H. R. 1758—401
(5) service provided in aircraft with at least 2 engines
and using 2 pilots, unless scheduled air transportation has
not been provided to the place in aircraft with at least 2
engines and using 2 pilots for at least 60 consecutive operating
days at any time since October 31, 1978.
(6) service provided by pressurized aircraft when the service
is provided by aircraft that regularly fly above 8,000 feet in
altitude.
§ 41733. Level of basic essential air service
(a) DECISIONS MADE BEFORE OCTOBER 1, 1988.—For each
eligible place for which a decision was made before October 1,
1988, under section 419 of the Federal Aviation Act of 1958,
establishing the level of essential air transportation, the level of
basic essential air service for that place shall be the level estab-
lished by the Secretary of Transportation for that place by not
later than December 29, 1988.
(b) DECISIONS NOT MADE BEFORE OCTOBER 1, 1988.—(1) The
Secretary shall decide on the level of basic essential air service
for each eligible place for which a decision was not made before
October 1, 1988, establishing the level of essential air transpor-
tation, when the Secretary receives notice that service to that
place will be provided by only one air carrier. The Secretary shall
make the decision by the last day of the 6-month period beginning
on the date the Secretary receives the notice. The Secretary may
impose notice requirements necessary to carry out this subsection.
Before making a decision, the Secretary shall consider the views
of any interested community and the appropriate State authority
of the State in which the community is located.
(2) Until the Secretary has made a decision on a level of
basic essential air service for an eligible place under this subsection,
the Secretary, on petition by an appropriate representative of the
place, shall prohibit an air carrier from ending, suspending, or
reducing air transportation to that place that appears to deprive
the place of basic essential air service.
(c) AVAILABILITY
OF
COMPENSATION.—(1) If the Secretary
decides that basic essential air service will not be provided to
an eligible place without compensation, the Secretary shall provide
notice that an air carrier may apply to provide basic essential
air service to the place for compensation under this section. In
selecting an applicant, the Secretary shall consider, among other
factors—
(A) the demonstrated reliability of the applicant in provid-
ing scheduled air service;
(B) the contractual and marketing arrangements the
applicant has made with a larger carrier to ensure service
beyond the hub airport;
(C) the interline arrangements that the applicant has made
with a larger carrier to allow passengers and cargo of the
applicant at the hub airport to be transported by the larger
carrier through one reservation, ticket, and baggage check-
in;
(D) the preferences of the actual and potential users of
air transportation at the eligible place, giving substantial
weight to the views of the elected officials representing the
users; and
H. R. 1758—402
(E) for an eligible place in Alaska, the experience of the
applicant in providing, in Alaska, scheduled air service, or
significant patterns of non-scheduled air service under an
exemption granted under section 40109(a) and (c)–(h) of this
title.
(2) Under guidelines prescribed under section 41737(a) of this
title, the Secretary shall pay the rate of compensation for providing
basic essential air service under this section and section 41734
of this title.
(d) COMPENSATION PAYMENTS.—The Secretary shall pay com-
pensation under this section at times and in the way the Secretary
decides is appropriate. The Secretary shall end payment of com-
pensation to an air carrier for providing basic essential air service
to an eligible place when the Secretary decides the compensation
is no longer necessary to maintain basic essential air service to
the place.
(e) REVIEW.—The Secretary shall review periodically the level
of basic essential air service for each eligible place. Based on the
review and consultations with an interested community and the
appropriate State authority of the State in which the community
is located, the Secretary may make appropriate adjustments in
the level of service.
§ 41734. Ending, suspending, and reducing basic essential
air service
(a) NOTICE REQUIRED.—An air carrier may end, suspend, or
reduce air transportation to an eligible place below the level of
basic essential air service established for that place under section
41733 of this title only after giving the Secretary of Transportation,
the appropriate State authority, and the affected communities at
least 90 days’ notice before ending, suspending, or reducing that
transportation.
(b) CONTINUATION
OF SERVICE
FOR 30 DAYS AFTER NOTICE
PERIOD.—If at the end of the notice period under subsection (a)
of this section the Secretary has not found another air carrier
to provide basic essential air service to the eligible place, the
Secretary shall require the carrier providing notice to continue
to provide basic essential air service to the place for an additional
30-day period or until another carrier begins to provide basic essen-
tial air service to the place, whichever occurs first.
(c) CONTINUATION OF SERVICE FOR ADDITIONAL 30-DAY PERI-
ODS.—If at the end of the 30-day period under subsection (b) of
this section the Secretary decides another air carrier will not provide
basic essential air service to the place on a continuing basis, the
Secretary shall require the carrier providing service to continue
to provide service for additional 30-day periods until another carrier
begins providing service on a continuing basis. At the end of each
30-day period, the Secretary shall decide if another carrier will
provide service on a continuing basis.
(d) CONTINUATION OF COMPENSATION AFTER NOTICE PERIOD.—
If an air carrier receiving compensation under section 41733 of
this title for providing basic essential air service to an eligible
place is required to continue to provide service to the place under
this section after the 90-day notice period under subsection (a)
of this section, the Secretary shall continue to pay that compensa-
tion after the last day of that period. The Secretary shall pay
the compensation until the Secretary finds another carrier to pro-
H. R. 1758—403
vide the service to the place or the 90th day after the end of
that notice period, whichever is earlier. If, after the 90th day
after the end of the 90-day notice period, the Secretary has not
found another carrier to provide the service, the carrier required
to continue to provide that service shall receive compensation suffi-
cient—
(1) to pay for the fully allocated actual cost to the carrier
of performing the basic essential air service that was being
provided when the 90-day notice was given under subsection
(a) of this section plus a reasonable return on investment
that is at least 5 percent of operating costs; and
(2) to provide the carrier an additional return that recog-
nizes the demonstrated additional lost profits from opportuni-
ties foregone and the likelihood that those lost profits increase
as the period during which the carrier is required to provide
the service continues.
(e) COMPENSATION
TO AIR CARRIERS ORIGINALLY PROVIDING
SERVICE WITHOUT COMPENSATION.—If the Secretary requires an
air carrier providing basic essential air service to an eligible place
without compensation under section 41733 of this title to continue
providing that service after the 90-day notice period required by
subsection (a) of this section, the Secretary shall provide the carrier
with compensation after the end of the 90-day notice period that
is sufficient—
(1) to pay for the fully allocated actual cost to the carrier
of performing the basic essential air service that was being
provided when the 90-day notice was given under subsection
(a) of this section plus a reasonable return on investment
that is at least 5 percent of operating costs; and
(2) to provide the carrier an additional return that recog-
nizes the demonstrated additional lost profits from opportuni-
ties foregone and the likelihood that those lost profits increase
as the period during which the carrier is required to provide
the service continues.
(f) FINDING REPLACEMENT CARRIERS.—When the Secretary
requires an air carrier to continue to provide basic essential air
service to an eligible place, the Secretary shall continue to make
every effort to find another carrier to provide at least that basic
essential air service to the place on a continuing basis.
(g) TRANSFER OF AUTHORITY.—If an air carrier, providing basic
essential air service under section 41733 of this title between an
eligible place and an airport at which the Administrator of the
Federal Aviation Administration limits the number of instrument
flight rule takeoffs and landings of aircraft, provides notice under
subsection (a) of this section of an intention to end, suspend, or
reduce that service and another carrier is found to provide the
service, the Secretary shall require the carrier providing notice
to transfer any operational authority the carrier has to land or
take off at that airport related to the service to the eligible place
to the carrier that will provide the service, if—
(1) the carrier that will provide the service needs the
authority; and
(2) the authority to be transferred is being used only to
provide air service to the eligible place.
H. R. 1758—404
§ 41735. Enhanced essential air service
(a) PROPOSALS.—(1) A State or local government may submit
a proposal to the Secretary of Transportation for enhanced essential
air service to an eligible place for which basic essential air service
is being provided under section 41733 of this title. The proposal
shall—
(A) specify the level and type of enhanced essential air
service the State or local government considers appropriate;
and
(B) include an agreement related to compensation required
for the proposed service.
(2) The agreement submitted under paragraph (1)(B) of this
subsection shall provide that—
(A) the State or local government or a person pay 50
percent of the compensation required for the proposed service
and the United States Government pay the remaining 50 per-
cent; or
(B)(i) the Government pay 100 percent of the compensation;
and
(ii) if the proposed service is not successful for at least
a 2-year period under the criteria prescribed by the Secretary
under paragraph (3) of this subsection, the eligible place is
not eligible for air service or air transportation for which com-
pensation is paid by the Secretary under this subchapter.
(3) The Secretary shall prescribe by regulation objective criteria
for deciding whether enhanced essential air service to an eligible
place under this section is successful in terms of—
(A) increasing passenger usage of the airport facilities at
the place; and
(B) reducing the amount of compensation provided by the
Secretary under this subchapter for that service.
(b) DECISIONS.—Not later than 90 days after receiving a pro-
posal under subsection (a) of this section, the Secretary shall—
(1) approve the proposal if the Secretary decides the pro-
posal is reasonable; or
(2) if the Secretary decides the proposal is not reasonable,
disapprove the proposal and notify the State or local govern-
ment of the disapproval and the reasons for the disapproval.
(c) COMPENSATION PAYMENTS.—(1) The Secretary shall pay com-
pensation under this section when and in the way the Secretary
decides is appropriate. Compensation for enhanced essential air
service under this section may be paid only for the costs incurred
in providing air service to an eligible place that are in addition
to the costs incurred in providing basic essential air service to
the place under section 41733 of this title. The Secretary shall
continue to pay compensation under this section only as long as—
(A) the air carrier maintains the level of enhanced essential
air service;
(B) the State or local government or person agreeing to
pay compensation under this section continues to pay the com-
pensation; and
(C) the Secretary decides the compensation is necessary
to maintain the service to the place.
(2) The Secretary may require the State or local government
or person agreeing to pay compensation under this section to make
advance payments or provide other security to ensure that timely
payments are made.
H. R. 1758—405
(d) REVIEW.—(1) The Secretary shall review periodically the
enhanced essential air service provided to each eligible place under
this section.
(2) For service for which the Government pays 50 percent
of the compensation, based on the review and consultation with
the affected community and the State or local government or person
paying the remaining 50 percent of the compensation, the Secretary
shall make appropriate adjustments in the type and level of service
to the place.
(3) For service for which the Government pays 100 percent
of the compensation, based on the review and consultation with
the State or local government submitting the proposal, the Secretary
shall decide whether the service has succeeded for at least a 2-
year period under the criteria prescribed under subsection (a)(3)
of this section. If unsuccessful, the place is not eligible for air
service or air transportation for which compensation is paid by
the Secretary under this subchapter.
(e) ENDING, SUSPENDING, 
AND
REDUCING
AIR
TRANSPOR-
TATION.—An air carrier may end, suspend, or reduce air transpor-
tation to an eligible place below the level of enhanced essential
air service established for that place by the Secretary under this
section only after giving the Secretary, the affected community,
and the State or local government or person paying compensation
for that service at least 30 days’ notice before ending, suspending,
or reducing the service. This subsection does not relieve the carrier
of an obligation under section 41734 of this title.
§ 41736. Air transportation to noneligible places
(a) PROPOSALS AND DECISIONS.—(1) A State or local government
may propose to the Secretary of Transportation that the Secretary
provide compensation to an air carrier to provide air transportation
to a place that is not an eligible place under this subchapter.
Not later than 90 days after receiving a proposal under this section,
the Secretary shall—
(A) decide whether to designate the place as eligible to
receive compensation under this section; and
(B)(i) approve the proposal if the State or local government
or a person is willing and able to pay 50 percent of the com-
pensation for providing the transportation, and notify the State
or local government of the approval; or
(ii) disapprove the proposal if the Secretary decides the
proposal is not reasonable under paragraph (2) of this sub-
section, and notify the State or local government of the dis-
approval and the reasons for the disapproval.
(2) In deciding whether a proposal is reasonable, the Secretary
shall consider, among other factors—
(A) the traffic-generating potential of the place;
(B) the cost to the United States Government of providing
the proposed transportation; and
(C) the distance of the place from the closest hub airport.
(b) APPROVAL
FOR CERTAIN AIR TRANSPORTATION.—Notwith-
standing subsection (a)(1)(B) of this section, the Secretary shall
approve a proposal under this section to compensate an air carrier
for providing air transportation to a place in the 48 contiguous
States or the District of Columbia and designate the place as
eligible for compensation under this section if—
H. R. 1758—407
under this section if the place has received air transportation under
this section for at least 2 years and the Secretary decides the
withdrawal would be in the public interest. The Secretary by regula-
tion shall prescribe standards for deciding whether the withdrawal
of a designation under this subsection is in the public interest.
The standards shall include the factors listed in subsection (a)(2)
of this section.
(g) ENDING, SUSPENDING, 
AND
REDUCING
AIR
TRANSPOR-
TATION.—An air carrier providing air transportation for compensa-
tion under this section may end, suspend, or reduce that transpor-
tation below the level of transportation established by the Secretary
under this section only after giving the Secretary, the affected
community, and the State or local government or person paying
compensation under this section at least 30 days’ notice before
ending, suspending, or reducing the transportation.
§ 41737. Compensation guidelines, limitations, and claims
(a) COMPENSATION GUIDELINES.—(1) The Secretary of Transpor-
tation shall prescribe guidelines governing the rate of compensation
payable under this subchapter. The guidelines shall be used to
determine the reasonable amount of compensation required to
ensure the continuation of air service or air transportation under
this subchapter. The guidelines shall—
(A) provide for a reduction in compensation when an air
carrier does not provide service or transportation agreed to
be provided;
(B) consider amounts needed by an air carrier to promote
public use of the service or transportation for which compensa-
tion is being paid; and
(C) include expense elements based on representative costs
of air carriers providing scheduled air transportation of pas-
sengers, property, and mail on aircraft of the type the Secretary
decides is appropriate for providing the service or transpor-
tation for which compensation is being provided.
(2) Promotional amounts described in paragraph (1)(B) of this
subsection shall be a special, segregated element of the compensa-
tion provided to a carrier under this subchapter.
(b) REQUIRED FINDING.—The Secretary may pay compensation
to an air carrier for providing air service or air transportation
under this subchapter only if the Secretary finds the carrier is
able to provide the service or transportation in a reliable way.
(c) CLAIMS.—Not later than 15 days after receiving a written
claim from an air carrier for compensation under this subchapter,
the Secretary shall—
(1) pay or deny the United States Government’s share
of a claim; and
(2) if denying the claim, notify the carrier of the denial
and the reasons for the denial.
(d) AUTHORITY TO MAKE AGREEMENTS
AND INCUR OBLIGA-
TIONS.—(1) The Secretary may make agreements and incur obliga-
tions from the Airport and Airway Trust Fund established under
section 9502 of the Internal Revenue Code of 1986 (26 U.S.C.
9502) to pay compensation under this subchapter. An agreement
by the Secretary under this subsection is a contractual obligation
of the Government to pay the Government’s share of the com-
pensation.
H. R. 1758—408
(2) Not more than $38,600,000 is available to the Secretary
out of the Fund for each of the fiscal years ending September
30, 1993–1998, to incur obligations under this section. Amounts
made available under this section remain available until expended.
§ 41738. Fitness of air carriers
Notwithstanding section 40109(a) and (c)–(h) of this title, an
air carrier may provide air service to an eligible place or air
transportation to a place designated under section 41736 of this
title only when the Secretary of Transportation decides that—
(1) the carrier is fit, willing, and able to perform the service
or transportation; and
(2) aircraft used to provide the service or transportation,
and operations related to the service or transportation, conform
to the safety standards prescribed by the Administrator of
the Federal Aviation Administration.
§ 41739. Air carrier obligations
If at least 2 air carriers make an agreement to operate under
or use a single carrier designator code to provide air transportation,
the carrier whose code is being used shares responsibility with
the other carriers for the quality of transportation provided the
public under the code by the other carriers.
§ 41740. Joint proposals
The Secretary of Transportation shall encourage the submission
of joint proposals by 2 or more air carriers for providing air service
or air transportation under this subchapter through arrangements
that maximize the service or transportation to and from major
destinations beyond the hub.
§ 41741. Insurance
The Secretary of Transportation may pay an air carrier com-
pensation under this subchapter only when the carrier files with
the Secretary an insurance policy or self-insurance plan approved
by the Secretary. The policy or plan must be sufficient to pay
for bodily injury to, or death of, an individual, or for loss of or
damage to property of others, resulting from the operation of air-
craft, but not more than the amount of the policy or plan limits.
§ 41742. Ending effective date
This subchapter is not effective after September 30, 1998.
CHAPTER 419—TRANSPORTATION OF MAIL
Sec.
41901.
General authority.
41902.
Schedules for certain transportation of mail.
41903.
Duty to provide certain transportation of mail.
41904.
Noncitizens transporting mail to or in foreign countries.
41905.
Regulating air carrier transportation of foreign mail.
41906.
Emergency mail transportation.
41907.
Prices for foreign transportation of mail.
41908.
Prices for transporting mail of foreign countries.
41909.
Duty to oppose unreasonable prices under the Universal Postal Union Con-
vention.
41910.
Weighing mail.
41911.
Evidence of providing mail service.
41912.
Effect on foreign postal arrangements.
H. R. 1758—409
§ 41901. General authority
(a) TITLE 39.—The United States Postal Service may provide
for the transportation of mail by aircraft in interstate air transpor-
tation under section 5402(d) and (f) of title 39.
(b) AUTHORITY TO PRESCRIBE PRICES.—Except as provided in
section 5402 of title 39, on the initiative of the Secretary of
Transportation or on petition by the Postal Service or an air carrier,
the Secretary shall prescribe and publish—
(1) after notice and an opportunity for a hearing on the
record, reasonable prices to be paid by the Postal Service for
the transportation of mail by aircraft in foreign air transpor-
tation or between places in Alaska, the facilities used in and
useful for the transportation of mail, and the services related
to the transportation of mail for each carrier holding a certifi-
cate that authorizes that transportation;
(2) the methods used, whether by aircraft-mile, pound-
mile, weight, space, or a combination of those or other methods,
to determine the prices for each air carrier or class of air
carriers; and
(3) the effective date of the prices.
(c) OTHER TRANSPORTATION.—In prescribing prices under sub-
section (b) of this section, the Secretary may include transportation
other than by aircraft that is incidental to transportation of mail
by aircraft or necessary because of emergency conditions related
to aircraft operations.
(d) AUTHORITY TO PRESCRIBE DIFFERENT PRICES.—Considering
conditions peculiar to transportation by aircraft and to particular
air carriers or classes of air carriers, the Secretary may prescribe
different prices under this section for different air carriers or classes
of air carriers and for different classes of service. In prescribing
a price for a carrier under this section, the Secretary shall consider,
among other factors, the following:
(1) the condition that the carrier may hold and operate
under a certificate authorizing the transportation of mail only
by providing necessary and adequate facilities and service for
the transportation of mail.
(2) standards related to the character and quality of service
to be provided that are prescribed by or under law.
(e) STATEMENTS ON PRICES.—A petition for prescribing a reason-
able price under this section must include a statement of the
price the petitioner believes is reasonable.
(f) STATEMENTS ON REQUIRED SERVICES.—The Postal Service
shall introduce as part of the record in every proceeding under
this section a comprehensive statement of the services to be required
of the air carrier and other information the Postal Service has
that the Secretary considers material to the proceeding.
(g) EXPIRATION DATE.—The authority of the Secretary under
this part and section 5402 of title 39 providing for the transportation
of mail by aircraft between places in Alaska expires on the date
specified in section 5402(f) of title 39.
§ 41902. Schedules for certain transportation of mail
(a) REQUIREMENT.—Except as provided in section 41906 of this
title and section 5402 of title 39, an air carrier may transport
mail by aircraft in foreign air transportation or between places
in Alaska only under a schedule designated or required to be
H. R. 1758—410
established under subsection (c) of this section for the transportation
of mail.
(b) STATEMENTS ON PLACES AND SCHEDULES.—Every air carrier
shall file with the Secretary of Transportation and the United
States Postal Service a statement showing—
(1) the places between which the carrier is authorized
to provide foreign air transportation;
(2) the places between which the carrier is authorized
to transport mail in Alaska;
(3) every schedule of aircraft regularly operated by the
carrier between places described in clauses (1) and (2) of this
subsection and every change in each schedule; and
(4) for each schedule, the places served by the carrier
and the time of arrival at, and departure from, each place.
(c) DESIGNATING
AND ADDITIONAL SCHEDULES.—The Postal
Service may—
(1) designate any schedule of an air carrier filed under
subsection (b)(3) of this section for the transportation of mail
between the places between which the carrier is authorized
by its certificate to transport mail; and
(2) require the carrier to establish additional schedules
for the transportation of mail between those places.
(d) CHANGING SCHEDULES.—A schedule designated or required
to be established for the transportation of mail under subsection
(c) of this section may be changed only after 10 days’ notice of
the change is filed as provided in subsection (b)(3) of this section.
The Postal Service may disapprove a proposed change in a schedule
or amend or modify the schedule or proposed change.
(e) ORDERS.—An order of the Postal Service under this section
may become effective only after 10 days after the order is issued.
A person adversely affected by the order may appeal the order
to the Secretary before the end of the 10-day period under regula-
tions the Secretary prescribes. If the public convenience and neces-
sity require, the Secretary may amend, modify, suspend, or cancel
the order. Pending a decision about the order, the Secretary may
postpone the effective date of the order.
(f) PROCEEDINGS PREFERENCES.—The Secretary shall give pref-
erence to a proceeding under this section over all other proceedings
before the Secretary under this subpart.
§ 41903. Duty to provide certain transportation of mail
(a) AIR CARRIERS.—Subject to subsection (b) of this section,
an air carrier authorized by its certificate to transport mail by
aircraft in foreign air transportation or between places in Alaska
shall—
(1) provide facilities and services necessary and adequate
to provide that transportation; and
(2) transport mail between the places authorized in the
certificate for transportation of mail when required, and under
regulations prescribed, by the United States Postal Service.
(b) MAXIMUM MAIL LOAD.—The Secretary of Transportation
may prescribe the maximum mail load for a schedule or for an
aircraft or type of aircraft for the transportation of mail by aircraft
in foreign air transportation or between places in Alaska. If the
Postal Service tenders to an air carrier mail exceeding the maximum
load for transportation by the carrier under a schedule designated
or required to be established for the transportation of mail under
H. R. 1758—411
section 41902(c) of this title, the carrier, as nearly in accordance
with the schedule as the Secretary decides is possible, shall—
(1) provide facilities sufficient to transport the mail to
the extent the Secretary decides the carrier reasonably is able
to do so; and
(2) transport that mail.
§ 41904. Noncitizens transporting mail to or in foreign coun-
tries
When the United States Postal Service decides that it may
be necessary to have a person not a citizen of the United States
transport mail by aircraft to or in a foreign country, the Postal
Service may make an arrangement with the person, without
advertising, to provide the transportation.
§ 41905. Regulating air carrier transportation of foreign mail
An air carrier holding a certificate that authorizes foreign air
transportation and transporting mail of a foreign country shall
transport that mail under the control of, and subject to regulation
by, the United States Government.
§ 41906. Emergency mail transportation
(a) CONTRACT AUTHORITY.—In an emergency caused by a flood,
fire, or other disaster, the United States Postal Service may make
a contract without advertising to transport mail by aircraft to
or from a locality affected by the emergency when the available
facilities of persons authorized to transport mail to or from the
locality are inadequate to meet the requirements of the Postal
Service during the emergency. The contract may be only for periods
necessary to maintain mail service because of the inadequacy of
the facilities. Payment for transportation provided under the con-
tract shall be made at prices provided in the contract.
(b) TRANSPORTATION NOT AIR TRANSPORTATION.—Transpor-
tation provided under a contract made under subsection (a) of
this section is not air transportation within the meaning of this
part.
§ 41907. Prices for foreign transportation of mail
(a) LIMITATIONS.—When air transportation is provided between
the United States and a foreign country both by aircraft owned
or operated by an air carrier holding a certificate under chapter
411 of this title and by aircraft owned or operated by a foreign
air carrier, the United States Postal Service may not pay to or
for the account of the foreign air carrier a price for transporting
mail by aircraft between the United States and the foreign country
that the Postal Service believes will result (over a reasonable period
determined by the Postal Service considering exchange fluctuations
and other factors) in the foreign air carrier receiving a price for
transporting the mail that is higher than the price—
(1) the government of a foreign country or foreign postal
administration pays to air carriers for transporting mail of
the foreign country by aircraft between the foreign country
and the United States; or
(2) determined by the Postal Service to be comparable
to the price the government of a foreign country or foreign
postal administration pays to air carriers for transporting mail
of the foreign country by aircraft between the foreign country
H. R. 1758—414
in the number of full-time employees of an air carrier within
a 12-month period, except for employees deprived of employ-
ment because of a strike or whose employment is ended for
cause.
(3) ‘‘protected employee’’ means an individual who on Octo-
ber 24, 1978, had been employed for at least 4 years by an
air carrier that held a certificate under section 401 of the
Federal Aviation Act of 1958, but does not include a director
or officer of a corporation.
(4) ‘‘qualifying dislocation’’ means a bankruptcy or major
contraction of an air carrier holding a certificate under section
41102 of this title when the Secretary of Transportation finds
the bankruptcy or contraction occurred after December 31,
1978, and before January 1, 1989, the major cause of which
was the change in regulatory structure provided by the Airline
Deregulation Act of 1978.
(b) MAJOR CONTRACTION.—The Secretary may find a reduction
of less than 7.5 percent of the number of full-time employees is
part of a major contraction if the Secretary decides another reduc-
tion is likely to occur within the 12-month period in which the
first reduction occurs that, when included with the first reduction,
will result in a total reduction of more than 7.5 percent.
§ 42102. Payments to eligible protected employees
(a) AUTHORITY TO PAY AND APPLICATIONS FOR PAYMENTS.—
Subject to amounts provided in an appropriation law, the Secretary
of Labor shall make monthly assistance payments, moving expense
payments, and reimbursement payments as provided under this
section to an eligible protected employee whose employment is
not ended for cause. The employee must apply to receive the pay-
ments and cooperate with the Secretary in finding other employ-
ment.
(b) NUMBER
AND
AMOUNT
OF
PAYMENTS.—(1) Subject to
amounts provided in an appropriation law, an eligible protected
employee shall receive 72 monthly assistance payments. However,
an eligible protected employee deprived of employment may not
receive a payment after obtaining other employment. For each
class or craft of protected employees, the Secretary of Labor, after
consulting with the Secretary of Transportation, shall prescribe
by regulation guidelines for computing the amount of each monthly
assistance payment to be made to a member of the class or craft
and what percentage of salary that payment represents.
(2) The amount of a monthly payment payable under paragraph
(1) of this subsection to an eligible protected employee shall be
reduced—
(A) by unemployment compensation the employee receives;
or
(B) if the employee does not accept reasonably comparable
employment, to an amount the employee would be entitled
to receive if the employee had accepted the employment.
(3) If accepting comparable employment to avoid a reduction
in the monthly assistance payment under paragraph (2) of this
subsection would force an eligible protected employee to relocate,
the employee may decide not to relocate. Instead of the payments
provided under this section, the employee may receive the lesser
of 3 payments or the maximum number of payments that remain
to be paid under paragraph (1) of this subsection.
H. R. 1758—415
(c) MOVING EXPENSES AND REIMBURSEMENTS.—(1) Subject to
amounts provided in an appropriation law, an eligible protected
employee who relocates shall receive—
(A) reasonable moving expense payments to move the
employee and the employee’s immediate family; and
(B) reimbursement payments for a loss incurred in selling
the employee’s principal place of residence for less than fair
market value or in cancelling a lease on, or contract to buy,
the residence.
(2) The Secretary of Labor shall decide on the amount of the
moving expenses and the fair market value of the residence.
§ 42103. Duty to hire protected employees
(a) REHIRING PROTECTED EMPLOYEES.—A protected employee
of an air carrier regulated by the Secretary of Transportation who
was furloughed or whose employment was ended by the carrier
(except for cause) before October 23, 1988, is entitled to be the
first employed in the occupational specialty of the employee, regard-
less of the employee’s age, by any other air carrier holding a
certificate under section 41102 of this title before October 24, 1978.
However, the air carrier may recall its furloughed employees before
hiring a protected employee of another air carrier regulated by
the Secretary who was furloughed or whose employment was ended
by the other carrier (except for cause) before October 23, 1988.
An employee hired by an air carrier under this section retains
seniority and recall rights with the air carrier that furloughed
or ended the employment of the employee.
(b) DUTIES OF SECRETARY OF LABOR.—The Secretary of Labor—
(1) shall establish and publish periodically a list of jobs
available with an air carrier holding a certificate under section
41102 of this title that includes necessary information and
detail;
(2) shall assist eligible protected employees to find other
employment;
(3) shall encourage negotiations between air carriers and
representatives of employees on rehiring practices and senior-
ity; and
(4) may require an air carrier to file with the Secretary
information necessary to carry out this section.
§ 42104. Congressional review of regulations
(a) DEFINITION.—In this section, ‘‘legislative day’’ means a cal-
endar day on which both Houses of Congress are in session.
(b) SUBMISSION TO CONGRESS.—The Secretary of Labor may
not prescribe a regulation under this subchapter until 30 legislative
days after the regulation is submitted to the Committee on Com-
merce, Science, and Transportation of the Senate and the Commit-
tee on Public Works and Transportation of the House of Representa-
tives.
(c) EFFECTIVENESS OF REGULATIONS.—A proposed regulation
under this subchapter shall be submitted to Congress and becomes
effective only if, during the period of 60 legislative days after
the regulation is submitted to Congress, either House does not
pass a resolution disapproving the regulation. However, if Congress
adopts a resolution approving the regulation during the 60-day
period, the regulation is effective on that date.
H. R. 1758—416
§ 42105. Airline Employees Protective Account
The Department of Labor has an Airline Employees Protective
Account consisting of amounts appropriated to it. An amount nec-
essary to carry out this subchapter, including administrative
expenses, may be appropriated to the Account annually.
§ 42106. Ending effective date
This subchapter is not effective after the last day the Secretary
of Labor must make a payment under this subchapter.
SUBCHAPTER II—MUTUAL AID AGREEMENTS AND LABOR
REQUIREMENTS OF AIR CARRIERS
§ 42111. Mutual aid agreements
An air carrier that will receive payments from another air
carrier under an agreement between the air carriers for the time
the one air carrier is not providing foreign air transportation, or
is providing reduced levels of foreign air transportation, because
of a labor strike must file a true copy of the agreement with
the Secretary of Transportation and have it approved by the Sec-
retary under section 41309 of this title. Notwithstanding section
41309, the Secretary shall approve the agreement only if it provides
that—
(1) the air carrier will receive payments of not more than
60 percent of direct operating expenses, including interest
expenses, but not depreciation or amortization expenses;
(2) benefits may be paid for not more than 8 weeks, and
may not be for losses incurred during the first 30 days of
a strike; and
(3) on request of the striking employees, the dispute will
be submitted to binding arbitration under the Railway Labor
Act (45 U.S.C. 151 et seq.).
§ 42112. Labor requirements of air carriers
(a) DEFINITIONS.—In this section—
(1) ‘‘copilot’’ means an employee whose duties include
assisting or relieving the pilot in manipulating an aircraft
and who is qualified to serve as, and has in effect an airman
certificate authorizing the employee to serve as, a copilot.
(2) ‘‘pilot’’ means an employee who is—
(A) responsible for manipulating or who manipulates
the flight controls of an aircraft when under way, including
the landing and takeoff of an aircraft; and
(B) qualified to serve as, and has in effect an airman
certificate authorizing the employee to serve as, a pilot.
(b) DUTIES OF AIR CARRIERS.—An air carrier shall—
(1) maintain rates of compensation, maximum hours, and
other working conditions and relations for its pilots and copilots
who are providing interstate air transportation in the 48 contig-
uous States and the District of Columbia to conform with
decision number 83, May 10, 1934, National Labor Board, not-
withstanding any limitation in that decision on the period
of its effectiveness;
(2) maintain rates of compensation for its pilots and copilots
who are providing foreign air transportation or air transpor-
tation only in one territory or possession of the United States;
and
H. R. 1758—417
(3) comply with title II of the Railway Labor Act (45 U.S.C.
181 et seq.) as long as it holds its certificate.
(c) MINIMUM ANNUAL RATE OF COMPENSATION.—A minimum
annual rate under subsection (b)(2) of this section may not be
less than the annual rate required to be paid for comparable service
to a pilot or copilot under subsection (b)(1) of this section.
(d) COLLECTIVE BARGAINING.—This section does not prevent
pilots or copilots of an air carrier from obtaining by collective
bargaining higher rates of compensation or more favorable working
conditions or relations.
SUBPART III—SAFETY
CHAPTER 441—REGISTRATION AND RECORDATION OF
AIRCRAFT
Sec.
44101.
Operation of aircraft.
44102.
Registration requirements.
44103.
Registration of aircraft.
44104.
Registration of aircraft components and dealers’ certificates of registration.
44105.
Suspension and revocation of aircraft certificates.
44106.
Revocation of aircraft certificates for controlled substance violations.
44107.
Recordation of conveyances, leases, and security instruments.
44108.
Validity of conveyances, leases, and security instruments.
44109.
Reporting transfer of ownership.
44110.
Information about aircraft ownership and rights.
44111.
Modifications in registration and recordation system for aircraft not provid-
ing air transportation.
44112.
Limitation of liability.
§ 44101. Operation of aircraft
(a) REGISTRATION REQUIREMENT.—Except as provided in sub-
section (b) of this section, a person may operate an aircraft only
when the aircraft is registered under section 44103 of this title.
(b) EXCEPTIONS.—A person may operate an aircraft in the
United States that is not registered—
(1) when authorized under section 40103(d) or 41703 of
this title;
(2) when it is an aircraft of the national defense forces
of the United States and is identified in a way satisfactory
to the Administrator of the Federal Aviation Administration;
and
(3) for a reasonable period of time after a transfer of
ownership, under regulations prescribed by the Administrator.
§ 44102. Registration requirements
(a) ELIGIBILITY.—An aircraft may be registered under section
44103 of this title only when the aircraft is—
(1) not registered under the laws of a foreign country
and is owned by—
(A) a citizen of the United States;
(B) an individual citizen of a foreign country lawfully
admitted for permanent residence in the United States;
or
(C) a corporation not a citizen of the United States
when the corporation is organized and doing business under
the laws of the United States or a State, and the aircraft
is based and primarily used in the United States; or
(2) an aircraft of—