I 
108TH CONGRESS 
1ST SESSION H. R. 1366
To amend title 49, United States Code, to provide relief to the airline 
industry, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 19, 2003
Mr. OBERSTAR (for himself, Mr. DEFAZIO, and Mr. LIPINSKI) introduced the 
following bill; which was referred to the Committee on Transportation 
and Infrastructure, and in addition to the Committee on Energy and 
Commerce, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned 
A BILL 
To amend title 49, United States Code, to provide relief 
to the airline industry, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Aviation Industry Sta-
bilization Act of 2003’’. 
SEC. 2. AMENDMENT OF TITLE 49, UNITED STATES CODE. 
Except as otherwise expressly provided, whenever in 
this Act an amendment or repeal is expressed in terms
of an amendment to, or a repeal of, a section or other 
provision, the reference shall be considered to be made to 
a section or other provision of title 49, United States 
Code. 
SEC. 3. AVIATION INSURANCE. 
(a) AUTHORITY.—Section 44302(a)(1) is amended by 
striking ‘‘may’’ and inserting ‘‘shall’’. 
(b) EXTENSION OF POLICIES.—Section 44302(f)(1) 
is amended by striking ‘‘August 31, 2003, and may extend 
through December 31, 2003,’’ and inserting ‘‘December 
31, 2007,’’. 
(c) COVERAGE.—Section 44303 is amended—
(1) in subsection (a) by striking ‘‘IN
GEN-
ERAL.—’’ and inserting ‘‘IN GENERAL.—’’; and 
(2) in subsection (b)—
(A) by striking ‘‘during the period begin-
ning on’’ and inserting ‘‘on or after’’; and 
(B) by striking ‘‘and ending on December 
31, 2003,’’. 
(d) TERMINATION DATE.—Section 44310 and the 
item relating to such section in the analysis for chapter 
443 are repealed.
SEC. 4. LOAN GUARANTEES AND LINES OF CREDIT FOR 
AVIATION FUEL COSTS. 
(a) EXTENSION OF APPLICATION PERIOD.—Notwith-
standing section 1300.16 of title 14, Code of Federal Reg-
ulations, or any other provision of law or regulation, appli-
cations for Federal credit instruments authorized by sec-
tion 101 of the Air Transportation Safety and System 
Stabilization Act (49 U.S.C. 40101 note; 115 Stat. 230) 
may be filed for a period of 30 days following the date 
on which the President authorizes the military to use force 
against the Republic of Iraq in calendar year 2003, and 
the Air Transportation Stabilization Board determines 
that an extraordinary increase in jet fuel prices (as defined 
in section 11(a)(3)) has occurred. 
(b) PUBLICATION OF NOTICE.—The Board shall pub-
lish a notice in the Federal Register announcing that ap-
plications may be filed under subsection (a) and another 
notice when the time for such applications will end. 
(c) LIMITATIONS
ON FEDERAL CREDIT INSTRU-
MENTS.—A Federal credit instrument issued by the Board 
in accordance with this section shall—
(1) be for the purpose of allowing an air carrier 
to secure financial obligations to pay for its aviation 
fuel purchases for a period of 6 months or the pe-
riod that begins on the date the Board determines 
that an extraordinary increase in jet fuel prices has
occurred and ends on the date that the Secretary 
of Transportation determines that the average price 
for jet fuel in calendar year 2003 is equal to or less 
than the average price reported by major air carriers 
for calendar year 2002, whichever period ends soon-
er; and 
(2) be for the actual increased aviation fuel cost 
incurred by the air carrier or a reasonable estimate 
of such cost over the average price of commercial 
aviation fuel reported to the Secretary of Transpor-
tation by air carriers during calendar year 2002, as 
determined by the Board. 
(d) MAXIMUM AMOUNT OF FEDERAL CREDIT IN-
STRUMENTS.—The maximum amount of Federal credit in-
struments that may be issued by the Board in accordance 
with this section shall be $3,000,000,000. The Board shall 
establish a formula setting the maximum amount of Fed-
eral credit instruments that may be issued to any air car-
rier based on the percentage of gallons of aviation fuel 
consumed by that air carrier in proportion to the total 
gallons of aviation fuel consumed by all air carriers during 
calendar year 2002. 
(e) SPECIAL RULES.—
(1) LIMITATION ON APPLICABILITY.—Sections 
102(c), 102(d)(1), and 102(d)(2) of the Air Trans-
portation Safety and System Stabilization Act (49 
U.S.C. 40101 note; 115 Stat. 231–232) shall not 
apply to Federal credit instruments to be issued in 
accordance with this section. 
(2) INCLUSION OF LINES OF CREDIT.—For pur-
poses of Federal credit instruments to be issued in 
accordance with this section, the term ‘‘Federal 
credit instrument’’, as used in section 107(2) of the 
Air Transportation Safety and System Stabilization 
Act (115 Stat. 234), includes a line of credit and a 
guarantee of a line of credit issued by a third party. 
(3) TREATMENT OF TIME PERIOD.—The 2-year 
period referred to in section 104(a) of the Air 
Transportation Safety and System Stabilization Act 
(49 U.S.C. 40101 note; 115 Stat. 233) shall be 
treated with respect to an application filed in accord-
ance with subsection (a) of this section as being the 
2-year period beginning on the date of enactment of 
this Act. 
(f) SAVINGS CLAUSE.—Nothing in this section shall 
be construed as affecting an application filed before the 
date of enactment of this Act for a Federal credit instru-
ment authorized by section 101 of the Air Transportation 
Safety and Stabilization Act (49 U.S.C. 40101 note; 115 
Stat. 230).
(g) MAJOR AIR CARRIER DEFINED.—In this section, 
the term ‘‘major air carrier’’ has the meaning such term 
has under section 41720(a) of title 49, United States 
Code. 
SEC. 5. AIR MARSHALS. 
Not later than 90 days after all cockpit doors that 
are required to be strengthened under section 104(a) of 
the Aviation and Transportation Security Act (49 U.S.C. 
44903 note; 115 Stat. 605–606) are strengthened, the 
Under Secretary for Border and Transportation Security 
of the Department of Homeland Security shall consider 
whether it is necessary to require Federal air marshals 
to be seated in the first class cabin of an aircraft with 
strengthened cockpit doors and report to Congress (in 
classified form if necessary) on the results of such recon-
sideration. 
SEC. 6. SCREENING OF MAIL. 
(a) IMPROVED SCREENING.—Not later than 30 days 
after the date of enactment of this Act, the Under Sec-
retary for Border and Transportation Security of the De-
partment of Homeland Security shall undertake, without 
a decrease in aviation security, such action as may be nec-
essary to improve the screening of mail so that it can be 
carried on passenger flights of air carriers.
(b) REPORT.—Not later than 120 days after the date 
of enactment of this Act, the Under Secretary shall trans-
mit to Congress a report on the Transportation Security 
Administration’s pilot program to determine whether ca-
nine teams can be used to screen mail before being placed 
aboard passenger-carrying aircraft. 
SEC. 7. REIMBURSEMENT OF AIR CARRIERS FOR CERTAIN 
SCREENING AND RELATED ACTIVITIES. 
The Under Secretary for Border and Transportation 
Security of the Department of Homeland Security, within 
available resources, shall reimburse air carriers and air-
ports for the following: 
(1) All screening and related activities that the 
air carriers or airports perform or are responsible 
for performing, including—
(A) the screening of catering supplies; 
(B) checking documents at security check-
points; 
(C) screening of passengers; and 
(D) screening of persons with access to 
aircraft. 
(2) The provision of space and facilities used to 
perform screening functions if such space and facili-
ties have been previously used, or were intended to 
be used, for revenue-producing purposes.
SEC. 8. REIMBURSEMENT OF AIR CARRIERS FOR FOR-
TIFYING COCKPIT DOOR. 
The Under Secretary for Border and Transportation 
Security of the Department of Homeland Security shall 
reimburse air carriers for the cost of fortifying cockpit 
doors in accordance with section 48301(b) of title 49, 
United States Code. 
SEC. 9. REIMBURSEMENT OF AIR CARRIERS FOR CERTAIN 
LOSSES RESULTING FROM WAR WITH IRAQ. 
(a) IN GENERAL.—The Secretary of Transportation 
shall reimburse an air carrier for any financial losses that 
the Secretary determines are attributable to the loss of 
air traffic resulting from the use of force against the Re-
public of Iraq in calendar year 2003. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated such sums as may be nec-
essary to carry out this section. 
SEC. 10. AIRLIFT SERVICES. 
Section 41106 is amended by adding at the end the 
following: 
‘‘(e) COMPENSATION OF CONTRACTORS.—An airlift 
services contract entered into by the Secretary of Defense 
and an air carrier described in subsection (a) shall ensure 
that the air carrier is compensated for the positioning, de-
positioning, and other ferry portions of missions per-
formed under the contract.’’.