Sec. 102. Unfair methods of competition.
Sec. 103. Approval of slot transfers.
Sec. 104. Joint venture agreements between air carriers.
Sec. 105. Regulation of dominant air carriers.
Sec. 106. Reallocation of airport slots, gates, and facilities following air carrier
mergers and acquisitions.
Sec. 107. Internet airline reservation systems.
Sec. 108. Federal policies on slots at high density airports.
TITLE II—AIRLINE PASSENGER PROTECTION
Sec. 201. Fair treatment of airline passengers.
Sec. 202. Clarification regarding enforcement of State laws.
Sec. 203. Airline passenger protection.
SEC. 2. AMENDMENTS TO TITLE 49, UNITED STATES CODE.
Except as otherwise specifically provided, whenever in
this Act an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion of law, the reference shall be considered to be made
to a section or other provision of title 49, United States
Code.
TITLE I—AIR CARRIER
COMPETITION
SEC. 101. CONSIDERATION OF UNFAIR PRACTICES IN
ISSUANCE OF CERTIFICATES FOR FOREIGN
AIR TRANSPORTATION.
Section 41102(d) is amended—
(1) by striking ‘‘The Secretary’’ and inserting
the following:
‘‘(1) SUBMISSION
OF
DECISIONS
TO
PRESI-
DENT.—The Secretary’’;
(2) by adding at the end the following:
‘‘(2) CONSIDERATION OF UNFAIR PRACTICES.—
Before issuing a certificate under subsection (a) au-
thorizing an air carrier to provide foreign air trans-
portation, the Secretary shall consider whether the
air carrier has engaged in any unfair or deceptive
practice or unfair method of competition in air
transportation or the sale of air transportation in
the preceding 5-year period.’’; and
(3) by aligning paragraph (1) (as designated by
paragraph (1) of this section) with paragraph (2)
(as added by paragraph (2) of this section).
SEC. 102. UNFAIR METHODS OF COMPETITION.
(a) CODE SHARE AGREEMENTS.—Section 41712 is
amended by adding at the end the following:
‘‘(c) CODE SHARE AGREEMENTS.—
‘‘(1) IN GENERAL.—It shall be an unfair meth-
od of competition under subsection (a) for a major
air carrier to prohibit, limit, or otherwise restrict a
code share partner of the major air carrier from en-
tering into a code share agreement with another air
carrier or foreign air carrier.
‘‘(2) DEFINITIONS.—In this section, the fol-
lowing definitions apply:
‘‘(A) CODE
SHARE
AGREEMENT.—The
term ‘code share agreement’ means an agree-
ment under which an air carrier’s designator
code is used to identify a flight operated by an-
other air carrier or foreign air carrier.
‘‘(B) CODE SHARE PARTNER.—The term
‘code share partner’, with respect to a major air
carrier, means an air carrier or foreign air car-
rier that has entered into a code share agree-
ment with the major air carrier.
‘‘(C) MAJOR
AIR
CARRIER.—The term
‘major air carrier’ has the meaning given such
term in section 41720(a).’’.
(b) PENALTIES.—Section 46301(a) is amended by
adding at the end the following:
‘‘(8) MAXIMUM PENALTY FOR ENGAGING IN UN-
FAIR METHODS OF COMPETITION.—Notwithstanding
paragraph (1), the maximum civil penalty that may
be assessed against an air carrier for violating sec-
tion 41712 by engaging, with respect to air trans-
portation on any route, in an unfair method of com-
petition against another air carrier shall be
$10,000.’’.
SEC. 103. APPROVAL OF SLOT TRANSFERS.
Section 41714 is amended by adding at the end the
following:
‘‘(l) SLOT TRANSFERS.—
‘‘(1) APPROVAL REQUIRED.—After the date of
enactment of this subsection, an air carrier may
transfer a slot to another air carrier only if the
transfer is approved by the Secretary.
‘‘(2) CONSIDERATIONS.—In determining wheth-
er to approve the transfer of a slot under paragraph
(1), the Secretary shall consider—
‘‘(A) the competitive effects of the trans-
fer;
‘‘(B) whether the price to be paid for the
slot is above or below the market price for simi-
lar slots; and
‘‘(C) whether any air carrier was denied an
opportunity to purchase the slot and, if so, the
reasons for the denial.
‘‘(3) ANNUAL REPORTS.—Not later than 1 year
after the date of enactment of this subsection, and
annually thereafter, the Secretary shall transmit to
Congress a report on the approval and disapproval
of slot transfers under this subsection.’’.
SEC. 104. JOINT VENTURE AGREEMENTS BETWEEN AIR
CARRIERS.
Section 41720 is amended by adding at the end the
following:
‘‘(i) STUDY OF JOINT VENTURE AGREEMENTS.—
‘‘(1) IN GENERAL.—The Secretary shall con-
duct a study of joint venture agreements between air
carriers to determine whether such agreements con-
stitute an unfair method of competition within the
meaning of section 41712.
‘‘(2) CONTENTS.—In conducting the study, the
Secretary shall assess—
‘‘(A) whether air carriers act as competi-
tors with their code share partners;
‘‘(B) whether joint venture agreements be-
tween air carriers result in unfair competitive
advantages; and
‘‘(C) such other factors as the Secretary
determines appropriate.
‘‘(3) REPORTS.—
‘‘(A) INITIAL REPORT.—Not later than 9
months after the date of enactment of this sub-
section, the Secretary shall transmit to Con-
gress a report on the results of the study.
‘‘(B) UPDATES.—The Secretary shall up-
date the study every 4 years and transmit an
updated report to Congress.’’.
SEC. 105. REGULATION OF DOMINANT AIR CARRIERS.
(a) IN GENERAL.—Subchapter I of chapter 417 is
amended by adding at the end the following:
‘‘§ 41722. Regulation of dominant air carriers
‘‘(a) INVESTIGATIONS.—Not later than 90 days after
the date of enactment of this section, and biennially there-
after, the Secretary of Transportation shall conduct an in-
vestigation of each hub airport to determine whether, in
the preceding 5 years, a dominant air carrier at the air-
port, if any, has—
‘‘(1) charged higher than average fares for
interstate air transportation to or from the airport;
‘‘(2) engaged in an unfair method of competi-
tion in response to a new entrant air carrier at the
airport; or
‘‘(3) limited competition by a new entrant air
carrier at the airport by restricting the access of the
new entrant to gates, slots, or other essential facili-
ties at the airport on reasonable and competitive
terms.
‘‘(b) ORDERS.—
‘‘(1) IN GENERAL.—If the Secretary determines
that a dominant air carrier at a hub airport has en-
gaged in an act described in subsection (a), the Sec-
retary, after providing notice and an opportunity for
a hearing, may order the carrier to increase opportu-
nities for competition at the airport.
‘‘(2) TYPES
OF
ACTIONS.—An order issued
under paragraph (1) may require a dominant air
carrier at a hub airport—
‘‘(A) to reduce fares for interstate air
transportation to or from the airport;
‘‘(B) to offer reduced fares for air trans-
portation to or from the airport for a specific
number of seats on specific routes;
‘‘(C) to offer rebates to passengers of the
carrier who have been charged excessive fares
for air transportation to or from the airport;
‘‘(D) to make gates, slots, and other facili-
ties at the airport available to other air carriers
on reasonable and competitive terms;
‘‘(E) to make adjustments in the carrier’s
frequent flyer program;
‘‘(F) to make adjustments in the carrier’s
corporate discount arrangements and com-
parable corporate arrangements; and
‘‘(G) to take such other actions as the Sec-
retary determines appropriate.
‘‘(c) NON-HUB AIRPORTS.—On the initiative of the
Secretary or in response to a complaint filed with the Sec-
retary, the Secretary may conduct an inquiry described in
subsection (a) at an airport other than a hub airport and
may order the dominant air carrier at the airport, if any,
to take actions described in subsection (b).
‘‘(d) CONSIDERATIONS.—In determining whether to
require a dominant air carrier to reduce a fare for air
transportation under subsection (b), the Secretary shall
consider among other factors—
‘‘(1) whether the fare or average fare is higher
than the fare or average fare charged by the carrier
on other routes in air transportation of comparable
distances;
‘‘(2) whether the fare or average fare has in-
creased by a significant amount in excess of any in-
crease in the cost to operate flights on the route;
and
‘‘(3) whether the range of fares specified on the
route offers a reasonable balance and a fair alloca-
tion of costs between passengers who are primarily
price sensitive and passengers who are primarily
time sensitive.
‘‘(e) DEFINITIONS.—In this section, the following
definitions apply:
‘‘(1) AIR
TRANSPORTATION.—The term ‘air
transportation’ includes intrastate air transpor-
tation.
‘‘(2) DOMINANT AIR CARRIER.—The term ‘dom-
inant air carrier’, with respect to an airport, means
an air carrier that accounts for more than 40 per-
cent of the total annual boardings at the airport in
the preceding 2-year period or a shorter period spec-
ified in paragraph (4).
‘‘(3) HUB AIRPORT.—The term ‘hub airport’
means an airport that each year has at least .25
percent of the total annual boardings in the United
States.
‘‘(4) NEW ENTRANT AIR CARRIER.—The term
‘new entrant air carrier’, with respect to a airport,
means an air carrier that accounts for less than 10
percent of the total annual boardings at the airport
in the preceding 2-year period or in a shorter period
specified by the Secretary if the carrier has operated
at the airport less than 2 years.’’.
(b) CONFORMING AMENDMENT.—The analysis for
subchapter I of chapter 417 is amended by adding at the
end the following:
‘‘41722. Regulation of dominant air carriers.’’.
SEC. 106. REALLOCATION OF AIRPORT SLOTS, GATES, AND
FACILITIES FOLLOWING AIR CARRIER MERG-
ERS AND ACQUISITIONS.
(a) IN GENERAL.—Subchapter I of chapter 417, as
amended by section 105(a) of this Act, is amended by add-
ing at the end the following:
‘‘§ 41723. Reallocation of airport slots, gates, and fa-
cilities following air carrier mergers and
acquisitions
‘‘(a) MERGERS AND ACQUISITIONS RESULTING IN
DOMINANT AIR CARRIERS.—If, after January 1, 2001, a
major air carrier acquires the assets or voting securities
of any other air carrier (or a substantial portion of such
assets or voting securities), the Secretary of Transpor-
tation shall conduct a review of the airports served by the
air carrier established as result of such acquisition to de-
termine whether the air carrier is a dominant air carrier
at any of such airports.
‘‘(b) REALLOCATION OF SLOTS, GATES, AND FACILI-
TIES.—If the Secretary determines under subsection (a)
that an air carrier is a dominant air carrier at an airport,
the Secretary shall—
‘‘(1) issue an order requiring the operator of
the airport to reallocate (including by modification
of existing contracts, as necessary) 10 percent of the
airport gates and facilities that are leased to the
dominant air carrier to new entrant air carriers (if
there is sufficient demand for such gates and facili-
ties by new entrant air carriers); and
‘‘(2) if the airport is a high density airport, re-
allocate 20 percent of the slots of the dominant air
carrier to new entrant air carriers (if there is suffi-
cient demand for such slots by new entrant air car-
riers).
‘‘(c) DEADLINE.—The reallocation of slots and air-
port gates and facilities under subsection (b) shall be com-
pleted not later than 1 year after the date of the acquisi-
tion referred to in subsection (a).
‘‘(d) NONCOMPLIANCE BY AIRPORTS.—
‘‘(1) PENALTY FOR NONCOMPLIANCE.—
‘‘(A) FIRST YEAR.—If an airport does not
comply with an order issued under subsection
(b)(1), the Secretary shall withhold, on the first
day of the first fiscal year following the date of
such noncompliance, 5 percent of the amount
required to be apportioned to the airport for
such fiscal year under section 47114.
‘‘(B) SUBSEQUENT YEARS.—On the first
day of each fiscal year following a fiscal year
for which the Secretary withholds amounts
from the apportionment of an airport under
subparagraph (A), the Secretary shall withhold
10 percent of the amount required to be appor-
tioned to the airport for such fiscal year under
section 47114 unless the airport complies with
the order referred to in subparagraph (A)
throughout the preceding fiscal year.
‘‘(2) EFFECT
OF
NONCOMPLIANCE.—Funds
withheld from the apportionment of an airport under
paragraph (1) shall be added to the discretionary
fund.
‘‘(e) DEFINITIONS.—In this section, the following
definitions apply:
‘‘(1) AIRPORT FACILITIES.—The term ‘airport
facilities’ includes ticket counters, office space, space
to house computers, and aprons at airports.
‘‘(2) DOMINANT AIR CARRIER.—The term ‘dom-
inant air carrier’ means—
‘‘(A) with respect to a high density airport,
an air carrier that has (or is projected in the
following year to have) at least 20 percent of
the annual passenger boardings at the airport;
and
‘‘(B) with respect to an airport other than
a high density airport, an air carrier that ac-
counts for (or is projected in the following year
to account for) at least 40 percent of the an-
nual passenger boardings at the airport.
‘‘(3) NEW ENTRANT AIR CARRIER.—The term
‘new entrant air carrier’, with respect to a airport,
means an air carrier that accounts for less than 10
percent of the total annual boardings at the airport.
‘‘(4) HIGH
DENSITY
AIRPORT; 
SLOT.—The
terms ‘high density airport’ and ‘slot’ have meanings
given such terms by section 41714(h).
‘‘(5) MAJOR AIR CARRIER.—The term ‘major
air carrier’ has the meaning given such term by sec-
tion 41720.’’.
(b) CONFORMING AMENDMENT.—The analysis for
subchapter I of chapter 417, as amended by section
105(b) of this Act, is amended by adding at the end the
following:
‘‘41723. Reallocation of airport slots, gates, and facilities following air carrier
mergers and acquisitions.’’.
SEC. 107. INTERNET AIRLINE RESERVATION SYSTEMS.
(a) STUDY.—The Comptroller General shall conduct
a study on how air carrier competition would be affected
by the establishment of an airline reservation system on
the Internet by a group of major air carriers.
(b) CONTENTS.—The study shall include an analysis
of how an airline reservation system described in sub-
section (a) would affect the method by which consumers
purchase tickets for air transportation, including the ef-
fects of such a system on ticket agents.
(c) REPORTS.—Not later than 90 days after the date
of enactment of this Act, the Comptroller General shall
transmit to Congress a report on the results of the study.
SEC. 108. FEDERAL POLICIES ON SLOTS AT HIGH DENSITY
AIRPORTS.
(a) STUDY.—The Comptroller General shall conduct
a study on current and evolving Federal policies on slots
at high density airports.
(b) CONTENTS.—In conducting the study, the Comp-
troller General shall assess—
(1) the significance of Department of Transpor-
tation policies and practices on the control and allo-
cation of slots at high density airports, including the
impact of permitting air carriers to control slots on
air carrier competition, system capacity, and indus-
try restructuring; and
(2) the potential for replacing airline ticket
taxes with scarcity-reflective pricing of slots (includ-
ing appropriate policies to preserve competition and
service to small- and medium-sized communities).
(c) REPORT.—Not later than 18 months after the
date of enactment of this Act, the Comptroller General
shall transmit to Congress a report on the results of the
study.
TITLE II—AIRLINE PASSENGER
PROTECTION
SEC. 201. FAIR TREATMENT OF AIRLINE PASSENGERS.
Section 41712, as amended by section 102(a) of this
Act, is amended by adding at the end the following:
‘‘(d) SPECIFIC PRACTICES.—For purposes of sub-
section (a), the terms ‘unfair or deceptive practice’ and
‘unfair method of competition’ include each of the fol-
lowing:
‘‘(1) ACCESS
TO
FARES; CONSISTENTLY
DE-
LAYED FLIGHTS.—Regardless of the method used by
a consumer to contact an air carrier or foreign air
carrier, the failure of the carrier—
‘‘(A) to inform the consumer of the lowest
available fare from the carrier for the air trans-
portation requested by the consumer on the
date and in the class of service specified by the
consumer, as well as the number of seats avail-
able at that fare;
‘‘(B) to provide the consumer with full ac-
cess to all fares for air transportation provided
by the carrier; or
‘‘(C) to inform the consumer if the air
transportation requested by the consumer in-
cludes a flight segment that in the preceding
calendar month, at least 40 percent of the time,
was either canceled or delayed by 30 minutes or
more past the flight segment’s scheduled arrival
time.
‘‘(2) PRICING POLICIES.—Any action of an air
carrier or foreign air carrier—
‘‘(A) to prohibit a person (including a gov-
ernmental entity) that purchases air transpor-
tation from only using a portion of the air
transportation purchased (including using the
air transportation purchased only for 1-way
travel instead of round-trip travel); or
‘‘(B) to assess an additional fee on or
charge to—
‘‘(i) such a person; or
‘‘(ii) any ticket agent that sold the air
transportation to such person.
‘‘(3) TERMINATION
OF
TICKET
AGENTS.—In
the case of a termination, cancellation, nonrenewal,
or substantial change in the competitive cir-
cumstances of the appointment of a ticket agent by
an air carrier or foreign air carrier, the failure of
the air carrier or foreign air carrier—
‘‘(A) to provide the ticket agent with writ-
ten notice, and a full statement of reasons for
the action, on or before the 90th day preceding
the action; and
‘‘(B) to provide the ticket agent with at
least 60 days to correct any deficiency claimed
in the written notice,
except in cases of insolvency, an assignment for the
benefit of creditors, bankruptcy, or nonpayment of
sums due under the appointment.’’.
SEC. 202. CLARIFICATION REGARDING ENFORCEMENT OF
STATE LAWS.
Section 41713(b)(1) is amended by striking ‘‘related
to a price, route, or service of an air carrier that may pro-
vide air transportation under this subpart’’ and inserting
‘‘that directly prescribes a price, route, or level of service
for air transportation provided by an air carrier under this
subpart’’.
SEC. 203. AIRLINE PASSENGER PROTECTION.
(a) IN GENERAL.—Subchapter I of chapter 417, as
amended by section 106(a) of this Act, is amended by add-
ing at the end the following:
‘‘§ 41724. Air carrier passenger protection
‘‘(a) EMERGENCY PLANS.—
‘‘(1) IN GENERAL.—An air carrier shall ensure
access to necessary services and conditions, including
food, water, restroom facilities, and the ability to
deplane in the event of a weather or other emer-
gency, for all passengers boarded on a flight seg-
ment of the air carrier in air transportation.
‘‘(2) SUBMITTAL OF PLANS.—The Secretary of
Transportation shall require each air carrier to sub-
mit to the Secretary an emergency plan containing
a detailed description of actions that will be taken
by the carrier to comply with paragraph (1).
‘‘(3) FAILURE TO SUBMIT PLANS.—The Sec-
retary shall suspend the authority of an air carrier
to provide air transportation if the carrier fails to
submit a plan in accordance with paragraph (2).
The suspension shall continue until the carrier sub-
mits the plan.
‘‘(4) REGULATIONS.—Not later than 180 days
after the date of enactment of this section, the Sec-
retary shall issue final regulations to require plans
under paragraph (2).
‘‘(b) RIGHT TO EXIT AIRCRAFT.—No air carrier op-
erating an aircraft in air transportation shall prevent or
hinder (including by failing to assist) any passenger from
exiting the aircraft (under the same circumstances as any
member of the flight crew is permitted to exit the aircraft)
if—
‘‘(1) the aircraft is parked at an airport ter-
minal gate with access to ramp or other facilities
through which passengers are customarily boarded
and deplaned;
‘‘(2) the aircraft has remained at the gate more
than 1 hour past its scheduled departure time; and
‘‘(3) the captain of the aircraft has not been in-
formed by air traffic control authorities that the air-
craft can be cleared for departure within 15 min-
utes.
‘‘(c) DELAY, CANCELLATION, OR DIVERSION.—
‘‘(1) EXPLANATION REQUIRED.—An announce-
ment by an air carrier of (A) a delay or cancellation
of a flight segment, or (B) a diversion of a flight
segment to an airport other than the airport at
which the flight segment is scheduled to land, shall
include an explanation of the reason or reasons for
the delay, cancellation, or diversion.
‘‘(2) PROHIBITION ON FALSE OR MISLEADING
EXPLANATIONS.—No air carrier shall provide an ex-
planation under paragraph (1) that the air carrier
knows or has reason to know is false or misleading.
‘‘(3) TIMELINESS OF INFORMATION.—
‘‘(A) IN GENERAL.—An air carrier shall
provide a passenger with timely notice of a
delay or cancellation of the flight segment.
‘‘(B) INFORMATION
MONITORS
AT
AIR-
PORTS.—In complying with subparagraph (A),
an air carrier shall ensure that information
monitors at the airport concerned display timely
and accurate arrival and departure information.
‘‘(C) ADVANCE NOTICE OF DELAYS AND
CANCELLATIONS.—In complying with subpara-
graph (A), an air carrier, whenever practicable,
shall attempt to provide a passenger with notice
of a delay or cancellation of a flight segment
before the passenger departs for the airport.
‘‘(4) REGULATIONS.—Not later than 1 year
after the date of enactment of this section, the Sec-
retary shall issue regulations to carry out this sub-
section.
‘‘(d) 
EXCESSIVE
DEPARTURE
AND
ARRIVAL
DELAY.—
‘‘(1) LIABILITY IMPOSED.—An air carrier shall
be liable to each passenger on a flight segment of
the air carrier in air transportation for an excessive
departure or arrival delay of the aircraft.