I
105TH CONGRESS
1ST SESSION
H. R. 2748
To amend title 49, United States Code, to provide assistance and slots
with respect to air carrier service between high density airports and
airports not receiving sufficient air service, to improve jet aircraft service
to underserved markets, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 28, 1997
Mr. DUNCAN (for himself, Mr. BLUNT, Mr. FOX of Pennsylvania, Mr. EWING,
Mr. COOK, Mr. WALSH, Mr. QUINN, and Mr. MCGOVERN) introduced the
following bill; which was referred to the Committee on Transportation
and Infrastructure
A BILL
To amend title 49, United States Code, to provide assistance
and slots with respect to air carrier service between
high density airports and airports not receiving sufficient
air service, to improve jet aircraft service to underserved
markets, 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 Service Im-
provement Act of 1997’’.
TITLE I—SERVICE TO AIRPORTS
NOT RECEIVING SUFFICIENT
SERVICE
SEC. 101. AVAILABILITY OF SLOTS.
(a) PERIOD OF EFFECTIVENESS.—
(1) SLOTS
FOR
FOREIGN
AIR
TRANSPOR-
TATION.—Section 41714(b) of title 49, United
States Code, is amended by striking paragraph (4).
(2) SLOTS
FOR
NEW
ENTRANTS.—Section
41714(c) of such title is amended—
(A) by striking ‘‘(1) IN GENERAL.—’’;
(B) by striking paragraph (2); and
(C) by moving the text of paragraph (1) so
that it follows the subsection heading and its
margin is aligned with the margin for sub-
section (g).
(b) SLOTS FOR AIRPORTS NOT RECEIVING SUFFI-
CIENT SERVICE.—Section 41714 of such title is amend-
ed—
(1) by striking subsections (e) and (f) and in-
serting the following:
‘‘(e) SLOTS FOR AIRPORTS NOT RECEIVING SUFFI-
CIENT SERVICE.—
‘‘(1) EXEMPTIONS.—Notwithstanding the Met-
ropolitan Washington Airports Act of 1986, the Sec-
retary may by order grant exemptions from the re-
quirements under subparts K and S of part 93 of
title 14, Code of Federal Regulations (pertaining to
slots at high density airports), to enable air carriers
to provide nonstop air transportation using aircraft
that comply with the stage 3 noise levels of part 36
of such title 14 between a high density airport and
a small hub airport or nonhub airport that the Sec-
retary determines is not receiving sufficient air car-
rier service to and from such high density airport.
‘‘(2) LIMITATIONS.—No more than 2 exemp-
tions per hour may be granted under this subsection
for slots at any high density airport, and no more
than 6 exemptions per day may be granted under
this subsection for slots at Washington National Air-
port.
‘‘(3) APPLICATION.—An air carrier interested
in an exemption under this subsection shall submit
to the Secretary an application for such exemption.
No application may be submitted to the Secretary
before the last day of the 30-day period beginning
on the date of the enactment of this subsection.
‘‘(4) DEADLINE FOR DECISION.—The Secretary
shall make a decision with regard to granting an ex-
emption under this subsection not later than the
120th day following the date of the application for
the exemption. If the Secretary does not make the
decision on or before such 120th day, the air carrier
applying for the service may provide such service
until the Secretary makes the decision or the Admin-
istrator of the Federal Aviation Administration de-
termines that providing such service would have an
adverse effect on air safety.
‘‘(5) PERIOD OF EFFECTIVENESS.—An exemp-
tion granted under this subsection may remain in ef-
fect while the air carrier for whom the exemption is
granted continues to provide nonstop air transpor-
tation between the airport that the Secretary deter-
mined was not receiving sufficient air carrier service
and the high density airport.
‘‘(6) DEFINITIONS.—In this subsection, the fol-
lowing definitions apply:
‘‘(A) 
NONHUB
AIRPORT.—The 
term
‘nonhub airport’ means an airport that each
year has less than .05 percent of the total an-
nual boardings in the United States; and
‘‘(B) SMALL
HUB
AIRPORT.—The term
‘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.’’; and
(2) by redesignating subsections (g) and (h) as
subsections (f) and (e).
SEC. 102. FUNDING FOR AIR CARRIER SERVICE TO AIR-
PORTS NOT RECEIVING SUFFICIENT SERV-
ICE.
Section 41742(b) is amended to read as follows:
‘‘(b) FUNDING FOR SMALL COMMUNITY AIR SERV-
ICE.—
‘‘(1) SOURCE
OF
FUNDING.—Notwithstanding
any other provision of law, moneys credited to the
account established under section 45303(a) of this
title, including the funds derived from fees imposed
under the authority contained in section 45301(a) of
this title, shall be used to carry out the essential air
service program under this subchapter.
‘‘(2) FUNDING FOR AIR CARRIER SERVICE TO
AIRPORTS NOT RECEIVING SUFFICIENT SERVICE AND
RURAL AIR SAFETY.—Any amounts from fees im-
posed under section 45301(a) that the Secretary de-
termines will not be obligated or expended by the
last day of a fiscal year for the purpose of funding
the essential air service program under this sub-
chapter shall be made available in such fiscal year
to the Administration as follows:
‘‘(A) First, not to exceed $10,000,000 in
each fiscal year beginning after September 30,
1998—
‘‘(i) for assisting an air carrier to pur-
chase aircraft to provide air transportation
to an underserved airport, to purchase
slots to provide air service between a high
density airport and an airport that the
Secretary determines is not receiving suffi-
cient air carrier service to and from such
high density airport, and to subsidize serv-
ice to and from an underserved airport for
a period not to exceed 3 years; and
‘‘(ii) for assisting an underserved air-
port to market service to and from the un-
derserved airport.
‘‘(B) Second, for use under this subchapter
in improving rural air safety at airports with
less than 100,000 annual boardings.
‘‘(3) UNDERSERVED
AIRPORT.—In this sub-
section, the term ‘underserved airport’ means a
nonhub airport or small hub airport that the Sec-
retary determines is not receiving sufficient air car-
rier service.’’.
SEC. 103. UNFAIR COMPETITION COMPLAINTS.
Section 41712 of title 49, United States Code, is
amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before
‘‘On’’; and
(2) by adding at the end the following:
‘‘(b) DEADLINE FOR DECISION ON UNFAIR COMPETI-
TION COMPLAINTS.—The Secretary shall make a decision
on any complaint the Secretary receives under this section
regarding whether an air carrier has been or is engaged
in an unfair method of competition in air transportation
or the sale of air transportation not later than 180 days
after the date of receipt of the complaint.’’.
TITLE II—REGIONAL AIR
SERVICE INCENTIVE PROGRAM
SEC. 201. AMENDMENT OF TITLE 49, UNITED STATES CODE.
(a) IN GENERAL.—Chapter 417 of title 49, United
States Code, is amended by adding at the end the follow-
ing:
‘‘SUBCHAPTER III—REGIONAL AIR SERVICE
INCENTIVE PROGRAM
‘‘§ 41761. Purpose
‘‘The purpose of this subchapter is to improve service
by jet aircraft to underserved markets by providing assist-
ance, in the form of loan guarantees, to commuter air car-
riers that purchase regional jet aircraft for use in serving
those markets.
‘‘§ 41762. Definitions
‘‘In this subchapter, the following definitions apply:
‘‘(1) AIRCRAFT
PURCHASE
LOAN.—The term
‘aircraft purchase loan’ means any loan made for the
purchase of commercial transport aircraft, including
spare parts normally associated with the aircraft.
‘‘(2) AIR
CARRIER.—The term ‘air carrier’
means any air carrier holding a certificate of public
convenience and necessity issued by the Secretary of
Transportation under section 41102.
‘‘(3) COMMUTER
AIR
CARRIER.—The term
‘commuter air carrier’ means an air carrier that pri-
marily operates aircraft designed to have a maxi-
mum passenger seating capacity of 75 or less in ac-
cordance with published flight schedules.
‘‘(4) NEW ENTRANT AIR CARRIER.—The term
‘new entrant air carrier’ means an air carrier that
has been providing air transportation according to
a published schedule for less than 5 years, including
any person that has received authority from the Sec-
retary to provide air transportation but is not pro-
viding air transportation.
‘‘(5) NONHUB
AIRPORT.—The term ‘nonhub
airport’ means an airport that each year has less
than .05 percent of the total annual boardings in the
United States.
‘‘(6) REGIONAL JET AIRCRAFT.—The term ‘re-
gional jet aircraft’ means a civil aircraft—
‘‘(A) powered by jet propulsion; and
‘‘(B) designed to have a maximum pas-
senger seating capacity of not less than 30 nor
more than 75.
‘‘(7) SMALL HUB AIRPORT.—The term ‘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.
‘‘(8) UNDERSERVED MARKET.—The term ‘un-
derserved market’ means a passenger air transpor-
tation market (as defined by the Secretary) that—
‘‘(A) is served (as determined by the Sec-
retary) by a nonhub airport or a small hub air-
port;
‘‘(B) is not within a 40-mile radius of an
airport that each year has at least .25 percent
of the total annual boardings in the United
States; and
‘‘(C) the Secretary determines does not
have sufficient air service.
‘‘§ 41763. Loan guarantees
‘‘(a) IN GENERAL.—The Secretary of Transportation
may guarantee any lender against loss of principal or in-
terest on any aircraft purchase loan made by that lender
to a commuter air carrier or new entrant air carrier.
‘‘(b) FORM, TERMS, AND CONDITIONS.—A guarantee
shall be made under subsection (a)—
‘‘(1) in such form and on such terms and condi-
tions; and
‘‘(2) pursuant to such regulations;
as the Secretary considers to be necessary and consistent
with this subchapter.
‘‘§ 41764. Conditions and limitations
‘‘(a) LIMITATIONS ON FUNDS.—Subject to subsection
(d), no loan guarantee shall be made under this sub-
chapter—
‘‘(1) extending to more than the unpaid interest
and 90 percent of the unpaid principal of any loan;
‘‘(2) on any loan or combination of loans for
more than 90 percent of the purchase price of the
aircraft, including spare parts, to be purchased with
the loan or loan combination;
‘‘(3) on any loan with respect to which terms
permit repayment more than 15 years after the date
the loan is made;
‘‘(4) in any case in which the total face amount
of the loan and any other loans to the same air car-
rier or corporate predecessor of that air carrier that
are guaranteed and outstanding under the terms of
this subchapter exceed $100,000,000.
‘‘(b) CONDITIONS FOR MAKING LOANS.—Subject to
subsection (c), the Secretary of Transportation may only
make a loan guarantee under this subchapter if the Sec-
retary finds that—
‘‘(1) the aircraft to be purchased with the loan
is a regional jet aircraft needed to improve the serv-
ice and efficiency of operation of the commuter air
carrier or new entrant air carrier;
‘‘(2) the commuter air carrier or new entrant
air carrier agrees to use the aircraft to provide serv-
ice to underserved markets; and
‘‘(3) the prospective earning power of the com-
muter air carrier or new entrant air carrier, together
with the character and value of the security pledged,
furnish—
‘‘(A) reasonable assurances of the air car-
rier’s ability and intention to repay the loan
within the term of the loan—
‘‘(i) to continue its operations as an
air carrier; and
‘‘(ii) to the extent that the Secretary
determines to be necessary, to continue its
operations as an air carrier between the
same route or routes being operated by the
air carrier at the time of the loan guaran-
tee; and
‘‘(B) reasonable protection to the United
States.
‘‘(c) REQUIREMENT.—Subject to subsection (d), no
loan guarantee may be made under this subchapter on any
loan or combination of loans for the purchase of any re-
gional jet aircraft that does not comply with the stage 3
noise levels of part 36 of title 14 of the Code of Federal
Regulations, as in effect on January 1, 1997.
‘‘(d) OTHER LIMITATIONS.—No loan guarantee shall
be made by the Secretary under this subchapter on any
loan for the purchase of a regional jet aircraft unless the
commuter air carrier or new entrant air carrier agrees
that it will provide scheduled passenger air transportation
to the underserved market for which the aircraft is pur-
chased for a period of not less than 24 consecutive months
after the aircraft is placed in service.
‘‘§ 41765. Fees
‘‘The Secretary of Transportation shall prescribe and
collect from a lending institution a reasonable guarantee
fee in connection with each loan guaranteed under this
subchapter.
‘‘§ 41766. Use of Federal facilities and assistance
‘‘(a) USE OF FEDERAL FACILITIES.—To permit the
Secretary of Transportation to make use of such expert
advice and services as the Secretary may require in carry-
ing out this subchapter, the Secretary may use available
services and facilities of other agencies and instrumental-
ities of the Federal Government—
‘‘(1) with the consent of the appropriate Fed-
eral officials; and
‘‘(2) on a reimbursable basis.
‘‘(b) ASSISTANCE.—The head of each appropriate de-
partment or agency of the Federal Government shall exer-
cise the duties and functions of that head in such manner
as to assist in carrying out the policy specified in section
41761.
‘‘(c) OVERSIGHT.—The Secretary shall make avail-
able to the Comptroller General of the United States such
information with respect to the loan guarantee program
conducted under this subchapter as the Comptroller Gen-
eral may require to carry out the duties of the Comptroller
General under chapter 7 of title 31.
‘‘§ 41767. Receipts; payments
‘‘(a) MISCELLANEOUS.—Amounts received by the
Secretary of Transportation under this subchapter shall
be credited to miscellaneous receipts of the Treasury.
‘‘(b) PAYMENTS.—Payments to lenders required as a
consequence of any loan guarantee made under this sub-
chapter may be made from funds appropriated pursuant
to the authorization under section 202 of the Airline Serv-
ice Improvement Act of 1997.
‘‘(c) ADMINISTRATIVE EXPENSES.—In carrying out
this subchapter, the Secretary shall use funds made avail-
able by appropriations to the Department of Transpor-
tation for the purpose of administration to cover adminis-
trative expenses of the loan guarantee program under this
subchapter.
‘‘§ 41768. Termination
‘‘The authority of the Secretary of Transportation
under section 41763 shall terminate on the date that is
5 years after the date of the enactment of this sub-
chapter.’’.
(b) CONFORMING AMENDMENT.—The analysis for
chapter 417 of such title is amended by adding at the end
the following:
‘‘SUBCHAPTER III—REGIONAL AIR SERVICE INCENTIVE PROGRAM
‘‘Sec.
‘‘41761. Purpose.
‘‘41762. Definitions.
‘‘41763. Loan guarantees.
‘‘41764. Conditions and limitations.
‘‘41765. Fees.
‘‘41766. Use of Federal facilities and assistance.
‘‘41767. Receipts; payments.
‘‘41768. Termination.’’.
SEC. 202. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums
as may be necessary to carry out subchapter III of chapter
417 of title 49, United States Code.
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