399
(c) LIMITATIONS ON MAJOR PART AND REPLACEMENT PART STANDARDS.—
(1) For a major part installed by the manufacturer of the motor vehicle, the
standard may not require a part to have more than one identification.
(2) For a major replacement part, the standard may not require—
(A) identification of a part not designed as a replacement for a major
part required to be identified under the standard; or
(B) the inscribing or affixing of identification except a symbol identi-
fying the manufacturer and a common symbol identifying the part as
a major replacement part.
(d) RECORDS AND REPORTS.—This chapter does not authorize the Sec-
retary to require a person to keep records or make reports, except as provided
in sections 33104(c), 33106(c), 33108(a), and 33112 of this title.
§ 33103.
Theft prevention standard for other lines
(a) GENERAL.—Not later than October 25, 1994, the Secretary of Transpor-
tation shall prescribe a vehicle theft standard that conforms to the require-
ments of this chapter for covered major parts that manufacturers install in
passenger motor vehicles (except light duty trucks) in not more than 50 per-
cent of the lines not designated under section 33104 of this title as high theft
lines.
(b) EXTENSION OF APPLICATION.—(1) Not later than 3 years after the
standard is prescribed under subsection (a) of this section and based on the
finding of the Attorney General under subsection (c) of this section to apply
the standard, the Secretary shall apply that standard to covered major parts
and major replacement parts for covered parts that manufacturers install in
the lines of passenger motor vehicles (except light duty trucks)—
(A) not designated under section 33104 of this title as high theft lines;
and
(B) not covered by the standard prescribed under subsection (a) of this
section.
(2) The Secretary shall include as part of the regulatory proceeding under
this subsection the finding of, and the record developed by, the Attorney Gen-
eral under subsection (c) of this section.
(c) INITIAL REVIEW OF EFFECTIVENESS.—Before the Secretary begins a
regulatory proceeding under subsection (b) of this section, the Attorney Gen-
eral shall make a finding that the Secretary shall apply the standard pre-
scribed under subsection (a) of this section unless the Attorney General finds,
based on information collected and analyzed under section 33112 of this title
and other information the Attorney General develops after providing notice
and an opportunity for a public hearing, that applying the standard pre-
scribed in subsection (a) to the remaining lines of passenger motor vehicles
(except light duty trucks) not covered by that standard would not substan-
400
tially inhibit chop shop operations and motor vehicle thefts. The Attorney
General also shall consider and include in the record additional costs, effec-
tiveness, competition, and available alternative factors. The Attorney General
shall submit to the Secretary the finding and record on which the finding is
based.
(d) LONG RANGE REVIEW OF EFFECTIVENESS.—(1) Not later than Decem-
ber 31, 1999, the Attorney General shall make separate findings, after notice
and an opportunity for a public hearing, on the following:
(A) whether the application of the standard under subsection (a) or
(b) of this subsection, or both, have been effective in substantially inhibit-
ing the operation of chop shops and motor vehicle theft.
(B) whether the anti-theft devices for which the Secretary has granted
exemptions under section 33106 of this title are an effective substitute
for parts marking in substantially inhibiting motor vehicle theft.
(2)(A) In making the finding under paragraph (1)(A) of this subsection,
the Attorney General shall—
(i) consider the additional cost, competition, and available alter-
natives;
(ii) base that finding on information collected and analyzed under sec-
tion 33112 of this title;
(iii) consider the effectiveness, the extent of use, and the extent to
which civil and criminal penalties under section 33115(b) of this title
and section 2322 of title 18 on chop shops have been effective in substan-
tially inhibiting operation of chop shops and motor vehicle theft;
(iv) base that finding on the 3-year and 5-year reports issued by the
Secretary under section 33113 of this title; and
(v) base that finding on other information the Attorney General devel-
ops and includes in the public record.
(B) The Attorney General shall submit a finding under paragraph (1)(A)
of this subsection promptly to the Secretary. If the Attorney General finds
that the application of the standard under subsection (a) or (b) of this section,
or both, has not been effective, the Secretary shall issue, not later than 180
days after receiving that finding, an order terminating the standard the At-
torney General found was ineffective. The termination is effective for the
model year beginning after the order is issued.
(3) In making a finding under paragraph (1)(B) of this subsection, the
Secretary shall consider the additional cost, competition, and available alter-
natives. If the Attorney General finds that the anti-theft devices are an effec-
tive substitute, the Secretary shall continue to grant exemptions under section
33106 of this title for the model years after model year 2000 at one of the
following levels that the Attorney General decides: at the level authorized be-
401
fore October 25, 1992, or at the level provided in section 33106(b)(2)(C) of
this title for model year 2000.
(e) EFFECTIVE DATE OF STANDARD.—A standard prescribed under this
section takes effect at least 6 months after the date the standard is prescribed,
except that the Secretary may prescribe an earlier effective date if the Sec-
retary—
(1) decides with good cause that the earlier date is in the public inter-
est; and
(2) publishes the reasons for the decision.
(f) NOTIFICATION OF CONGRESS.—The Secretary and the Attorney General
shall inform the appropriate legislative committees of Congress with jurisdic-
tion over this part and section 2322 of title 18 of actions taken or planned
under this section.
§ 33104. Designation of high theft vehicle lines and parts
(a) DESIGNATION, NONAPPLICATION, SELECTION, AND PROCEDURES.—(1)
For purposes of the standard under section 33102 of this title, the following
are high theft lines:
(A) a passenger motor vehicle line determined under subsection (b) of
this section to have had a new passenger motor vehicle theft rate in the
2-year period covering calendar years 1990 and 1991 greater than the
median theft rate for all new passenger motor vehicle thefts in that 2-
year period.
(B) a passenger motor vehicle line initially introduced into commerce
in the United States after December 31, 1989, that is selected under
paragraph (3) of this subsection as likely to have a theft rate greater
than the median theft rate referred to in clause (A) of this paragraph.
(C) subject to paragraph (2) of this subsection, a passenger motor vehi-
cle line having (for existing lines) or likely to have (for new lines) a theft
rate below the median theft rate referred to in clause (A) of this para-
graph, if the major parts in the vehicles are selected under paragraph
(3) of this subsection as interchangeable with the majority of the major
parts that are subject to the standard and are contained in the motor
vehicles of a line described in clause (A) or (B) of this paragraph.
(2) The standard may not apply to any major part of a line described in
paragraph (1)(C) of this subsection if all the passenger motor vehicles of lines
that are, or are likely to be, below the median theft rate, and that contain
parts interchangeable with the major parts of the line involved, account (for
existing lines), or the Secretary of Transportation determines they are likely
to account (for new lines), for more than 90 percent of the total annual pro-
duction of all lines of that manufacturer containing those interchangeable
parts.
402
(3) The lines, and the major parts of the passenger motor vehicles in those
lines, that are to be subject to the standard may be selected by agreement be-
tween the manufacturer and the Secretary. If the manufacturer and the Sec-
retary disagree on the selection, the Secretary shall select the lines and parts,
after notice to the manufacturer and opportunity for written comment, and
subject to the confidentiality requirements of this chapter.
(4) To the maximum extent practicable, the Secretary shall prescribe rea-
sonable procedures designed to ensure that a selection under paragraph (3)
of this subsection is made at least 6 months before the first applicable model
year beginning after the selection.
(5) A manufacturer may not be required to comply with the standard
under a selection under paragraph (3) of this subsection for a model year be-
ginning earlier than 6 months after the date of the selection.
(6) A passenger motor vehicle line subject on October 25, 1992, to parts
marking requirements under sections 602 and 603 of the Motor Vehicle Infor-
mation and Cost Savings Act (Public Law 92–513, 86 Stat. 947), as added
by section 101(a) of the Motor Vehicle Theft Law Enforcement Act of 1984
(Public Law 98–547, 98 Stat. 2756), continues to be subject to the require-
ments of this section and section 33102 of this title unless the line is exempted
under section 33106 of this title.
(b) DETERMINING THEFT RATE FOR PASSENGER VEHICLES.—(1) In this
subsection, ‘‘new passenger motor vehicle thefts’’, when used in reference to a
calendar year, means thefts in the United States in that year of passenger
motor vehicles with the same model-year designation as that calendar year.
(2) Under subsection (a) of this section, the theft rate for passenger motor
vehicles of a line shall be determined by a fraction—
(A) the numerator of which is the number of new passenger motor ve-
hicle thefts for that line during the 2-year period referred to in subsection
(a)(1)(A) of this section; and
(B) the denominator of which is the sum of the respective production
volumes of all passenger motor vehicles of that line (as reported to the
Administrator of the Environmental Protection Agency under chapter
329 of this title) that are of model years 1990 and 1991 and are distrib-
uted for sale in commerce in the United States.
(3) Under subsection (a) of this section, the median theft rate for all new
passenger motor vehicle thefts during that 2-year period is the theft rate mid-
way between the highest and the lowest theft rates determined under para-
graph (2) of this subsection. If there is an even number of theft rates deter-
mined under paragraph (2), the median theft rate is the arithmetic average
of the 2 adjoining theft rates midway between the highest and the lowest of
those theft rates.
403
(4) In consultation with the Director of the Federal Bureau of Investiga-
tion, the Secretary periodically shall obtain from the most reliable source ac-
curate and timely theft and recovery information and publish the information
for review and comment. To the greatest extent possible, the Secretary shall
use theft information reported by United States Government, State, and local
police. After publication and opportunity for comment, the Secretary shall use
the theft information to determine the median theft rate under this subsection.
The Secretary and the Director shall take any necessary actions to improve
the accuracy, reliability, and timeliness of the information, including ensur-
ing that vehicles represented as stolen are really stolen.
(5) The Secretary periodically (but not more often than once every 2 years)
may redetermine and prescribe by regulation the median theft rate under this
subsection.
(c) PROVIDING INFORMATION.—The Secretary by regulation shall require
each manufacturer to provide information necessary to select under subsection
(a)(3) of this section the high theft lines and the major parts to be subject
to the standard.
(d) APPLICATION.—Except as provided in section 33106 of this title, the
Secretary may not make the standard inapplicable to a line that has been
subject to the standard.
§ 33105. Cost limitations
(a) MAXIMUM MANUFACTURER COSTS.—A standard under section 33102 or
33103 of this title may not impose—
(1) on a manufacturer of motor vehicles, compliance costs of more than
$15 a motor vehicle; or
(2) on a manufacturer of major replacement parts, compliance costs
for each part of more than the reasonable amount (but less than $15)
that the Secretary of Transportation specifies in the standard.
(b) COSTS INVOLVED IN ENGINES AND TRANSMISSIONS.—For a manufac-
turer engaged in identifying engines or transmissions on October 25, 1984,
in a way that substantially complies with the standard—
(1) the costs of identifying engines and transmissions may not be con-
sidered in calculating the manufacturer’s costs under subsection (a) of
this section; and
(2) the manufacturer may not be required under the standard to con-
form to any identification system for engines and transmissions that im-
poses greater costs on the manufacturer than are incurred under the
identification system used by the manufacturer on October 25, 1984.
(c) COST ADJUSTMENTS.—(1) In this subsection—
(A) ‘‘base period’’ means calendar year 1984.
404
(B) ‘‘price index’’ means the average over a calendar year of the
Consumer Price Index (all items—United States city average) published
monthly by the Secretary of Labor.
(2) At the beginning of each calendar year, as necessary data become avail-
able from the Bureau of Labor Statistics, the Secretary of Labor shall certify
to the Secretary of Transportation and publish in the Federal Register the
percentage difference between the price index for the 12 months before the be-
ginning of the calendar year and the price index for the base period. For
model years beginning in that calendar year, the amounts specified in sub-
section (a) of this section shall be adjusted by the percentage difference.
§ 33106. Exemption for passenger motor vehicles equipped
with anti-theft devices
(a) DEFINITIONS.—In this section—
(1) ‘‘anti-theft device’’ means a device to reduce or deter theft that—
(A) is in addition to the theft-deterrent devices required by motor
vehicle safety standard numbered 114 in section 571.114 of title 49,
Code of Federal Regulations;
(B) the manufacturer believes will be effective in reducing or de-
terring theft of motor vehicles; and
(C) does not use a signaling device reserved by State law for use
on police, emergency, or official vehicles, or on schoolbuses.
(2) ‘‘standard equipment’’ means equipment already installed in a
motor vehicle when it is delivered from the manufacturer and not an ac-
cessory or other item that the first purchaser customarily has the option
to have installed.
(b) GRANTING EXEMPTIONS AND LIMITATIONS.—(1) A manufacturer may
petition the Secretary of Transportation for an exemption from a requirement
of a standard prescribed under section 33102 or 33103 of this title for a line
of passenger motor vehicles equipped as standard equipment with an anti-
theft device that the Secretary decides is likely to be as effective in reducing
and deterring motor vehicle theft as compliance with the standard.
(2) The Secretary may grant an exemption—
(A) for model year 1987, for not more than 2 lines of a manufacturer;
(B) for each of the model years 1988–1996, for not more than 2 addi-
tional lines of a manufacturer;
(C) for each of the model years 1997–2000, for not more than one ad-
ditional line of a manufacturer; and
(D) for each of the model years after model year 2000, for the number
of lines that the Attorney General decides under section 33103(d)(3) of
this title.
405
(3) An additional exemption granted under subparagraph (2)(B) or (C) of
this paragraph does not affect an exemption previously granted.
(c) PETITIONING PROCEDURE.—A petition must be filed not later than 8
months before the start of production for the first model year covered by the
petition. The petition must include—
(1) a detailed description of the device;
(2) the reasons for the manufacturer’s conclusion that the device will
be effective in reducing and deterring theft of motor vehicles; and
(3) additional information the Secretary reasonably may require to
make the decision described in subsection (b)(1) of this section.
(d) DECISIONS AND APPROVALS.—The Secretary shall make a decision
about a petition filed under this section not later than 120 days after the date
the petition is filed. A decision approving a petition must be based on sub-
stantial evidence. The Secretary may approve a petition in whole or in part.
If the Secretary does not make a decision within the 120-day period, the peti-
tion shall be deemed to be approved and the manufacturer shall be exempt
from the standard for the line covered by the petition for the subsequent model
year.
(e) RESCISSIONS.—The Secretary may rescind an exemption if the Sec-
retary decides that the anti-theft device has not been as effective in reducing
and deterring motor vehicle theft as compliance with the standard. A rescis-
sion may be effective only—
(1) for a model year after the model year in which the rescission oc-
curs; and
(2) at least 6 months after the manufacturer receives written notice
of the rescission from the Secretary.
§ 33107. Voluntary vehicle identification standards
(a) ELECTION TO INSCRIBE OR AFFIX IDENTIFYING MARKS.—The Sec-
retary of Transportation by regulation may prescribe a vehicle theft preven-
tion standard under which a person may elect to inscribe or affix an identify-
ing number or symbol on major parts of a motor vehicle manufactured or
owned by the person for purposes of section 511 of title 18 and related provi-
sions. The standard may include provisions for registration of the identifica-
tion with the Secretary or a person designated by the Secretary.
(b) STANDARD REQUIREMENTS.—The standard under this section shall be
practicable and provide relevant objective criteria.
(c) VOLUNTARY COMPLIANCE.—Compliance with the standard under this
section is voluntary. Failure to comply does not subject a person to a penalty
or enforcement under this chapter.
406
(d) COMPLIANCE WITH OTHER STANDARDS.—Compliance with the stand-
ard under this section does not relieve a manufacturer from a requirement
of a standard prescribed under section 33102 or 33103 of this title.
§ 33108. Monitoring compliance of manufacturers
(a) RECORDS, REPORTS, INFORMATION, AND INSPECTION.—To enable the
Secretary of Transportation to decide whether a manufacturer of motor vehi-
cles containing a part subject to a standard prescribed under section 33102
or 33103 of this title, or a manufacturer of major replacement parts subject
to the standard, is complying with this chapter and the standard, the Sec-
retary may require the manufacturer to—
(1) keep records;
(2) make reports;
(3) provide items and information; and
(4) allow an officer or employee designated by the Secretary to inspect
the vehicles and parts and relevant records of the manufacturer.
(b) ENTRY AND INSPECTION.—To enforce this chapter, an officer or em-
ployee designated by the Secretary, on presenting appropriate credentials and
a written notice to the owner, operator, or agent in charge, may inspect a
facility in which motor vehicles containing major parts subject to the stand-
ard, or major replacement parts subject to the standard, are manufactured,
held for introduction into interstate commerce, or held for sale after introduc-
tion into interstate commerce. An inspection shall be conducted at a reason-
able time, in a reasonable way, and with reasonable promptness.
(c) CERTIFICATION OF COMPLIANCE.—(1) A manufacturer of a motor vehi-
cle subject to the standard, and a manufacturer of a major replacement part
subject to the standard, shall provide at the time of delivery of the vehicle or
part a certification that the vehicle or part conforms to the applicable motor
vehicle theft prevention standard. The certification shall accompany the vehi-
cle or part until its delivery to the first purchaser. The Secretary by regula-
tion may prescribe the type and form of the certification.
(2) This subsection does not apply to a motor vehicle or major replacement
part that is—
(A) intended only for export;
(B) labeled only for export on the vehicle or replacement part and the
outside of any container until exported; and
(C) exported.
(d) NOTIFICATION OF ERROR.—A manufacturer shall notify the Secretary
if the manufacturer discovers that—
(1) there is an error in the identification (required by the standard)
applied to a major part installed by the manufacturer in a motor vehicle
407
during its assembly, or to a major replacement part manufactured by
the manufacturer; and
(2) the motor vehicle or major replacement part has entered interstate
commerce.
§ 33109.
National Stolen Passenger Motor Vehicle Informa-
tion System
(a) GENERAL REQUIREMENTS.—(1) Not later than July 25, 1993, the At-
torney General shall establish, and thereafter maintain, a National Stolen
Passenger Motor Vehicle Information System containing the vehicle identifica-
tion numbers of stolen passenger motor vehicles and stolen passenger motor
vehicle parts. The System shall be located in the National Crime Information
Center and shall include at least the following information on each passenger
motor vehicle reported to a law enforcement authority as stolen and not recov-
ered:
(A) the vehicle identification number.
(B) the make and model year.
(C) the date on which the vehicle was reported as stolen.
(D) the location of the law enforcement authority that received the re-
port of the theft of the vehicle.
(E) the identification numbers of the vehicle parts (or derivatives of
those numbers), at the time of the theft, if those numbers are different
from the vehicle identification number of the vehicle.
(2) In establishing the System, the Attorney General shall consult with—
(A) State and local law enforcement authorities; and
(B) the National Crime Information Center Policy Advisory Board to
ensure the security of the information in the System and that the System
will not compromise the security of stolen passenger motor vehicle and
passenger motor vehicle parts information in the System.
(3) If the Attorney General decides that the Center is not able to perform
the functions of the System, the Attorney General shall make an agreement
for the operation of the System separate from the Center.
(4) The Attorney General shall prescribe by regulation the effective date of
the System.
(b) REQUESTS FOR INFORMATION.—(1) The Attorney General shall pre-
scribe by regulation procedures under which an individual or entity intend-
ing to transfer a passenger motor vehicle or passenger motor vehicle part may
obtain information on whether the vehicle or part is listed in the System as
stolen.
(2) On request of an insurance carrier, a person lawfully selling or distrib-
uting passenger motor vehicle parts in interstate commerce, or an individual
or enterprise engaged in the business of repairing passenger motor vehicles,
408
the Attorney General (or the entity the Attorney General designates) imme-
diately shall inform the insurance carrier, person, individual, or enterprise
whether the System has a record of a vehicle or vehicle part with a particular
vehicle identification number (or derivative of that number) being reported
as stolen. The Attorney General may require appropriate verification to en-
sure that the request is legitimate and will not compromise the security of
the System.
(c) ADVISORY COMMITTEE.—(1) Not later than December 24, 1992, the At-
torney General shall establish in the Department of Justice an advisory com-
mittee. The Attorney General shall develop the System with the advice and
recommendations of the committee.
(2)(A) The committee is composed of the following 10 members:
(i) the Attorney General.
(ii) the Secretary of Transportation.
(iii) one individual who is qualified to represent the interests of the
law enforcement community at the State level.
(iv) one individual who is qualified to represent the interests of the
law enforcement community at the local level.
(v) one individual who is qualified to represent the interests of the
automotive recycling industry.
(vi) one individual who is qualified to represent the interests of the
automotive repair industry.
(vii) one individual who is qualified to represent the interests of the
automotive rebuilders industry.
(viii) one individual who is qualified to represent the interests of the
automotive parts suppliers industry.
(ix) one individual who is qualified to represent the interests of the
insurance industry.
(x) one individual who is qualified to represent the interests of con-
sumers.
(B) The Attorney General shall appoint the individuals described in sub-
paragraph (A)(iii)–(x) of this paragraph and shall serve as chairman of the
committee.
(3) The committee shall make recommendations on developing and carrying
out—
(A) the National Stolen Passenger Motor Vehicle Information System;
and
(B) the verification system under section 33110 of this title.
(4) Not later than April 25, 1993, the committee shall submit to the Attor-
ney General, the Secretary, and Congress a report including the recommenda-
tions of the committee.
409
§ 33110. Verifications involving junk and salvage motor vehi-
cles
(a) DEFINITION.—In this section, ‘‘vehicle identification number’’ means a
unique identification number (or derivative of that number) assigned to a
passenger motor vehicle by a manufacturer in compliance with applicable reg-
ulations.
(b) GENERAL REQUIREMENTS.—(1) If an insurance carrier selling com-
prehensive motor vehicle insurance coverage obtains possession of and trans-
fers a junk motor vehicle or a salvage motor vehicle, the carrier shall—
(A) under procedures the Attorney General prescribes by regulation
under section 33109 of this title in consultation with the Secretary of
Transportation, verify whether the vehicle is reported as stolen; and
(B) provide the purchaser or transferee of the vehicle from the insur-
ance carrier verification identifying the vehicle identification number
and verifying that the vehicle has not been reported as stolen or, if re-
ported as stolen, that the carrier has recovered the vehicle and has proper
legal title to the vehicle.
(2)(A) This subsection does not prohibit an insurance carrier from transfer-
ring a motor vehicle if, within a reasonable period of time during normal
business operations (as decided by the Attorney General under section 33109
of this title) using reasonable efforts, the carrier—
(i) has not been informed under the procedures prescribed in section
33109 of this title that the vehicle has not been reported as stolen; or
(ii) has not otherwise established whether the vehicle has been reported
as stolen.
(B) When a carrier transfers a motor vehicle for which the carrier has not
established whether the vehicle has been reported as stolen, the carrier shall
provide written certification to the transferee that the carrier has not estab-
lished whether the vehicle has been reported as stolen.
(c) REGULATIONS.—In consultation with the Secretary, the Attorney Gen-
eral shall prescribe regulations necessary to ensure that verification performed
and provided by an insurance carrier under subsection (b)(1)(B) of this sec-
tion is uniform, effective, and resistant to fraudulent use.
§ 33111.
Verifications involving motor vehicle major parts
(a) GENERAL REQUIREMENTS.—A person engaged in the business of sal-
vaging, dismantling, recycling, or repairing passenger motor vehicles may not
knowingly sell in commerce or transfer or install a major part marked with
an identification number without—
(1) first establishing, through a procedure the Attorney General by reg-
ulation prescribes in consultation with the Secretary of Transportation
410
under section 33109 of this title, that the major part has not been re-
ported as stolen; and
(2) providing the purchaser or transferee with a verification—
(A) identifying the vehicle identification number (or derivative of
that number) of that major part; and
(B) verifying that the major part has not been reported as stolen.
(b) NONAPPLICATION.—(1) Subsection (a) of this section does not apply to
a person that—
(A) is the manufacturer of the major part;
(B) has purchased the major part directly from the manufacturer; or
(C) has received a verification from an insurance carrier under section
33110 of this title that the motor vehicle from which the major part is
derived has not been reported as stolen, or that the carrier has not estab-
lished whether that vehicle has been stolen.
(2) A person described under paragraph (1)(C) of this subsection that sub-
sequently transfers or sells in commerce the motor vehicle or a major part of
the vehicle shall provide the verification received from the carrier to the per-
son to whom the vehicle or part is transferred or sold.
(c) REGULATIONS.—The Attorney General shall prescribe regulations to
carry out this section. The regulations shall include regulations prescribed in
consultation with the Secretary that are necessary to ensure that a verifica-
tion a person provides under subsection (a)(2) of this section is uniform, effec-
tive, and resistant to fraudulent use.
§ 33112. Insurance reports and information
(a) PURPOSES.—The purposes of this section are—
(1) to prevent or discourage the theft of motor vehicles, particularly
those stolen for the removal of certain parts;
(2) to prevent or discourage the sale and distribution in interstate
commerce of used parts that are removed from those vehicles; and
(3) to help reduce the cost to consumers of comprehensive insurance
coverage for motor vehicles.
(b) DEFINITIONS.—In this section—
(1) ‘‘insurer’’ includes a person (except a governmental authority)
having a fleet of at least 20 motor vehicles that are used primarily for
rental or lease and are not covered by a theft insurance policy issued
by an insurer of passenger motor vehicles.
(2) ‘‘motor vehicle’’ includes a truck, a multipurpose passenger vehicle,
and a motorcycle.
(c) ANNUAL INFORMATION REQUIREMENT.—(1) An insurer providing com-
prehensive coverage for motor vehicles shall provide annually to the Secretary
of Transportation information on—
411
(A) the thefts and recoveries (in any part) of motor vehicles;
(B) the number of vehicles that have been recovered intact;
(C) the rating rules and plans, such as loss information and rating
characteristics, used by the insurer to establish premiums for comprehen-
sive coverage, including the basis for the premiums, and premium pen-
alties for motor vehicles considered by the insurer as more likely to be
stolen;
(D) the actions taken by the insurer to reduce the premiums, including
changing rate levels for comprehensive coverage because of a reduction in
thefts of motor vehicles;
(E) the actions taken by the insurer to assist in deterring or reducing
thefts of motor vehicles; and
(F) other information the Secretary requires to carry out this chapter
and to make the report and findings required by this chapter.
(2) The information on thefts and recoveries shall include an explanation
on how the information is obtained, the accuracy and timeliness of the infor-
mation, and the use made of the information, including the extent and fre-
quency of reporting the information to national, public, and private entities
such as the Federal Bureau of Investigation and State and local police.
(d) REPORTS ON REDUCED CLAIMS PAYMENTS.—An insurer shall report
promptly in writing to the Secretary if the insurer, in paying a claim under
an adjustment or negotiation between the insurer and the insured for a stolen
motor vehicle—
(1) reduces the payment to the insured by the amount of the value,
salvage or otherwise, of a recovered part subject to a standard prescribed
under section 33102 or 33103 of this title; and
(2) the reduction is not made at the express election of the insured.
(e) GENERAL EXEMPTIONS.—The Secretary shall exempt from this section,
for one or more years, an insurer that the Secretary decides should be exempt-
ed because—
(1) the cost of preparing and providing the information is excessive
in relation to the size of the insurer’s business; and
(2) the information from that insurer will not contribute significantly
to carrying out this chapter.
(f) SMALL INSURER EXEMPTIONS.—(1) In this subsection, ‘‘small insurer’’
means an insurer whose premiums for motor vehicle insurance issued directly
or through an affiliate, including a pooling arrangement established under
State law or regulation for the issuance of motor vehicle insurance, account
for—
(A) less than one percent of the total premiums for all forms of motor
vehicle insurance issued by insurers in the United States; and
412
(B) less than 10 percent of the total premiums for all forms of motor
vehicle insurance issued by insurers in any State.
(2) The Secretary shall exempt by regulation a small insurer from this sec-
tion if the Secretary finds that the exemption will not significantly affect the
validity or usefulness of the information collected and compiled under this
section, nationally or State-by-State. However, the Secretary may not exempt
an insurer under this paragraph that is considered an insurer only because
of subsection (b)(1) of this section.
(3) Regulations under this subsection shall provide that eligibility as a
small insurer shall be based on the most recent calendar year for which ade-
quate information is available, and that, once attained, the eligibility shall
continue without further demonstration of eligibility for one or more years,
as the Secretary considers appropriate.
(g) PRESCRIBED FORM.—Information required by this section shall be pro-
vided in the form the Secretary prescribes.
(h) PERIODIC COMPILATIONS.—Subject to section 552 of title 5, the Sec-
retary periodically shall compile and publish information obtained by the
Secretary under this section, in a form that will be helpful to the public, the
police, and Congress.
(i) CONSULTATION.—In carrying out this section, the Secretary shall con-
sult with public and private agencies and associations the Secretary considers
appropriate.
§ 33113. Theft reports
(a) TRUCK, MULTIPURPOSE PASSENGER VEHICLE, AND MOTORCYCLE RE-
PORT.—Not later than October 25, 1995, the Secretary of Transportation shall
submit a report to Congress that includes—
(1) information on the number of trucks, multipurpose passenger vehi-
cles, and motorcycles distributed for sale in interstate commerce that are
stolen and recovered annually, compiled by model, make, and line;
(2) information on the extent to which trucks, multipurpose passenger
vehicles, and motorcycles stolen annually are dismantled to recover parts
or are exported;
(3) a description of the market for the stolen parts;
(4) information on the premiums charged by insurers of comprehensive
coverage of trucks, multipurpose passenger vehicles, or motorcycles, in-
cluding any increase in the premiums charged because any of those
motor vehicles is a likely candidate for theft;
(5) an assessment of whether the identification of parts of trucks, mul-
tipurpose passenger vehicles, and motorcycles is likely—
(A) to decrease the theft rate of those motor vehicles;
(B) to increase the recovery rate of those motor vehicles;
413
(C) to decrease the trafficking in stolen parts of those motor vehi-
cles;
(D) to stem the export and import of those stolen motor vehicles
or parts; or
(E) to have benefits greater than the costs of the identification;
and
(6) recommendations on whether, and to what extent, the identifica-
tion of trucks, multipurpose passenger vehicles, and motorcycles should
be required by law.
(b) MOTOR VEHICLE REPORT.—Not later than October 25, 1997, the Sec-
retary shall submit a report to Congress that includes—
(1) information on—
(A) the methods and procedures used by public and private enti-
ties to collect, compile, and disseminate information on the theft
and recovery of motor vehicles, including classes of motor vehicles;
and
(B) the reliability and timeliness of the information and how the
information can be improved;
(2) information on the number of motor vehicles distributed for sale
in interstate commerce that are stolen and recovered annually, compiled
by class, model, make, and line;
(3) information on the extent to which motor vehicles stolen annually
are dismantled to recover parts or are exported;
(4) a description of the market for the stolen parts;
(5) information on—
(A) the costs to manufacturers and purchasers of passenger motor
vehicles of compliance with the standards prescribed under this
chapter;
(B) the beneficial impacts of the standards and the monetary
value of the impacts; and
(C) the extent to which the monetary value is greater than the
costs;
(6) information on the experience of officials of the United States Gov-
ernment, States, and localities in—
(A) making arrests and successfully prosecuting persons for vio-
lating a law set forth in title II or III of the Motor Vehicle Theft
Law Enforcement Act of 1984;
(B) preventing or reducing the number and rate of thefts of motor
vehicles that are dismantled for parts subject to this chapter; and
(C) preventing or reducing the availability of used parts that are
stolen from motor vehicles subject to this chapter;
414
(7) information on the premiums charged by insurers of comprehensive
coverage of motor vehicles subject to this chapter, including any increase
in the premiums charged because a motor vehicle is a likely candidate
for theft, and the extent to which the insurers have reduced for the benefit
of consumers the premiums, or foregone premium increases, because of
this chapter;
(8) information on the adequacy and effectiveness of laws of the Unit-
ed States and the States aimed at preventing the distribution and sale
of used parts that have been removed from stolen motor vehicles and the
adequacy of systems available to enforcement personnel for tracing parts
to determine if they have been stolen from a motor vehicle;
(9) an assessment of whether the identification of parts of other classes
of motor vehicles is likely—
(A) to decrease the theft rate of those vehicles;
(B) to increase the recovery rate of those vehicles;
(C) to decrease the trafficking in stolen parts of those vehicles;
(D) to stem the export and import of those stolen vehicles, parts,
or components; or
(E) to have benefits greater than the costs of the identification;
and
(10) other relevant and reliable information available to the Secretary
about the impact, including the beneficial impact, of the laws set forth
in titles II and III of the Motor Vehicle Theft Law Enforcement Act of
1984 on law enforcement, consumers, and manufacturers; and
(11) recommendations (including, as appropriate, legislative and ad-
ministrative recommendations) for—
(A) continuing without change the standards prescribed under
this chapter;
(B) amending this chapter to cover more or fewer lines of pas-
senger motor vehicles;
(C) amending this chapter to cover other classes of motor vehicles;
or
(D) ending the standards for all future motor vehicles.
(c) BASES OF REPORTS.—(1) The reports under subsections (a) and (b) of
this section each shall be based on—
(A) information reported under this chapter by insurers of motor vehi-
cles and manufacturers of motor vehicles and major replacement parts;
(B) information provided by the Federal Bureau of Investigation;
(C) experience obtained in carrying out this chapter;
(D) experience of the Government under the laws set forth in titles II
and III of the Motor Vehicle Theft Law Enforcement Act of 1984; and
415
(E) other relevant and reliable information available to the Secretary.
(2) In preparing each report, the Secretary shall consult with the Attorney
General and State and local law enforcement officials, as appropriate.
(3) The report under subsection (b) of this section shall—
(A) cover a period of at least 4 years after the standards required by
this chapter are prescribed; and
(B) reflect any information, as appropriate, from the report under
subsection (a) of this section, updated from the date of the report.
(4) At least 90 days before submitting each report to Congress, the Sec-
retary shall publish a proposed report for public review and an opportunity
of at least 45 days for written comment. The Secretary shall consider those
comments in preparing the report to be submitted and include a summary
of the comments with the submitted report.
§ 33114. Prohibited acts
(a) GENERAL.—A person may not—
(1) manufacture for sale, sell, offer for sale, introduce or deliver for
introduction in interstate commerce, or import into the United States,
a motor vehicle or major replacement part subject to a standard pre-
scribed under section 33102 or 33103 of this title, unless it conforms to
the standard;
(2) fail to comply with a regulation prescribed by the Secretary of
Transportation or Attorney General under this chapter;
(3) fail to keep specified records, refuse access to or copying of records,
fail to make reports or provide items or information, or fail or refuse
to allow entry or inspection, as required by this chapter;
(4) fail to provide the certification required by section 33108(c) of this
title, or provide a certification that the person knows, or in the exercise
of reasonable care has reason to know, is false or misleading in a mate-
rial respect; or
(5) knowingly—
(A) own, operate, maintain, or control a chop shop;
(B) conduct operations in a chop shop; or
(C) transport a passenger motor vehicle or passenger motor vehi-
cle part to or from a chop shop.
(b) NONAPPLICATION.—Subsection (a)(1) of this section does not apply to
a person establishing that in the exercise of reasonable care the person did
not have reason to know that the motor vehicle or major replacement part
was not in conformity with the standard.
§ 33115. Civil penalties and enforcement
(a) GENERAL PENALTY AND CIVIL ACTIONS TO COLLECT.—(1) A person
that violates section 33114(a)(1)–(4) of this title is liable to the United States
416
Government for a civil penalty of not more than $1,000 for each violation.
The failure of more than one part of a single motor vehicle to conform to an
applicable standard under section 33102 or 33103 of this title is only a single
violation. The maximum penalty under this subsection for a related series of
violations is $250,000.
(2) The Secretary of Transportation imposes a civil penalty under this sub-
section. The Secretary may compromise the amount of a penalty.
(3) In determining the amount of a civil penalty or compromise under this
subsection, the Secretary shall consider the size of the person’s business and
the gravity of the violation.
(4) The Attorney General shall bring a civil action in a United States dis-
trict court to collect a civil penalty imposed under this subsection.
(5) The Government may deduct the amount of a civil penalty imposed or
compromised under this subsection from amounts it owes the person liable for
the penalty.
(b) CHOP SHOP PENALTY AND ENFORCEMENT.—(1) A person that violates
section 33114(a)(5) of this title is liable to the Government for a civil penalty
of not more than $100,000 a day for each violation.
(2) As appropriate and in consultation with the Attorney General, the Sec-
retary shall—
(A) bring a civil action for a temporary or permanent injunction to
restrain a person violating section 33114(a)(5) of this section;
(B) impose and recover the penalty described in paragraph (1) of this
subsection; or
(C) take both the actions described in clauses (A) and (B) of this para-
graph.
(c) CIVIL ACTIONS TO ENFORCE.—(1) The Attorney General may bring a
civil action in a United States district court to enjoin a violation of this
chapter or the sale, offer for sale, introduction or delivery for introduction in
interstate commerce, or importation into the United States, of a passenger
motor vehicle containing a major part, or of a major replacement part, that
is subject to the standard and is determined before the sale of the vehicle or
part to a first purchaser not to conform to the standard.
(2)(A) When practicable, the Secretary—
(i) shall notify a person against whom an action under this subsection
is planned;
(ii) shall give the person an opportunity to present that person’s
views; and
(iii) except for a knowing and willful violation, shall give the person
a reasonable opportunity to comply.
417
(B) The failure of the Secretary to comply with subparagraph (A) of this
paragraph does not prevent a court from granting appropriate relief.
(d) JURY TRIAL DEMAND.—In a trial for criminal contempt for violating
an injunction or restraining order issued under subsection (c) of this section,
the violation of which is also a violation of this chapter, the defendant may
demand a jury trial. The defendant shall be tried as provided in rule 42(b)
of the Federal Rules of Criminal Procedure (18 App. U.S.C.).
(e) VENUE.—A civil action under subsection (a) or (c) of this section may
be brought in the judicial district in which the violation occurred or the de-
fendant resides, is found, or transacts business. Process in the action may be
served in any other judicial district in which the defendant resides or is
found. A subpena for a witness in the action may be served in any judicial
district.
§ 33116. Confidentiality of information
(a) GENERAL.—Information obtained by the Secretary of Transportation
under this chapter related to a confidential matter referred to in section 1905
of title 18 may be disclosed only—
(1) to another officer or employee of the United States Government for
use in carrying out this chapter; or
(2) in a proceeding under this chapter (except a proceeding under sec-
tion 33104(a)(3)).
(b) WITHHOLDING INFORMATION FROM CONGRESS.—This section does not
authorize information to be withheld from a committee of Congress authorized
to have the information.
§ 33117. Judicial review
A person that may be adversely affected by a regulation prescribed under
this chapter may obtain judicial review of the regulation under section 32909
of this title. A remedy under this section is in addition to any other remedies
provided by law.
§ 33118. Preemption of State and local law
When a motor vehicle theft prevention standard prescribed under section
33102 or 33103 of this title is in effect, a State or political subdivision of
a State may not have a different motor vehicle theft prevention standard for
a motor vehicle or major replacement part.
SUBTITLE VII—AVIATION PROGRAMS
PART A—AIR COMMERCE AND SAFETY
SUBPART I—GENERAL
CHAPTER
Sec.
401.
GENERAL PROVISIONS ......................................................................................
40101
SUBPART II—ECONOMIC REGULATION
411.
AIR CARRIER CERTIFICATES .........................................................................
41101
413.
FOREIGN AIR TRANSPORTATION ..................................................................
41301
418
415.
PRICING ..................................................................................................................
41501
417.
OPERATIONS OF CARRIERS ............................................................................
41701
419.
TRANSPORTATION OF MAIL ............................................................................
41901
421.
LABOR-MANAGEMENT PROVISIONS ..............................................................
42101
SUBPART III—SAFETY
441.
REGISTRATION AND RECORDATION OF AIRCRAFT ................................
44101
443.
INSURANCE ...........................................................................................................
44301
445.
FACILITIES, PERSONNEL, AND RESEARCH ...............................................
44501
447.
SAFETY REGULATION ........................................................................................
44701
449.
SECURITY ...............................................................................................................
44901
451.
ALCOHOL AND CONTROLLED SUBSTANCES TESTING ...........................
45101
453.
FEES ........................................................................................................................
45301
SUBPART IV—ENFORCEMENT AND PENALTIES
461.
INVESTIGATIONS AND PROCEEDINGS .........................................................
46101
463.
PENALTIES ............................................................................................................
46301
465.
SPECIAL AIRCRAFT JURISDICTION OF THE UNITED STATES ...........
46501
PART B—AIRPORT DEVELOPMENT AND NOISE
471.
AIRPORT DEVELOPMENT .................................................................................
47101
473.
INTERNATIONAL AIRPORT FACILITIES ......................................................
47301
475.
NOISE ......................................................................................................................
47501
PART C—FINANCING
481.
AIRPORT AND AIRWAY TRUST FUND AUTHORIZATIONS .....................
48101
PART D—MISCELLANEOUS
491.
BUY-AMERICAN PREFERENCES .....................................................................
49101
PART A—AIR COMMERCE AND SAFETY
SUBPART I—GENERAL
CHAPTER 401—GENERAL PROVISIONS
Sec.
40101.
Policy.
40102.
Definitions.
40103.
Sovereignty and use of airspace.
40104.
Promotion of civil aeronautics and air commerce.
40105.
International negotiations, agreements, and obligations.
40106.
Emergency powers.
40107.
Presidential transfers.
40108.
Training schools.
40109.
Authority to exempt.
40110.
General procurement authority.
40111.
Multiyear procurement contracts for services and related items.
40112.
Multiyear procurement contracts for property.
40113.
Administrative.
40114.
Reports and records.
40115.
Withholding information.
40116.
State taxation.
40117.
Passenger facility fees.
40118.
Government-financed air transportation.
40119.
Security and research and development activities.
40120.
Relationship to other laws.
§ 40101. Policy
(a) ECONOMIC REGULATION.—In carrying out subpart II of this part and
those provisions of subpart IV applicable in carrying out subpart II, the Sec-
retary of Transportation shall consider the following matters, among others,
as being in the public interest and consistent with public convenience and ne-
cessity:
419
(1) assigning and maintaining safety as the highest priority in air
commerce.
(2) before authorizing new air transportation services, evaluating the
safety implications of those services.
(3) preventing deterioration in established safety procedures, recogniz-
ing the clear intent, encouragement, and dedication of Congress to fur-
ther the highest degree of safety in air transportation and air commerce,
and to maintain the safety vigilance that has evolved in air transpor-
tation and air commerce and has come to be expected by the traveling
and shipping public.
(4) the availability of a variety of adequate, economic, efficient, and
low-priced services without unreasonable discrimination or unfair or de-
ceptive practices.
(5) coordinating transportation by, and improving relations among,
air carriers, and encouraging fair wages and working conditions.
(6) placing maximum reliance on competitive market forces and on
actual and potential competition—
(A) to provide the needed air transportation system; and
(B) to encourage efficient and well-managed air carriers to earn
adequate profits and attract capital, considering any material dif-
ferences between interstate air transportation and foreign air trans-
portation.
(7) developing and maintaining a sound regulatory system that is re-
sponsive to the needs of the public and in which decisions are reached
promptly to make it easier to adapt the air transportation system to the
present and future needs of—
(A) the commerce of the United States;
(B) the United States Postal Service; and
(C) the national defense.
(8) encouraging air transportation at major urban areas through sec-
ondary or satellite airports if consistent with regional airport plans of
regional and local authorities, and if endorsed by appropriate State au-
thorities—
(A) encouraging the transportation by air carriers that provide,
in a specific market, transportation exclusively at those airports;
and
(B) fostering an environment that allows those carriers to estab-
lish themselves and develop secondary or satellite airport services.
(9) preventing unfair, deceptive, predatory, or anticompetitive prac-
tices in air transportation.
420
(10) avoiding unreasonable industry concentration, excessive market
domination, monopoly powers, and other conditions that would tend to
allow at least one air carrier or foreign air carrier unreasonably to in-
crease prices, reduce services, or exclude competition in air transpor-
tation.
(11) maintaining a complete and convenient system of continuous
scheduled interstate air transportation for small communities and iso-
lated areas with direct financial assistance from the United States Gov-
ernment when appropriate.
(12) encouraging, developing, and maintaining an air transportation
system relying on actual and potential competition—
(A) to provide efficiency, innovation, and low prices; and
(B) to decide on the variety and quality of, and determine prices
for, air transportation services.
(13) encouraging entry into air transportation markets by new and
existing air carriers and the continued strengthening of small air car-
riers to ensure a more effective and competitive airline industry.
(14) promoting, encouraging, and developing civil aeronautics and a
viable, privately-owned United States air transport industry.
(15) strengthening the competitive position of air carriers to at least
ensure equality with foreign air carriers, including the attainment of the
opportunity for air carriers to maintain and increase their profitability
in foreign air transportation.
(b) ALL-CARGO AIR TRANSPORTATION CONSIDERATIONS.—In carrying out
subpart II of this part and those provisions of subpart IV applicable in carry-
ing out subpart II, the Secretary of Transportation shall consider the follow-
ing matters, among others and in addition to the matters referred to in sub-
section (a) of this section, as being in the public interest for all-cargo air
transportation:
(1) encouraging and developing an expedited all-cargo air transpor-
tation system provided by private enterprise and responsive to—
(A) the present and future needs of shippers;
(B) the commerce of the United States; and
(C) the national defense.
(2) encouraging and developing an integrated transportation system
relying on competitive market forces to decide the extent, variety, qual-
ity, and price of services provided.
(3) providing services without unreasonable discrimination, unfair or
deceptive practices, or predatory pricing.
(c) GENERAL SAFETY CONSIDERATIONS.—In carrying out subpart III of
this part and those provisions of subpart IV applicable in carrying out sub-
421
part III, the Administrator of the Federal Aviation Administration shall con-
sider the following matters:
(1) the requirements of national defense and commercial and general
aviation.
(2) the public right of freedom of transit through the navigable air-
space.
(d) SAFETY CONSIDERATIONS IN PUBLIC INTEREST.—In carrying out sub-
part III of this part and those provisions of subpart IV applicable in carry-
ing out subpart III, the Administrator shall consider the following matters,
among others, as being in the public interest:
(1) regulating air commerce in a way that best promotes its develop-
ment and safety and fulfills national defense requirements.
(2) promoting, encouraging, and developing civil aeronautics.
(3) controlling the use of the navigable airspace and regulating civil
and military operations in that airspace in the interest of the safety and
efficiency of both of those operations.
(4) consolidating research and development for air navigation facili-
ties and the installation and operation of those facilities.
(5) developing and operating a common system of air traffic control
and navigation for military and civil aircraft.
(6) providing assistance to law enforcement agencies in the enforce-
ment of laws related to regulation of controlled substances, to the extent
consistent with aviation safety.
(e) INTERNATIONAL AIR TRANSPORTATION.—In formulating United States
international air transportation policy, the Secretaries of State and Trans-
portation shall develop a negotiating policy emphasizing the greatest degree
of competition compatible with a well-functioning international air transpor-
tation system, including the following:
(1) strengthening the competitive position of air carriers to ensure at
least equality with foreign air carriers, including the attainment of the
opportunity for air carriers to maintain and increase their profitability
in foreign air transportation.
(2) freedom of air carriers and foreign air carriers to offer prices that
correspond to consumer demand.
(3) the fewest possible restrictions on charter air transportation.
(4) the maximum degree of multiple and permissive international au-
thority for air carriers so that they will be able to respond quickly to
a shift in market demand.
(5) eliminating operational and marketing restrictions to the greatest
extent possible.
(6) integrating domestic and international air transportation.
422
(7) increasing the number of nonstop United States gateway cities.
(8) opportunities for carriers of foreign countries to increase their ac-
cess to places in the United States if exchanged for benefits of similar
magnitude for air carriers or the traveling public with permanent link-
age between rights granted and rights given away.
(9) eliminating discrimination and unfair competitive practices faced
by United States airlines in foreign air transportation, including—
(A) excessive landing and user fees;
(B) unreasonable ground handling requirements;
(C) unreasonable restrictions on operations;
(D) prohibitions against change of gauge; and
(E) similar restrictive practices.
(10) promoting, encouraging, and developing civil aeronautics and a
viable, privately-owned United States air transport industry.
(f) STRENGTHENING COMPETITION.—In selecting an air carrier to provide
foreign air transportation from among competing applicants, the Secretary
of Transportation shall consider, in addition to the matters specified in sub-
sections (a) and (b) of this section, the strengthening of competition among
air carriers operating in the United States to prevent unreasonable concentra-
tion in the air carrier industry.
§ 40102. Definitions
(a) GENERAL DEFINITIONS.—In this part—
(1) ‘‘aeronautics’’ means the science and art of flight.
(2) ‘‘air carrier’’ means a citizen of the United States undertaking by
any means, directly or indirectly, to provide air transportation.
(3) ‘‘air commerce’’ means foreign air commerce, interstate air com-
merce, the transportation of mail by aircraft, the operation of aircraft
within the limits of a Federal airway, or the operation of aircraft that
directly affects, or may endanger safety in, foreign or interstate air com-
merce.
(4) ‘‘air navigation facility’’ means a facility used, available for use,
or designed for use, in aid of air navigation, including—
(A) a landing area;
(B) a light;
(C) apparatus or equipment for distributing weather information,
signaling, radio-directional finding, or radio or other electro-
magnetic communication; and
(D) another structure or mechanism for guiding or controlling
flight in the air or the landing and takeoff of aircraft.
(5) ‘‘air transportation’’ means foreign air transportation, interstate
air transportation, or the transportation of mail by aircraft.
423
(6) ‘‘aircraft’’ means any contrivance invented, used, or designed to
navigate, or fly in, the air.
(7) ‘‘aircraft engine’’ means an engine used, or intended to be used,
to propel an aircraft, including a part, appurtenance, and accessory of
the engine, except a propeller.
(8) ‘‘airman’’ means an individual—
(A) in command, or as pilot, mechanic, or member of the crew,
who navigates aircraft when under way;
(B) except to the extent the Administrator of the Federal Aviation
Administration may provide otherwise for individuals employed
outside the United States, who is directly in charge of inspecting,
maintaining, overhauling, or repairing aircraft, aircraft engines,
propellers, or appliances; or
(C) who serves as an aircraft dispatcher or air traffic control-
tower operator.
(9) ‘‘airport’’ means a landing area used regularly by aircraft for re-
ceiving or discharging passengers or cargo.
(10) ‘‘all-cargo air transportation’’ means the transportation by air-
craft in interstate air transportation of only property or only mail, or
both.
(11) ‘‘appliance’’ means an instrument, equipment, apparatus, a part,
an appurtenance, or an accessory used, capable of being used, or in-
tended to be used, in operating or controlling aircraft in flight, including
a parachute, communication equipment, and another mechanism in-
stalled in or attached to aircraft during flight, and not a part of an air-
craft, aircraft engine, or propeller.
(12) ‘‘cargo’’ means property, mail, or both.
(13) ‘‘charter air carrier’’ means an air carrier holding a certificate
of public convenience and necessity that authorizes it to provide charter
air transportation.
(14) ‘‘charter air transportation’’ means charter trips in air transpor-
tation authorized under this part.
(15) ‘‘citizen of the United States’’ means—
(A) an individual who is a citizen of the United States;
(B) a partnership each of whose partners is an individual who
is a citizen of the United States; or
(C) a corporation or association organized under the laws of the
United States or a State, the District of Columbia, or a territory
or possession of the United States, of which the president and at
least two-thirds of the board of directors and other managing offi-
cers are citizens of the United States, and in which at least 75 per-
424
cent of the voting interest is owned or controlled by persons that are
citizens of the United States.
(16) ‘‘civil aircraft’’ means an aircraft except a public aircraft.
(17) ‘‘civil aircraft of the United States’’ means an aircraft registered
under chapter 441 of this title.
(18) ‘‘conditional sales contract’’ means a contract—
(A) for the sale of an aircraft, aircraft engine, propeller, appli-
ance, or spare part, under which the buyer takes possession of the
property but title to the property vests in the buyer at a later time
on—
(i) paying any part of the purchase price;
(ii) performing another condition; or
(iii) the happening of a contingency; or
(B) to bail or lease an aircraft, aircraft engine, propeller, appli-
ance, or spare part, under which the bailee or lessee—
(i) agrees to pay an amount substantially equal to the value
of the property; and
(ii) is to become, or has the option of becoming, the owner
of the property on complying with the contract.
(19) ‘‘conveyance’’ means an instrument, including a conditional sales
contract, affecting title to, or an interest in, property.
(20) ‘‘Federal airway’’ means a part of the navigable airspace that
the Administrator designates as a Federal airway.
(21) ‘‘foreign air carrier’’ means a person, not a citizen of the United
States, undertaking by any means, directly or indirectly, to provide for-
eign air transportation.
(22) ‘‘foreign air commerce’’ means the transportation of passengers
or property by aircraft for compensation, the transportation of mail by
aircraft, or the operation of aircraft in furthering a business or vocation,
between a place in the United States and a place outside the United
States when any part of the transportation or operation is by aircraft.
(23) ‘‘foreign air transportation’’ means the transportation of pas-
sengers or property by aircraft as a common carrier for compensation,
or the transportation of mail by aircraft, between a place in the United
States and a place outside the United States when any part of the trans-
portation is by aircraft.
(24) ‘‘interstate air commerce’’ means the transportation of passengers
or property by aircraft for compensation, the transportation of mail by
aircraft, or the operation of aircraft in furthering a business or voca-
tion—
(A) between a place in—
425
(i) a State, territory, or possession of the United States and
a place in the District of Columbia or another State, territory,
or possession of the United States;
(ii) a State and another place in the same State through the
airspace over a place outside the State;
(iii) the District of Columbia and another place in the Dis-
trict of Columbia; or
(iv) a territory or possession of the United States and an-
other place in the same territory or possession; and
(B) when any part of the transportation or operation is by air-
craft.
(25) ‘‘interstate air transportation’’ means the transportation of pas-
sengers or property by aircraft as a common carrier for compensation,
or the transportation of mail by aircraft—
(A) between a place in—
(i) a State, territory, or possession of the United States and
a place in the District of Columbia or another State, territory,
or possession of the United States;
(ii) Hawaii and another place in Hawaii through the air-
space over a place outside Hawaii;
(iii) the District of Columbia and another place in the Dis-
trict of Columbia; or
(iv) a territory or possession of the United States and an-
other place in the same territory or possession; and
(B) when any part of the transportation is by aircraft.
(26) ‘‘intrastate air carrier’’ means a citizen of the United States un-
dertaking by any means to provide only intrastate air transportation.
(27) ‘‘intrastate air transportation’’ means the transportation by a
common carrier of passengers or property for compensation, entirely in
the same State, by turbojet-powered aircraft capable of carrying at least
30 passengers.
(28) ‘‘landing area’’ means a place on land or water, including an
airport or intermediate landing field, used, or intended to be used, for
the takeoff and landing of aircraft, even when facilities are not provided
for sheltering, servicing, or repairing aircraft, or for receiving or dis-
charging passengers or cargo.
(29) ‘‘mail’’ means United States mail and foreign transit mail.
(30) ‘‘navigable airspace’’ means airspace above the minimum alti-
tudes of flight prescribed by regulations under subparts I and III of this
part, including airspace needed to ensure safety in the takeoff and land-
ing of aircraft.
426
(31) ‘‘navigate aircraft’’ and ‘‘navigation of aircraft’’ include piloting
aircraft.
(32) ‘‘operate aircraft’’ and ‘‘operation of aircraft’’ mean using air-
craft for the purposes of air navigation, including—
(A) the navigation of aircraft; and
(B) causing or authorizing the operation of aircraft with or with-
out the right of legal control of the aircraft.
(33) ‘‘person’’, in addition to its meaning under section 1 of title 1,
includes a governmental authority and a trustee, receiver, assignee, and
other similar representative.
(34) ‘‘predatory’’ means a practice that violates the antitrust laws as
defined in the first section of the Clayton Act (15 U.S.C. 12).
(35) ‘‘price’’ means a rate, fare, or charge for air transportation.
(36) ‘‘propeller’’ includes a part, appurtenance, and accessory of a
propeller.
(37) ‘‘public aircraft’’—
(A) means an aircraft—
(i) used only for the United States Government; or
(ii) owned and operated (except for commercial purposes), or
exclusively leased for at least 90 continuous days, by a govern-
ment (except the United States Government), including a
State, the District of Columbia, or a territory or possession of
the United States, or political subdivision of that government;
but
(B) does not include a government-owned aircraft transporting
passengers or property for commercial purposes.
(38) ‘‘spare part’’ means an accessory, appurtenance, or part of an
aircraft (except an aircraft engine or propeller), aircraft engine (except
a propeller), propeller, or appliance, that is to be installed at a later
time in an aircraft, aircraft engine, propeller, or appliance.
(39) ‘‘State authority’’ means an authority of a State designated
under State law—
(A) to receive notice required to be given a State authority under
subpart II of this part; or
(B) as the representative of the State before the Secretary of
Transportation in any matter about which the Secretary is required
to consult with or consider the views of a State authority under sub-
part II of this part.
(40) ‘‘ticket agent’’ means a person (except an air carrier, a foreign
air carrier, or an employee of an air carrier or foreign air carrier) that
427
as a principal or agent sells, offers for sale, negotiates for, or holds itself
out as selling, providing, or arranging for, air transportation.
(41) ‘‘United States’’ means the States of the United States, the Dis-
trict of Columbia, and the territories and possessions of the United
States, including the territorial sea and the overlying airspace.
(b) LIMITED DEFINITION.—In subpart II of this part, ‘‘control’’ means con-
trol by any means.
§ 40103. Sovereignty and use of airspace
(a) SOVEREIGNTY AND PUBLIC RIGHT OF TRANSIT.—(1) The United States
Government has exclusive sovereignty of airspace of the United States.
(2) A citizen of the United States has a public right of transit through the
navigable airspace. To further that right, the Secretary of Transportation
shall consult with the Architectural and Transportation Barriers Compliance
Board established under section 502 of the Rehabilitation Act of 1973 (29
U.S.C. 792) before prescribing a regulation or issuing an order or procedure
that will have a significant impact on the accessibility of commercial airports
or commercial air transportation for handicapped individuals.
(b) USE OF AIRSPACE.—(1) The Administrator of the Federal Aviation Ad-
ministration shall develop plans and policy for the use of the navigable air-
space and assign by regulation or order the use of the airspace necessary to
ensure the safety of aircraft and the efficient use of airspace. The Adminis-
trator may modify or revoke an assignment when required in the public inter-
est.
(2) The Administrator shall prescribe air traffic regulations on the flight
of aircraft (including regulations on safe altitudes) for—
(A) navigating, protecting, and identifying aircraft;
(B) protecting individuals and property on the ground;
(C) using the navigable airspace efficiently; and
(D) preventing collision between aircraft, between aircraft and land or
water vehicles, and between aircraft and airborne objects.
(3) To establish security provisions that will encourage and allow maxi-
mum use of the navigable airspace by civil aircraft consistent with national
security, the Administrator, in consultation with the Secretary of Defense,
shall—
(A) establish areas in the airspace the Administrator decides are nec-
essary in the interest of national defense; and
(B) by regulation or order, restrict or prohibit flight of civil aircraft
that the Administrator cannot identify, locate, and control with available
facilities in those areas.
428
(4) Notwithstanding the military exception in section 553(a)(1) of title 5,
subchapter II of chapter 5 of title 5 applies to a regulation prescribed under
this subsection.
(c) FOREIGN AIRCRAFT.—A foreign aircraft, not part of the armed forces
of a foreign country, may be navigated in the United States as provided in
section 41703 of this title.
(d) AIRCRAFT OF ARMED FORCES OF FOREIGN COUNTRIES.—Aircraft of
the armed forces of a foreign country may be navigated in the United States
only when authorized by the Secretary of State.
(e) NO EXCLUSIVE RIGHTS AT CERTAIN FACILITIES.—A person does not
have an exclusive right to use an air navigation facility on which Govern-
ment money has been expended. However, providing services at an airport by
only one fixed-based operator is not an exclusive right if—
(1) it is unreasonably costly, burdensome, or impractical for more
than one fixed-based operator to provide the services; and
(2) allowing more than one fixed-based operator to provide the services
requires a reduction in space leased under an agreement existing on Sep-
tember 3, 1982, between the operator and the airport.
§ 40104. Promotion of civil aeronautics and air commerce
The Administrator of the Federal Aviation Administration shall encourage
the development of civil aeronautics and air commerce in and outside the
United States. In carrying out this section, the Administrator shall take ac-
tion that the Administrator considers necessary to establish, within available
resources, a program to distribute civil aviation information in each region
served by the Administration. The program shall provide, on request, infor-
mational material and expertise on civil aviation to State and local school
administrators, college and university officials, and officers of other interested
organizations.
§ 40105. International negotiations, agreements, and obliga-
tions
(a) ADVICE AND CONSULTATION.—The Secretary of State shall advise the
Administrator of the Federal Aviation Administration and the Secretaries of
Transportation and Commerce, and consult with them as appropriate, about
negotiations for an agreement with a government of a foreign country to es-
tablish or develop air navigation, including air routes and services. The Sec-
retary of Transportation shall consult with the Secretary of State in carrying
out this part to the extent this part is related to foreign air transportation.
(b) ACTIONS OF SECRETARY AND ADMINISTRATOR.—(1) In carrying out
this part, the Secretary of Transportation and the Administrator—
(A) shall act consistently with obligations of the United States Govern-
ment under an international agreement;
429
(B) shall consider applicable laws and requirements of a foreign coun-
try; and
(C) may not limit compliance by an air carrier with obligations or
liabilities imposed by the government of a foreign country when the Sec-
retary takes any action related to a certificate of public convenience and
necessity issued under chapter 411 of this title.
(2) This subsection does not apply to an agreement between an air carrier
or an officer or representative of an air carrier and the government of a for-
eign country, if the Secretary of Transportation disapproves the agreement
because it is not in the public interest. Section 40106(b)(2) of this title ap-
plies to this subsection.
(c) CONSULTATION ON INTERNATIONAL AIR TRANSPORTATION POLICY.—In
carrying out section 40101(e) of this title, the Secretaries of State and Trans-
portation, to the maximum extent practicable, shall consult on broad policy
goals and individual negotiations with—
(1) the Secretaries of Commerce and Defense;
(2) airport operators;
(3) scheduled air carriers;
(4) charter air carriers;
(5) airline labor;
(6) consumer interest groups;
(7) travel agents and tour organizers; and
(8) other groups, institutions, and governmental authorities affected by
international aviation policy.
(d) CONGRESSIONAL OBSERVERS AT INTERNATIONAL AVIATION NEGOTIA-
TIONS.—The President shall grant to at least one representative of each House
of Congress the privilege of attending international aviation negotiations as
an observer if the privilege is requested in advance in writing.
§ 40106. Emergency powers
(a) DEVIATIONS FROM REGULATIONS.—Appropriate military authority
may authorize aircraft of the armed forces of the United States to deviate
from air traffic regulations prescribed under section 40103(b)(1) and (2) of
this title when the authority decides the deviation is essential to the national
defense because of a military emergency or urgent military necessity. The au-
thority shall—
(1) give the Administrator of the Federal Aviation Administration
prior notice of the deviation at the earliest practicable time; and
(2) to the extent time and circumstances allow, make every reasonable
effort to consult with the Administrator and arrange for the deviation
in advance on a mutually agreeable basis.
430
(b) SUSPENSION OF AUTHORITY.—(1) When the President decides that the
government of a foreign country is acting inconsistently with the Convention
for the Suppression of Unlawful Seizure of Aircraft or that the government
of a foreign country allows territory under its jurisdiction to be used as a
base of operations or training of, or as a sanctuary for, or arms, aids, or
abets, a terrorist organization that knowingly uses the unlawful seizure, or
the threat of an unlawful seizure, of an aircraft as an instrument of policy,
the President may suspend the authority of—
(A) an air carrier or foreign air carrier to provide foreign air trans-
portation to and from that foreign country;
(B) a person to operate aircraft in foreign air commerce to and from
that foreign country;
(C) a foreign air carrier to provide foreign air transportation between
the United States and another country that maintains air service with
the foreign country; and
(D) a foreign person to operate aircraft in foreign air commerce be-
tween the United States and another country that maintains air service
with the foreign country.
(2) The President may act under this subsection without notice or a hear-
ing. The suspension remains in effect for as long as the President decides is
necessary to ensure the security of aircraft against unlawful seizure. Notwith-
standing section 40105(b) of this title, the authority of the President to sus-
pend rights under this subsection is a condition to a certificate of public con-
venience and necessity, air carrier operating certificate, foreign air carrier or
foreign aircraft permit, or foreign air carrier operating specification issued
by the Secretary of Transportation under this part.
(3) An air carrier or foreign air carrier may not provide foreign air trans-
portation, and a person may not operate aircraft in foreign air commerce,
in violation of a suspension of authority under this subsection.
§ 40107. Presidential transfers
(a) GENERAL AUTHORITY.—The President may transfer to the Adminis-
trator of the Federal Aviation Administration a duty, power, activity, or fa-
cility of a department, agency, or instrumentality of the executive branch of
the United States Government, or an officer or unit of a department, agency,
or instrumentality of the executive branch, related primarily to selecting, de-
veloping, testing, evaluating, establishing, operating, or maintaining a sys-
tem, procedure, facility, or device for safe and efficient air navigation and
air traffic control. In making a transfer, the President may transfer records
and property and make officers and employees from the department, agency,
instrumentality, or unit available to the Administrator.
431
(b) DURING WAR.—If war occurs, the President by executive order may
transfer to the Secretary of Defense a duty, power, activity, or facility of the
Administrator. In making the transfer, the President may transfer records,
property, officers, and employees of the Administration to the Department of
Defense.
§ 40108. Training schools
(a) AUTHORITY TO OPERATE.—The Administrator of the Federal Aviation
Administration may operate schools to train officers and employees of the Ad-
ministration to carry out duties, powers, and activities of the Administrator.
(b) ATTENDANCE.—The Administrator may authorize officers and employ-
ees of other departments, agencies, or instrumentalities of the United States
Government, officers and employees of governments of foreign countries, and
individuals from the aeronautics industry to attend those schools. However,
if the attendance of any of those officers, employees, or individuals increases
the cost of operating the schools, the Administrator may require the payment
or transfer of amounts or other consideration to offset the additional cost. The
amount received may be credited to the appropriation current when the ex-
penditures are or were paid, the appropriation current when the amount is
received, or both.
§ 40109. Authority to exempt
(a) AIR CARRIERS AND FOREIGN AIR CARRIERS NOT ENGAGED DIRECTLY
IN OPERATING AIRCRAFT.—(1) The Secretary of Transportation may exempt
from subpart II of this part—
(A) an air carrier not engaged directly in operating aircraft in air
transportation; or
(B) a foreign air carrier not engaged directly in operating aircraft in
foreign air transportation.
(2) The exemption is effective to the extent and for periods that the Sec-
retary decides are in the public interest.
(b) SAFETY REGULATION.—The Administrator of the Federal Aviation Ad-
ministration may grant an exemption from a regulation prescribed in carry-
ing out sections 40103(b)(1) and (2), 40119, 44901, 44903, 44906, and
44935–44937 of this title when the Administrator decides the exemption is in
the public interest.
(c) OTHER ECONOMIC REGULATION.—Except as provided in this section,
the Secretary may exempt to the extent the Secretary considers necessary a
person or class of persons from a provision of chapter 411, sections 41301–
41306, 41308–41310(a), 41501, 41503, 41504, 41506, 41510, 41511, 41701,
41702, 41705–41709, 41711, 41712, and 41731–41742, chapter 419, sub-
chapter II of chapter 421, and section 46301(b) of this title, or a regulation
432
or term prescribed under any of those provisions, when the Secretary decides
that the exemption is consistent with the public interest.
(d) LABOR REQUIREMENTS.—The Secretary may not exempt an air carrier
from section 42112 of this title. However, the Secretary may exempt from sec-
tion 42112(b)(1) and (2) an air carrier not providing scheduled air transpor-
tation, and the operations conducted during daylight hours by an air carrier
providing scheduled air transportation, when the Secretary decides that—
(1) because of the limited extent of, or unusual circumstances affecting,
the operation of the air carrier, the enforcement of section 42112(b)(1)
and (2) of this title is or would be an unreasonable burden on the air
carrier that would obstruct its development and prevent it from begin-
ning or continuing operations; and
(2) the exemption would not affect adversely the public interest.
(e) MAXIMUM FLYING HOURS.—The Secretary may not exempt an air car-
rier under this section from a provision referred to in subsection (c) of this
section, or a regulation or term prescribed under any of those provisions, that
sets maximum flying hours for pilots or copilots.
(f) SMALLER AIRCRAFT.—(1) An air carrier is exempt from section
41101(a)(1) of this title, and the Secretary may exempt an air carrier from
another provision of subpart II of this part, if the air carrier—
(A)(i) provides passenger transportation only with aircraft having a
maximum capacity of 55 passengers; or
(ii) provides the transportation of cargo only with aircraft having a
maximum payload of less than 18,000 pounds; and
(B) complies with liability insurance requirements and other regula-
tions the Secretary prescribes.
(2) The Secretary may increase the passenger or payload capacities when
the public interest requires.
(3)(A) An exemption under this subsection applies to an air carrier provid-
ing air transportation between 2 places in Alaska, or between Alaska and
Canada, only if the carrier is authorized by Alaska to provide the transpor-
tation.
(B) The Secretary may limit the number or location of places that may
be served by an air carrier providing transportation only in Alaska under
an exemption from section 41101(a)(1) of this title, or the frequency with
which the transportation may be provided, only when the Secretary decides
that providing the transportation substantially impairs the ability of an air
carrier holding a certificate issued by the Secretary to provide its authorized
transportation, including the minimum transportation requirement for Alas-
ka specified under section 41732(b)(1)(B) of this title.
433
(g) EMERGENCY AIR TRANSPORTATION BY FOREIGN AIR CARRIERS.—(1)
To the extent that the Secretary decides an exemption is in the public interest,
the Secretary may exempt by order a foreign air carrier from the require-
ments and limitations of this part for not more than 30 days to allow the
foreign air carrier to carry passengers or cargo in interstate air transpor-
tation in certain markets if the Secretary finds that—
(A) because of an emergency created by unusual circumstances not
arising in the normal course of business, air carriers holding certificates
under section 41102 of this title cannot accommodate traffic in those
markets;
(B) all possible efforts have been made to accommodate the traffic by
using the resources of the air carriers, including the use of—
(i) foreign aircraft, or sections of foreign aircraft, under lease or
charter to the air carriers; and
(ii) the air carriers’ reservations systems to the extent practicable;
(C) the exemption is necessary to avoid unreasonable hardship for the
traffic in the markets that cannot be accommodated by the air carriers;
and
(D) granting the exemption will not result in an unreasonable advan-
tage to any party in a labor dispute where the inability to accommodate
traffic in a market is a result of the dispute.
(2) When the Secretary grants an exemption to a foreign air carrier under
this subsection, the Secretary shall—
(A) ensure that air transportation that the foreign air carrier provides
under the exemption is made available on reasonable terms;
(B) monitor continuously the passenger load factor of air carriers in
the market that hold certificates under section 41102 of this title; and
(C) review the exemption at least every 30 days to ensure that the un-
usual circumstances that established the need for the exemption still exist.
(3) The Secretary may renew an exemption (including renewals) under this
subsection for not more than 30 days. An exemption may continue for not
more than 5 days after the unusual circumstances that established the need
for the exemption cease.
(h) NOTICE AND OPPORTUNITY FOR HEARING.—The Secretary may act
under subsections (d) and (f)(3)(B) of this section only after giving the air
carrier notice and an opportunity for a hearing.
§ 40110. General procurement authority
(a) GENERAL.—In carrying out this part, the Administrator of the Federal
Aviation Administration may—
(1) acquire, to the extent that amounts are available for obligation,
services or an interest in property, including an interest in airspace im-
434
mediately adjacent to and needed for airports and other air navigation
facilities owned by the United States Government and operated by the
Administrator;
(2) dispose of an interest in property for adequate compensation; and
(3) construct and improve laboratories and other test facilities.
(b) DUTIES AND POWERS.—When carrying out subsection (a) of this sec-
tion, the Administrator of the Federal Aviation Administration—
(1) is the senior procurement executive referred to in section 16(3) of
the Office of Federal Procurement Policy Act (41 U.S.C. 414(3)) for ap-
proving the justification for using procedures other than competitive pro-
cedures, as required under section 303(f)(1)(B)(iii) of the Federal Prop-
erty 
and 
Administrative 
Services 
Act 
of 
1949 
(41 
U.S.C.
253(f)(1)(B)(iii)); and
(2) may—
(A) lease an interest in property for not more than 20 years;
(B) consider the reasonable probable future use of the underlying
land in making an award for a condemnation of an interest in air-
space;
(C) construct, or acquire an interest in, a public building (as de-
fined in section 13 of the Public Buildings Act of 1959 (40 U.S.C.
612)) only under a delegation of authority from the Administrator
of General Services;
(D) use procedures other than competitive procedures, as provided
under section 303(c) of the Federal Property and Administrative
Services Act of 1949 (41 U.S.C. 253(c));
(E) use procedures other than competitive procedures only when
the property or services needed by the Administrator of the Federal
Aviation Administration are available from only one responsible
source or only from a limited number of responsible sources and no
other type of property or services will satisfy the needs of the Ad-
ministrator; and
(F) dispose of property under subsection (a)(2) of this section, ex-
cept for airport and airway property and technical equipment used
for the special purposes of the Administration, only under title II
of the Federal Property and Administrative Services Act of 1949
(40 U.S.C. 481 et seq.).
§ 40111. Multiyear procurement contracts for services and re-
lated items
(a) GENERAL AUTHORITY.—Notwithstanding section 1341(a)(1)(B) of title
31, the Administrator of the Federal Aviation Administration may make a
contract of not more than 5 years for the following types of services and items
435
of supply related to those services for which amounts otherwise would be
available for obligation only in the fiscal year for which appropriated:
(1) operation, maintenance, and support of facilities and installations.
(2) operation, maintenance, and modification of aircraft, vehicles, and
other highly complex equipment.
(3) specialized training requiring high quality instructor skills, in-
cluding training of pilots and aircrew members and foreign language
training.
(4) base services, including ground maintenance, aircraft refueling,
bus transportation, and refuse collection and disposal.
(b) REQUIRED FINDINGS.—The Administrator may make a contract under
this section only if the Administrator finds that—
(1) there will be a continuing requirement for the service consistent
with current plans for the proposed contract period;
(2) providing the service will require a substantial initial investment
in plant or equipment, or will incur a substantial contingent liability
for assembling, training, or transporting a specialized workforce; and
(3) the contract will promote the best interests of the United States
by encouraging effective competition and promoting economies in oper-
ation.
(c) CONSIDERATIONS.—When making a contract under this section, the Ad-
ministrator shall be guided by the following:
(1) The part of the cost of a plant or equipment amortized as a cost
of contract performance may not be more than the ratio between the pe-
riod of contract performance and the anticipated useful commercial life
(instead of physical life) of the plant or equipment, considering the loca-
tion and specialized nature of the plant or equipment, obsolescence, and
other similar factors.
(2) The Administrator shall consider the desirability of—
(A) obtaining an option to renew the contract for a reasonable
period of not more than 3 years, at a price that does not include
charges for nonrecurring costs already amortized; and
(B) reserving in the Administrator the right, on payment of the
unamortized part of the cost of the plant or equipment, to take title
to the plant or equipment under appropriate circumstances.
(d) ENDING CONTRACTS.—A contract made under this section shall be
ended if amounts are not made available to continue the contract into a sub-
sequent fiscal year. The cost of ending the contract may be paid from—
(1) an appropriation originally available for carrying out the con-
tract;
436
(2) an appropriation currently available for procuring the type of
service concerned and not otherwise obligated; or
(3) amounts appropriated for payments to end the contract.
§ 40112. Multiyear procurement contracts for property
(a) GENERAL AUTHORITY.—Notwithstanding section 1341(a)(1)(B) of title
31 and to the extent that amounts otherwise are available for obligation, the
Administrator of the Federal Aviation Administration may make a contract
of more than one but not more than 5 fiscal years to purchase property, ex-
cept a contract to construct, alter, or make a major repair or improvement
to real property or a contract to purchase property to which section 111 of
the Federal Property and Administrative Services Act of 1949 (40 U.S.C.
759) applies.
(b) REQUIRED FINDINGS.—The Administrator may make a contract under
this section if the Administrator finds that—
(1) the contract will promote the safety or efficiency of the national
airspace system and will result in reduced total contract costs;
(2) the minimum need for the property to be purchased is expected to
remain substantially unchanged during the proposed contract period in
terms of production rate, procurement rate, and total quantities;
(3) there is a reasonable expectation that throughout the proposed con-
tract period the Administrator will request appropriations for the con-
tract at the level required to avoid cancellation;
(4) there is a stable design for the property to be acquired and the
technical risks associated with the property are not excessive; and
(5) the estimates of the contract costs and the anticipated savings from
the contract are realistic.
(c) REGULATIONS.—The Administrator shall prescribe regulations for ac-
quiring property under this section to promote the use of contracts under this
section in a way that will allow the most efficient use of those contracts. The
regulations may provide for a cancellation provision in the contract to the
extent the provision is necessary and in the best interest of the United States.
The provision may include consideration of recurring and nonrecurring costs
of the contractor associated with producing the item to be delivered under the
contract. The regulations shall provide that, to the extent practicable—
(1) to broaden the aviation industrial base—
(A) a contract under this section shall be used to seek, retain, and
promote the use under that contract of subcontractors, vendors, or
suppliers; and
(B) on accrual of a payment or other benefit accruing on a con-
tract under this section to a subcontractor, vendor, or supplier par-
437
ticipating in the contract, the payment or benefit shall be delivered
in the most expeditious way practicable; and
(2) this section and regulations prescribed under this section may not
be carried out in a way that precludes or curtails the existing ability
of the Administrator to provide for—
(A) competition in producing items to be delivered under a con-
tract under this section; or
(B) ending a prime contract when performance is deficient with
respect to cost, quality, or schedule.
(d) CONTRACT PROVISIONS.—(1) A contract under this section may—
(A) be used for the advance procurement of components, parts, and
material necessary to manufacture equipment to be used in the national
airspace system;
(B) provide that performance under the contract after the first year
is subject to amounts being appropriated; and
(C) contain a negotiated priced option for varying the number of end
items to be procured over the period of the contract.
(2) If feasible and practicable, an advance procurement contract may be
made to achieve economic-lot purchases and more efficient production rates.
(e) CANCELLATION PAYMENT AND NOTICE OF CANCELLATION CEILING.—(1)
If a contract under this section provides that performance is subject to an
appropriation being made, it also may provide for a cancellation payment
to be made to the contractor if the appropriation is not made.
(2) Before awarding a contract under this section containing a cancellation
ceiling of more than $100,000,000, the Administrator shall give written notice
of the proposed contract and cancellation ceiling to the Committee on Com-
merce, Science, and Transportation of the Senate and the Committee on Pub-
lic Works and Transportation of the House of Representatives. The contract
may not be awarded until the end of the 30-day period beginning on the date
of the notice.
(f) ENDING CONTRACTS.—A contract made under this section shall be
ended if amounts are not made available to continue the contract into a sub-
sequent fiscal year. The cost of ending the contract may be paid from—
(1) an appropriation originally available for carrying out the con-
tract;
(2) an appropriation currently available for procuring the type of
property concerned and not otherwise obligated; or
(3) amounts appropriated for payments to end the contract.
§ 40113. Administrative
(a) GENERAL AUTHORITY.—The Secretary of Transportation (or the Ad-
ministrator of the Federal Aviation Administration with respect to aviation
438
safety duties and powers designated to be carried out by the Administrator)
may take action the Secretary or Administrator, as appropriate, considers
necessary to carry out this part, including conducting investigations, pre-
scribing regulations, standards, and procedures, and issuing orders.
(b) HAZARDOUS MATERIAL.—In carrying out this part, the Secretary has
the same authority to regulate the transportation of hazardous material by
air that the Secretary has under section 5103 of this title. However, this sub-
section does not prohibit or regulate the transportation of a firearm (as de-
fined in section 232 of title 18) or ammunition for a firearm, when trans-
ported by an individual for personal use.
(c) GOVERNMENTAL ASSISTANCE.—The Secretary (or the Administrator of
the Federal Aviation Administration with respect to aviation safety duties
and powers designated to be carried out by the Administrator) may use the
assistance of the Administrator of the National Aeronautics and Space Ad-
ministration and any research or technical department, agency, or instru-
mentality of the United States Government on matters related to aircraft fuel
and oil, and to the design, material, workmanship, construction, performance,
maintenance, and operation of aircraft, aircraft engines, propellers, appli-
ances, and air navigation facilities. Each department, agency, and instru-
mentality may conduct scientific and technical research, investigations, and
tests necessary to assist the Secretary or Administrator of the Federal Avia-
tion Administration in carrying out this part. This part does not authorize
duplicating laboratory research activities of a department, agency, or instru-
mentality.
(d) INDEMNIFICATION.—The Administrator of the Federal Aviation Admin-
istration may indemnify an officer or employee of the Administration against
a claim or judgment arising out of an act that the Administrator decides was
committed within the scope of the official duties of the officer or employee.
§ 40114. Reports and records
(a) WRITTEN REPORTS.—(1) Except as provided in this part, the Secretary
of Transportation (or the Administrator of the Federal Aviation Administra-
tion with respect to aviation safety duties and powers designated to be carried
out by the Administrator) shall make a written report of each proceeding and
investigation under this part in which a formal hearing was held and shall
provide a copy to each party to the proceeding or investigation. The report
shall include the decision, conclusions, order, and requirements of the Sec-
retary or Administrator as appropriate.
(2) The Secretary (or the Administrator with respect to aviation safety du-
ties and powers designated to be carried out by the Administrator) shall have
all reports, orders, decisions, and regulations the Secretary or Administrator,
as appropriate, issues or prescribes published in the form and way best adapt-
439
ed for public use. A publication of the Secretary or Administrator is com-
petent evidence of its contents.
(b) PUBLIC RECORDS.—Except as provided in subpart II of this part, cop-
ies of tariffs and arrangements filed with the Secretary under subpart II, and
the statistics, tables, and figures contained in reports made to the Secretary
under subpart II, are public records. The Secretary is the custodian of those
records. A public record, or a copy or extract of it, certified by the Secretary
under the seal of the Department of Transportation is competent evidence in
an investigation by the Secretary and in a judicial proceeding.
§ 40115. Withholding information
(a) OBJECTIONS TO DISCLOSURE.—(1) A person may object to the public
disclosure of information—
(A) in a record filed under this part; or
(B) obtained under this part by the Secretary of Transportation or
State or the United States Postal Service.
(2) An objection must be in writing and must state the reasons for the ob-
jection. The Secretary of Transportation or State or the Postal Service shall
order the information withheld from public disclosure when the appropriate
Secretary or the Postal Service decides that disclosure of the information
would—
(A) prejudice the United States Government in preparing and present-
ing its position in international negotiations; or
(B) have an adverse effect on the competitive position of an air carrier
in foreign air transportation.
(b) WITHHOLDING INFORMATION FROM CONGRESS.—This section does not
authorize information to be withheld from a committee of Congress authorized
to have the information.
§ 40116. State taxation
(a) DEFINITION.—In this section, ‘‘State’’ includes the District of Colum-
bia, a territory or possession of the United States, and a political authority
of at least 2 States.
(b) PROHIBITIONS.—Except as provided in subsection (c) of this section
and section 40117 of this title, a State or political subdivision of a State may
not levy or collect a tax, fee, head charge, or other charge on—
(1) an individual traveling in air commerce;
(2) the transportation of an individual traveling in air commerce;
(3) the sale of air transportation; or
(4) the gross receipts from that air commerce or transportation.
(c) AIRCRAFT TAKING OFF OR LANDING IN STATE.—A State or political
subdivision of a State may levy or collect a tax on or related to a flight of
a commercial aircraft or an activity or service on the aircraft only if the air-
440
craft takes off or lands in the State or political subdivision as part of the
flight.
(d) UNREASONABLE BURDENS AND DISCRIMINATION AGAINST INTERSTATE
COMMERCE.—(1) In this subsection—
(A) ‘‘air carrier transportation property’’ means property (as defined
by the Secretary of Transportation) that an air carrier providing air
transportation owns or uses.
(B) ‘‘assessment’’ means valuation for a property tax levied by a tax-
ing district.
(C) ‘‘assessment jurisdiction’’ means a geographical area in a State
used in determining the assessed value of property for ad valorem tax-
ation.
(D) ‘‘commercial and industrial property’’ means property (except
transportation property and land used primarily for agriculture or tim-
ber growing) devoted to a commercial or industrial use and subject to
a property tax levy.
(2)(A) A State, political subdivision of a State, or authority acting for a
State or political subdivision may not do any of the following acts because
those acts unreasonably burden and discriminate against interstate commerce:
(i) assess air carrier transportation property at a value that has a
higher ratio to the true market value of the property than the ratio that
the assessed value of other commercial and industrial property of the
same type in the same assessment jurisdiction has to the true market
value of the other commercial and industrial property.
(ii) levy or collect a tax on an assessment that may not be made under
clause (i) of this subparagraph.
(iii) levy or collect an ad valorem property tax on air carrier trans-
portation property at a tax rate greater than the tax rate applicable to
commercial and industrial property in the same assessment jurisdiction.
(B) Subparagraph (A) of this paragraph does not apply to an in lieu tax
completely used for airport and aeronautical purposes.
(e) OTHER ALLOWABLE TAXES AND CHARGES.—Except as provided in sub-
section (d) of this section, a State or political subdivision of a State may levy
or collect—
(1) taxes (except those taxes enumerated in subsection (b) of this sec-
tion), including property taxes, net income taxes, franchise taxes, and
sales or use taxes on the sale of goods or services; and
(2) reasonable rental charges, landing fees, and other service charges
from aircraft operators for using airport facilities of an airport owned
or operated by that State or subdivision.
(f) PAY OF AIR CARRIER EMPLOYEES.—(1) In this subsection—
441
(A) ‘‘pay’’ means money received by an employee for services.
(B) ‘‘State’’ means a State of the United States, the District of Colum-
bia, and a territory or possession of the United States.
(C) an employee is deemed to have earned 50 percent of the employee’s
pay in a State or political subdivision of a State in which the scheduled
flight time of the employee in the State or subdivision is more than 50
percent of the total scheduled flight time of the employee when employed
during the calendar year.
(2) The pay of an employee of an air carrier having regularly assigned
duties on aircraft in at least 2 States is subject to the income tax laws of
only the following:
(A) the State or political subdivision of the State that is the residence
of the employee.
(B) the State or political subdivision of the State in which the em-
ployee earns more than 50 percent of the pay received by the employee
from the carrier.
§ 40117. Passenger facility fees
(a) DEFINITIONS.—In this section—
(1) ‘‘airport’’, ‘‘commercial service airport’’, and ‘‘public agency’’ have
the same meanings given those terms in section 47102 of this title.
(2) ‘‘eligible agency’’ means a public agency that controls a commer-
cial service airport.
(3) ‘‘eligible airport-related project’’ means a project—
(A) for airport development or airport planning under subchapter
I of chapter 471 of this title;
(B) for terminal development described in section 47110(d) of this
title;
(C) for airport noise capability planning under section 47505 of
this title;
(D) to carry out noise compatibility measures eligible for assist-
ance under section 47504 of this title, whether or not a program for
those measures has been approved under section 47504; and
(E) for constructing gates and related areas at which passengers
board or exit aircraft.
(4) ‘‘passenger facility fee’’ means a fee imposed under this section.
(5) ‘‘passenger facility revenue’’ means revenue derived from a pas-
senger facility fee.
(b) GENERAL AUTHORITY.—(1) The Secretary of Transportation may au-
thorize under this section an eligible agency to impose a passenger facility
fee of $1, $2, or $3 on each paying passenger of an air carrier or foreign
air carrier boarding an aircraft at an airport the agency controls to finance
442
an eligible airport-related project, including making payments for debt service
on indebtedness incurred to carry out the project, to be carried out in connec-
tion with the airport or any other airport the agency controls.
(2) A State, political subdivision of a State, or authority of a State or po-
litical subdivision that is not the eligible agency may not regulate or prohibit
the imposition or collection of a passenger facility fee or the use of the pas-
senger facility revenue.
(3) A passenger facility fee may be imposed on a passenger of an air car-
rier or foreign air carrier originating or connecting at the commercial service
airport that the agency controls.
(c) APPLICATIONS.—(1) An eligible agency must submit to the Secretary
an application for authority to impose a passenger facility fee. The applica-
tion shall contain information and be in the form that the Secretary may
require by regulation.
(2) Before submitting an application, the eligible agency must provide rea-
sonable notice to, and an opportunity for consultation with, air carriers and
foreign air carriers operating at the airport. The Secretary shall prescribe
regulations that define reasonable notice and contain at least the following
requirements:
(A) The agency must provide written notice of individual projects
being considered for financing by a passenger facility fee and the date
and location of a meeting to present the projects to air carriers and for-
eign air carriers operating at the airport.
(B) Not later than 30 days after written notice is provided under sub-
paragraph (A) of this paragraph, each air carrier and foreign air car-
rier operating at the airport must provide to the agency written notice
of receipt of the notice. Failure of a carrier to provide the notice may
be deemed certification of agreement with the project by the carrier under
subparagraph (D) of this paragraph.
(C) Not later than 45 days after written notice is provided under sub-
paragraph (A) of this paragraph, the agency must conduct a meeting to
provide air carriers and foreign air carriers with descriptions of projects
and justifications and a detailed financial plan for projects.
(D) Not later than 30 days after the meeting, each air carrier and
foreign air carrier must provide to the agency certification of agreement
or disagreement with projects (or total plan for the projects). Failure to
provide the certification is deemed certification of agreement with the
project by the carrier. A certification of disagreement is void if it does
not contain the reasons for the disagreement.
(3) After receiving an application, the Secretary shall provide notice and
an opportunity to air carriers, foreign air carriers, and other interested per-
443
sons to comment on the application. The Secretary shall make a final decision
on the application not later than 120 days after receiving it.
(d) LIMITATIONS ON APPROVING APPLICATIONS.—The Secretary may ap-
prove an application that an eligible agency has submitted under subsection
(c) of this section to finance a specific project only if the Secretary finds,
based on the application, that—
(1) the amount and duration of the proposed passenger facility fee will
result in revenue (including interest and other returns on the revenue)
that is not more than the amount necessary to finance the specific
project; and
(2) each project is an eligible airport-related project that will—
(A) preserve or enhance capacity, safety, or security of the na-
tional air transportation system;
(B) reduce noise resulting from an airport that is part of the sys-
tem; or
(C) provide an opportunity for enhanced competition between or
among air carriers and foreign air carriers.
(e) LIMITATIONS ON IMPOSING FEES.—(1) An eligible agency may impose
a passenger facility fee only—
(A) if the Secretary approves an application that the agency has sub-
mitted under subsection (c) of this section; and
(B) subject to terms the Secretary may prescribe to carry out the objec-
tives of this section.
(2) A passenger facility fee may not be collected from a passenger—
(A) for more than 2 boardings on a one-way trip or a trip in each
direction of a round trip;
(B) for the boarding to an eligible place under subchapter II of chap-
ter 417 of this title for which essential air service compensation is paid
under subchapter II; and
(C) for a project the Secretary does not approve under this section be-
fore October 1, 1993, if, during the fiscal year ending September 30,
1993, the amount available for obligation under subchapter II of chapter
417 of this title is less than $38,600,000, except that this clause—
(i) does not apply if the amount available for obligation under
subchapter II of chapter 417 of this title is less than $38,600,000
because of sequestration or other general appropriations reductions
applied proportionately to appropriations accounts throughout an
appropriation law; and
(ii) does not affect the authority of the Secretary to approve the
imposition of a fee or the use of revenues, derived from a fee im-
posed under an approval made under this section, by a public agen-
444
cy that has received an approval to impose a fee under this section
before September 30, 1993, regardless of whether the fee is being im-
posed on September 30, 1993.
(f) LIMITATIONS ON CONTRACTS, LEASES, AND USE AGREEMENTS.—(1) A
contract between an air carrier or foreign air carrier and an eligible agency
made at any time may not impair the authority of the agency to impose a
passenger facility fee or to use the passenger facility revenue as provided in
this section.
(2) A project financed with a passenger facility fee may not be subject to
an exclusive long-term lease or use agreement of an air carrier or foreign air
carrier, as defined by regulations of the Secretary.
(3) A lease or use agreement of an air carrier or foreign air carrier related
to a project whose construction or expansion was financed with a passenger
facility fee may not restrict the eligible agency from financing, developing,
or assigning new capacity at the airport with passenger facility revenue.
(g) TREATMENT OF REVENUE.—(1) Passenger facility revenue is not air-
port revenue for purposes of establishing a price under a contract between an
eligible agency and an air carrier or foreign air carrier.
(2) An eligible agency may not include in its price base the part of the
capital costs of a project paid for by using passenger facility revenue to estab-
lish a price under a contract between the agency and an air carrier or foreign
air carrier.
(3) For a project for terminal development, gates and related areas, or a
facility occupied or used by at least one air carrier or foreign air carrier on
an exclusive or preferential basis, a price payable by an air carrier or foreign
air carrier using the facilities must at least equal the price paid by an air
carrier or foreign air carrier using a similar facility at the airport that was
not financed with passenger facility revenue.
(h) COMPLIANCE.—(1) As necessary to ensure compliance with this section,
the Secretary shall prescribe regulations requiring recordkeeping and auditing
of accounts maintained by an air carrier or foreign air carrier and its agent
collecting a passenger facility fee and by the eligible agency imposing the fee.
(2) The Secretary periodically shall audit and review the use by an eligible
agency of passenger facility revenue. After review and a public hearing, the
Secretary may end any part of the authority of the agency to impose a pas-
senger facility fee to the extent the Secretary decides that the revenue is not
being used as provided in this section.
(3) The Secretary may set off amounts necessary to ensure compliance with
this section against amounts otherwise payable to an eligible agency under
subchapter I of chapter 471 of this title if the Secretary decides a passenger
445
facility fee is excessive or that passenger facility revenue is not being used
as provided in this section.
(i) REGULATIONS.—The Secretary shall prescribe regulations necessary to
carry out this section. The regulations—
(1) may prescribe the time and form by which a passenger facility fee
takes effect; and
(2) shall—
(A) require an air carrier or foreign air carrier and its agent
to collect a passenger facility fee that an eligible agency imposes
under this section;
(B) establish procedures for handling and remitting money col-
lected;
(C) ensure that the money, less a uniform amount the Secretary
determines reflects the average necessary and reasonable expenses
(net of interest accruing to the carrier and agent after collection and
before remittance) incurred in collecting and handling the fee, is
paid promptly to the eligible agency for which they are collected;
and
(D) require that the amount collected for any air transportation
be noted on the ticket for that air transportation.
§ 40118. Government-financed air transportation
(a) TRANSPORTATION BY AIR CARRIERS HOLDING CERTIFICATES.—A de-
partment, agency, or instrumentality of the United States Government shall
take necessary steps to ensure that the transportation of passengers and prop-
erty by air is provided by an air carrier holding a certificate under section
41102 of this title if—
(1) the department, agency, or instrumentality—
(A) obtains the transportation for itself or in carrying out an ar-
rangement under which payment is made by the Government or
payment is made from amounts provided for the use of the Govern-
ment; or
(B) provides the transportation to or for a foreign country or
international or other organization without reimbursement;
(2) the transportation is authorized by the certificate or by regulation
or exemption of the Secretary of Transportation; and
(3) the air carrier is—
(A) available, if the transportation is between a place in the
United States and a place outside the United States; or
(B) reasonably available, if the transportation is between 2 places
outside the United States.
446
(b) TRANSPORTATION BY FOREIGN AIR CARRIERS.—This section does not
preclude the transportation of passengers and property by a foreign air car-
rier if the transportation is provided under a bilateral or multilateral air
transportation agreement to which the Government and the government of a
foreign country are parties if the agreement—
(1) is consistent with the goals for international aviation policy of sec-
tion 40101(e) of this title; and
(2) provides for the exchange of rights or benefits of similar mag-
nitude.
(c) PROOF.—The Comptroller General shall allow the expenditure of an ap-
propriation for transportation in violation of this section only when satisfac-
tory proof is presented showing the necessity for the transportation.
(d) TRANSPORTATION BY FOREIGN AIR CARRIERS.—Notwithstanding sub-
sections (a) and (c) of this section, any amount appropriated to the Secretary
of State, the Director of the United States Information Agency, the Director
of the United States International Development Cooperation Agency, or the
Director of the Arms Control and Disarmament Agency may be used to pay
for the transportation of an officer or employee of the Department of State
or one of those agencies, a dependent of the officer or employee, and accom-
panying baggage, by a foreign air carrier when the transportation is between
2 places outside the United States.
(e) RELATIONSHIP TO OTHER LAWS.—This section does not affect the ap-
plication of the antidiscrimination provisions of this part.
§ 40119. Security and research and development activities
(a) GENERAL REQUIREMENTS.—The Administrator of the Federal Aviation
Administration shall conduct research (including behavioral research) and de-
velopment activities appropriate to develop, modify, test, and evaluate a sys-
tem, procedure, facility, or device to protect passengers and property against
acts of criminal violence and aircraft piracy.
(b) DISCLOSURE.—(1) Notwithstanding section 552 of title 5, the Adminis-
trator shall prescribe regulations prohibiting disclosure of information ob-
tained or developed in carrying out security or research and development ac-
tivities under section 44501(a) or (c), 44502(a)(1) or (3), (b), or (c), 44504,
44505, 44507, 44508, 44511, 44512, 44513, 44901, 44903(a), (b), (c), or (e),
44905, 44912, 44935, 44936, or 44938(a) or (b) of this title if the Adminis-
trator decides disclosing the information would—
(A) be an unwarranted invasion of personal privacy;
(B) reveal a trade secret or privileged or confidential commercial or
financial information; or
(C) be detrimental to the safety of passengers in air transportation.
447
(2) Paragraph (1) of this subsection does not authorize information to be
withheld from a committee of Congress authorized to have the information.
(c) TRANSFERS OF DUTIES AND POWERS PROHIBITED.—Except as other-
wise provided by law, the Administrator may not transfer a duty or power
under this section to another department, agency, or instrumentality of the
United States Government.
§ 40120. Relationship to other laws
(a) NONAPPLICATION.—Except as provided in the International Naviga-
tional Rules Act of 1977 (33 U.S.C. 1601 et seq.), the navigation and ship-
ping laws of the United States and the rules for the prevention of collisions
do not apply to aircraft or to the navigation of vessels related to those air-
craft.
(b) EXTENDING APPLICATION OUTSIDE UNITED STATES.—The President
may extend (in the way and for periods the President considers necessary)
the application of this part to outside the United States when—
(1) an international arrangement gives the United States Government
authority to make the extension; and
(2) the President decides the extension is in the national interest.
(c) ADDITIONAL REMEDIES.—A remedy under this part is in addition to
any other remedies provided by law.
SUBPART II—ECONOMIC REGULATION
CHAPTER 411—AIR CARRIER CERTIFICATES
Sec.
41101.
Requirement for a certificate.
41102.
General, temporary, and charter air transportation certificates of air carriers.
41103.
All-cargo air transportation certificates of air carriers.
41104.
Additional limitations and requirements of charter air carriers.
41105.
Transfers of certificates.
41106.
Airlift service.
41107.
Transportation of mail.
41108.
Applications for certificates.
41109.
Terms of certificates.
41110.
Effective periods and amendments, modifications, suspensions, and revocations of certifi-
cates.
41111.
Simplified procedure to apply for, amend, modify, suspend, and transfer certificates.
41112.
Liability insurance and financial responsibility.
§ 41101. Requirement for a certificate
(a) GENERAL.—Except as provided in this chapter or another law—
(1) an air carrier may provide air transportation only if the air car-
rier holds a certificate issued under this chapter authorizing the air
transportation;
(2) a charter air carrier may provide charter air transportation only
if the charter air carrier holds a certificate issued under this chapter au-
thorizing the charter air transportation; and
448
(3) an air carrier may provide all-cargo air transportation only if the
air carrier holds a certificate issued under this chapter authorizing the
all-cargo air transportation.
(b) THROUGH SERVICE AND JOINT TRANSPORTATION.—A citizen of the
United States providing transportation in a State of passengers or property
as a common carrier for compensation with aircraft capable of carrying at
least 30 passengers, under authority granted by the appropriate State author-
ity—
(1) may provide transportation for passengers and property that in-
cludes through service by the citizen over its routes in the State and in
air transportation by an air carrier or foreign air carrier; and
(2) subject to sections 41309 and 42111 of this title, may make an
agreement with an air carrier or foreign air carrier to provide the joint
transportation.
(c) PROPRIETARY OR EXCLUSIVE RIGHT NOT CONFERRED.—A certificate
issued under this chapter does not confer a proprietary or exclusive right to
use airspace, an airway of the United States, or an air navigation facility.
§ 41102. General, temporary, and charter air transportation
certificates of air carriers
(a) ISSUANCE.—The Secretary of Transportation may issue a certificate of
public convenience and necessity to a citizen of the United States authorizing
the citizen to provide any part of the following air transportation the citizen
has applied for under section 41108 of this title:
(1) air transportation as an air carrier.
(2) temporary air transportation as an air carrier for a limited pe-
riod.
(3) charter air transportation as a charter air carrier.
(b) FINDINGS REQUIRED FOR ISSUANCE.—(1) Before issuing a certificate
under subsection (a) of this section, the Secretary must find that the citizen
is fit, willing, and able to provide the transportation to be authorized by the
certificate and to comply with this part and regulations of the Secretary.
(2) In addition to the findings under paragraph (1) of this subsection, the
Secretary, before issuing a certificate under subsection (a) of this section for
foreign air transportation, must find that the transportation is consistent
with the public convenience and necessity.
(c) TEMPORARY CERTIFICATES.—The Secretary may issue a certificate
under subsection (a) of this section for interstate air transportation (except
the transportation of passengers) or foreign air transportation for a tem-
porary period of time (whether the application is for permanent or temporary
authority) when the Secretary decides that a test period is desirable—
449
(1) to decide if the projected services, efficiencies, methods, and prices
and the projected results will materialize and remain for a sustained pe-
riod of time; or
(2) to evaluate the new transportation.
(d) FOREIGN AIR TRANSPORTATION.—The Secretary shall submit each de-
cision authorizing the provision of foreign air transportation to the President
under section 41307 of this title.
§ 41103. All-cargo air transportation certificates of air car-
riers
(a) APPLICATIONS.—A citizen of the United States may apply to the Sec-
retary of Transportation for a certificate authorizing the citizen to provide
all-property air transportation. The application must contain information
and be in the form the Secretary by regulation requires.
(b) ISSUANCE.—Not later than 180 days after an application for a certifi-
cate is filed under this section, the Secretary shall issue the certificate to a
citizen of the United States authorizing the citizen, as an air carrier, to pro-
vide any part of the all-cargo air transportation applied for unless the Sec-
retary finds that the citizen is not fit, willing, and able to provide the all-
cargo air transportation to be authorized by the certificate and to comply
with regulations of the Secretary.
(c) TERMS.—The Secretary may impose terms the Secretary considers nec-
essary when issuing a certificate under this section. However, the Secretary
may not impose terms that restrict the places served or prices charged by the
holder of the certificate.
(d) EXEMPTIONS AND STATUS.—A citizen issued a certificate under this
section—
(1) is exempt in providing the transportation under the certificate
from the requirements of—
(A) section 41101(a)(1) of this title and regulations or procedures
prescribed under section 41101(a)(1); and
(B) other provisions of this part and regulations or procedures
prescribed under those provisions when the Secretary finds under
regulations of the Secretary that the exemption is appropriate; and
(2) is an air carrier under this part except to the extent the carrier
is exempt under this section from a requirement of this part.
§ 41104. Additional limitations and requirements of charter
air carriers
(a) RESTRICTIONS.—The Secretary of Transportation may prescribe a reg-
ulation or issue an order restricting the marketability, flexibility, accessibil-
ity, or variety of charter air transportation provided under a certificate is-
sued under section 41102 of this title only to the extent required by the public
450
interest. A regulation prescribed or order issued under this subsection may
not be more restrictive than a regulation related to charter air transportation
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 required
by public convenience and necessity. The Secretary may make that decision
when issuing, amending, or modifying the certificate. This subsection does not
apply to a certificate issued under section 41102 to a citizen 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 de-
cides that the failure of the carrier to comply with the requirements described
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 suspension 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 certifi-
cate referred to in paragraph (1) of this subsection should be amended, modi-
fied, suspended, or revoked. Until the hearing is completed, the Secretary 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 or-
ders 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 section 41110(e) or 41112 or a reg-
ulation 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 trans-
fer 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 Transpor-
tation of the Senate and the Committee on Public Works and Transportation
of the House of Representatives that the transfer is consistent with the public
451
interest. The Secretary shall include with the certification a report 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 Sec-
retary 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 carrier
that—
(A) has aircraft in the civil reserve air fleet or offers to place the air-
craft 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 provide
airlift service.
(b) EXCEPTION.—When the Secretary of Defense decides that no air carrier
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 certificate
of public convenience and necessity under section 41102 of this title, a citizen
452
of the United States must apply to the Secretary of Transportation. The ap-
plication 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 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 certifi-
cate. Not later than 90 days after the application is filed, the Secretary
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 oppor-
tunity. 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 ap-
plication 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 Sec-
retary 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 extend
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.
453
(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 consist-
ent 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 con-
sistent 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 interest;
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 con-
siders 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 countries
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 geographical
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.
(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.
454
(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 certificate
under this section;
(B) the end of the period the Secretary specifies for an air carrier hav-
ing 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, chapter
419, subchapter II of chapter 421, and section 46301(b) of this title, a
regulation or order of the Secretary under any of those provisions, 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 rea-
sonable time the Secretary specifies, with an order to the holder requiring
compliance.
(4) A certificate to provide foreign air transportation may not be amended,
modified, suspended, or revoked under section 41111 of this title if the holder
of the certificate requests an oral evidentiary hearing or the Secretary finds,
under all the facts and circumstances, that the hearing is required in the pub-
lic 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 hearing,
the Secretary finds that the transportation is not provided to the minimum
extent specified by the Secretary.
455
(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 reg-
ulation of the Secretary, that it intends to suspend all transportation 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 carrier
of the action the Secretary proposes.
(2) Paragraph (1)(B) of this subsection does not apply to a place provided
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 certificate; 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 imme-
diately the fitness of an air carrier that—
(A) violates the laws and regulations of the United States related
to the illegal importation of a controlled substance; or
456
(B) does not adopt available measures to prevent the illegal im-
portation of a controlled substance into the United States on its air-
craft; and
(2) when appropriate, shall amend, modify, suspend, or revoke the cer-
tificate 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 procedure 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 insur-
ance 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 insurance,
457
for bodily injury to, or death of, an individual or for loss of, or damage to,
property of others, resulting from the operation or maintenance of the aircraft
under the certificate. A certificate does not remain in effect unless 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 section 41102
of this title, the Secretary may require the carrier to file a performance bond
or equivalent security in the amount and on terms the Secretary prescribes.
The bond or security must be sufficient to ensure the carrier adequately will
pay the passengers and shippers when the transportation the carrier agrees
to provide is not provided. The Secretary shall prescribe 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 trans-
portation 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 govern-
ment 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.
§ 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 trans-
fer is in the public interest.
458
§ 41304. Effective periods and amendments, modifications,
suspensions, and revocations of permits
(a) GENERAL.—The Secretary of Transportation may prescribe the period
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 foreign
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 related
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 air-
craft; and
(2) when appropriate, shall amend, modify, suspend, or revoke the per-
mit of the carrier issued under this chapter.
(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.
459
§ 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 per-
son may file a response with the Secretary opposing or supporting the issu-
ance of the permit. The Secretary shall act on an application as expeditiously
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 regula-
tions 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 sec-
tion shall provide for notice and an opportunity for each interested person
to file appropriate written evidence and argument. An oral evidentiary hear-
ing is not required to be provided under this section.
§ 41307. Presidential review of actions about foreign air
transportation
The Secretary of Transportation shall submit to the President for review
each decision of the Secretary to issue, deny, amend, modify, suspend, revoke,
or transfer a certificate issued under section 41102 of this title authorizing
an air carrier, or a permit issued under section 41302 of this title authoriz-
ing a foreign air carrier, to provide foreign air transportation. The President
may disapprove the decision of the Secretary only if the reason for dis-
approval is based on foreign relations or national defense considerations that
are under the jurisdiction of the President. The President may not disapprove
460
a decision of the Secretary if the reason is economic or related to carrier selec-
tion. 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 decision is
submitted to the President; and
(B) when effective, may be reviewed judicially under section 46110 of
this title.
§ 41308. Exemption from the antitrust laws
(a) DEFINITION.—In this section, ‘‘antitrust laws’’ has the same meaning
given that term in the first section of the Clayton Act (15 U.S.C. 12).
(b) EXEMPTION AUTHORIZED.—When the Secretary of Transportation de-
cides it is required by the public interest, the Secretary, as part of an order
under section 41309 or 42111 of this title, may exempt a person affected by
the order from the antitrust laws to the extent necessary to allow the person
to proceed with the transaction specifically approved by the order and with
any transaction necessarily contemplated by the order.
(c) EXEMPTION REQUIRED.—In an order under section 41309 of this title
approving an agreement, request, modification, or cancellation, the Secretary,
on the basis of the findings required under section 41309(b)(1), shall exempt
a person affected by the order from the antitrust laws to the extent necessary
to allow the person to proceed with the transaction specifically approved by
the order and with any transaction necessarily contemplated by the order.
§ 41309. Cooperative agreements and requests
(a) FILING.—An air carrier or foreign air carrier may file with the Sec-
retary of Transportation a true copy of or, if oral, a true and complete memo-
randum of, an agreement (except an agreement related to interstate air trans-
portation), or a request for authority to discuss cooperative arrangements (ex-
cept arrangements related to interstate air transportation), and any modi-
fication or cancellation of an agreement, between the air carrier or foreign
air carrier and another air carrier, a foreign carrier, or another carrier.
(b) APPROVAL.—The Secretary of Transportation shall approve an 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
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—
461
(A) the agreement, request, modification, or cancellation is nec-
essary to meet a serious transportation need or to achieve important
public benefits (including international comity and foreign policy
considerations); and
(B) the transportation need cannot be met or those benefits can-
not be achieved by reasonably available alternatives that are materi-
ally less anticompetitive; or
(2) an agreement that—
(A) is between an air carrier not directly operating aircraft in
foreign air transportation and a common carrier subject to subtitle
IV of this title; and
(B) governs the compensation the common carrier may receive for
the transportation.
(c) NOTICE AND OPPORTUNITY TO RESPOND OR FOR HEARING.—(1) When
an agreement, request, modification, or cancellation is filed, the Secretary of
Transportation shall give the Attorney 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, request, 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 stand-
ards under subsection (b)(1) of this section, a party opposing an agreement,
request, modification, or cancellation has the burden of proving that it sub-
stantially reduces or eliminates competition and that less anticompetitive al-
ternatives are available. The party defending the agreement, request, modi-
fication, or cancellation has the burden of proving the transportation need or
public benefits.
(3) The Secretary of Transportation shall include the findings required by
subsection (b)(1) of this section in an order of the Secretary approving or dis-
approving 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 unrea-
sonable discrimination.
(b) REVIEW AND NEGOTIATION OF DISCRIMINATORY FOREIGN CHARGES.—
(1) The Secretary of Transportation shall survey charges imposed on an air
carrier by the government of a foreign country or another foreign entity for
the use of airport property or airway property in foreign air transportation.
If the Secretary of Transportation decides that a charge is discriminatory,
462
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 discrimination. If the discrimina-
tion is not ended in a reasonable time through negotiation, the Secretary of
Transportation shall establish a compensating charge equal to the discrimina-
tory charge. With the approval of the Secretary of State, the Secretary of the
Treasury shall impose the compensating charge on a foreign air carrier of
that country as a condition to accepting the general declaration of the aircraft
of the foreign air carrier when it lands or takes off.
(2) The Secretary of the Treasury shall maintain an account to credit
money collected under paragraph (1) of this subsection. An air carrier shall
be paid from the account an amount certified by the Secretary of 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 in-
terest to eliminate an activity of a government of a foreign country or another
foreign entity, including a foreign air carrier, when the Secretary, on the ini-
tiative of the Secretary or on complaint, decides that the activity—
(A) is an unjustifiable or unreasonable discriminatory, predatory, or
anticompetitive practice against an air carrier; or
(B) imposes an unjustifiable or unreasonable restriction on access of
an air carrier to a foreign market.
(2) The Secretary of Transportation may deny, amend, modify, suspend,
revoke, or transfer under paragraph (1) of this subsection a foreign air carrier
permit or tariff under section 41302, 41303, 41304(a), 41504(c), 41507, or
41509 of this title.
(d) FILING OF, AND ACTING ON, COMPLAINTS.—(1) An air carrier or a de-
partment, agency, or instrumentality of the United States Government may
file a complaint under subsection (c) of this section with the Secretary of
Transportation. The Secretary shall approve, deny, or dismiss the complaint,
set the complaint for a hearing or investigation, or begin another proceeding
proposing remedial action not later than 60 days after receiving the com-
plaint. The Secretary may extend the period for acting for additional periods
totaling not more than 30 days if the Secretary decides that with additional
time it is likely that a complaint can be resolved satisfactorily through nego-
tiations with the government of the foreign country or foreign entity. The Sec-
retary must act not later than 90 days after receiving the complaint. How-
ever, the Secretary may extend this 90-day period for not more than an addi-
tional 90 days if, on the last day of the initial 90-day period, the Secretary
finds that—
463
(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 notice
and an opportunity to submit written evidence and arguments within
the time limits of this subsection; and
(C) submit to the President under section 41307 or 41509(f) of this
title actions proposed by the Secretary of Transportation.
(e) REVIEW.—(1) The Secretaries of State, the Treasury, and 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 jurisdic-
tions, each form of discrimination or unfair competitive practice to which an
air carrier is subject when providing foreign air transportation. Each Sec-
retary 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 continu-
ing program to eliminate discrimination and unfair competitive practices.
The Secretaries of State and the Treasury each shall give the Secretary 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.
CHAPTER 415—PRICING
Sec.
41501.
Establishing reasonable prices, classifications, rules, practices, and divisions of joint
prices for foreign air transportation.
41502.
Establishing joint prices for through routes with other common carriers.
41503.
Establishing joint prices for through routes provided by State authorized carriers.
41504.
Tariffs for foreign air transportation.
464
41505.
Uniform methods for establishing joint prices, and divisions of joint prices, applicable
to commuter air carriers.
41506.
Price division filing requirements for foreign air transportation.
41507.
Authority of the Secretary of Transportation to change prices, classifications, rules, and
practices for foreign air transportation.
41508.
Authority of the Secretary of Transportation to adjust divisions of joint prices 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 prices for foreign air transportation.
§ 41501. Establishing 
reasonable 
prices, 
classifications,
rules, practices, and divisions of joint prices for
foreign air transportation
Every air carrier and foreign air carrier shall establish, comply with, and
enforce—
(1) reasonable prices, classifications, rules, and practices related to for-
eign air transportation; and
(2) for joint prices established for foreign air transportation, reason-
able divisions of those prices among the participating air carriers or for-
eign air carriers without unreasonably discriminating against any of
those carriers.
§ 41502. Establishing joint prices for through routes with
other common carriers
(a) JOINT PRICES.—An air carrier may establish reasonable joint prices
and through service with another common carrier. However, an air carrier
not directly operating aircraft in air transportation (except an air express
company) may not establish under this section a joint price for the transpor-
tation of property with a common carrier subject to subtitle IV of this title.
(b) PRICES, CLASSIFICATIONS, RULES, AND PRACTICES AND DIVISIONS OF
JOINT PRICES.—For through service by an air carrier and a common carrier
subject to subtitle IV of this title, the participating carriers shall establish—
(1) reasonable prices and reasonable classifications, rules, and prac-
tices affecting those prices or the value of the transportation provided
under those prices; and
(2) for joint prices established for the through service, reasonable divi-
sions of those joint prices among the participating carriers.
(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 prices shall include in their tariffs, filed with the Secretary
of Transportation, a statement showing the through service and joint prices.
465
§ 41503. Establishing joint prices 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 prices for
that transportation. The joint prices agreed to must be the lowest of—
(1) the sum of the applicable prices 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 price established and filed under section 41504 of this title;
or
(3) a joint price 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 prices 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 prices 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 foreign
air transportation;
(B) a statement of the prices in money of the United States; and
(C) other information the Secretary requires by regulation; and
(2) may contain—
(A) a statement of the prices 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 subsection,
an air carrier or foreign air carrier may change a price or a classification,
rule, or practice affecting that price or the value of the transportation pro-
vided under that price, specified in a tariff of the carrier for foreign air
transportation only after 30 days after the carrier has filed, published, and
posted notice of the proposed change in the same way as required for a tariff
466
under subsection (a) of this section. However, the Secretary 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 fare or a
charge of another air carrier or foreign air carrier. A notice under this para-
graph 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 fare
that is outside of, or not covered by, the range of passenger fares 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 prices, and
divisions of joint prices, 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 pro-
vides 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 prices
and divisions of joint prices for and between air carriers holding certificates
issued under section 41102 of this title, the Secretary shall make that uniform
method apply to establishing joint prices and divisions of joint prices 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 car-
rier’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, sus-
pending, or ending the transportation. If the commuter air carrier does not
give that notice, the uniform method of establishing joint prices and divisions
of joint prices referred to in subsection (b) of this section does not apply to
the commuter air carrier.
§ 41506. Price 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 divi-
467
sions of all joint prices for foreign air transportation in which the carrier
participates.
§ 41507. Authority of the Secretary of Transportation to
change prices, classifications, rules, and practices
for foreign air transportation
(a) GENERAL.—When the Secretary of Transportation decides that a price
charged or received by an air carrier or foreign air carrier for foreign air
transportation, or a classification, rule, or practice affecting that price or the
value of the transportation provided under that price, is or will be unreason-
ably discriminatory, the Secretary may—
(1) change the price, classification, rule, or practice as necessary to
correct the discrimination; and
(2) order the air carrier or foreign air carrier to stop charging or col-
lecting the discriminatory price or carrying out the discriminatory clas-
sification, 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 prices for foreign air trans-
portation
(a) GENERAL.—When the Secretary of Transportation decides that a divi-
sion between air carriers, foreign air carriers, or both, of a joint price for
foreign air transportation is or will be unreasonable or unreasonably dis-
criminatory against any of those carriers, the Secretary shall prescribe a rea-
sonable division of the joint price among those carriers. The Secretary may
order the adjustment in the division of the joint price to be made retroactively
to the date the complaint was filed, the date the order for an investigation
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 sus-
pend, cancel, and reject tariffs for foreign air
transportation
(a) CANCELLATION AND REJECTION.—(1) On the initiative of the Secretary
of Transportation or on a complaint filed with the Secretary, the Secretary
may conduct a hearing to decide whether a price for foreign air transpor-
tation contained in an existing or newly filed tariff of an air carrier or for-
eign air carrier, a classification, rule, or practice affecting that price, or the
value of the transportation provided under that price, is lawful. The Sec-
468
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 price, classi-
fication, rule, or practice is or will be unreasonable or unreasonably discrimi-
natory, the Secretary may cancel or reject the tariff and prevent the use of
the price, classification, rule, or practice.
(2) With or without a hearing, the Secretary may cancel or reject an exist-
ing or newly filed tariff of a foreign air carrier and prevent the use of a
price, classification, rule, or practice when the Secretary decides that the can-
cellation or rejection is in the public interest.
(3) In deciding whether to cancel or reject a tariff of an air carrier or for-
eign air carrier under this subsection, the Secretary shall consider—
(A) the effect of the price on the movement of traffic;
(B) the need in the public interest of adequate and efficient transpor-
tation by air carriers and foreign air carriers at the lowest cost consist-
ent 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 suf-
ficient to enable the air carrier and foreign air carrier, under honest,
economical, and efficient management, to provide adequate and efficient
air carrier and foreign air carrier transportation;
(F) whether the price will be predatory or tend to monopolize competi-
tion among air carriers and foreign air carriers in foreign air transpor-
tation;
(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 price would be in effect; and
(H) other factors.
(b) SUSPENSION.—(1)(A) Pending a decision under subsection (a)(1) of
this section, the Secretary may suspend a tariff and the use of a price con-
tained in the tariff or a classification, rule, or practice affecting that price.
(B) The Secretary may suspend a tariff of a foreign air carrier and the
use of a price, classification, rule, or practice when the suspension is in the
public interest.
(2) A suspension becomes effective when the Secretary files with the tariff
and delivers to the air carrier or foreign air carrier affected by the suspension
a written statement of the reasons for the suspension. To suspend a tariff, rea-
sonable notice of the suspension must be given to the affected carrier.
469
(3) The suspension of a newly filed tariff may be for periods totaling not
more than 365 days after the date the tariff otherwise would go into effect.
The suspension of an existing tariff may be for periods totaling not more than
365 days after the effective date of the suspension. The Secretary may rescind
at any time the suspension of a newly filed tariff and allow the price, classi-
fication, rule, or practice to go into effect.
(c) EFFECTIVE TARIFFS AND PRICES WHEN TARIFF IS SUSPENDED, CAN-
CELED, OR REJECTED.—(1) If a tariff is suspended pending the outcome of
a proceeding under subsection (a) of this section and the Secretary does not
take final action in the proceeding during the suspension period, the tariff
goes into effect at the end of that period subject to cancellation when the pro-
ceeding 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 prices, or the classifications, rules, and
practices affecting those prices or the value of transportation provided
under those prices, that were in effect for the carrier immediately before
the new tariff was filed; or
(ii) another price provided for under an applicable intergovernmental
agreement or understanding.
(B) If the suspended, canceled, or rejected tariff is the first tariff of the car-
rier for the covered transportation, the carrier, for the purpose of operations
during the period of suspension or pending effectiveness of a new tariff, may
file another tariff containing a price or another classification, rule, or prac-
tice affecting the price, or the value of the transportation provided under the
price, that is in effect (and not subject to a suspension order) for any air
carrier providing the same transportation.
(3) If an existing tariff is suspended or canceled, the affected air carrier
or foreign air carrier, for the purpose of operations during the period of sus-
pension or pending effectiveness of a new tariff, may file another tariff con-
taining a price or another classification, rule, or practice affecting the price,
or the value of the transportation provided under the price, that is in effect
(and not subject to a suspension order) for any air carrier providing the same
transportation.
(d) RESPONSE TO REFUSAL OF FOREIGN COUNTRY TO ALLOW AIR CAR-
RIER TO CHARGE A PRICE.—When the Secretary finds that the government
or an aeronautical authority of a foreign country has refused to allow an air
carrier to charge a price contained in a tariff filed and published under sec-
tion 41504 of this title for foreign air transportation to the foreign country—
470
(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, prices 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 transportation
to the foreign country; and
(2) a foreign air carrier may continue to provide foreign air transpor-
tation to the foreign country only if the government or aeronautical au-
thority of the foreign country allows an air carrier to start or continue
foreign air transportation to the foreign country at the prices designated
by the Secretary.
(e) STANDARD FOREIGN FARE LEVEL.—(1)(A) In this subsection, ‘‘stand-
ard 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 ad-
justed 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 be-
tween 2 places in effect on the effective date of the establishment of the
new class.
(B) At least once every 60 days for fuel costs, and at least once every 180
days for other costs, the Secretary shall adjust the standard foreign fare level
for the particular foreign air transportation to which the standard foreign
fare level applies by increasing or decreasing that level by the percentage
change from the last previous period in the actual operating cost for each
available seat-mile. In adjusting a standard foreign fare level, the Secretary
may not make an adjustment to costs actually incurred. In establishing a
standard foreign fare level and making adjustments in the level under this
paragraph, the Secretary may use all relevant or appropriate information
reasonably available to the Secretary.
(2) The Secretary may not decide that a proposed fare for foreign air
transportation is unreasonable on the basis that the fare is too low or too high
471
if the proposed fare is neither more than 5 percent higher nor 50 percent
lower than the standard foreign fare level for the same or essentially similar
class of transportation. The Secretary by regulation may increase the 50 per-
cent 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 Sec-
retary decides that the proposed fare may be unreasonably discrimina-
tory or that suspension of the fare is in the public interest because of
an unreasonable regulatory action by the government of a foreign coun-
try that is related to a fare proposal of an air carrier; or
(B) 50 percent lower than the standard foreign fare level when the Sec-
retary decides that the proposed fare may be predatory or discriminatory
or that suspension of the fare is required because of an unreasonable reg-
ulatory 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 price for foreign air transportation, and an order rescinding the
effectiveness of such an order, before publishing the order. Not later than 10
days after its submission, the President may disapprove the order on finding
disapproval is necessary for United States foreign policy or national defense
reasons.
(g) COMPLIANCE AS CONDITION OF CERTIFICATE OR PERMIT.—This section
and compliance with an order of the Secretary under this section are condi-
tions to any certificate or permit held by an air carrier or foreign air carrier.
An air carrier or foreign air carrier may provide foreign air transportation
only as long as the carrier maintains prices for that transportation that com-
ply 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—
(1) charge or receive compensation for foreign air transportation that
is different from the price specified in the tariff of the carrier that is
in effect for that transportation;
(2) refund or remit any part of the price specified in the tariff; or
(3) extend to any person a privilege or facility, related to a matter
required by the Secretary of Transportation to be specified in a tariff
for foreign air transportation, except as specified in the tariff.
472
(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 price 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 price specified in
the tariff; or
(B) a privilege or facility, related to a matter required by the
Secretary to be specified in a tariff for foreign air transportation
of property, except as specified in the tariff.
§ 41511. Special prices for foreign air transportation
(a) FREE AND REDUCED PRICING.—This chapter does not 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 reduced-
price foreign air transportation to or for the following:
(1) a director, officer, or employee of the carrier (including a retired
director, officer, or employee who is receiving 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 perform-
ing a duty in the service of the carrier.
(4) a witness or attorney attending a legal investigation in which the
air carrier is interested.
(5) an individual injured in an aircraft accident and a physician or
nurse attending the individual.
(6) a parent or the immediate family of an individual injured or
killed in an aircraft accident when the transportation is related to the
accident.
(7) an individual or property to provide relief in a general epidemic,
pestilence, or other emergency.
(8) other individuals under other circumstances the Secretary pre-
scribes by regulation.
(b) SPACE-AVAILABLE BASIS.—Under terms the Secretary prescribes, an
air carrier or foreign air carrier may grant reduced-price 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.
473
(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 prices, 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 decides
those requirements are necessary in the public interest.
§ 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;
474
(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 au-
thorization is—
(1) in the public interest; and
(2) consistent with any agreement between the Government and the
government of a foreign country.
(c) PROVIDING AIR COMMERCE.—The Secretary may authorize an aircraft
permitted to navigate in the United States under this section to provide air
commerce in the United States. However, the aircraft may take on for com-
pensation, at a place in the United States, passengers or cargo destined for
another place in the United States only if—
(1) specifically authorized under section 40109(g) of this title; or
(2) under regulations the Secretary prescribes authorizing air carriers
to provide otherwise authorized air transportation with foreign registered
aircraft under lease or charter to them without crew.
(d) PERMIT REQUIREMENTS NOT AFFECTED.—This section does not affect
section 41301 or 41302 of this title. However, a foreign air carrier holding
a permit under section 41302 does not need to obtain additional authoriza-
tion 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 car-
rier shall transport as baggage the property of a passenger traveling in air
transportation that may not be carried in an aircraft cabin because of a law
or regulation of the United States. The carrier is liable to pay an amount
not more than the amount declared to the carrier by that passenger for actual
loss of, or damage to, the property caused by the carrier. The carrier may
impose reasonable charges and conditions for its liability.
§ 41705. Discrimination against handicapped individuals
In providing air transportation, an air carrier may not discriminate
against an otherwise qualified individual on the following grounds:
(1) the individual has a physical or mental impairment that substan-
tially 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.
475
§ 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 Co-
lumbia, 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 (ex-
cept Alaska and Hawaii) and Alaska or Hawaii; or
(ii) between Alaska and Hawaii.
(b) REGULATIONS.—The Secretary of Transportation shall prescribe regula-
tions 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 nec-
essary 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
(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 dur-
ing which the records shall be kept. A carrier may keep only records pre-
scribed or approved by the Secretary. However, a carrier may keep additional
476
records if the additional records do not impair the integrity of the records
prescribed or approved by the Secretary and are not an unreasonable finan-
cial burden on the carrier.
(b) INSPECTION.—(1) The Secretary at any time may—
(A) inspect the land, buildings, and equipment of an air carrier or
foreign air carrier when necessary to decide under subchapter II of this
chapter or section 41102, 41103, or 41302 of this title whether a carrier
is fit, willing, and able; and
(B) inspect records kept or required to be kept by an air carrier, 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 matter
not later than the last day of the 12th month that begins after the date
the matter is submitted; or
(2) is not ordered, the Secretary shall make a final decision on the
matter not later than the last day of the 6th month that begins after the
date the matter is submitted.
§ 41711. Air carrier management inquiry and cooperation
with other authorities
In carrying out this subpart, the Secretary of Transportation may—
(1) inquire into the management of the business of an air carrier and
obtain from the air carrier, and a person controlling, controlled by, or
under common control with the carrier, information the Secretary de-
cides reasonably is necessary to carry out the inquiry;
(2) confer and hold a joint hearing with a State authority; and
(3) exchange information related to aeronautics with a government of
a foreign country through appropriate departments, agencies, and in-
strumentalities 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 en-
gaged in an unfair or deceptive practice or an unfair method of competition
in air transportation or the sale of air transportation. If the Secretary, after
477
notice and an opportunity for a hearing, finds that an air carrier, foreign
air carrier, or ticket agent is engaged in an unfair or deceptive practice or
unfair method of competition, the Secretary shall order the air carrier, foreign
air carrier, or ticket agent to stop the practice or method.
§ 41713. Preemption of authority over prices, routes, and
service
(a) DEFINITION.—In this section, ‘‘State’’ means a State, the District of
Columbia, and a territory or possession of the United States.
(b) PREEMPTION.—(1) Except as provided in this subsection, a State, polit-
ical subdivision of a State, or political authority of at least 2 States may
not enact or enforce a law, regulation, or other provision having the force and
effect of law related to a price, route, or service of an air carrier that may
provide air transportation under this subpart.
(2) Paragraph (1) of this subsection does not apply to air transportation
provided entirely in Alaska unless the transportation is air transportation
(except charter air transportation) provided under a certificate issued under
section 41102 of this title.
(3) This subsection does not limit a State, political subdivision of a State,
or political authority of at least 2 States that owns or operates an airport
served by an air carrier holding a certificate issued by the Secretary of
Transportation from carrying out its proprietary powers and rights.
SUBCHAPTER II—SMALL COMMUNITY AIR SERVICE
§ 41731. Definitions
(a) GENERAL.—In this subchapter—
(1) ‘‘eligible place’’ means a place in the United States that—
(A) was an eligible point under section 419 of the Federal Avia-
tion Act of 1958 before October 1, 1988;
(B) received scheduled air transportation at any time after Janu-
ary 1, 1990; and
(C) is not listed in Department of Transportation Orders 89–9–
37 and 89–12–52 as a place ineligible for compensation under this
subchapter.
(2) ‘‘enhanced essential air service’’ means scheduled air transpor-
tation to an eligible place of a higher level or quality than basic essential
air service described in section 41732 of this title.
(3) ‘‘hub airport’’ means an airport that each year has at least .25
percent of the total annual boardings in the United States.
(4) ‘‘nonhub airport’’ means an airport that each year has less than
.05 percent of the total annual boardings in the United States.