‘‘(c) COORDINATION WITH OTHER PROVISIONS OF
SUBCHAPTER.—The Secretary shall carry out the 5-year
pilot program authorized by this subchapter in such a
manner as to complement action taken under the other
provisions of this subchapter. To the extent the Secretary
determines to be appropriate, the Secretary may adopt cri-
teria for implementation of the 5-year pilot program that
are the same as, or similar to, the criteria developed under
the preceding sections of this subchapter for determining
which airports are eligible under those sections. The Sec-
retary shall also, to the extent possible, provide incentives
where no direct, viable, and feasible alternative service ex-
ists, taking into account geographical diversity and appro-
priate market definitions.
‘‘(d) MAXIMIZATION OF PARTICIPATION.—The Sec-
retary shall structure the program established pursuant
to section 41744(a) in a way designed to—
‘‘(1) permit the participation of the maximum
feasible number of communities and States over a 5-
year period by limiting the number of years of par-
ticipation or otherwise; and
‘‘(2) obtain the greatest possible leverage from
the financial resources available to the Secretary and
the applicant by—
‘‘(A) progressively decreasing, on a project-
by-project basis, any Federal financial incen-
tives provided under this subchapter over the 5-
year period; and
‘‘(B) terminating as early as feasible Fed-
eral financial incentives for any project deter-
mined by the Secretary after its implementation
to be—
‘‘(i) viable without further support
under this subchapter; or
‘‘(ii) failing to meet the purposes of
this subchapter or criteria established by
the Secretary under the pilot program.
‘‘(e) SUCCESS BONUS.—If Federal financial incen-
tives to a community are terminated under subsection
(d)(2)(B) because of the success of the program in that
community, then that community may receive a one-time
incentive grant to ensure the continued success of that
program.
‘‘(f) PROGRAM TO TERMINATE IN 5 YEARS.—No new
financial assistance may be provided under this sub-
chapter for any fiscal year beginning more than 5 years
after the date of enactment of the Air Service Restoration
Act.
‘‘§ 41746. Additional authority
‘‘In carrying out this subchapter, the Secretary—
‘‘(1) may provide assistance to States and com-
munities in the design and application phase of any
project under this subchapter, and oversee the im-
plementation of any such project;
‘‘(2) may assist States and communities in put-
ting together projects under this subchapter to uti-
lize private sector resources, other Federal re-
sources, or a combination of public and private re-
sources;
‘‘(3) may accord priority to service by jet air-
craft;
‘‘(4) take such action as may be necessary to
ensure that financial resources, facilities, and admin-
istrative arrangements made under this subchapter
are used to carry out the purposes of the Air Service
Restoration Act; and
‘‘(5) shall work with the Federal Aviation Ad-
ministration on airport and air traffic control needs
of communities in the program.’’.
(b) CONFORMING AMENDMENT.—The analysis for
subchapter II of chapter 417 of such title is amended by
inserting after the item relating to section 41742 the fol-
lowing:
‘‘41743. Air service program for small communities.
‘‘41744. Pilot program project authority.
‘‘41745. Assistance to communities for service.
‘‘41746. Additional authority.’’.
SEC. 6. AUTHORIZATION OF APPROPRIATIONS.
To carry out sections 41743 through 41746 of title
49, United States Code, for the 5 fiscal year period begin-
ning with fiscal year 2000 there are authorized to be ap-
propriated to the Secretary of Transportation not more
than $100,000,000.
SEC. 7. MARKETING PRACTICES.
Section 41712 is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before
‘‘On’’; and
(2) by adding at the end the following:
‘‘(b) MARKETING PRACTICES THAT ADVERSELY AF-
FECT SERVICE TO SMALL OR MEDIUM COMMUNITIES.—
Within 180 days after the date of enactment of the Air
Service Restoration Act, the Secretary shall review the
marketing practices of air carriers that may inhibit the
availability of quality, affordable air transportation serv-
ices to small- and medium-sized communities, including—
‘‘(1) marketing arrangements between airlines
and travel agents;
‘‘(2) code-sharing partnerships;
‘‘(3) computer reservation system displays;
‘‘(4) gate arrangements at airports;
‘‘(5) exclusive dealing arrangements; and
‘‘(6) any other marketing practice that may
have the same effect.
‘‘(c) REGULATIONS.—If the Secretary finds, after
conducting the review required by subsection (b), that
marketing practices inhibit the availability of such service
to such communities, then, after public notice and an op-
portunity for comment, the Secretary shall promulgate
regulations that address the problem.’’.
SEC. 8. NONDISCRIMINATORY INTERLINE INTERCONNEC-
TION REQUIREMENTS.
(a) IN GENERAL.—Subchapter I of chapter 417 is
amended by adding at the end the following:
‘‘§ 41717. Interline agreements for domestic transpor-
tation
‘‘(a) NONDISCRIMINATORY REQUIREMENTS.—If a
major air carrier that provides air service to an essential
airport facility has any agreement involving ticketing, bag-
gage and ground handling, and terminal and gate access
with another carrier, it shall provide the same services to
any requesting air carrier that offers service to a commu-
nity selected for participation in the program under sec-
tion 41743 under similar terms and conditions and on a
nondiscriminatory basis within 30 days after receiving the
request, as long as the requesting air carrier meets such
safety, service, financial, and maintenance requirements,
if any, as the Secretary may by regulation establish con-
sistent with public convenience and necessity. The Sec-
retary must review any proposed agreement to determine
if the requesting carrier meets operational requirements
consistent with the rules, procedures, and policies of the
major carrier. This agreement may be terminated by ei-
ther party in the event of failure to meet the standards
and conditions outlined in the agreement.’’.
‘‘(b) DEFINITIONS.—In this section the term ‘essen-
tial airport facility’ means a large hub airport (as defined
in section 41731(a)(3)) in the contiguous 48 States in
which one carrier has more than 50 percent of such air-
port’s total annual enplanements.’’.
(b) CLERICAL AMENDMENT.—The analysis for sub-
chapter I of chapter 417 is amended by adding at the end
the following:
‘‘41717. Interline agreements for domestic transportation.’’.
SEC. 9. PRICES FOR AIR TRANSPORTATION ON ROUTES
USING SINGLE CARRIER DOMINATED AIR-
PORTS.
(a) IN GENERAL.—Chapter 415 is amended by add-
ing at the end the following:
‘‘§ 41512. Prices for air transportation on routes
using single carrier dominated airports
‘‘(a) AUTHORITY TO REQUEST SECRETARY’S DETER-
MINATION.—
‘‘(1) IN GENERAL.—The Secretary of Transpor-
tation shall issue a determination as to whether a
price established by an air carrier for a route in air
transportation that contains a flight segment to or
from an airport dominated by the carrier is reason-
able if any individual files with the Secretary a writ-
ten request for the determination.
‘‘(2) SECRETARY NOT TO SET PRICE.—In deter-
mining whether a price is reasonable under this sec-
tion, the Secretary may only determine whether the
price is reasonable or unreasonable and shall not set
the price.
‘‘(b) SINGLE CARRIER DOMINATED AIRPORTS.—For
purposes of subsection (a), an airport shall be treated as
an airport dominated by a carrier if more than 50 percent
of the daily passenger enplanements at the airport are
enplanements of the carrier.
‘‘(c) PROCEDURAL REGULATIONS.—Not later than
90 days after the date of enactment of this section, the
Secretary shall publish in the Federal Register final regu-
lations, policy statements, or guidelines establishing—
‘‘(1) the procedures for acting upon a written
request filed under subsection (a)(1); and
‘‘(2) the standards or guidelines that shall be
used by the Secretary in determining under this sec-
tion whether a price is reasonable.’’.
(b) CONFORMING AMENDMENT.—The analysis for
chapter 415 is amended by adding at the end the follow-
ing:
‘‘41512. Prices for air transportation on routes using single carrier dominated
airports.’’.
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