traded, or transferred to a new entrant or limited incum-
bent that meets the requirements of subsection (c).
(e) CHANGES IN OWNERSHIP.—If there is a change
in the ownership of a new entrant or limited incumbent
that obtains a slot at an auction conducted under this sec-
tion, the slot shall revert to the Secretary, except that the
Secretary may allow the new entrant or limited incumbent
to retain the slot if the Secretary determines that such
action is in the best interest of promoting competition.
(f) LIMITATION ON STATUTORY CONSTRUCTION.—
Nothing in this section or section 2, including the use of
competitive bidding, may be construed—
(1) to alter slots allocation criteria and proce-
dures established by section 41714 of title 49,
United States Code, or any other provision of law;
(2) to diminish the authority of the Secretary
under any other provision of law to regulate or re-
claim slots; or
(3) to convey any rights, including any expecta-
tion of renewal of a slot assignment, that differ from
the rights that apply to other slots at the same air-
port that were not issued pursuant to this section.
(g) REVENUES.—The Secretary may use funds re-
ceived from auctions held pursuant to this section to pro-
vide reimbursement to dominant carriers from which slots
have been withdrawn under this Act for investments made
by the carrier in the withdrawn slots and in airport im-
provements at the airport where the carrier held the with-
drawn slots. Any funds remaining after providing such re-
imbursements shall be credited to the general fund of the
Treasury as miscellaneous receipts.
SEC. 4. SLOTS NOT ASSETS.
(a) IN GENERAL.—A slot obtained under this Act or
any other provision of law shall not be considered an asset
for any purpose, including for collateral, for any agree-
ment which would require forfeiture of the slot, or in any
bankruptcy proceeding.
(b) APPLICABILITY.—This section shall not apply to
any agreement or any renewal provision of any agreement
in effect on the date of the enactment of this Act.
SEC. 5. UNFAIR COMPETITION.
(a) 
DETERMINATIONS
REGARDING
ACTIONS
FILED.—
(1) ACTIONS FILED ON OR BEFORE DECEMBER
31, 1997.—Not later than 6 months after the date of
the enactment of this Act, the Secretary shall com-
plete action on all complaints alleging predatory
practices by air carriers that were filed with the Sec-
retary on or before December 31, 1997.
(2) ACTIONS FILED AFTER DECEMBER 31, 1997,
AND BEFORE THE DATE OF THE ENACTMENT OF
THIS ACT.—Not later than 9 months after the date
of the enactment of this Act, the Secretary shall
complete action on all complaints alleging predatory
practices by air carriers that were filed with the Sec-
retary after December 31, 1997, but before the date
of the enactment of this Act.
(3) ACTIONS FILED ON OR AFTER THE DATE
OF THE ENACTMENT OF THIS ACT.—The Secretary
shall make an initial finding regarding any com-
plaint alleging a predatory practice by an air carrier
that is filed with the Secretary after the date of the
enactment of this Act, not later than 30 days after
such complaint is filed.
(b) RESTRAINING ORDER.—Not later than 15 days
after date of an initial finding under subsection (a)(3),
and after notice and opportunity for a hearing, the Sec-
retary shall enjoin, pending final determination, any ac-
tion that is found to be a predatory practice.
(c) REPORT
TO
CONGRESS.—Not later than 6
months after the date of the enactment of this Act, and
every 6 months thereafter, the Secretary shall transmit
a report to Congress describing complaints received by the
Secretary which allege predatory practices by air carriers
and any action taken by the Secretary on those com-
plaints.
(d) GUIDELINES.—Not later than 6 months after the
date of the enactment of this Act, the Secretary, in con-
sultation with the Attorney General of the United States,
shall issue guidelines defining predatory practices and un-
fair competition practices under this section and under
title 49, United States Code.
SEC. 6. ACCESS TO FACILITIES.
The Secretary shall ensure that all airport facilities
are available to new entrants at fees that are comparable
to the average fees paid by incumbents.
SEC. 7. EVALUATION OF RULE.
The Secretary shall initiate a rulemaking proceeding
to determine whether the application of the 80-percent
rule contained in section 93.227(a) of title 49, Code of
Federal Regulations, promotes, hinders, or has no effect
on airline competition.
SEC. 8. LIMITS ON COMPETITION IN AVIATION INDUSTRY.
Not later than 1 year after the date of the enactment
of this Act, and annually thereafter, the Secretary shall
transmit to Congress a report on barriers to entry, preda-
tory pricing, and other limits on competition in the avia-
tion industry.
SEC. 9. PROHIBITION ON INCREASED NOISE.
The Secretary shall issue such regulations as are nec-
essary to carry out this Act. However, the Secretary shall
not issue or approve any regulation or exemption in carry-
ing out this Act which would increase airplane noise in
communities surrounding an airport.
SEC. 10. CLARIFICATION OF LEGAL STANDING.
Section 41713(b) of title 49, United States Code, is
amended by adding at the end the following new para-
graph:
‘‘(5) This subsection shall not bar any cause of action
brought against an air carrier by 1 or more private parties
seeking to enforce any right under the common law of any
State or under any State statute, other than a statute pur-
porting to directly prescribe fares, routes, or levels of air
transportation service.’’.
SEC. 11. DEFINITIONS.
For purposes of this Act, the following definitions
apply:
(1) DOMINANT CARRIER.—The term ‘‘dominant
carrier’’ means a person that holds 10 percent or
more of the slots in an airport.
(2) LIMITED INCUMBENT.—The term ‘‘limited
incumbent’’ means a person that holds or operates
fewer than 12 slots at a particular airport, not in-
cluding international slots, Essential Air Service
Program slots, or slots between the hours of 2200
and 0659 at Metropolitan Washington Airport or
LaGuardia Airport.
(3) NEW ENTRANT.—The term ‘‘new entrant’’
means a person that does not hold a slot at a par-
ticular airport and has not sold or given up a slot
at that airport after December 16, 1985.
(4) PERSON.—The term ‘‘person’’ includes a
commuter operator or air carrier.
(5) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Transportation.
(6) SLOT.—The term ‘‘slot’’ means the oper-
ational authority to conduct one landing or takeoff
operation each day during a specific hour or 30
minute period at LaGuardia Airport, O’Hare Inter-
national Airport, John F. Kennedy International
Airport, or Metropolitan Washington Airport.
(7) LOW-COMPETITION
AIRPORT.—The term
‘‘low-competition airport’’ means an airport that—
(A) is not classified as a large hub; and
(B) the Secretary determines has substan-
tially less service than average or substantially
higher than average airfares.
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