137 
(A) by redesignating subparagraph (E) (as 
amended by paragraph (1) of this subsection) 
as subparagraph (F); and 
(B) by inserting after subparagraph (D) 
the following: 
‘‘(E) USE OF EXCESS FUNDS.—If the Sec-
retary finds that all or part of an amount made 
available under this subparagraph is not re-
quired during a fiscal year to carry out this 
paragraph, the Secretary may use, during such 
fiscal year, the amount not so required to carry 
out the program continued under paragraph 
(1).’’. 
(c) FEDERAL SHARE.—Section 47124(b)(4)(C) is 
amended 
by 
striking 
‘‘$1,500,000’’ 
and 
inserting 
‘‘$2,000,000’’. 
(d) SAFETY AUDITS.—Section 47124 is amended by 
adding at the end the following: 
‘‘(c) SAFETY AUDITS.—The Secretary shall establish 
uniform standards and requirements for safety assess-
ments of air traffic control towers that receive funding 
under this section.’’. 
SEC. 410. AIRFARES FOR MEMBERS OF THE ARMED 
FORCES. 
(a) FINDINGS.—Congress finds that—
138 
(1) the Armed Forces is comprised of approxi-
mately 1,400,000 members who are stationed on ac-
tive duty at more than 6,000 military bases in 146 
different countries; 
(2) the United States is indebted to the mem-
bers of the Armed Forces, many of whom are in 
grave danger due to their engagement in, or expo-
sure to, combat; 
(3) military service, especially in the current 
war against terrorism, often requires members of the 
Armed Forces to be separated from their families on 
short notice, for long periods of time, and under 
very stressful conditions; 
(4) the unique demands of military service often 
preclude members of the Armed Forces from pur-
chasing discounted advance airline tickets in order 
to visit their loved ones at home; and 
(5) it is the patriotic duty of the people of the 
United States to support the members of the Armed 
Forces who are defending the Nation’s interests 
around the world at great personal sacrifice. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that each United States air carrier should— 
(1) establish for all members of the Armed 
Forces on active duty reduced air fares that are
139 
comparable to the lowest airfare for ticketed flights; 
and 
(2) offer flexible terms that allow members of 
the Armed Forces on active duty to purchase, mod-
ify, or cancel tickets without time restrictions, fees, 
and penalties. 
SEC. 411. MEDICAL OXYGEN AND PORTABLE RESPIRATORY 
ASSISTIVE DEVICES. 
Not later than December 31, 2007, the Secretary of 
Transportation shall issue a final rule regarding the car-
riage and use of passenger-owned portable electronic res-
piratory assistive devices and carrier-supplied medical oxy-
gen devices aboard commercial flights to improve accom-
modations in air travel for passengers with respiratory dis-
abilities. 
SEC. 412. REPEAL OF ESSENTIAL AIR SERVICE LOCAL PAR-
TICIPATION PROGRAM. 
(a) REPEAL.—Section 41747, and the item relating 
to such section in the analysis for chapter 417, are re-
pealed. 
(b) APPLICABILITY.—Title 49, United States Code, 
shall be applied as if section 41747 of such title had not 
been enacted.
140 
SEC. 413. GAO STUDY OF ESSENTIAL AIR SERVICE SUBSIDY 
CAP. 
(a) IN GENERAL.—The Comptroller General shall ex-
amine how the $200 per passenger subsidy cap, initially 
established by Public Law 103–122 (107 Stat. 1198; 
1201) and made permanent by section 332 of Public Law 
106–69 (113 Stat. 1022) to restrict eligibility for funding 
under the essential air service program, has impacted that 
program and the access of small communities to air trans-
portation. 
(b) STUDY.—The study shall include an analysis of 
the following: 
(1) The communities that have lost eligibility 
for subsidized air service under the essential air 
service program due to the $200 per passenger sub-
sidy cap and the impact, if any, such loss of subsidy 
has had on the access of such communities to air 
transportation. 
(2) The likely effect on the essential air service 
program if the $200 per passenger subsidy cap is in-
dexed for inflation beginning in 2009. 
(3) Whether the $200 per passenger subsidy 
cap has disproportionately impacted communities in 
certain geographic areas.
141 
(4) Alternative methods of measuring the sub-
sidy rate, including the subsidy per passenger per 
mile. 
(c) REPORT
TO CONGRESS.—Not later than 18 
months after the date of enactment of this Act, the Comp-
troller General shall submit to the Committee on Trans-
portation and Infrastructure of the House of Representa-
tives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on the results of 
the study conducted under this section. 
SEC. 414. NOTICE TO COMMUNITIES PRIOR TO TERMI-
NATION OF ELIGIBILITY FOR SUBSIDIZED ES-
SENTIAL AIR SERVICE. 
Section 41733 is amended by adding at the end the 
following: 
‘‘(f) NOTICE TO COMMUNITIES PRIOR TO TERMI-
NATION OF ELIGIBILITY.— 
‘‘(1) IN GENERAL.—The Secretary shall notify 
each community receiving basic essential air service 
for which compensation is being paid under this sub-
chapter not later than 45 days before issuing any 
final decision to end the payment of such compensa-
tion due to a determination by the Secretary that 
providing such service requires a rate of subsidy per 
passenger in excess of the maximum amount speci-
142 
fied in section 332 of Public Law 106–69 (113 Stat. 
1022). 
‘‘(2) PROCEDURES TO AVOID TERMINATION.— 
The Secretary shall establish, by order, procedures 
by which each community notified of an impending 
loss of subsidy under paragraph (1) may work di-
rectly with an air carrier to ensure that the air car-
rier is able to submit a proposal to the Secretary to 
provide essential air service to such community for 
an amount of compensation that would not exceed 
the subsidy cap established by section 332 of Public 
Law 106–69. 
‘‘(3) ASSISTANCE
PROVIDED.—The Secretary 
shall provide, by order, to each community notified 
under paragraph (1) information regarding— 
‘‘(A) the procedures established pursuant 
to paragraph (2); and 
‘‘(B) the maximum amount of compensa-
tion that could be provided under this sub-
chapter to an air carrier serving such commu-
nity that would comply with the subsidy cap es-
tablished by section 332 of Public Law 106– 
69.’’.
143 
SEC. 415. RESTORATION OF ELIGIBILITY TO A PLACE DE-
TERMINED BY THE SECRETARY TO BE INELI-
GIBLE 
FOR 
SUBSIDIZED 
ESSENTIAL 
AIR 
SERVICE. 
Section 41733 (as amended by section 414 of this 
Act) is further amended by adding at the end the fol-
lowing: 
‘‘(g) PROPOSALS OF STATE AND LOCAL GOVERN-
MENTS TO RESTORE ELIGIBILITY.— 
‘‘(1) IN GENERAL.—If the Secretary ends pay-
ment of compensation to an air carrier for providing 
basic essential air service to an eligible place because 
the Secretary has determined that providing such 
service requires a rate of subsidy per passenger in 
excess of the maximum amount specified in section 
332 of Public Law 106–69 (113 Stat. 1022), a 
State or local government may submit to the Sec-
retary a proposal for restoring compensation for 
such service. Such proposal shall be a joint proposal 
of the State or local government and an air carrier. 
‘‘(2) DETERMINATION
BY
SECRETARY.—If a 
State or local government submits to the Secretary 
a proposal under paragraph (1) with respect to an 
eligible place, and the Secretary determines that— 
‘‘(A) the rate of subsidy per passenger 
under the proposal does not exceed the max-
144 
imum amount specified in section 332 of Public 
Law 106–69; and 
‘‘(B) the proposal is consistent with the 
legal and regulatory requirements of the essen-
tial air service program, 
the Secretary shall issue an order restoring the eligi-
bility of the otherwise eligible place to receive basic 
essential air service by an air carrier for compensa-
tion under subsection (c).’’. 
SEC. 416. OFFICE OF RURAL AVIATION. 
(a) IN GENERAL.—Subchapter II of chapter 417 is 
amended by adding at the end the following: 
‘‘§ 41749. Office of Rural Aviation 
‘‘(a) ESTABLISHMENT.—The Secretary of Transpor-
tation shall establish within the Department of Transpor-
tation an office to be known as the ‘Office of Rural Avia-
tion’ (in this section referred to as the ‘Office’). 
‘‘(b) FUNCTIONS.—The Office shall— 
‘‘(1) monitor the status of air service to small 
communities; 
‘‘(2) develop proposals to improve air service to 
small communities; and 
‘‘(3) carry out such other functions as the Sec-
retary considers appropriate.’’.
145 
(b) CLERICAL AMENDMENT.—The analysis for sub-
chapter II of chapter 417 is amended by adding at the 
end the following: 
‘‘41749. Office of Rural Aviation.’’. 
SEC. 417. ADJUSTMENTS TO COMPENSATION FOR SIGNIFI-
CANTLY INCREASED COSTS. 
(a) ADJUSTMENTS TO ACCOUNT FOR SIGNIFICANTLY 
INCREASED
NONFUEL
COSTS.—Section 41737(e) is 
amended— 
(1) in the subsection heading by inserting 
‘‘NONFUEL’’ before ‘‘COSTS’’; and 
(2) in paragraph (1) by inserting ‘‘other than 
fuel costs’’ before ‘‘in providing’’. 
(b) ADJUSTMENTS TO ACCOUNT FOR SIGNIFICANTLY 
INCREASED AVIATION FUEL COSTS.—Section 41737 is 
amended by adding at the end the following: 
‘‘(f) ADJUSTMENTS
TO
ACCOUNT
FOR
SIGNIFI-
CANTLY INCREASED AVIATION FUEL COSTS.— 
‘‘(1) IN GENERAL.—If the Secretary determines 
that air carriers are experiencing significantly in-
creased aviation fuel costs in providing air service or 
air transportation for which compensation is being 
paid under this subchapter, the Secretary, subject to 
the availability of funds, shall increase the rates of 
compensation payable to air carriers under this sub-
chapter without regard to any agreement or require-
146 
ment relating to the renegotiation of contracts or 
any notice requirement under section 41734. 
‘‘(2) READJUSTMENT IF COSTS SUBSEQUENTLY 
DECLINE.—If an adjustment is made under para-
graph (1) with respect to the rates of compensation 
payable to air carriers, and the Secretary subse-
quently determines that there is a significant de-
crease in aviation fuel costs, the Secretary shall re-
duce the adjustment previously made under para-
graph (1) without regard to any agreement or re-
quirement relating to the renegotiation of contracts 
or any notice requirement under section 41734. 
‘‘(3) DEFINITIONS.—In this subsection, the fol-
lowing definitions apply: 
‘‘(A) AVIATION FUEL.—The term ‘aviation 
fuel’ means fuel used by an air carrier in air-
craft providing air service or air transportation 
for which compensation is being paid under this 
subchapter. 
‘‘(B) SIGNIFICANT DECREASE IN AVIATION 
FUEL COSTS.—The term ‘significant decrease in 
aviation fuel costs’ means a decrease of 30 per-
cent or more in the price per gallon of aviation 
fuel over a 6-month period, as determined by 
the Secretary, based on fuel price information
147 
derived from a commodities exchange or ex-
changes. 
‘‘(C) SIGNIFICANTLY INCREASED AVIATION 
FUEL COSTS.—The term ‘significantly increased 
aviation fuel costs’ means an increase of 30 
percent or more in the price per gallon of avia-
tion fuel over a 6-month period, as determined 
by the Secretary, based on fuel price informa-
tion derived from a commodities exchange or 
exchanges.’’. 
SEC. 418. REVIEW OF AIR CARRIER FLIGHT DELAYS, CAN-
CELLATIONS, AND ASSOCIATED CAUSES. 
(a) REVIEW.—The Inspector General of the Depart-
ment of Transportation shall conduct a review regarding 
air carrier flight delays, cancellations, and associated 
causes to update its 2000 report numbered CR–2000–112 
and entitled ‘‘Audit of Air Carrier Flight Delays and Can-
cellations’’. 
(b) ASSESSMENTS.—In conducting the review under 
subsection (a), the Inspector General shall assess— 
(1) the need for an update on delay and can-
cellation statistics, such as number of chronically de-
layed flights and taxi-in and taxi-out times; 
(2) air carriers’ scheduling practices;
148 
(3) the need for a re-examination of capacity 
benchmarks at the Nation’s busiest airports; and 
(4) the impact of flight delays and cancellations 
on air travelers, including recommendations for pro-
grams that could be implemented to address the im-
pact of flight delays on air travelers. 
(c) REPORT.—Not later than one year after the date 
of enactment of this Act, the Inspector General shall sub-
mit to the Committee on Transportation and Infrastruc-
ture of the House of Representatives and the Committee 
on Commerce, Science, and Transportation of the Senate 
a report on the results of the review conducted under this 
section, including the assessments described in subsection 
(b). 
SEC. 419. EUROPEAN UNION RULES FOR PASSENGER 
RIGHTS. 
(a) IN GENERAL.—The Comptroller General shall 
conduct a study to evaluate and compare the regulations 
of the European Union and the United States on com-
pensation and other consideration offered to passengers 
who are denied boarding or whose flights are cancelled or 
delayed. 
(b) SPECIFIC STUDY REQUIREMENTS.—The study 
shall include an evaluation and comparison of the regula-
tions based on costs to the air carriers, preferences of pas-