and 2d years of the plan, detailed annual estimates
of—
(A) the number, type, location, and cost of acquiring, operating,
and maintaining required facilities and services;
(B) the cost of research, engineering, and development required
to improve safety, system capacity, and efficiency; and
(C) personnel levels required for the activities described in
subclauses (A) and (B) of this clause;
(3) for the 3d, 4th, and 5th years of the plan, estimates of the total
cost of each major program for the 3-year period, and additional major
research programs, acquisition of systems and facilities, and changes
in personnel levels that may be required to meet long range objectives
and that may have significant impact on future funding requirements;
and
(4) a 10-year investment plan that considers long range objectives
that the Administrator considers necessary to—
(A) ensure that safety is given the highest priority in providing
for a safe and efficient airway system; and
(B) meet the current and projected growth of aviation and the
requirements of interstate commerce, the United States Postal
Service, and the national defense.
(c) NATIONAL AVIATION RESEARCH PLAN.—(1) The Administrator of
the Federal Aviation Administration shall prepare and publish annually a
national aviation research plan and submit the plan to the Committee on
Commerce, Science, and Transportation of the Senate and the Committee
on Science, Space, and Technology of the House of Representatives. The
plan shall be submitted not later than the date of submission of the Presi-
dent’s budget to Congress.
(2)(A) The plan shall describe, for a 15-year period, the research, engi-
neering, and development that the Administrator of the Federal Aviation
Administration considers necessary—
(i) to ensure the continued capacity, safety, and efficiency of aviation
in the United States, considering emerging technologies and forecasted
needs of civil aeronautics; and
(ii) to provide the highest degree of safety in air travel.
(B) The plan shall cover all research conducted under sections 40119,
44504, 44505, 44507, 44511–44513, and 44912 of this title and shall iden-
tify complementary and coordinated research efforts that the Administrator
of the National Aeronautics and Space Administration conducts with
amounts specifically appropriated to the Administration. For projects for
523
which the Administrator of the Federal Aviation Administration anticipates
requesting an appropriation, the plan shall include—
(i) for the first 2 years of the plan, detailed annual estimates of the
schedule, cost, and work-force levels for each research project, including
a description of the scope and content of each major contract, grant,
or interagency agreement;
(ii) for the 3d, 4th, and 5th years of the plan, estimates of the total
cost of each major project and any additional major research projects
that may be required to meet long-term objectives and that may have
significant impact on future appropriations requirements;
(iii) for the 6th and subsequent years of the plan, the long-term ob-
jectives the Administrator of the Federal Aviation Administration con-
siders necessary to ensure that aviation safety will be given the highest
priority; and
(iv) details of a program to disseminate to the private sector the re-
sults of aviation research conducted by the Administrator of the Fed-
eral Aviation Administration, including any new technologies developed.
(3) Subject to section 40119(b) of this title and regulations prescribed
under section 40119(b), the Administrator of the Federal Aviation Adminis-
tration shall submit to the committees named in paragraph (1) of this sub-
section an annual report on the accomplishments of the research completed
during the prior fiscal year. The report shall be submitted with the plan
required under paragraph (1) and be organized to allow comparison with
the plan in effect for the prior fiscal year.
§ 44502. General facilities and personnel authority
(a) GENERAL AUTHORITY.—(1) The Administrator of the Federal Avia-
tion Administration may—
(A) acquire, establish, improve, operate, and maintain air navigation
facilities; and
(B) provide facilities and personnel to regulate and protect air
traffic.
(2) The cost of site preparation work associated with acquiring, establish-
ing, or improving an air navigation facility under paragraph (1)(A) of this
subsection shall be charged to amounts available for that purpose appro-
priated under section 48101(a) of this title. The Secretary of Transpor-
tation may make an agreement with an airport owner or sponsor (as defined
in section 47102 of this title) so that the owner or sponsor will provide the
work and be paid or reimbursed by the Secretary from the appropriated
amounts.
(3) The Secretary of Transportation may authorize a department, agency,
or instrumentality of the United States Government to carry out any duty
524
or power under this subsection with the consent of the head of the depart-
ment, agency, or instrumentality.
(b) CERTIFICATION OF NECESSITY.—Except for Government money ex-
pended under this part or for a military purpose, money may be expended
to acquire, establish, construct, operate, repair, alter, or maintain an air
navigation facility only if the Administrator of the Federal Aviation Admin-
istration certifies in writing that the facility is reasonably necessary for use
in air commerce or for the national defense. An interested person may apply
for a certificate for a facility to be acquired, established, constructed, oper-
ated, repaired, altered, or maintained by or for the person.
(c) ENSURING CONFORMITY WITH PLANS AND POLICIES.—(1) To ensure
that conformity with plans and policies for, and allocation of, airspace by
the Administrator of the Federal Aviation Administration under section
40103(b)(1) of this title, a military airport, military landing area, or missile
or rocket site may be acquired, established, or constructed, or a runway may
be altered substantially, only if the Administrator of the Federal Aviation
Administration is given reasonable prior notice so that the Administrator of
the Federal Aviation Administration may advise the appropriate committees
of Congress and interested departments, agencies, and instrumentalities of
the Government on the effect of the acquisition, establishment, construction,
or alteration on the use of airspace by aircraft. A disagreement between the
Administrator of the Federal Aviation Administration and the Secretary of
Defense or the Administrator of the National Aeronautics and Space
Administration may be appealed to the President for a final decision.
(2) To ensure conformity, an airport or landing area not involving the
expenditure of Government money may be established or constructed, or a
runway may be altered substantially, only if the Administrator of the Fed-
eral Aviation Administration is given reasonable prior notice so that the Ad-
ministrator may provide advice on the effects of the establishment, construc-
tion, or alteration on the use of airspace by aircraft.
(d) PUBLIC USE AND EMERGENCY ASSISTANCE.—(1) The head of a de-
partment, agency, or instrumentality of the Government having jurisdiction
over an air navigation facility owned or operated by the Government may
provide, under regulations the head of the department, agency, or instru-
mentality prescribes, for public use of the facility.
(2) The head of a department, agency, or instrumentality of the Govern-
ment having jurisdiction over an airport or emergency landing field owned
or operated by the Government may provide, under regulations the head of
the department, agency, or instrumentality prescribes, for assistance, and
the sale of fuel, oil, equipment, and supplies, to an aircraft, but only when
necessary, because of an emergency, to allow the aircraft to continue to the
525
nearest airport operated by private enterprise. The head of the department,
agency, or instrumentality shall provide for the assistance and sale at the
prevailing local fair market value as determined by the head of the depart-
ment, agency, or instrumentality. An amount that the head decides is equal
to the cost of the assistance provided and the fuel, oil, equipment, and sup-
plies sold shall be credited to the appropriation from which the cost was
paid. The balance shall be credited to miscellaneous receipts.
(e) CONSENT OF CONGRESS.—Congress consents to a State making an
agreement, not in conflict with a law of the United States, with another
State to develop or operate an airport facility.
(f) TRANSFERS OF INSTRUMENT LANDING SYSTEMS.—An airport may
transfer, without consideration, to the Administrator of the Federal Aviation
Administration an instrument landing system (and associated approach
lighting equipment and runway visual range equipment) that conforms to
performance specifications of the Administrator if a Government airport aid
program, airport development aid program, or airport improvement project
grant was used to assist in purchasing the system. The Administrator shall
accept the system and operate and maintain it under criteria of the Admin-
istrator.
§ 44503. Reducing nonessential expenditures
The Secretary of Transportation shall attempt to reduce the capital, oper-
ating, maintenance, and administrative costs of the national airport and air-
way system to the maximum extent practicable consistent with the highest
degree of aviation safety. At least annually, the Secretary shall consult with
and consider the recommendations of users of the system on ways to reduce
nonessential expenditures of the United States Government for aviation.
The Secretary shall give particular attention to a recommendation that may
reduce, with no adverse effect on safety, future personnel requirements and
costs to the Government required to be recovered from user charges.
§ 44504. Improved aircraft, aircraft engines, propellers, and
appliances
(a) DEVELOPMENTAL WORK AND SERVICE TESTING.—The Administrator
of the Federal Aviation Administration may conduct or supervise devel-
opmental work and service testing to improve aircraft, aircraft engines, pro-
pellers, and appliances.
(b) RESEARCH.—The Administrator shall conduct or supervise research—
(1) to develop technologies and analyze information to predict the ef-
fects of aircraft design, maintenance, testing, wear, and fatigue on the
life of aircraft and air safety;
526
(2) to develop methods of analyzing and improving aircraft mainte-
nance technology and practices, including nondestructive evaluation of
aircraft structures;
(3) to assess the fire and smoke resistance of aircraft material;
(4) to develop improved fire and smoke resistant material for aircraft
interiors;
(5) to develop and improve fire and smoke containment systems for
inflight aircraft fires;
(6) to develop advanced aircraft fuels with low flammability and
technologies that will contain aircraft fuels to minimize post-crash fire
hazards; and
(7) to develop technologies and methods to assess the risk of and
prevent defects, failures, and malfunctions of products, parts, proc-
esses, and articles manufactured for use in aircraft, aircraft engines,
propellers, and appliances that could result in a catastrophic failure of
an aircraft.
(c) AUTHORITY TO BUY ITEMS OFFERING SPECIAL ADVANTAGES.—In
carrying out this section, the Administrator, by negotiation or otherwise,
may buy or exchange experimental aircraft, aircraft engines, propellers, and
appliances that the Administrator decides may offer special advantages to
aeronautics.
§ 44505. Systems, procedures, facilities, and devices
(a) GENERAL REQUIREMENTS.—(1) The Administrator of the Federal
Aviation Administration shall—
(A) develop, alter, test, and evaluate systems, procedures, facilities,
and devices, and define their performance characteristics, to meet the
needs for safe and efficient navigation and traffic control of civil and
military aviation, except for needs of the armed forces that are peculiar
to air warfare and primarily of military concern; and
(B) select systems, procedures, facilities, and devices that will best
serve those needs and promote maximum coordination of air traffic
control and air defense systems.
(2) The Administrator may make contracts to carry out this subsection
without regard to section 3324(a) and (b) of title 31.
(3) When a substantial question exists under paragraph (1) of this sub-
section about whether a matter is of primary concern to the armed forces,
the Administrator shall decide whether the Administrator or the Secretary
of the appropriate military department has responsibility. The Adminis-
trator shall be given technical information related to each research and de-
velopment project of the armed forces that potentially applies to, or poten-
tially conflicts with, the common system to ensure that potential application
527
to the common system is considered properly and that potential conflicts
with the system are eliminated.
(b) RESEARCH ON HUMAN FACTORS AND SIMULATION MODELS.—The
Administrator shall conduct or supervise research—
(1) to develop a better understanding of the relationship between
human factors and aviation accidents and between human factors and
air safety;
(2) to enhance air traffic controller, mechanic, and flight crew per-
formance;
(3) to develop a human-factor analysis of the hazards associated with
new technologies to be used by air traffic controllers, mechanics, and
flight crews;
(4) to identify innovative and effective corrective measures for
human errors that adversely affect air safety; and
(5) to develop dynamic simulation models of the air traffic control
system and airport design and operating procedures that will provide
analytical technology—
(A) to predict airport and air traffic control safety and capacity
problems;
(B) to evaluate planned research projects; and
(C) to test proposed revisions in airport and air traffic control
operations programs.
(c) RESEARCH ON DEVELOPING AND MAINTAINING A SAFE AND EFFI-
CIENT SYSTEM.—The Administrator shall conduct or supervise research
on—
(1) airspace and airport planning and design;
(2) airport capacity enhancement techniques;
(3) human performance in the air transportation environment;
(4) aviation safety and security;
(5) the supply of trained air transportation personnel, including pi-
lots and mechanics; and
(6) other aviation issues related to developing and maintaining a safe
and efficient air transportation system.
§ 44506. Air traffic controllers
(a) RESEARCH ON EFFECT OF AUTOMATION ON PERFORMANCE.—To de-
velop the means necessary to establish appropriate selection criteria and
training methodologies for the next generation of air traffic controllers, the
Administrator of the Federal Aviation Administration shall conduct research
to study the effect of automation on the performance of the next generation
of air traffic controllers and the air traffic control system. The research
shall include investigating—
528
(1) methods for improving and accelerating future air traffic control-
ler training through the application of advanced training techniques, in-
cluding the use of simulation technology;
(2) the role of automation in the air traffic control system and its
physical and psychological effects on air traffic controllers;
(3) the attributes and aptitudes needed to function well in a highly
automated air traffic control system and the development of appro-
priate testing methods for identifying individuals with those attributes
and aptitudes;
(4) innovative methods for training potential air traffic controllers to
enhance the benefits of automation and maximize the effectiveness of
the air traffic control system; and
(5) new technologies and procedures for exploiting automated com-
munication systems, including Mode S Transponders, to improve infor-
mation transfers between air traffic controllers and aircraft pilots.
(b) RESEARCH ON HUMAN FACTOR ASPECTS OF AUTOMATION.—The Ad-
ministrators of the Federal Aviation Administration and National Aero-
nautics and Space Administration may make an agreement for the use of
the National Aeronautics and Space Administration’s unique human factor
facilities and expertise in conducting research activities to study the human
factor aspects of the highly automated environment for the next generation
of air traffic controllers. The research activities shall include investigating—
(1) human perceptual capabilities and the effect of computer-aided
decision making on the workload and performance of air traffic control-
lers;
(2) information management techniques for advanced air traffic con-
trol display systems; and
(3) air traffic controller workload and performance measures, includ-
ing the development of predictive models.
(c) COLLEGIATE TRAINING INITIATIVE.—(1) The Administrator of the
Federal Aviation Administration may maintain the Collegiate Training Ini-
tiative program by making new agreements and continuing existing agree-
ments with institutions of higher education (as defined by the Adminis-
trator) under which the institutions prepare students for the position of air
traffic controller with the Department of Transportation (as defined in sec-
tion 2109 of title 5). The Administrator may establish standards for the
entry of institutions into the program and for their continued participation.
(2)(A) The Administrator of the Federal Aviation Administration may ap-
point an individual who has successfully completed a course of training in
a program described in paragraph (1) of this subsection to the position of
air traffic controller noncompetitively in the excepted service (as defined in
529
section 2103 of title 5). An individual appointed under this paragraph
serves at the pleasure of the Administrator, subject to section 7511 of title
5. However, an appointment under this paragraph may be converted from
one in the excepted service to a career conditional or career appointment
in the competitive civil service (as defined in section 2102 of title 5) when
the individual achieves full performance level air traffic controller status, as
decided by the Administrator.
(B) The authority under subparagraph (A) of this paragraph to make ap-
pointments in the excepted service expires on October 6, 1997, except that
the Administrator of the Federal Aviation Administration may extend the
authority for one or more successive one-year periods.
(d) STAFFING REPORT.—The Administrator of the Federal Aviation Ad-
ministration shall submit annually to the Committee on Public Works and
Transportation of the House of Representatives and the Committee on Com-
merce, Science, and Transportation of the Senate a report containing—
(1) the staffing standards used to determine the number of air traf-
fic controllers needed to operate the air traffic control system of the
United States;
(2) a 3-year projection of the number of controllers needed to be em-
ployed to operate the system to meet the standards; and
(3) a detailed plan for employing the controllers, including projected
budget requests.
§ 44507. Civil aeromedical research
The Civil Aeromedical Institute established by section 106(j) of this title
may—
(1) conduct civil aeromedical research, including research related
to—
(A) the protection and survival of aircraft occupants;
(B) medical accident investigation and airman medical certifi-
cation;
(C) toxicology and the effects of drugs on human performance;
(D) the impact of disease and disability on human performance;
(E) vision and its relationship to human performance and equip-
ment design;
(F) human factors of flight crews, air traffic controllers, me-
chanics, inspectors, airway facility technicians, and other individ-
uals involved in operating and maintaining aircraft and air traffic
control equipment; and
(G) agency work force optimization, including training, equip-
ment design, reduction of errors, and identification of candidate
tasks for automation;
530
(2) make comments to the Administrator of the Federal Aviation Ad-
ministration on human factors aspects of proposed air safety regula-
tions;
(3) make comments to the Administrator on human factors aspects
of proposed training programs, equipment requirements, standards,
and procedures for aviation personnel;
(4) advise, assist, and represent the Federal Aviation Administration
in the human factors aspects of joint projects between the Administra-
tion and the National Aeronautics and Space Administration, other de-
partments, agencies, and instrumentalities of the United States Gov-
ernment, industry, and governments of foreign countries; and
(5) provide medical consultation services to the Administrator about
medical certification of airmen.
§ 44508. Research advisory committee
(a) ESTABLISHMENT AND DUTIES.—(1) There is a research advisory
committee in the Federal Aviation Administration. The committee shall—
(A) provide advice and recommendations to the Administrator of the
Federal Aviation Administration about needs, objectives, plans, ap-
proaches, content, and accomplishments of the aviation research pro-
gram carried out under sections 40119, 44504, 44505, 44507, 44511–
44513, and 44912 of this title;
(B) assist in ensuring that the research is coordinated with similar
research being conducted outside the Administration; and
(C) review the operations of the regional centers of air transpor-
tation excellence established under section 44513 of this title.
(2) The Administrator may establish subordinate committees to provide
advice on specific areas of research conducted under sections 40119, 44504,
44505, 44507, 44511–44513, and 44912 of this title.
(b) MEMBERS, CHAIRMAN, PAY, AND EXPENSES.—(1) The committee is
composed of not more than 30 members appointed by the Administrator
from among individuals who are not employees of the Administration and
who are specially qualified to serve on the committee because of their edu-
cation, training, or experience. In appointing members of the committee, the
Administrator shall ensure that the regional centers of air transportation
excellence, universities, corporations, associations, consumers, and other de-
partments, agencies, and instrumentalities of the United States Government
are represented.
(2) The Administrator shall designate the chairman of the committee.
(3) A member of the committee serves without pay. However, the Admin-
istrator may allow a member, when attending meetings of the committee or
531
a subordinate committee, travel or transportation expenses as authorized
under section 5703 of title 5.
(c) SUPPORT STAFF, INFORMATION, AND SERVICES.—The Administrator
shall provide support staff for the committee. On request of the committee,
the Administrator shall provide information, administrative services, and
supplies that the Administrator considers necessary for the committee to
carry out its duties and powers.
(d) NONAPPLICATION.—Section 14 of the Federal Advisory Committee
Act (5 App. U.S.C.) does not apply to the committee.
(e) USE AND LIMITATION OF AMOUNTS.—(1) Not more than .1 percent
of the amounts made available to conduct research under sections 40119,
44504, 44505, 44507, 44511–44513, and 44912 of this title may be used
by the Administrator to carry out this section.
(2) A limitation on amounts available for obligation by or for the commit-
tee does not apply to amounts made available to carry out this section.
§ 44509. Demonstration projects
The Secretary of Transportation may carry out under this chapter dem-
onstration projects that the Secretary considers necessary for research and
development activities under this chapter.
§ 44510. Airway science curriculum grants
(a) GENERAL AUTHORITY.—The Administrator of the Federal Aviation
Administration may make competitive grant agreements with institutions of
higher education having airway science curricula for the United States Gov-
ernment’s share of the allowable direct costs of the following categories of
items to the extent that the items are in support of airway science curricula:
(1) the construction, purchase, or lease with an option to purchase,
of buildings and associated facilities.
(2) instructional material and equipment.
(b) COST GUIDELINES.—The Administrator shall establish guidelines to
determine the direct costs allowable under a grant to be made under this
section. The Government’s share of the allowable cost of a project assisted
by a grant under this section may not be more than 65 percent.
§ 44511. Aviation research grants
(a) GENERAL AUTHORITY.—The Administrator of the Federal Aviation
Administration may make grants to institutions of higher education and
nonprofit research organizations to conduct aviation research in areas the
Administrator considers necessary for the long-term growth of civil aviation.
(b) APPLICATIONS.—An institution of higher education or nonprofit re-
search organization interested in receiving a grant under this section may
submit an application to the Administrator. The application must be in the
form and contain the information the Administrator requires.
532
(c) SOLICITATION, REVIEW, AND EVALUATION PROCESS.—The Adminis-
trator shall establish a solicitation, review, and evaluation process that en-
sures—
(1) providing grants under this section for proposals having adequate
merit and relevancy to the mission of the Administration;
(2) a fair geographical distribution of grants under this section; and
(3) the inclusion of historically black institutions of higher education
and other minority nonprofit research organizations for grant consider-
ation under this section.
(d) RECORDS.—Each person receiving a grant under this section shall
maintain records that the Administrator requires as being necessary to fa-
cilitate an effective audit and evaluation of the use of money provided under
the grant.
(e) ANNUAL REPORT.—The Administrator shall submit an annual report
to the Committee on Science, Space, and Technology of the House of Rep-
resentatives and the Committee on Commerce, Science, and Transportation
of the Senate on carrying out this section.
§ 44512. Catastrophic failure prevention research grants
(a) GENERAL AUTHORITY.—The Administrator of the Federal Aviation
Administration may make grants to institutions of higher education and
nonprofit research organizations—
(1) to conduct aviation research related to the development of tech-
nologies and methods to assess the risk of, and prevent, defects, fail-
ures, and malfunctions of products, parts, processes, and articles man-
ufactured for use in aircraft, aircraft engines, propellers, and appli-
ances that could result in a catastrophic failure of an aircraft; and
(2) to establish centers of excellence for continuing the research.
(b) SOLICITATION, APPLICATION, REVIEW, AND EVALUATION PROCESS.—
The Administrator shall establish a solicitation, application, review, and
evaluation process that ensures providing grants under this section for pro-
posals having adequate merit and relevancy to the research described in sub-
section (a) of this section.
§ 44513. Regional centers of air transportation excellence
(a) GENERAL AUTHORITY.—The Administrator of the Federal Aviation
Administration may make grants to institutions of higher education to es-
tablish and operate regional centers of air transportation excellence. The lo-
cations shall be distributed in a geographically fair way.
(b) RESPONSIBILITIES.—(1) The responsibilities of each center estab-
lished under this section shall include—
(A) conducting research on—
(i) airspace and airport planning and design;
533
(ii) airport capacity enhancement techniques;
(iii) human performance in the air transportation environment;
(iv) aviation safety and security;
(v) the supply of trained air transportation personnel, including
pilots and mechanics; and
(vi) other aviation issues related to developing and maintaining
a safe and efficient air transportation system; and
(B) interpreting, publishing, and disseminating the results of the re-
search.
(2) In conducting research described in paragraph (1)(A) of this sub-
section, each center may make contracts with nonprofit research organiza-
tions and other appropriate persons.
(c) APPLICATIONS.—An institution of higher education interested in re-
ceiving a grant under this section may submit an application to the Admin-
istrator. The application must be in the form and contain the information
that the Administrator requires by regulation.
(d) SELECTION CRITERIA.—The Administrator shall select recipients of
grants under this section on the basis of the following criteria:
(1) The extent to which the needs of the State in which the applicant
is located are representative of the needs of the region for improved
air transportation services and facilities.
(2) The demonstrated research and extension resources available to
the applicant to carry out this section.
(3) The ability of the applicant to provide leadership in making na-
tional and regional contributions to the solution of both long-range and
immediate air transportation problems.
(4) The extent to which the applicant has an established air trans-
portation program.
(5) The demonstrated ability of the applicant to disseminate results
of air transportation research and educational programs through a
statewide or regionwide continuing education program.
(6) The projects the applicant proposes to carry out under the grant.
(e) EXPENDITURE AGREEMENTS.—A grant may be made under this sec-
tion in a fiscal year only if the recipient makes an agreement with the Ad-
ministrator that the Administrator requires to ensure that the recipient will
maintain its total expenditures from all other sources for establishing and
operating the center and related research activities at a level at least equal
to the average level of those expenditures in the 2 fiscal years of the recipi-
ent occurring immediately before November 5, 1990.
(f) GOVERNMENT’S SHARE OF COSTS.—The United States Government’s
share of a grant under this section is 50 percent of the costs of establishing
534
and operating the center and related research activities that the grant recip-
ient carries out.
(g) ALLOCATING AMOUNTS.—The Administrator shall allocate amounts
made available to carry out this section in a geographically fair way.
§ 44514. Flight service stations
(a) HOURS OF OPERATION.—(1) The Secretary of Transportation may
close, or reduce the hours of operation of, a flight service station in an area
only if the service provided in the area after the closing or during the hours
the station is not in operation is provided by an automated flight service
station with at least model 1 equipment.
(2) The Secretary shall reopen a flight service station closed after March
24, 1987, but before July 15, 1987, as soon as practicable if the service
in the area in which the station is located has not been provided since the
closing by an automatic flight service station with at least model 1 equip-
ment. The hours of operation for the reopened station shall be the same
as were the hours of operation for the station on March 25, 1987. After
reopening the station, the Secretary may close, or reduce the hours of oper-
ation of, the station only as provided in paragraph (1) of this subsection.
(b) MANNED AUXILIARY STATIONS.—The Secretary and the Adminis-
trator of the Federal Aviation Administration shall establish a system of
manned auxiliary flight service stations. The manned auxiliary flight service
stations shall supplement the services of the planned consolidation to 61
automated flight service stations under the flight service station moderniza-
tion program. A manned auxiliary flight service station shall be located in
an area of unique weather or operational conditions that are critical to the
safety of flight.
§ 44515. Advanced training facilities for maintenance tech-
nicians for air carrier aircraft
(a) GENERAL AUTHORITY.—The Administrator of the Federal Aviation
Administration may make grants to not more than 4 vocational technical
educational institutions to acquire or construct facilities to be used for the
advanced training of maintenance technicians for air carrier aircraft.
(b) ELIGIBILITY.—The Administrator may make a grant under this sec-
tion to a vocational technical educational institution only if the institution
has a training curriculum that prepares aircraft maintenance technicians
who hold airframe and power plant certificates under subpart D of part 65
of title 14, Code of Federal Regulations, to maintain, without direct super-
vision, air carrier aircraft.
(c) LIMITATION.—A vocational technical educational institution may not
receive more than a total of $5,000,000 in grants under this section.
535
CHAPTER 447—SAFETY REGULATION
Sec.
44701.
General requirements.
44702.
Issuance of certificates.
44703.
Airman certificates.
44704.
Type certificates, production certificates, and airworthiness certificates.
44705.
Air carrier operating certificates.
44706.
Airport operating certificates.
44707.
Examining and rating air agencies.
44708.
Inspecting and rating air navigation facilities.
44709.
Amendments, modifications, suspensions, and revocations of certificates.
44710.
Revocations of airman certificates for controlled substance violations.
44711.
Prohibitions and exemption.
44712.
Emergency locator transmitters.
44713.
Inspection and maintenance.
44714.
Aviation fuel standards.
44715.
Controlling aircraft noise and sonic boom.
44716.
Collision avoidance systems.
44717.
Aging aircraft.
44718.
Structures interfering with air commerce.
44719.
Standards for navigational aids.
44720.
Meteorological services.
44721.
Aeronautical maps and charts.
44722.
Aircraft operations in winter conditions.
44723.
Annual report.
§ 44701. General requirements
(a) PROMOTING SAFETY.—The Administrator of the Federal Aviation Ad-
ministration shall promote safe flight of civil aircraft in air commerce by
prescribing—
(1) minimum standards required in the interest of safety for appli-
ances and for the design, material, construction, quality of work, and
performance of aircraft, aircraft engines, and propellers;
(2) regulations and minimum standards in the interest of safety
for—
(A) inspecting, servicing, and overhauling aircraft, aircraft en-
gines, propellers, and appliances;
(B) equipment and facilities for, and the timing and manner of,
the inspecting, servicing, and overhauling; and
(C) a qualified private person, instead of an officer or employee
of the Administration, to examine and report on the inspecting,
servicing, and overhauling;
(3) regulations required in the interest of safety for the reserve sup-
ply of aircraft, aircraft engines, propellers, appliances, and aircraft fuel
and oil, including the reserve supply of fuel and oil carried in flight;
(4) regulations in the interest of safety for the maximum hours or
periods of service of airmen and other employees of air carriers; and
(5) regulations and minimum standards for other practices, methods,
and procedure the Administrator finds necessary for safety in air com-
merce and national security.
536
(b) PRESCRIBING MINIMUM SAFETY STANDARDS.—The Administrator
may prescribe minimum safety standards for—
(1) an air carrier to whom a certificate is issued under section 44705
of this title; and
(2) operating an airport serving any passenger operation of air car-
rier aircraft designed for at least 31 passenger seats.
(c) REDUCING AND ELIMINATING ACCIDENTS.—The Administrator shall
carry out this chapter in a way that best tends to reduce or eliminate the
possibility or recurrence of accidents in air transportation. However, the Ad-
ministrator is not required to give preference either to air transportation or
to other air commerce in carrying out this chapter.
(d) CONSIDERATIONS
AND
CLASSIFICATION
OF
REGULATIONS
AND
STANDARDS.—When prescribing a regulation or standard under subsection
(a) or (b) of this section or section 44702–44716 of this title, the Adminis-
trator shall—
(1) consider—
(A) the duty of an air carrier to provide service with the highest
possible degree of safety in the public interest; and
(B) differences between air transportation and other air com-
merce; and
(2) classify a regulation or standard appropriate to the differences
between air transportation and other air commerce.
(e) EXEMPTIONS.—The Administrator may grant an exemption from a
requirement of a regulation prescribed under subsection (a) or (b) of this
section or section 44702–44716 of this title if the Administrator finds the
exemption is in the public interest.
§ 44702. Issuance of certificates
(a) GENERAL AUTHORITY AND APPLICATIONS.—The Administrator of
the Federal Aviation Administration may issue airman certificates, type cer-
tificates, production certificates, airworthiness certificates, air carrier oper-
ating certificates, airport operating certificates, air agency certificates, and
air navigation facility certificates under this chapter. An application for a
certificate must—
(1) be under oath when the Administrator requires; and
(2) be in the form, contain information, and be filed and served in
the way the Administrator prescribes.
(b) CONSIDERATIONS.—When issuing a certificate under this chapter, the
Administrator shall—
(1) consider—
(A) the duty of an air carrier to provide service with the highest
possible degree of safety in the public interest; and
537
(B) differences between air transportation and other air com-
merce; and
(2) classify a certificate according to the differences between air
transportation and other air commerce.
(c) PRIOR CERTIFICATION.—The Administrator may authorize an air-
craft, aircraft engine, propeller, or appliance for which a certificate has been
issued authorizing the use of the aircraft, aircraft engine, propeller, or ap-
pliance in air transportation to be used in air commerce without another
certificate being issued.
(d) DELEGATION.—(1) Subject to regulations, supervision, and review the
Administrator may prescribe, the Administrator may delegate to a qualified
private person, or to an employee under the supervision of that person, a
matter related to—
(A) the examination, testing, and inspection necessary to issue a cer-
tificate under this chapter; and
(B) issuing the certificate.
(2) The Administrator may rescind a delegation under this subsection at
any time for any reason the Administrator considers appropriate.
(3) A person affected by an action of a private person under this sub-
section may apply for reconsideration of the action by the Administrator.
On the Administrator’s own initiative, the Administrator may reconsider the
action of a private person at any time. If the Administrator decides on re-
consideration that the action is unreasonable or unwarranted, the Adminis-
trator shall change, modify, or reverse the action. If the Administrator de-
cides the action is warranted, the Administrator shall affirm the action.
§ 44703. Airman certificates
(a) GENERAL.—The Administrator of the Federal Aviation Administra-
tion shall issue an airman certificate to an individual when the Adminis-
trator finds, after investigation, that the individual is qualified for, and
physically able to perform the duties related to, the position to be authorized
by the certificate.
(b) CONTENTS.—(1) An airman certificate shall—
(A) be numbered and recorded by the Administrator of the Federal
Aviation Administration;
(B) contain the name, address, and description of the individual to
whom the certificate is issued;
(C) contain terms the Administrator decides are necessary to ensure
safety in air commerce, including terms on the duration of the certifi-
cate, periodic or special examinations, and tests of physical fitness;
(D) specify the capacity in which the holder of the certificate may
serve as an airman with respect to an aircraft; and