I
105TH CONGRESS
2D SESSION
H. R. 3160
To enhance competition between airlines and reduce airfares, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 4, 1998
Mr. SCHUMER (for himself, Ms. SLAUGHTER, Mr. LAFALCE, Mr. MCNULTY,
and Mr. HINCHEY) introduced the following bill; which was referred to
the Committee on Transportation and Infrastructure
A BILL
To enhance competition between airlines and reduce airfares,
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Airline Competition
and Lower Fares Act’’.
SEC. 2. WITHDRAWAL OF SLOTS.
(a) WRITTEN DETERMINATION.—Not later than 1
year after the date of the enactment of this Act, the Sec-
retary shall issue a separate written determination with
respect to each of LaGuardia Airport, O’Hare Inter-
national Airport, John F. Kennedy International Airport,
and Metropolitan Washington Airport (commonly known
as Washington National Airport) as to whether the de-
mand among air carriers for slots at the airport can be
met with the slots at the airport that are available to the
Secretary.
(b) INITIAL WITHDRAWAL OF SLOTS.—If the Sec-
retary determines under subsection (a) that the demand
among air carriers for slots at an airport cannot be met
with the slots at the airport that are available to the Sec-
retary, the Secretary shall withdraw slots at that airport
from dominant carriers for redistribution pursuant to this
Act. Such withdrawals shall be made in accordance with
section 41714 of title 49, United States Code, and other
applicable laws and regulations.
(c) SUBSEQUENT WITHDRAWALS.—
(1) WRITTEN DETERMINATION.—Not later than
2 years after the date of the auction under section
3(a), and every 2 years thereafter, the Secretary
shall issue a written determination as to whether the
redistribution of additional slots under this Act
would significantly increase competition between air
carriers.
(2) REQUIREMENT TO WITHDRAW SLOTS.—If
the Secretary determines under paragraph (1) that
the redistribution of additional slots would signifi-
cantly increase competition, the Secretary shall with-
draw slots, in accordance with this section, in a
manner which will ensure such an increase. Such
withdrawals shall be made in accordance with sec-
tion 41714 of title 49, United States Code, and
other applicable laws and regulations.
(d) LIMITATION ON SLOT WITHDRAWALS.—
(1) INITIAL AUCTION.—The Secretary may not
withdraw for redistribution under this Act more
than 10 percent of the total number of slots held at
an airport by a dominant carrier for auction pursu-
ant to section 3(a).
(2) SUBSEQUENT
AUCTIONS.—The Secretary
may not withdraw for redistribution under this Act
more than 5 percent of the total number of slots
held at an airport by a dominant carrier for auction
pursuant to section 3(b).
(3) CALCULATION
OF
PERCENTAGE.—In cal-
culating under this subsection the total number of
slots held at an airport by a dominant carrier, the
Secretary shall not take into account slots used by
the carrier for direct flights to low-competition air-
ports.
(e) PROHIBITION
ON CERTAIN SLOT WITHDRAW-
ALS.—The Secretary may not withdraw for redistribution
under this Act a slot of a dominant carrier if the Secretary
determines that the slot has been used by the carrier for
direct flights to a low-competition airport throughout at
least 24 of the preceding 30 months.
(f) WITHDRAWAL OF INTERNATIONAL SLOTS.—The
Secretary shall not withdraw any slots used for inter-
national flights.
SEC. 3. AUCTIONS.
(a) IN GENERAL.—After a withdrawal of slots pursu-
ant to section 2, the Secretary shall auction such slots to
new entrants and limited incumbents and shall award each
slot, pursuant to this section, to the highest bidder for
that slot.
(b) LIMITATION ON USE OF SLOTS.—The Secretary,
in a manner which to the extent practicable represents the
times and characteristics of all slots available for auction
pursuant to this subsection, shall ensure that—
(1) 40 percent of the slots redistributed under
this Act at each of LaGuardia Airport, O’Hare
International Airport, and Metropolitan Washington
Airport; and
(2) 10 percent of the slots redistributed under
this Act at John F. Kennedy International Airport,
are distributed for use for flights to low-competition air-
ports.
(c) ELIGIBLE BIDDERS.—A person may bid for or
hold a slot offered at an auction conducted under this sec-
tion only if that person—
(1) is a new entrant or limited incumbent;
(2) is a citizen of the United States, or in the
case of a partnership or corporation, organized
under the laws of the United States or a State;
(3) has appropriate safety certification from the
Federal Aviation Administration;
(4) has appropriate economic certification from
the Department of Transportation;
(5) with respect to slots at a particular airport,
has not declined any slot at the airport for which the
new entrant or limited incumbent was eligible before
January 1, 1986;
(6) is not substantially owned or otherwise con-
trolled, as determined by the Secretary, by an ineli-
gible person; and
(7) is qualified, as determined by the Secretary,
to use a purchased slot.
(d) LIMITATION ON TRANSFER OF SLOTS.—A slot
obtained by a new entrant or limited incumbent at an auc-
tion conducted under this section may only be sold, leased,