405
(B) major replacement parts for the major parts described in clause
(A) of this paragraph.
(2) The standard may apply only to—
(A) major parts that manufacturers install in passenger motor vehi-
cles having a model year designation later than the calendar year in
which the standard takes effect; and
(B) major replacement parts manufactured after the standard takes
effect.
(b) STANDARD REQUIREMENTS.—The standard shall be practicable and
provide relevant objective criteria.
(c) LIMITATIONS ON MAJOR PART AND REPLACEMENT PART STAND-
ARDS.—(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 identi-
fication.
(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 pro-
vided 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 Trans-
portation shall prescribe a vehicle theft standard that conforms to the re-
quirements of this chapter for covered major parts that manufacturers in-
stall in passenger motor vehicles (except light duty trucks) in not more than
50 percent 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.
406
(2) The Secretary shall include as part of the regulatory proceeding under
this subsection the finding of, and the record developed by, the Attorney
General 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
General shall make a finding that the Secretary shall apply the standard
prescribed 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 provid-
ing notice and an opportunity for a public hearing, that applying the stand-
ard prescribed in subsection (a) to the remaining lines of passenger motor
vehicles (except light duty trucks) not covered by that standard would not
substantially inhibit chop shop operations and motor vehicle thefts. The At-
torney General also shall consider and include in the record additional costs,
effectiveness, 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 De-
cember 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 in-
hibiting the operation of chop shops and motor vehicle theft.
(B) whether the anti-theft devices for which the Secretary has grant-
ed exemptions under section 33106 of this title are an effective sub-
stitute 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
section 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 sub-
stantially 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 de-
velops and includes in the public record.
407
(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 sec-
tion, 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
Attorney 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 ef-
fective 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 author-
ized before 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 pre-
scribed, except that the Secretary may prescribe an earlier effective date if
the Secretary—
(1) decides with good cause that the earlier date is in the public in-
terest; and
(2) publishes the reasons for the decision.
(f) NOTIFICATION OF CONGRESS.—The Secretary and the Attorney Gen-
eral shall inform the appropriate legislative committees of Congress with ju-
risdiction 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 fol-
lowing 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
vehicle line having (for existing lines) or likely to have (for new lines)
408
a theft rate below the median theft rate referred to in clause (A) of
this paragraph, 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, ac-
count (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 production of all lines of that manufacturer containing those
interchangeable parts.
(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 agree-
ment between the manufacturer and the Secretary. If the manufacturer and
the Secretary 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
beginning 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 In-
formation 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 requirements 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—
409
(A) the numerator of which is the number of new passenger motor
vehicle thefts for that line during the 2-year period referred to in sub-
section (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 dis-
tributed 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
midway between the highest and the lowest theft rates determined under
paragraph (2) of this subsection. If there is an even number of theft rates
determined under paragraph (2), the median theft rate is the arithmetic av-
erage of the 2 adjoining theft rates midway between the highest and the
lowest of those theft rates.
(4) In consultation with the Director of the Federal Bureau of Investiga-
tion, the Secretary periodically shall obtain from the most reliable source
accurate and timely theft and recovery information and publish the informa-
tion 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 Sec-
retary shall use the theft information to determine the median theft rate
under this subsection. The Secretary and the Director shall take any nec-
essary actions to improve the accuracy, reliability, and timeliness of the in-
formation, including ensuring 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 sub-
section (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
410
(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 manu-
facturer 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
considered in calculating the manufacturer’s costs under subsection (a)
of this section; and
(2) the manufacturer may not be required under the standard to
conform to any identification system for engines and transmissions that
imposes 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.
(B) ‘‘price index’’ means the average over a calendar year of the
Consumer Price Index (all items—United States city average) pub-
lished monthly by the Secretary of Labor.
(2) At the beginning of each calendar year, as necessary data become
available from the Bureau of Labor Statistics, the Secretary of Labor shall
certify to the Secretary of Transportation and publish in the Federal Reg-
ister the percentage difference between the price index for the 12 months
before the beginning of the calendar year and the price index for the base
period. For model years beginning in that calendar year, the amounts speci-
fied in subsection (a) of this section shall be adjusted by the percentage dif-
ference.
§ 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
accessory or other item that the first purchaser customarily has the op-
tion to have installed.
411
(b) GRANTING EXEMPTIONS
AND LIMITATIONS.—(1) A manufacturer
may petition the Secretary of Transportation for an exemption from a re-
quirement 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 effec-
tive 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 manufac-
turer;
(B) for each of the model years 1988–1996, for not more than 2 ad-
ditional lines of a manufacturer;
(C) for each of the model years 1997–2000, for not more than one
additional line of a manufacturer; and
(D) for each of the model years after model year 2000, for the num-
ber of lines that the Attorney General decides under section
33103(d)(3) of this title.
(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
substantial 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 petition shall be deemed to be approved and the manufacturer shall be
exempt from the standard for the line covered by the petition for the subse-
quent 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
412
(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 identi-
fying 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
provisions. The standard may include provisions for registration of the iden-
tification 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 pen-
alty or enforcement under this chapter.
(d) COMPLIANCE
WITH
OTHER
STANDARDS.—Compliance with the
standard under this section does not relieve a manufacturer from a require-
ment 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
vehicles 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 Secretary 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 in-
spect 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
standard, or major replacement parts subject to the standard, are manufac-
tured, held for introduction into interstate commerce, or held for sale after
introduction into interstate commerce. An inspection shall be conducted at
a reasonable time, in a reasonable way, and with reasonable promptness.
(c) CERTIFICATION OF COMPLIANCE.—(1) A manufacturer of a motor ve-
hicle 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 ve-
413
hicle or part a certification that the vehicle or part conforms to the applica-
ble motor vehicle theft prevention standard. The certification shall accom-
pany the vehicle or part until its delivery to the first purchaser. The Sec-
retary by regulation may prescribe the type and form of the certification.
(2) This subsection does not apply to a motor vehicle or major replace-
ment 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 Sec-
retary 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 vehi-
cle during its assembly, or to a major replacement part manufactured
by the manufacturer; and
(2) the motor vehicle or major replacement part has entered inter-
state commerce.
§ 33109.
National Stolen Passenger Motor Vehicle Informa-
tion System
(a) GENERAL REQUIREMENTS.—(1) Not later than July 25, 1993, the
Attorney General shall establish, and thereafter maintain, a National Stolen
Passenger Motor Vehicle Information System containing the vehicle identi-
fication numbers of stolen passenger motor vehicles and stolen passenger
motor vehicle parts. The System shall be located in the National Crime In-
formation Center and shall include at least the following information on
each passenger motor vehicle reported to a law enforcement authority as
stolen and not recovered:
(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
report 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
414
System will not compromise the security of stolen passenger motor ve-
hicle 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 Sys-
tem as stolen.
(2) On request of an insurance carrier, a person lawfully selling or dis-
tributing passenger motor vehicle parts in interstate commerce, or an indi-
vidual or enterprise engaged in the business of repairing passenger motor
vehicles, the Attorney General (or the entity the Attorney General des-
ignates) immediately 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 num-
ber) being reported as stolen. The Attorney General may require appro-
priate verification to ensure that the request is legitimate and will not com-
promise the security of the System.
(c) ADVISORY COMMITTEE.—(1) Not later than December 24, 1992, the
Attorney General shall establish in the Department of Justice an advisory
committee. 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.
415
(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 carry-
ing out—
(A) the National Stolen Passenger Motor Vehicle Information Sys-
tem; and
(B) the verification system under section 33110 of this title.
(4) Not later than April 25, 1993, the committee shall submit to the At-
torney General, the Secretary, and Congress a report including the rec-
ommendations of the committee.
§ 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
regulations.
(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 trans-
ferring 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 re-
ported as stolen.
416
(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
established whether the vehicle has been reported as stolen.
(c) REGULATIONS.—In consultation with the Secretary, the Attorney
General shall prescribe regulations necessary to ensure that verification per-
formed and provided by an insurance carrier under subsection (b)(1)(B) of
this section 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
regulation prescribes in consultation with the Secretary of Transpor-
tation under section 33109 of this title, that the major part has not
been reported 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 sto-
len.
(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 sec-
tion 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 established whether that vehicle has been stolen.
(2) A person described under paragraph (1)(C) of this subsection that
subsequently 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 person 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 ver-
ification a person provides under subsection (a)(2) of this section is uni-
form, effective, and resistant to fraudulent use.
417
§ 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 vehi-
cle, and a motorcycle.
(c) ANNUAL INFORMATION REQUIREMENT.—(1) An insurer providing
comprehensive coverage for motor vehicles shall provide annually to the Sec-
retary of Transportation information on—
(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 com-
prehensive coverage, including the basis for the premiums, and pre-
mium penalties for motor vehicles considered by the insurer as more
likely to be stolen;
(D) the actions taken by the insurer to reduce the premiums, includ-
ing changing rate levels for comprehensive coverage because of a reduc-
tion in thefts of motor vehicles;
(E) the actions taken by the insurer to assist in deterring or reduc-
ing thefts of motor vehicles; and
(F) other information the Secretary requires to carry out this chap-
ter 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 sto-
len motor vehicle—
418
(1) reduces the payment to the insured by the amount of the value,
salvage or otherwise, of a recovered part subject to a standard pre-
scribed 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 sec-
tion, for one or more years, an insurer that the Secretary decides should
be exempted 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 in-
surer’’ 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
(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
section 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
provided 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 consid-
ers appropriate.
419
§ 33113. Theft reports
(a) TRUCK, MULTIPURPOSE PASSENGER VEHICLE, AND MOTORCYCLE
REPORT.—Not later than October 25, 1995, the Secretary of Transpor-
tation shall submit a report to Congress that includes—
(1) information on the number of trucks, multipurpose passenger ve-
hicles, 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 pas-
senger vehicles, and motorcycles stolen annually are dismantled to re-
cover parts or are exported;
(3) a description of the market for the stolen parts;
(4) information on the premiums charged by insurers of comprehen-
sive coverage of trucks, multipurpose passenger vehicles, or motor-
cycles, including 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,
multipurpose 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;
(C) to decrease the trafficking in stolen parts of those motor ve-
hicles;
(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
Secretary 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, com-
piled by class, model, make, and line;
420
(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
Government, 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 chap-
ter; and
(C) preventing or reducing the availability of used parts that
are stolen from motor vehicles subject to this chapter;
(7) information on the premiums charged by insurers of comprehen-
sive 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 in-
creases, because of this chapter;
(8) information on the adequacy and effectiveness of laws of the
United 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 vehi-
cle;
(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
421
(E) to have benefits greater than the costs of the identification;
and
(10) other relevant and reliable information available to the Sec-
retary 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 vehi-
cles; 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 ve-
hicles 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
(E) other relevant and reliable information available to the Sec-
retary.
(2) In preparing each report, the Secretary shall consult with the Attor-
ney 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—
422
(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 material 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 ve-
hicle 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 Government for a civil penalty of not more than $1,000 for each vio-
lation. The failure of more than one part of a single motor vehicle to con-
form 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
subsection. 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 lia-
ble for the penalty.
423
(b) CHOP SHOP PENALTY AND ENFORCEMENT.—(1) A person that vio-
lates 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
Secretary 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
paragraph.
(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 pas-
senger 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 sub-
section 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.
(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 sec-
tion, 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.
424
§ 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
section 33104(a)(3)).
(b) WITHHOLDING INFORMATION FROM CONGRESS.—This section does
not authorize information to be withheld from a committee of Congress au-
thorized 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
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
425
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
Secretary of Transportation shall consider the following matters, among
others, as being in the public interest and consistent with public convenience
and necessity:
(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, rec-
ognizing the clear intent, encouragement, and dedication of Congress
to further the highest degree of safety in air transportation and air
commerce, and to maintain the safety vigilance that has evolved in air
transportation 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.
426
(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
transportation.
(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.
(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.
427
(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 profit-
ability 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 carrying out subpart II, the Secretary of Transportation shall consider
the following matters, among others and in addition to the matters referred
to in subsection (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-
part III, the Administrator of the Federal Aviation Administration shall
consider 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
subpart III of this part and those provisions of subpart IV applicable in car-
rying out subpart III, the Administrator shall consider the following mat-
ters, 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.
428
(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 ex-
tent consistent with aviation safety.
(e) INTERNATIONAL
AIR
TRANSPORTATION.—In formulating United
States international air transportation policy, the Secretaries of State and
Transportation shall develop a negotiating policy emphasizing the greatest
degree of competition compatible with a well-functioning international air
transportation 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 profit-
ability 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.
(7) increasing the number of nonstop United States gateway cities.
(8) opportunities for carriers of foreign countries to increase their
access to places in the United States if exchanged for benefits of simi-
lar magnitude for air carriers or the traveling public with permanent
linkage 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.
429
(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 pro-
vide foreign air transportation from among competing applicants, the Sec-
retary of Transportation shall consider, in addition to the matters specified
in subsections (a) and (b) of this section, the strengthening of competition
among air carriers operating in the United States to prevent unreasonable
concentration 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
commerce.
(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 informa-
tion, 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.
(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 Avia-
tion Administration may provide otherwise for individuals em-
ployed outside the United States, who is directly in charge of in-
430
specting, 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
intended to be used, in operating or controlling aircraft in flight, in-
cluding a parachute, communication equipment, and another mecha-
nism installed in or attached to aircraft during flight, and not a part
of an aircraft, 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 trans-
portation 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
percent 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 reg-
istered 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;
431
(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 Unit-
ed States, undertaking by any means, directly or indirectly, to provide
foreign 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 voca-
tion, 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
transportation is by aircraft.
(24) ‘‘interstate air commerce’’ means the transportation of pas-
sengers or property by aircraft for compensation, the transportation of
mail by aircraft, or the operation of aircraft in furthering a business
or vocation—
(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, ter-
ritory, 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
432
(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, ter-
ritory, 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 pro-
vided for sheltering, servicing, or repairing aircraft, or for receiving or
discharging 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
landing of aircraft.
(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
without the right of legal control of the aircraft.
433
(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
government (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 govern-
ment; 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 re-
quired to consult with or consider the views of a State authority
under subpart 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
as a principal or agent sells, offers for sale, negotiates for, or holds it-
self out as selling, providing, or arranging for, air transportation.
(41) ‘‘United States’’ means the States of the United States, the
District 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
control by any means.
434
§ 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 Transpor-
tation 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 com-
mercial airports or commercial air transportation for handicapped individ-
uals.
(b) USE OF AIRSPACE.—(1) The Administrator of the Federal Aviation
Administration shall develop plans and policy for the use of the navigable
airspace 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 Admin-
istrator may modify or revoke an assignment when required in the public
interest.
(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 avail-
able facilities in those areas.
(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.
435
(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 serv-
ices requires a reduction in space leased under an agreement existing
on September 3, 1982, between the operator and the airport.
§ 40104. Promotion of civil aeronautics and air commerce
The Administrator of the Federal Aviation Administration shall encour-
age the development of civil aeronautics and air commerce in and outside
the United States. In carrying out this section, the Administrator shall take
action that the Administrator considers necessary to establish, within avail-
able resources, a program to distribute civil aviation information in each re-
gion served by the Administration. The program shall provide, on request,
informational 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 Secretar-
ies of Transportation and Commerce, and consult with them as appropriate,
about negotiations for an agreement with a government of a foreign country
to establish or develop air navigation, including air routes and services. The
Secretary of Transportation shall consult with the Secretary of State in car-
rying out this part to the extent this part is related to foreign air transpor-
tation.
(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 Gov-
ernment under an international agreement;
(B) shall consider applicable laws and requirements of a foreign
country; and
(C) may not limit compliance by an air carrier with obligations or
liabilities imposed by the government of a foreign country when the
436
Secretary 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
foreign country, if the Secretary of Transportation disapproves the agree-
ment because it is not in the public interest. Section 40106(b)(2) of this
title applies to this subsection.
(c) CONSULTATION ON INTERNATIONAL AIR TRANSPORTATION POLICY.—
In carrying out section 40101(e) of this title, the Secretaries of State and
Transportation, 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 NEGO-
TIATIONS.—The President shall grant to at least one representative of each
House of Congress the privilege of attending international aviation negotia-
tions 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
authority 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 reason-
able effort to consult with the Administrator and arrange for the devi-
ation in advance on a mutually agreeable basis.
(b) SUSPENSION OF AUTHORITY.—(1) When the President decides that
the government of a foreign country is acting inconsistently with the Con-
vention for the Suppression of Unlawful Seizure of Aircraft or that the gov-
ernment 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,
437
aids, or abets, a terrorist organization that knowingly uses the unlawful sei-
zure, 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 be-
tween 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. Not-
withstanding section 40105(b) of this title, the authority of the President
to suspend rights under this subsection is a condition to a certificate of pub-
lic convenience and necessity, air carrier operating certificate, foreign air
carrier or foreign aircraft permit, or foreign air carrier operating specifica-
tion 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 se-
lecting, developing, testing, evaluating, establishing, operating, or maintain-
ing a system, procedure, facility, or device for safe and efficient air naviga-
tion and air traffic control. In making a transfer, the President may trans-
fer records and property and make officers and employees from the depart-
ment, agency, instrumentality, or unit available to the Administrator.
(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 De-
partment of Defense.
438
§ 40108. Training schools
(a) AUTHORITY TO OPERATE.—The Administrator of the Federal Avia-
tion Administration may operate schools to train officers and employees of
the Administration to carry out duties, powers, and activities of the Admin-
istrator.
(b) ATTENDANCE.—The Administrator may authorize officers and em-
ployees of other departments, agencies, or instrumentalities of the United
States Government, officers and employees of governments of foreign coun-
tries, 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 ad-
ditional cost. The amount received may be credited to the appropriation cur-
rent when the expenditures 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 DI-
RECTLY 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
Administration may grant an exemption from a regulation prescribed in car-
rying 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, subchapter II of chapter 421, and section 46301(b) of this
title, or a regulation or term prescribed under any of those provisions, when
the Secretary decides that the exemption is consistent with the public inter-
est.
(d) LABOR REQUIREMENTS.—The Secretary may not exempt an air car-
rier from section 42112 of this title. However, the Secretary may exempt
439
from section 42112(b)(1) and (2) an air carrier not providing scheduled air
transportation, and the operations conducted during daylight hours by an
air carrier providing scheduled air transportation, when the Secretary de-
cides that—
(1) because of the limited extent of, or unusual circumstances affect-
ing, 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 beginning 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
carrier under this section from a provision referred to in subsection (c) of
this section, or a regulation or term prescribed under any of those provi-
sions, 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 pro-
viding 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.
(g) EMERGENCY AIR TRANSPORTATION BY FOREIGN AIR CARRIERS.—(1)
To the extent that the Secretary decides an exemption is in the public inter-
est, the Secretary may exempt by order a foreign air carrier from the re-
quirements and limitations of this part for not more than 30 days to allow
440
the foreign air carrier to carry passengers or cargo in interstate air trans-
portation 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 certifi-
cates 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 prac-
ticable;
(C) the exemption is necessary to avoid unreasonable hardship for
the traffic in the markets that cannot be accommodated by the air car-
riers; 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 pro-
vides 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
unusual 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 Fed-
eral 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-
mediately adjacent to and needed for airports and other air navigation
441
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 approving the justification for using procedures other than competi-
tive procedures, as required under section 303(f)(1)(B)(iii) of the Fed-
eral Property 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 underly-
ing land in making an award for a condemnation of an interest
in airspace;
(C) construct, or acquire an interest in, a public building (as
defined in section 13 of the Public Buildings Act of 1959 (40
U.S.C. 612)) only under a delegation of authority from the Ad-
ministrator of General Services;
(D) use procedures other than competitive procedures, as pro-
vided under section 303(c) of the Federal Property and Adminis-
trative 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 Fed-
eral Aviation Administration are available from only one respon-
sible source or only from a limited number of responsible sources
and no other type of property or services will satisfy the needs of
the Administrator; and
(F) dispose of property under subsection (a)(2) of this section,
except 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
related 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 of supply related to those services for which amounts otherwise
442
would be available for obligation only in the fiscal year for which appro-
priated:
(1) operation, maintenance, and support of facilities and installa-
tions.
(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
Administrator 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
period of contract performance and the anticipated useful commercial
life (instead of physical life) of the plant or equipment, considering the
location 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;
443
(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 obliga-
tion, 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, except 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
contract period the Administrator will request appropriations for the
contract 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 non-
recurring costs of the contractor associated with producing the item to be
delivered under the contract. The regulations shall provide that, to the ex-
tent 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, ven-
dors, 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
444
participating in the contract, the payment or benefit shall be deliv-
ered 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 abil-
ity 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 na-
tional 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 CEIL-
ING.—(1) If a contract under this section provides that performance is sub-
ject 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 cancella-
tion ceiling of more than $100,000,000, the Administrator shall give written
notice of the proposed contract and cancellation ceiling to the Committee
on Commerce, Science, and Transportation of the Senate and the Commit-
tee on Public Works and Transportation of the House of Representatives.
The contract may not be awarded until the end of the 30-day period begin-
ning 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
445
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
subsection does not prohibit or regulate the transportation of a firearm (as
defined 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, per-
formance, maintenance, and operation of aircraft, aircraft engines, propel-
lers, appliances, and air navigation facilities. Each department, agency, and
instrumentality may conduct scientific and technical research, investigations,
and tests necessary to assist the Secretary or Administrator of the Federal
Aviation Administration in carrying out this part. This part does not au-
thorize duplicating laboratory research activities of a department, agency,
or instrumentality.
(d) INDEMNIFICATION.—The Administrator of the Federal Aviation Ad-
ministration 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 Sec-
retary of Transportation (or the Administrator of the Federal Aviation Ad-
ministration 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 investiga-
tion. The report shall include the decision, conclusions, order, and require-
ments of the Secretary or Administrator as appropriate.
(2) The Secretary (or the Administrator with respect to aviation safety
duties and powers designated to be carried out by the Administrator) shall
have all reports, orders, decisions, and regulations the Secretary or Adminis-
446
trator, as appropriate, issues or prescribes published in the form and way
best adapted for public use. A publication of the Secretary or Administrator
is competent evidence of its contents.
(b) PUBLIC RECORDS.—Except as provided in subpart II of this part,
copies 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 custo-
dian 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
objection. The Secretary of Transportation or State or the Postal Service
shall order the information withheld from public disclosure when the appro-
priate Secretary or the Postal Service decides that disclosure of the informa-
tion would—
(A) prejudice the United States Government in preparing and pre-
senting its position in international negotiations; or
(B) have an adverse effect on the competitive position of an air car-
rier in foreign air transportation.
(b) WITHHOLDING INFORMATION FROM CONGRESS.—This section does
not authorize information to be withheld from a committee of Congress au-
thorized 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.
447
(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
aircraft takes off or lands in the State or political subdivision as part of
the flight.
(d) UNREASONABLE BURDENS AND DISCRIMINATION AGAINST INTER-
STATE 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 com-
merce:
(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 mar-
ket 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 jurisdic-
tion.
(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
subsection (d) of this section, a State or political subdivision of a State may
levy or collect—
448
(1) taxes (except those taxes enumerated in subsection (b) of this
section), 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—
(A) ‘‘pay’’ means money received by an employee for services.
(B) ‘‘State’’ means a State of the United States, the District of Co-
lumbia, and a territory or possession of the United States.
(C) an employee is deemed to have earned 50 percent of the employ-
ee’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 resi-
dence 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 sub-
chapter 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
449
(E) for constructing gates and related areas at which pas-
sengers 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
an eligible airport-related project, including making payments for debt serv-
ice on indebtedness incurred to carry out the project, to be carried out in
connection with the airport or any other airport the agency controls.
(2) A State, political subdivision of a State, or authority of a State or
political subdivision that is not the eligible agency may not regulate or pro-
hibit the imposition or collection of a passenger facility fee or the use of
the passenger 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 serv-
ice 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
reasonable notice to, and an opportunity for consultation with, air carriers
and foreign air carriers operating at the airport. The Secretary shall pre-
scribe regulations that define reasonable notice and contain at least the fol-
lowing 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
foreign air carriers operating at the airport.
(B) Not later than 30 days after written notice is provided under
subparagraph (A) of this paragraph, each air carrier and foreign air
carrier operating at the airport must provide to the agency written no-
tice of receipt of the notice. Failure of a carrier to provide the notice
may be deemed certification of agreement with the project by the car-
rier under subparagraph (D) of this paragraph.
(C) Not later than 45 days after written notice is provided under
subparagraph (A) of this paragraph, the agency must conduct a meet-
450
ing 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 agree-
ment 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-
sons to comment on the application. The Secretary shall make a final deci-
sion 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 reve-
nue) 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
system; 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 im-
pose 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
objectives 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
before October 1, 1993, if, during the fiscal year ending September 30,
451
1993, the amount available for obligation under subchapter II of chap-
ter 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 reduc-
tions applied proportionately to appropriations accounts through-
out 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
agency that has received an approval to impose a fee under this
section before September 30, 1993, regardless of whether the fee
is being imposed 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 agen-
cy 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 relat-
ed to a project whose construction or expansion was financed with a pas-
senger facility fee may not restrict the eligible agency from financing, devel-
oping, or assigning new capacity at the airport with passenger facility reve-
nue.
(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 es-
tablish 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 sec-
tion, the Secretary shall prescribe regulations requiring recordkeeping and
452
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 impos-
ing the fee.
(2) The Secretary periodically shall audit and review the use by an eligi-
ble 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 passenger 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 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
department, agency, or instrumentality of the United States Government
shall take necessary steps to ensure that the transportation of passengers
and property 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
arrangement under which payment is made by the Government or
453
payment is made from amounts provided for the use of the Gov-
ernment; 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 regula-
tion 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.
(b) TRANSPORTATION BY FOREIGN AIR CARRIERS.—This section does
not preclude the transportation of passengers and property by a foreign air
carrier 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
section 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
appropriation for transportation in violation of this section only when satis-
factory proof is presented showing the necessity for the transportation.
(d) TRANSPORTATION
BY FOREIGN AIR CARRIERS.—Notwithstanding
subsections (a) and (c) of this section, any amount appropriated to the Sec-
retary of State, the Director of the United States Information Agency, the
Director of the United States International Development Cooperation Agen-
cy, 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 Depart-
ment of State or one of those agencies, a dependent of the officer or em-
ployee, and accompanying baggage, by a foreign air carrier when the trans-
portation is between 2 places outside the United States.
(e) RELATIONSHIP TO OTHER LAWS.—This section does not affect the
application of the antidiscrimination provisions of this part.
§ 40119. Security and research and development activities
(a) GENERAL REQUIREMENTS.—The Administrator of the Federal Avia-
tion Administration shall conduct research (including behavioral research)
and development activities appropriate to develop, modify, test, and evaluate
a system, procedure, facility, or device to protect passengers and property
against acts of criminal violence and aircraft piracy.
454
(b) DISCLOSURE.—(1) Notwithstanding section 552 of title 5, the Admin-
istrator shall prescribe regulations prohibiting disclosure of information ob-
tained or developed in carrying out security or research and development
activities 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 Administrator 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.
(2) Paragraph (1) of this subsection does not authorize information to
be withheld from a committee of Congress authorized to have the informa-
tion.
(c) TRANSFERS OF DUTIES AND POWERS PROHIBITED.—Except as oth-
erwise 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 Govern-
ment 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.
455
41110.
Effective periods and amendments, modifications, suspensions, and revocations of cer-
tificates.
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
authorizing the charter air transportation; and
(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 au-
thority—
(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 author-
izing 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.
456
(2) In addition to the findings under paragraph (1) of this subsection,
the Secretary, before issuing a certificate under subsection (a) of this sec-
tion for foreign air transportation, must find that the transportation is con-
sistent 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 tem-
porary authority) when the Secretary decides that a test period is desir-
able—
(1) to decide if the projected services, efficiencies, methods, and
prices and the projected results will materialize and remain for a sus-
tained period of time; or
(2) to evaluate the new transportation.
(d) FOREIGN AIR TRANSPORTATION.—The Secretary shall submit each
decision authorizing the provision of foreign air transportation to the Presi-
dent 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
provide any part of the all-cargo air transportation applied for unless the
Secretary 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
necessary when issuing a certificate under this section. However, the Sec-
retary 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 proce-
dures prescribed under section 41101(a)(1); and
457
(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
regulation or issue an order restricting the marketability, flexibility, acces-
sibility, or variety of charter air transportation provided under a certificate
issued under section 41102 of this title only to the extent required by the
public interest. A regulation prescribed or order issued under this subsection
may not be more restrictive than a regulation related to charter air trans-
portation that was in effect on October 1, 1978.
(b) ALASKA.—An air carrier holding a certificate issued under section
41102 of this title may provide charter air transportation between places
in Alaska only to the extent the Secretary decides the transportation is re-
quired by public convenience and necessity. The Secretary may make that
decision when issuing, amending, or modifying the certificate. This sub-
section does not apply to a certificate issued under section 41102 to a citi-
zen of the United States who, before July 1, 1977—
(1) maintained a principal place of business in Alaska; and
(2) conducted air transport operations between places in Alaska with
aircraft with a certificate for gross takeoff weight of more than 40,000
pounds.
(c) SUSPENSIONS.—(1) The Secretary shall suspend for not more than
30 days any part of the certificate of a charter air carrier if the Secretary
decides that the failure of the carrier to comply with the requirements de-
scribed in sections 41110(e) and 41112 of this title, or a regulation or order
of the Secretary under section 41110(e) or 41112, requires immediate sus-
pension in the interest of the rights, welfare, or safety of the public. The
Secretary may act under this paragraph without notice or a hearing.
(2) The Secretary shall begin immediately a hearing to decide if the cer-
tificate referred to in paragraph (1) of this subsection should be amended,
modified, suspended, or revoked. Until the hearing is completed, the Sec-
retary may suspend the certificate for additional periods totaling not more
than 60 days. If the Secretary decides that the carrier is complying with
the requirements described in sections 41110(e) and 41112 of this title and
regulations and orders under sections 41110(e) and 41112, the Secretary
immediately may end the suspension period and proceeding begun under
this subsection. However, the Secretary is not prevented from imposing a
458
civil penalty on the carrier for violating the requirements described in sec-
tion 41110(e) or 41112 or a regulation or order under section 41110(e) or
41112.
§ 41105. Transfers of certificates
(a) GENERAL.—A certificate issued under section 41102 of this title may
be transferred only when the Secretary of Transportation approves the
transfer as being consistent with the public interest.
(b) CERTIFICATION TO CONGRESS.—When a certificate is transferred, the
Secretary shall certify to the Committee on Commerce, Science, and Trans-
portation of the Senate and the Committee on Public Works and Transpor-
tation of the House of Representatives that the transfer is consistent with
the public interest. The Secretary shall include with the certification a re-
port analyzing the effects of the transfer on—
(1) the viability of each carrier involved in the transfer;
(2) competition in the domestic airline industry; and
(3) the trade position of the United States in the international air
transportation market.
§ 41106. Airlift service
(a) GENERAL.—(1) Except as provided in subsection (b) of this section,
the transportation of passengers or property by transport category aircraft
in interstate air transportation obtained by the Secretary of Defense or the
Secretary of a military department through a contract of at least 31 days
for airlift service in the United States may be provided only by an air car-
rier that—
(A) has aircraft in the civil reserve air fleet or offers to place the
aircraft in that fleet; and
(B) holds a certificate issued under section 41102 of this title.
(2) The Secretary of Transportation shall act as expeditiously as possible
on an application for a certificate under section 41102 of this title to pro-
vide airlift service.
(b) EXCEPTION.—When the Secretary of Defense decides that no air car-
rier holding a certificate under section 41102 is capable of providing, and
willing to provide, the airlift service, the Secretary of Defense may make
a contract to provide the service with an air carrier not having a certificate.
§ 41107. Transportation of mail
When the United States Postal Service finds that the needs of the Postal
Service require the transportation of mail by aircraft in foreign air transpor-
tation or between places in Alaska, in addition to the transportation of mail
authorized under certificates in effect, the Postal Service shall certify that
finding to the Secretary of Transportation with a statement about the addi-
tional transportation and facilities necessary to provide the additional trans-
459
portation. A copy of each certification and statement shall be posted for at
least 20 days in the office of the Secretary. After notice and an opportunity
for a hearing, the Secretary shall issue a new certificate under section
41102 of this title, or amend or modify an existing certificate under section
41110(a)(2)(A) of this title, to provide the additional transportation and fa-
cilities if the Secretary finds the additional transportation is required by the
public convenience and necessity.
§ 41108. Applications for certificates
(a) FORM, CONTENTS, AND PROOF OF SERVICE.—To be issued a certifi-
cate of public convenience and necessity under section 41102 of this title,
a citizen of the United States must apply to the Secretary of Transpor-
tation. The application must—
(1) be in the form and contain information required by regulations
of the Secretary; and
(2) be accompanied by proof of service on interested persons as re-
quired by regulations of the Secretary and on each community that
may be affected by the issuance of the certificate.
(b) NOTICE, RESPONSE, AND ACTIONS ON APPLICATIONS.—(1) When an
application is filed, the Secretary shall post a notice of the application in
the office of the Secretary and give notice of the application to other per-
sons as required by regulations of the Secretary. An interested person may
file a response with the Secretary opposing or supporting the issuance of
the certificate. Not later than 90 days after the application is filed, the Sec-
retary shall—
(A) provide an opportunity for a public hearing on the application;
(B) begin the procedure under section 41111 of this title; or
(C) dismiss the application on its merits.
(2) An order of dismissal issued by the Secretary under paragraph (1)(C)
of this subsection is a final order and may be reviewed judicially under sec-
tion 46110 of this title.
(3) If the Secretary provides an opportunity for a hearing under para-
graph (1)(A) of this subsection, an initial or recommended decision shall be
issued not later than 150 days after the date the Secretary provides the op-
portunity. The Secretary shall issue a final order on the application not
later than 90 days after the decision is issued. However, if the Secretary
does not act within the 90-day period, the initial or recommended decision
on an application to provide—
(A) interstate air transportation is a final order and may be reviewed
judicially under section 46110 of this title; and
(B) foreign air transportation shall be submitted to the President
under section 41307 of this title.
460
(4) If the Secretary acts under paragraph (1)(B) of this subsection, the
Secretary shall issue a final order on the application not later than 180 days
after beginning the procedure on the application.
(5) If a citizen applying for a certificate does not meet the procedural
schedule adopted by the Secretary in a proceeding, the Secretary may ex-
tend the period for acting under paragraphs (3) and (4) of this subsection
by a period equal to the period of delay caused by the citizen. In addition
to an extension under this paragraph, an initial or recommended decision
under paragraph (3) of this subsection may be delayed for not more than
30 days in extraordinary circumstances.
(c) PROOF REQUIREMENTS.—(1) A citizen applying for a certificate must
prove that the citizen is fit, willing, and able to provide the transportation
referred to in section 41102 of this title and to comply with this part.
(2) A person opposing a citizen applying for a certificate must prove that
the transportation referred to in section 41102(b)(2) of this title is not con-
sistent with the public convenience and necessity. The transportation is
deemed to be consistent with the public convenience and necessity unless the
Secretary finds, by a preponderance of the evidence, that the transportation
is not consistent with the public convenience and necessity.
§ 41109. Terms of certificates
(a) GENERAL.—(1) Each certificate issued under section 41102 of this
title shall specify the type of transportation to be provided.
(2) The Secretary of Transportation—
(A) may prescribe terms for providing air transportation under the
certificate that the Secretary finds may be required in the public inter-
est; but
(B) may not prescribe a term preventing an air carrier from adding
or changing schedules, equipment, accommodations, and facilities for
providing the authorized transportation to satisfy business development
and public demand.
(3) A certificate issued under section 41102 of this title to provide foreign
air transportation shall specify the places between which the air carrier is
authorized to provide the transportation only to the extent the Secretary
considers practicable and otherwise only shall specify each general route to
be followed. The Secretary shall authorize an air carrier holding a certificate
to provide foreign air transportation to handle and transport mail of coun-
tries other than the United States.
(4) A certificate issued under section 41102 of this title to provide foreign
charter air transportation shall specify the places between which the air car-
rier is authorized to provide the transportation only to the extent the Sec-
461
retary considers practicable and otherwise only shall specify each geographi-
cal area in which, or between which, the transportation may be provided.
(b) MODIFYING TERMS.—(1) An air carrier may file with the Secretary
an application to modify any term of its certificate issued under section
41102 of this title to provide interstate or foreign air transportation. Not
later than 60 days after an application is filed, the Secretary shall—
(A) provide the carrier an opportunity for an oral evidentiary hearing
on the record; or
(B) begin to consider the application under section 41111 of this
title.
(2) The Secretary shall modify each term the Secretary finds to be incon-
sistent with the criteria under section 40101(a) and (b) of this title.
(3) An application under this subsection may not be dismissed under sec-
tion 41108(b)(1)(C) of this title.
§ 41110. Effective periods and amendments, modifications,
suspensions, and revocations of certificates
(a) GENERAL.—(1) Each certificate issued under section 41102 of this
title is effective from the date specified in it and remains in effect until—
(A) the Secretary of Transportation suspends or revokes the certifi-
cate under this section;
(B) the end of the period the Secretary specifies for an air carrier
having a certificate of temporary authority issued under section
41102(a)(2) of this title; or
(C) the Secretary certifies that transportation is no longer being pro-
vided under a certificate.
(2) On application or on the initiative of the Secretary and after notice
and an opportunity for a hearing or, except as provided in paragraph (4)
of this subsection, under section 41111 of this title, the Secretary may—
(A) amend, modify, or suspend any part of a certificate if the Sec-
retary finds the public convenience and necessity require amendment,
modification, or suspension; and
(B) revoke any part of a certificate if the Secretary finds that the
holder of the certificate intentionally does not comply with this chapter,
sections 41308–41310(a), 41501, 41503, 41504, 41506, 41510, 41511,
41701, 41702, 41705–41709, 41711, 41712, and 41731–41742, chap-
ter 419, subchapter II of chapter 421, and section 46301(b) of this
title, a regulation or order of the Secretary under any of those provi-
sions, or a term of its certificate.
(3) The Secretary may revoke a certificate under paragraph (2)(B) of
this subsection only if the holder of the certificate does not comply, within
462
a reasonable time the Secretary specifies, with an order to the holder requir-
ing compliance.
(4) A certificate to provide foreign air transportation may not be amend-
ed, modified, suspended, or revoked under section 41111 of this title if the
holder of the certificate requests an oral evidentiary hearing or the Sec-
retary finds, under all the facts and circumstances, that the hearing is re-
quired in the public interest.
(b) ALL-CARGO AIR TRANSPORTATION.—The Secretary may order that a
certificate issued under section 41103 of this title authorizing all-cargo air
transportation is ineffective if, after notice and an opportunity for a hear-
ing, the Secretary finds that the transportation is not provided to the mini-
mum extent specified by the Secretary.
(c) FOREIGN AIR TRANSPORTATION.—(1) Notwithstanding subsection
(a)(2)–(4) of this section, after notice and a reasonable opportunity for the
affected air carrier to present its views, but without a hearing, the Secretary
may suspend or revoke the authority of an air carrier to provide foreign air
transportation to a place under a certificate issued under section 41102 of
this title if the carrier—
(A) notifies the Secretary, under section 41734(a) of this title or a
regulation of the Secretary, that it intends to suspend all transpor-
tation to that place; or
(B) does not provide regularly scheduled transportation to the place
for 90 days immediately before the date the Secretary notifies the car-
rier of the action the Secretary proposes.
(2) Paragraph (1)(B) of this subsection does not apply to a place pro-
vided seasonal transportation comparable to the transportation provided
during the prior year.
(d) TEMPORARY CERTIFICATES.—On application or on the initiative of
the Secretary, the Secretary may—
(1) review the performance of an air carrier issued a certificate
under section 41102(c) of this title on the basis that the air carrier
will provide innovative or low-priced air transportation under the cer-
tificate; and
(2) amend, modify, suspend, or revoke the certificate or authority
under subsection (a)(2) or (c) of this section if the air carrier has not
provided, or is not providing, the transportation.
(e) CONTINUING REQUIREMENTS.—After notice and an opportunity for a
hearing, the Secretary shall amend, modify, suspend, or revoke any part of
a certificate issued under section 41102 of this title if the Secretary finds
that the air carrier—
463
(1) is not fit, willing, and able to continue to provide the transpor-
tation authorized by the certificate and to comply with this part and
regulations of the Secretary; or
(2) does not file reports necessary for the Secretary to decide if the
carrier is complying with the requirements of clause (1) of this sub-
section.
(f) ILLEGAL IMPORTATION
OF CONTROLLED SUBSTANCES.—The Sec-
retary—
(1) in consultation with appropriate departments, agencies, and in-
strumentalities of the United States Government, shall reexamine im-
mediately the fitness of an air carrier that—
(A) violates the laws and regulations of the United States relat-
ed to the illegal importation of a controlled substance; or
(B) does not adopt available measures to prevent the illegal im-
portation of a controlled substance into the United States on its
aircraft; and
(2) when appropriate, shall amend, modify, suspend, or revoke the
certificate of the carrier issued under this chapter.
(g) RESPONSES.—An interested person may file a response with the Sec-
retary opposing or supporting the amendment, modification, suspension, or
revocation of a certificate under subsection (a) of this section.
§ 41111. Simplified procedure to apply for, amend, modify,
suspend, and transfer certificates
(a) GENERAL REQUIREMENTS.—(1) The Secretary of Transportation
shall prescribe regulations that simplify the procedure for—
(A) acting on an application for a certificate to provide air transpor-
tation under section 41102 of this title; and
(B) amending, modifying, suspending, or transferring any part of
that certificate under section 41105 or 41110(a) or (c) of this title.
(2) Regulations under this section shall provide for notice and an oppor-
tunity for each interested person to file appropriate written evidence and ar-
gument. An oral evidentiary hearing is not required to be provided under
this section.
(b) WHEN SIMPLIFIED PROCEDURE USED.—The Secretary may use the
simplified procedure to act on an application for a certificate to provide air
transportation under section 41102 of this title, or to amend, modify, sus-
pend, or transfer any part of that certificate under section 41105 or
41110(a) or (c) of this title, when the Secretary decides the use of the pro-
cedure is in the public interest.
464
(c) CONTENTS.—(1) To the extent the Secretary finds practicable, regula-
tions under this section shall include each standard the Secretary will apply
when—
(A) deciding whether to use the simplified procedure; and
(B) making a decision on an action in which the procedure is used.
(2) The regulations may provide that written evidence and argument may
be filed under section 41108(b) of this title as a part of a response opposing
or supporting the issuance of a certificate.
§ 41112. Liability insurance and financial responsibility
(a) LIABILITY INSURANCE.—The Secretary of Transportation may issue
a certificate to a citizen of the United States to provide air transportation
as an air carrier under section 41102 of this title only if the citizen complies
with regulations and orders of the Secretary governing the filing of an in-
surance policy or self-insurance plan approved by the Secretary. The policy
or plan must be sufficient to pay, not more than the amount of the insur-
ance, for bodily injury to, or death of, an individual or for loss of, or dam-
age to, property of others, resulting from the operation or maintenance of
the aircraft under the certificate. A certificate does not remain in effect un-
less the carrier complies with this subsection.
(b) FINANCIAL RESPONSIBILITY.—To protect passengers and shippers
using an aircraft operated by an air carrier issued a certificate under sec-
tion 41102 of this title, the Secretary may require the carrier to file a per-
formance bond or equivalent security in the amount and on terms the Sec-
retary prescribes. The bond or security must be sufficient to ensure the car-
rier adequately will pay the passengers and shippers when the transpor-
tation the carrier agrees to provide is not provided. The Secretary shall pre-
scribe the amounts to be paid under this subsection.
CHAPTER 413—FOREIGN AIR TRANSPORTATION
Sec.
41301.
Requirement for a permit.
41302.
Permits of foreign air carriers.
41303.
Transfers of permits.
41304.
Effective periods and amendments, modifications, suspensions, and revocations of per-
mits.
41305.
Applications for permits.
41306.
Simplified procedure to apply for, amend, modify, and suspend permits.
41307.
Presidential review of actions about foreign air transportation.
41308.
Exemption from the antitrust laws.
41309.
Cooperative agreements and requests.
41310.
Discriminatory practices.
§ 41301. Requirement for a permit
A foreign air carrier may provide foreign air transportation only if the
foreign air carrier holds a permit issued under this chapter authorizing the
foreign air transportation.
465
§ 41302. Permits of foreign air carriers
The Secretary of Transportation may issue a permit to a person (except
a citizen of the United States) authorizing the person to provide foreign air
transportation as a foreign air carrier if the Secretary finds that—
(1) the person is fit, willing, and able to provide the foreign air
transportation to be authorized by the permit and to comply with this
part and regulations of the Secretary; and
(2)(A) the person is qualified, and has been designated by the gov-
ernment of its country, to provide the foreign air transportation under
an agreement with the United States Government; or
(B) the foreign air transportation to be provided under the permit
will be in the public interest.
§ 41303. Transfers of permits
A permit issued under section 41302 of this title may be transferred only
when the Secretary of Transportation approves the transfer because the
transfer is in the public interest.
§ 41304. Effective periods and amendments, modifications,
suspensions, and revocations of permits
(a) GENERAL.—The Secretary of Transportation may prescribe the pe-
riod during which a permit issued under section 41302 of this title is in
effect. After notice and an opportunity for a hearing, the Secretary may
amend, modify, suspend, or revoke the permit if the Secretary finds that
action to be in the public interest.
(b) SUSPENSIONS AND RESTRICTIONS.—Without a hearing, but subject
to the approval of the President, the Secretary—
(1) may suspend summarily the permits of foreign air carriers of a
foreign country, or amend, modify, or limit the operations of the for-
eign air carriers under the permits, when the Secretary finds—
(A) the action is in the public interest; and
(B) the government, an aeronautical authority, or a foreign air
carrier of the foreign country, over the objection of the United
States Government, has—
(i) limited or denied the operating rights of an air carrier;
or
(ii) engaged in unfair, discriminatory, or restrictive prac-
tices that have a substantial adverse competitive impact on an
air carrier related to air transportation to, from, through, or
over the territory of the foreign country; and
(2) to make this subsection effective, may restrict operations between
the United States and the foreign country by a foreign air carrier of
a third country.
466
(c) ILLEGAL IMPORTATION OF CONTROLLED SUBSTANCES.—The Sec-
retary—
(1) in consultation with appropriate departments, agencies, and in-
strumentalities of the Government, shall reexamine immediately the fit-
ness of a foreign air carrier that—
(A) violates the laws and regulations of the United States relat-
ed to the illegal importation of a controlled substance; or
(B) does not adopt available measures to prevent the illegal im-
portation of a controlled substance into the United States on its
aircraft; and
(2) when appropriate, shall amend, modify, suspend, or revoke the
permit of the carrier issued under this chapter.
(d) RESPONSES.—An interested person may file a response with the Sec-
retary opposing or supporting the amendment, modification, suspension, or
revocation of a permit under subsection (a) of this section.
§ 41305. Applications for permits
(a) FORM, CONTENTS, NOTICE, RESPONSE, AND ACTIONS ON APPLICA-
TIONS.—(1) A person must apply in writing to the Secretary of Transpor-
tation to be issued a permit under section 41302 of this title. The Secretary
shall prescribe regulations to require that the application be—
(A) verified;
(B) in a certain form and contain certain information;
(C) served on interested persons; and
(D) accompanied by proof of service on those persons.
(2) When an application is filed, the Secretary shall post a notice of the
application in the office of the Secretary and give notice of the application
to other persons as required by regulations of the Secretary. An interested
person may file a response with the Secretary opposing or supporting the
issuance of the permit. The Secretary shall act on an application as expedi-
tiously as possible.
(b) TERMS.—The Secretary may impose terms for providing foreign air
transportation under the permit that the Secretary finds may be required
in the public interest.
§ 41306. Simplified procedure to apply for, amend, modify,
and suspend permits
(a) REGULATIONS.—The Secretary of Transportation shall prescribe reg-
ulations that simplify the procedure for—
(1) acting on an application for a permit to provide foreign air trans-
portation under section 41302 of this title; and
(2) amending, modifying, or suspending any part of that permit
under section 41304(a) or (b) of this title.
467
(b) NOTICE AND OPPORTUNITY TO RESPOND.—Regulations under this
section shall provide for notice and an opportunity for each interested per-
son to file appropriate written evidence and argument. An oral evidentiary
hearing is not required to be provided under this section.
§ 41307. Presidential review of actions about foreign air
transportation
The Secretary of Transportation shall submit to the President for review
each decision of the Secretary to issue, deny, amend, modify, suspend, re-
voke, or transfer a certificate issued under section 41102 of this title au-
thorizing an air carrier, or a permit issued under section 41302 of this title
authorizing a foreign air carrier, to provide foreign air transportation. The
President may disapprove the decision of the Secretary only if the reason
for disapproval is based on foreign relations or national defense consider-
ations that are under the jurisdiction of the President. The President may
not disapprove a decision of the Secretary if the reason is economic or relat-
ed to carrier selection. A decision of the Secretary—
(1) is void if the President disapproves the decision and publishes
the reasons (to the extent allowed by national security) for disapproval
not later than 60 days after it is submitted to the President; or
(2)(A) takes effect as a decision of the Secretary if the President
does not disapprove the decision not later than 60 days after the deci-
sion is submitted to the President; and
(B) when effective, may be reviewed judicially under section 46110
of this title.
§ 41308. Exemption from the antitrust laws
(a) DEFINITION.—In this section, ‘‘antitrust laws’’ has the same meaning
given that term in the first section of the Clayton Act (15 U.S.C. 12).
(b) EXEMPTION AUTHORIZED.—When the Secretary of Transportation
decides it is required by the public interest, the Secretary, as part of an
order under section 41309 or 42111 of this title, may exempt a person af-
fected by the order from the antitrust laws to the extent necessary to allow
the person to proceed with the transaction specifically approved by the order
and with any transaction necessarily contemplated by the order.
(c) EXEMPTION REQUIRED.—In an order under section 41309 of this
title approving an agreement, request, modification, or cancellation, the Sec-
retary, on the basis of the findings required under section 41309(b)(1), shall
exempt a person affected by the order from the antitrust laws to the extent
necessary to allow the person to proceed with the transaction specifically ap-
proved by the order and with any transaction necessarily contemplated by
the order.
468
§ 41309. Cooperative agreements and requests
(a) FILING.—An air carrier or foreign air carrier may file with the Sec-
retary of Transportation a true copy of or, if oral, a true and complete
memorandum of, an agreement (except an agreement related to interstate
air transportation), or a request for authority to discuss cooperative ar-
rangements (except arrangements related to interstate air transportation),
and any modification or cancellation of an agreement, between the air car-
rier or foreign air carrier and another air carrier, a foreign carrier, or an-
other carrier.
(b) APPROVAL.—The Secretary of Transportation shall approve an agree-
ment, request, modification, or cancellation referred to in subsection (a) of
this section when the Secretary finds it is not adverse to the public interest
and is not in violation of this part. However, the Secretary shall dis-
approve—
(1) or, after periodic review, end approval of, an agreement, request,
modification, or cancellation, that substantially reduces or eliminates
competition unless the Secretary finds that—
(A) the agreement, request, modification, or cancellation is nec-
essary to meet a serious transportation need or to achieve impor-
tant public benefits (including international comity and foreign
policy considerations); and
(B) the transportation need cannot be met or those benefits
cannot be achieved by reasonably available alternatives that are
materially less anticompetitive; or
(2) an agreement that—
(A) is between an air carrier not directly operating aircraft in
foreign air transportation and a common carrier subject to subtitle
IV of this title; and
(B) governs the compensation the common carrier may receive
for the transportation.
(c) NOTICE AND OPPORTUNITY TO RESPOND OR FOR HEARING.—(1)
When an agreement, request, modification, or cancellation is filed, the Sec-
retary of Transportation shall give the Attorney General and the Secretary
of State written notice of, and an opportunity to submit written comments
about, the filing. On the initiative of the Secretary of Transportation or on
request of the Attorney General or Secretary of State, the Secretary of
Transportation may conduct a hearing to decide whether an agreement, re-
quest, modification, or cancellation is consistent with this part whether or
not it was approved previously.
(2) In a proceeding before the Secretary of Transportation applying
standards under subsection (b)(1) of this section, a party opposing an
469
agreement, request, modification, or cancellation has the burden of proving
that it substantially reduces or eliminates competition and that less anti-
competitive alternatives are available. The party defending the agreement,
request, modification, or cancellation has the burden of proving the trans-
portation need or public benefits.
(3) The Secretary of Transportation shall include the findings required
by subsection (b)(1) of this section in an order of the Secretary approving
or disapproving an agreement, request, modification, or cancellation.
§ 41310. Discriminatory practices
(a) PROHIBITION.—An air carrier or foreign air carrier may not subject
a person, place, port, or type of traffic in foreign air transportation to un-
reasonable discrimination.
(b) 
REVIEW
AND
NEGOTIATION
OF
DISCRIMINATORY
FOREIGN
CHARGES.—(1) The Secretary of Transportation shall survey charges im-
posed on an air carrier by the government of a foreign country or another
foreign entity for the use of airport property or airway property in foreign
air transportation. If the Secretary of Transportation decides that a charge
is discriminatory, the Secretary promptly shall report the decision to the
Secretary of State. The Secretaries of State and Transportation promptly
shall begin negotiations with the appropriate government to end the dis-
crimination. If the discrimination is not ended in a reasonable time through
negotiation, the Secretary of Transportation shall establish a compensating
charge equal to the discriminatory charge. With the approval of the Sec-
retary of State, the Secretary of the Treasury shall impose the compensat-
ing charge on a foreign air carrier of that country as a condition to accept-
ing the general declaration of the aircraft of the foreign air carrier when
it lands or takes off.
(2) The Secretary of the Treasury shall maintain an account to credit
money collected under paragraph (1) of this subsection. An air carrier shall
be paid from the account an amount certified by the Secretary of Transpor-
tation to compensate the air carrier for the discriminatory charge paid to
the government.
(c) ACTIONS AGAINST DISCRIMINATORY ACTIVITY.—(1) The Secretary of
Transportation may take actions the Secretary considers are in the public
interest to eliminate an activity of a government of a foreign country or an-
other foreign entity, including a foreign air carrier, when the Secretary, on
the initiative of the Secretary or on complaint, decides that the activity—
(A) is an unjustifiable or unreasonable discriminatory, predatory, or
anticompetitive practice against an air carrier; or
(B) imposes an unjustifiable or unreasonable restriction on access of
an air carrier to a foreign market.
470
(2) The Secretary of Transportation may deny, amend, modify, suspend,
revoke, or transfer under paragraph (1) of this subsection a foreign air car-
rier permit or tariff under section 41302, 41303, 41304(a), 41504(c),
41507, or 41509 of this title.
(d) FILING OF, AND ACTING ON, COMPLAINTS.—(1) An air carrier or a
department, agency, or instrumentality of the United States Government
may file a complaint under subsection (c) of this section with the Secretary
of Transportation. The Secretary shall approve, deny, or dismiss the com-
plaint, set the complaint for a hearing or investigation, or begin another
proceeding proposing remedial action not later than 60 days after receiving
the complaint. The Secretary may extend the period for acting for addi-
tional periods totaling not more than 30 days if the Secretary decides that
with additional time it is likely that a complaint can be resolved satisfac-
torily through negotiations with the government of the foreign country or
foreign entity. The Secretary must act not later than 90 days after receiving
the complaint. However, the Secretary may extend this 90-day period for
not more than an additional 90 days if, on the last day of the initial 90-
day period, the Secretary finds that—
(A) negotiations with the government have progressed to a point that
a satisfactory resolution of the complaint appears imminent;
(B) an air carrier has not been subjected to economic injury by the
government or entity as a result of filing the complaint; and
(C) the public interest requires additional time before the Secretary
acts on the complaint.
(2) In carrying out paragraph (1) of this subsection and subsection (c)
of this section, the Secretary of Transportation shall—
(A) solicit the views of the Secretaries of Commerce and State and
the United States Trade Representative;
(B) give an affected air carrier or foreign air carrier reasonable no-
tice and an opportunity to submit written evidence and arguments
within the time limits of this subsection; and
(C) submit to the President under section 41307 or 41509(f) of this
title actions proposed by the Secretary of Transportation.
(e) REVIEW.—(1) The Secretaries of State, the Treasury, and Transpor-
tation and the heads of other departments, agencies, and instrumentalities
of the Government shall keep under review, to the extent of each of their
jurisdictions, each form of discrimination or unfair competitive practice to
which an air carrier is subject when providing foreign air transportation.
Each Secretary and head shall—
(A) take appropriate action to eliminate any discrimination or unfair
competitive practice found to exist; and
471
(B) request Congress to enact legislation when the authority to elimi-
nate the discrimination or unfair practice is inadequate.
(2) The Secretary of Transportation shall report to Congress annually on
each action taken under paragraph (1) of this subsection and on the con-
tinuing program to eliminate discrimination and unfair competitive prac-
tices. The Secretaries of State and the Treasury each shall give the Sec-
retary of Transportation information necessary to prepare the report.
(f) REPORTS.—Not later than 30 days after acting on a complaint under
this section, the Secretary of Transportation shall report to the Committee
on Public Works and Transportation of the House of Representatives and
the Committee on Commerce, Science, and Transportation of the Senate on
action taken under this section on the complaint.
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.
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
foreign air transportation.
41509.
Authority of the Secretary of Transportation to suspend, cancel, and reject tariffs for
foreign air transportation.
41510.
Required adherence to foreign air transportation tariffs.
41511.
Special prices for foreign air transportation.
§ 41501. Establishing 
reasonable 
prices, 
classifications,
rules, practices, and divisions of joint prices for
foreign air transportation
Every air carrier and foreign air carrier shall establish, comply with, and
enforce—
(1) reasonable prices, classifications, rules, and practices related to
foreign air transportation; and
(2) for joint prices established for foreign air transportation, reason-
able divisions of those prices among the participating air carriers or
foreign air carriers without unreasonably discriminating against any of
those carriers.
§ 41502. Establishing joint prices for through routes with
other common carriers
(a) JOINT PRICES.—An air carrier may establish reasonable joint prices
and through service with another common carrier. 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 trans-
472
portation 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 es-
tablish—
(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 di-
visions 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.
§ 41503. Establishing joint prices for through routes pro-
vided by State authorized carriers
Subject to sections 41309 and 42111 of this title, a citizen of the United
States providing transportation under section 41101(b) of this title may
make an agreement with an air carrier or foreign air carrier for joint prices
for that transportation. The joint prices agreed to must be the lowest of—
(1) the sum of the applicable prices for—
(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 car-
rier 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—
473
(A) to the extent the Secretary requires by regulation, a descrip-
tion of the classifications, rules, and practices related to the for-
eign air transportation;
(B) a statement of the 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 sub-
section, an air carrier or foreign air carrier may change a price or a classi-
fication, rule, or practice affecting that price or the value of the transpor-
tation provided under that price, specified in a tariff of the carrier for for-
eign air transportation only after 30 days after the carrier has filed, pub-
lished, and posted notice of the proposed change in the same way as re-
quired for a tariff under subsection (a) of this section. However, the Sec-
retary may prescribe an alternative notice requirement, of at least 25 days,
to allow an air carrier or foreign air carrier to match a proposed change
in a passenger fare or a charge of another air carrier or foreign air carrier.
A notice under this paragraph must state plainly the change proposed and
when the change will take effect.
(2) If the effect of a proposed change would be to begin a passenger 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
provides at least 5 scheduled roundtrips a week between the same 2 places.
(b) GENERAL.—Except as provided in subsection (c) of this section, when
the Secretary of Transportation prescribes under section 41508 or 41509
of this title a uniform method generally applicable to establishing joint
474
prices and divisions of joint prices for and between air carriers holding cer-
tificates 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
carrier’s routes and air transportation provided by the air carrier shall give
the air carrier and the Secretary at least 90 days’ notice before modifying,
suspending, or ending the transportation. If the commuter air carrier does
not give that notice, the uniform method of establishing joint prices and di-
visions 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
divisions 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
unreasonably 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
collecting the discriminatory price or carrying out the discriminatory
classification, rule, or practice.
(b) WHEN SECRETARY MAY ACT.—The Secretary may act under this sec-
tion on the Secretary’s own initiative or on a complaint filed with the Sec-
retary and only after notice and an opportunity for a hearing.
§ 41508. Authority of the Secretary of Transportation to ad-
just divisions of joint prices for foreign air trans-
portation
(a) GENERAL.—When the Secretary of Transportation decides that a di-
vision between air carriers, foreign air carriers, or both, of a joint price for
475
foreign air transportation is or will be unreasonable or unreasonably dis-
criminatory against any of those carriers, the Secretary shall prescribe a
reasonable division of the joint price among those carriers. The Secretary
may order the adjustment in the division of the joint price to be made retro-
actively to the date the complaint was filed, the date the order for an inves-
tigation was made, or a later date the Secretary decides is reasonable.
(b) WHEN SECRETARY MAY ACT.—The Secretary may act under this sec-
tion on the Secretary’s own initiative or on a complaint filed with the Sec-
retary and only after notice and an opportunity for a hearing.
§ 41509. Authority of the Secretary of Transportation to
suspend, cancel, and reject tariffs for foreign air
transportation
(a) CANCELLATION AND REJECTION.—(1) On the initiative of the Sec-
retary of Transportation or on a complaint filed with the Secretary, the Sec-
retary may conduct a hearing to decide whether a price for foreign air
transportation contained in an existing or newly filed tariff of an air carrier
or foreign air carrier, a classification, rule, or practice affecting that price,
or the value of the transportation provided under that price, is lawful. The
Secretary may begin the hearing at once and without an answer or another
formal pleading by the air carrier or foreign air carrier, but only after rea-
sonable notice. If, after the hearing, the Secretary decides that the price,
classification, rule, or practice is or will be unreasonable or unreasonably
discriminatory, 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 ex-
isting 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
cancellation or rejection is in the public interest.
(3) In deciding whether to cancel or reject a tariff of an air carrier or
foreign air carrier under this subsection, the Secretary shall consider—
(A) the effect of the price on the movement of traffic;
(B) the need in the public interest of adequate and efficient trans-
portation by air carriers and foreign air carriers at the lowest cost con-
sistent with providing the transportation;
(C) the standards prescribed under law related to the character and
quality of transportation to be provided by air carriers and foreign air
carriers;
(D) the inherent advantages of transportation by aircraft;
(E) the need of the air carrier and foreign air carrier for revenue
sufficient to enable the air carrier and foreign air carrier, under honest,
476
economical, and efficient management, to provide adequate and effi-
cient air carrier and foreign air carrier transportation;
(F) whether the price will be predatory or tend to monopolize com-
petition among air carriers and foreign air carriers in foreign air trans-
portation;
(G) reasonably estimated or foreseeable future costs and revenues for
the air carrier or foreign air carrier for a reasonably limited future pe-
riod during which the 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 suspen-
sion a written statement of the reasons for the suspension. To suspend a
tariff, reasonable notice of the suspension must be given to the affected car-
rier.
(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, classification, rule, or practice to go into effect.
(c) EFFECTIVE TARIFFS AND PRICES WHEN TARIFF IS SUSPENDED,
CANCELED, OR REJECTED.—(1) If a tariff is suspended pending the out-
come of a proceeding under subsection (a) of this section and the Secretary
does not take final action in the proceeding during the suspension period,
the tariff goes into effect at the end of that period subject to cancellation
when the proceeding is concluded.
(2)(A) During the period of suspension, or after the cancellation or rejec-
tion, of a newly filed tariff (including a tariff that has gone into effect provi-
sionally), the affected air carrier or foreign air carrier shall maintain in ef-
fect and use—
(i) the corresponding seasonal prices, or the classifications, rules,
and practices affecting those prices or the value of transportation pro-
vided under those prices, that were in effect for the carrier immediately
before the new tariff was filed; or
477
(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
carrier for the covered transportation, the carrier, for the purpose of oper-
ations during the period of suspension or pending effectiveness of a new tar-
iff, may file another tariff containing a price or another classification, rule,
or practice affecting the price, or the value of the transportation provided
under the price, that is in effect (and not subject to a suspension order)
for any air carrier providing the same transportation.
(3) If an existing tariff is suspended or canceled, the affected air carrier
or foreign air carrier, for the purpose of operations during the period of 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
section 41504 of this title for foreign air transportation to the foreign coun-
try—
(1) the Secretary, without a hearing—
(A) may suspend any existing tariff of a foreign air carrier pro-
viding transportation between the United States and the foreign
country for periods totaling not more than 365 days after the date
of the suspension; and
(B) may order the foreign air carrier to charge, during the sus-
pension periods, 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 transpor-
tation to the foreign country; and
(2) a foreign air carrier may continue to provide foreign air trans-
portation to the foreign country only if the government or aeronautical
authority of the foreign country allows an air carrier to start or con-
tinue foreign air transportation to the foreign country at the prices des-
ignated by the Secretary.
(e) STANDARD FOREIGN FARE LEVEL.—(1)(A) In this subsection,
‘‘standard foreign fare level’’ means—
(i) for a class of fares existing on October 1, 1979, the fare between
2 places (as adjusted under subparagraph (B) of this paragraph) filed
478
for and allowed by the Civil Aeronautics Board to go into effect after
September 30, 1979, and before August 13, 1980 (with seasonal fares
adjusted by the percentage difference that prevailed between seasons in
1978), or the fare established under section 1002(j)(8) of the Federal
Aviation Act of 1958 (Public Law 85–726, 72 Stat. 731), as added by
section 24(a) of the International Air Transportation Competition Act
of 1979 (Public Law 96–192, 94 Stat. 46); or
(ii) for a class of fares established after October 1, 1979, the fare
between 2 places in effect on the effective date of the establishment of
the new class.
(B) At least once every 60 days for fuel costs, and at least once every
180 days for other costs, the Secretary shall adjust the standard foreign
fare level for the particular foreign air transportation to which the standard
foreign fare level applies by increasing or decreasing that level by the per-
centage change from the last previous period in the actual operating cost
for each available seat-mile. In adjusting a standard foreign fare level, the
Secretary may not make an adjustment to costs actually incurred. In estab-
lishing a standard foreign fare level and making adjustments in the level
under this paragraph, the Secretary may use all relevant or appropriate in-
formation reasonably available to the Secretary.
(2) The Secretary may not decide that a proposed fare for foreign air
transportation is unreasonable on the basis that the fare is too low or too
high if the proposed fare is neither more than 5 percent higher nor 50 per-
cent lower than the standard foreign fare level for the same or essentially
similar class of transportation. The Secretary by regulation may increase
the 50 percent specified in this paragraph.
(3) Paragraph (2) of this subsection does not apply to a proposed fare
that is not more than—
(A) 5 percent higher than the standard foreign fare level when the
Secretary decides that the proposed fare may be unreasonably discrimi-
natory or that suspension of the fare is in the public interest because
of an unreasonable regulatory action by the government of a foreign
country that is related to a fare proposal of an air carrier; or
(B) 50 percent lower than the standard foreign fare level when the
Secretary decides that the proposed fare may be predatory or discrimi-
natory or that suspension of the fare is required because of an unrea-
sonable regulatory action by the government of a foreign country that
is related to a fare proposal of an air carrier.
(f) SUBMISSION OF ORDERS TO PRESIDENT.—The Secretary shall submit
to the President an order made under this section suspending, canceling,
or rejecting a price for foreign air transportation, and an order rescinding
479
the effectiveness of such an order, before publishing the order. Not later
than 10 days after its submission, the President may disapprove the order
on finding disapproval is necessary for United States foreign policy or na-
tional defense reasons.
(g) COMPLIANCE AS CONDITION OF CERTIFICATE OR PERMIT.—This sec-
tion and compliance with an order of the Secretary under this section are
conditions to any certificate or permit held by an air carrier or foreign air
carrier. An air carrier or foreign air carrier may provide foreign air trans-
portation only as long as the carrier maintains prices for that transportation
that comply with this section and orders of the Secretary under this section.
§ 41510. Required adherence to foreign air transportation
tariffs
(a) PROHIBITED ACTIONS BY AIR CARRIERS, FOREIGN AIR 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.
(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 re-
duced-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).
480
(2) a parent or the immediate family of such an officer or employee
or the immediate family of such a director.
(3) a widow, widower, or minor child of an employee of the carrier
who died as a direct result of a personal injury sustained when per-
forming a duty in the service of the carrier.
(4) a witness or attorney attending a legal investigation in which the
air carrier is interested.
(5) an individual injured in an aircraft accident and a physician or
nurse attending the individual.
(6) a parent or the immediate family of an individual injured or
killed in an aircraft accident when the transportation is related to the
accident.
(7) an individual or property to provide relief in a general epidemic,
pestilence, or other emergency.
(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.
(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.
481
41737.
Compensation guidelines, limitations, and claims.
41738.
Fitness of air carriers.
41739.
Air carrier obligations.
41740.
Joint proposals.
41741.
Insurance.
41742.
Ending effective date.
SUBCHAPTER I—REQUIREMENTS
§ 41701. Classification of air carriers
The Secretary of Transportation may establish—
(1) reasonable classifications for air carriers when required because
of the nature of the transportation provided by them; and
(2) reasonable requirements for each class when the Secretary de-
cides those requirements are necessary in the public interest.
§ 41702. Interstate air transportation
An air carrier shall provide safe and adequate interstate air transpor-
tation.
§ 41703. Navigation of foreign civil aircraft
(a) PERMITTED NAVIGATION.—A foreign aircraft, not part of the armed
forces of a foreign country, may be navigated in the United States only—
(1) if the country of registry grants a similar privilege to aircraft
of the United States;
(2) by an airman holding a certificate or license issued or made valid
by the United States Government or the country of registry;
(3) if the Secretary of Transportation authorizes the navigation; and
(4) if the navigation is consistent with terms the Secretary may pre-
scribe.
(b) REQUIREMENTS
FOR AUTHORIZING NAVIGATION.—The Secretary
may authorize navigation under this section only if the Secretary decides the
authorization is—
(1) in the public interest; and
(2) consistent with any agreement between the Government and the
government of a foreign country.
(c) PROVIDING AIR COMMERCE.—The Secretary may authorize an air-
craft permitted to navigate in the United States under this section to pro-
vide air commerce in the United States. However, the aircraft may take on
for compensation, at a place in the United States, passengers or cargo des-
tined for another place in the United States only if—
(1) specifically authorized under section 40109(g) of this title; or
(2) under regulations the Secretary prescribes authorizing air car-
riers to provide otherwise authorized air transportation with foreign
registered aircraft under lease or charter to them without crew.
(d) PERMIT REQUIREMENTS NOT AFFECTED.—This section does not af-
fect section 41301 or 41302 of this title. However, a foreign air carrier
482
holding a permit under section 41302 does not need to obtain additional au-
thorization under this section for an operation authorized by the permit.
§ 41704. Transporting property not to be transported in air-
craft cabins
Under regulations or orders of the Secretary of Transportation, an air
carrier shall transport as baggage the property of a passenger traveling in
air transportation that may not be carried in an aircraft cabin because of
a law or regulation of the United States. The carrier is liable to pay an
amount not more than the amount declared to the carrier by that passenger
for actual loss of, or damage to, the property caused by the carrier. The
carrier may impose reasonable charges and conditions for its liability.
§ 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.
§ 41706. Prohibitions against smoking on scheduled flights
(a) GENERAL.—An individual may not smoke in the passenger cabin or
lavatory of an aircraft on a scheduled airline flight segment in air transpor-
tation or intrastate air transportation that is—
(1) between places in a State of the United States, the District of
Columbia, Puerto Rico, or the Virgin Islands;
(2) between a place in any jurisdiction referred to in clause (1) of
this subsection (except Alaska and Hawaii) and a place in any other
of those jurisdictions; or
(3)(A) scheduled for not more than 6 hours’ duration; and
(B)(i) between a place referred to in clause (1) of this subsection
(except Alaska and Hawaii) and Alaska or Hawaii; or
(ii) between Alaska and Hawaii.
(b) REGULATIONS.—The Secretary of Transportation shall prescribe reg-
ulations necessary to carry out this section.
§ 41707. Incorporating contract terms into written instru-
ment
To the extent the Secretary of Transportation prescribes by regulation,
an air carrier may incorporate by reference in a ticket or written instrument
any term of the contract for providing interstate air transportation.
§ 41708. Reports
(a) APPLICATION.—To the extent the Secretary of Transportation finds
necessary to carry out this subpart, this section and section 41709 of this
483
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
during which the records shall be kept. A carrier may keep only records pre-
scribed or approved by the Secretary. However, a carrier may keep addi-
tional records if the additional records do not impair the integrity of the
records prescribed or approved by the Secretary and are not an unreason-
able financial burden on the carrier.
(b) INSPECTION.—(1) The Secretary at any time may—
(A) inspect the land, buildings, and equipment of an air carrier or
foreign air carrier when necessary to decide under subchapter II of this
chapter or section 41102, 41103, or 41302 of this title whether a car-
rier is fit, willing, and able; and
(B) inspect records kept or required to be kept by an air carrier, for-
eign air carrier, or ticket agent.
(2) The Secretary may employ special agents or auditors to carry out this
subsection.
§ 41710. Time requirements
When a matter requiring action of the Secretary of Transportation is sub-
mitted under section 40109(a) or (c)–(h), 41309, or 42111 of this title and
an evidentiary hearing—
(1) is ordered, the Secretary shall make a final decision on the mat-
ter not later than the last day of the 12th month that begins after the
date the matter is submitted; or
(2) is not ordered, the Secretary shall make a final decision on the
matter not later than the last day of the 6th month that begins after
the date the matter is submitted.
484
§ 41711. Air carrier management inquiry and cooperation
with other authorities
In carrying out this subpart, the Secretary of Transportation may—
(1) inquire into the management of the business of an air carrier
and obtain from the air carrier, and a person controlling, controlled by,
or under common control with the carrier, information the Secretary
decides reasonably is necessary to carry out the inquiry;
(2) confer and hold a joint hearing with a State authority; and
(3) exchange information related to aeronautics with a government
of a foreign country through appropriate departments, agencies, and
instrumentalities of the United States Government.
§ 41712. Unfair and deceptive practices and unfair methods
of competition
On the initiative of the Secretary of Transportation or the complaint of
an air carrier, foreign air carrier, or ticket agent, and if the Secretary con-
siders it is in the public interest, the Secretary may investigate and decide
whether an air carrier, foreign air carrier, or ticket agent has been or is
engaged in an unfair or deceptive practice or an unfair method of competi-
tion in air transportation or the sale of air transportation. If the Secretary,
after notice and an opportunity for a hearing, finds that an air carrier, for-
eign air carrier, or ticket agent is engaged in an unfair or deceptive practice
or unfair method of competition, the Secretary shall order the air carrier,
foreign air carrier, or ticket agent to stop the practice or method.
§ 41713. Preemption of authority over 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, po-
litical subdivision of a State, or political authority of at least 2 States may
not enact or enforce a law, regulation, or other provision having the force
and effect of law related to a 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.
485
SUBCHAPTER II—SMALL COMMUNITY AIR SERVICE
§ 41731. Definitions
(a) GENERAL.—In this subchapter—
(1) ‘‘eligible place’’ means a place in the United States that—
(A) was an eligible point under section 419 of the Federal Avia-
tion Act of 1958 before October 1, 1988;
(B) received scheduled air transportation at any time after Jan-
uary 1, 1990; and
(C) is not listed in Department of Transportation Orders 89–
9–37 and 89–12–52 as a place ineligible for compensation under
this subchapter.
(2) ‘‘enhanced essential air service’’ means scheduled air transpor-
tation to an eligible place of a higher level or quality than basic essen-
tial air service described in section 41732 of this title.
(3) ‘‘hub airport’’ means an airport that each year has at least .25
percent of the total annual boardings in the United States.
(4) ‘‘nonhub airport’’ means an airport that each year has less than
.05 percent of the total annual boardings in the United States.
(5) ‘‘small hub airport’’ means an airport that each year has at least
.05 percent, but less than .25 percent, of the total annual boardings
in the United States.
(b) LIMITATION ON AUTHORITY TO DECIDE A PLACE NOT AN ELIGIBLE
PLACE.—The Secretary of Transportation may not decide that a place de-
scribed in subsection (a)(1) of this section is not an eligible place on the
basis of a passenger subsidy at that place or on another basis that is not
specifically stated in this subchapter.
§ 41732. Basic essential air service
(a) GENERAL.—Basic essential air service provided under section 41733
of this title is scheduled air transportation of passengers and cargo—
(1) to a hub airport that has convenient connecting or single-plane
air service to a substantial number of destinations beyond that airport;
or
(2) to a small hub or nonhub airport, when in Alaska or when the
nearest hub airport is more than 400 miles from an eligible place.
(b) MINIMUM REQUIREMENTS.—Basic essential air service shall include
at least the following:
(1)(A) for a place not in Alaska, 2 daily round trips 6 days a week,
with not more than one intermediate stop on each flight; or
(B) for a place in Alaska, a level of service at least equal to that
provided in 1976 or 2 round trips a week, whichever is greater, except
that the Secretary of Transportation and the appropriate State author-