I
105TH CONGRESS
2D SESSION
H. R. 4577
To amend title 49, United States Code, to improve air carrier service.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 16, 1998
Mr. DINGELL introduced the following bill; which was referred to the
Committee on Transportation and Infrastructure
A BILL
To amend title 49, United States Code, to improve air carrier
service.
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 ‘‘Friendly Skies Res-
toration Act’’.
SEC. 2. FINDINGS.
Congress finds that—
(1) the Airline Deregulation Act of 1978 was
intended to open markets and result in increased
competition and service for the United States public;
(2) airline competition benefits communities
and consumers and is under the jurisdiction of, and
should be promoted by, the Federal government;
(3) the Department of Transportation is pro-
posing rules to address complaints of unfair exclu-
sionary conduct engaged in by major air carriers
against new entrant air carriers, including drastic
price cuts and flooding the market with new low-fare
capacity;
(4) unfair exclusionary conduct hurts consum-
ers in the long run because it deprives the public of
the benefits of competition and alternative carriers;
(5) there has been increased concentration with-
in the airline industry and most major hubs are
dominated by one carrier;
(6) studies by the General Accounting Office
and independent entities show that concentration in
the domestic airline industry continues to increase
and that, where such concentration exists, fares have
increased, with a significant impact on communities
and their residents;
(7) using the Herfindahl-Hirschman Index, an
index that the Department of Justice uses to meas-
ure market concentration, a recent study found that
based on the 50 largest domestic airports, the
United States airline industry is excessively con-
centrated;
(8) there are proposals before the Department
of Transportation that would combine the Nation’s
6 largest carriers into 3 alliances with strengthened
control over the United States market;
(9) several studies by the General Accounting
Office reveal that consumers traveling to and from
concentrated hub airports pay prices for air trans-
portation more than 20 percent higher than consum-
ers traveling in competitive markets;
(10) the introduction of low-fare competition
into certain markets has enabled more consumers to
fly in those markets, resulting in enormous economic
growth for those communities;
(11) although the deregulation of the domestic
airline industry has led to lower fares for many air
travelers, the promised benefits of airline deregula-
tion have yet to be realized;
(12) the Secretary of Transportation needs ad-
ditional authority to promulgate and enforce stand-
ards of fair competition in the airline industry under
section 41712 of title 49, United States Code;
(13) the General Accounting Office has identi-
fied a number of issues that the Department of
Transportation could address to lower barriers to
entry and increase competition in the airline market,
such as slot restrictions and exclusive airport gate
leases;
(14) of the more than 3,100 domestic air car-
rier slots at the 4 slot-controlled airports in the
United States, known as ‘‘high density airports’’—
(A) fewer than 45 slots are held collectively
by new entrant air carriers; and
(B) foreign carriers hold approximately
twice as many slots as new entrant air carriers;
(15) the Department of Transportation allowed
the established air carriers to retain a large portion
of their slots free-of-charge when the current ‘‘Buy-
Sell Rule’’ was instituted in 1985;
(16) access to slot-controlled airports is crucial
to establishing new air service in the heavily-traveled
eastern and midwestern markets and if carriers are
going to be able to increase services to markets
served by small hub airports and medium hub air-
ports, particularly in the Southeast and Midwest;
(17) the National Commission to Ensure a
Strong Competitive Airline Industry recommended
that the Federal Aviation Administration review the
rule that limits operations at high density airports
with the aim of either removing these artificial limits
or raising them to the highest practicable level con-
sistent with safety requirements;
(18) the General Accounting Office reports that
additional action is needed because the Department
of Transportation is limited in the number of new
slots the Department can grant through the current
exemption process;
(19) recent evidence shows that labor strikes at
major airlines ground thousands of daily flights and
hold hundreds of thousands of United States travel-
ers hostage; and
(20) the United States public should be able to
travel at reasonable rates to visit family members,
take hard-earned vacations, visit old friends, be with
a loved one, attend a friend’s wedding, visit grand-
children, and make those valuable face-to-face con-
tacts for business.
SEC. 3. JOINT VENTURE UNFAIR PRACTICES.
Section 41712 of title 49, U.S. Code, is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before
‘‘On the initiative’’; and
(2) by adding at the end the following:
‘‘(b) JOINT VENTURE UNFAIR PRACTICES.—
‘‘(1) DEFINITIONS.—In this subsection, the fol-
lowing definitions apply:
‘‘(A) JOINT
VENTURE
AGREEMENT.—(i)
The term ‘joint venture agreement’ means an
agreement entered into by a major air carrier
on or after January 1, 1998, with regard to
code-sharing, blocked-space arrangements, long-
term wet leases (as defined in section 207.1 of
title 14, Code of Federal Regulations) of a sub-
stantial number (as defined by the Secretary by
regulation) of aircraft, or frequent flyer pro-
grams; or
‘‘(ii) any other cooperative working ar-
rangement (as defined by the Secretary by reg-
ulation) between 2 or more major air carriers
that affects more than 10 percent of the total
number of available seat miles offered by the
major air carriers.
‘‘(B) MAJOR AIR CARRIER.—Term ‘major
air carrier’ means a passenger air carrier that
is certificated under chapter 411 of this title
and included in Carrier Group III under cri-
teria contained in section 04 of part 241 of title
14, Code of Federal Regulations.
‘‘(2) SUBMISSION OF JOINT VENTURE AGREE-
MENT FOR REVIEW.—At least 30 days before a joint
venture agreement may take effect, each of the
major air carriers that entered into the agreement
shall submit to the Secretary for review under this
subsection—
‘‘(A) a complete copy of the joint venture
agreement and all related agreements; and
‘‘(B) other information and documentary
material that the Secretary may require by reg-
ulation as necessary for deciding whether to in-
stitute a proceeding to determine if the joint
venture agreement violates this section.
‘‘(3) INVESTIGATION.—The Secretary may con-
duct an investigation as the basis for deciding
whether to institute a proceeding to determine if the
implementation of the joint venture agreement will
constitute an unfair or deceptive practice or an un-
fair method of competition in violation of this sec-
tion. If the Secretary undertakes an investigation,
the Secretary shall publish in the Federal Register
the reasons of the Secretary for undertaking the in-
vestigation.
‘‘(4) SUBMISSION
OF
ADDITIONAL
INFORMA-
TION AND EXTENSION OF WAITING PERIOD.—
‘‘(A) ADDITIONAL INFORMATION.—Before
the last day of the 30-day period referred to in
paragraph (2), the Secretary may require the
submission of additional information of docu-
mentary material relevant to the proposed joint
venture agreement from any party to the agree-
ment or from any subsidiary or affiliated cor-
poration of the party.
‘‘(B) EXTENSION OF WAITING PERIOD.—If
the Secretary requires the submission of addi-
tional information or documentary materials
under subparagraph (A), the Secretary may ex-
tend the 30-day period referred to in paragraph
(2) until the 30th day following—
‘‘(i) the date of submission of the ad-
ditional information or material; or
‘‘(ii) if the request is not fully com-
plied with, the date of submission of any
additional information or material in com-
pliance with the request and a statement
by the party that the party cannot comply
with the remainder of the request.
‘‘(5) PERIOD FOR DECISION.—Before the last
day of the 30-day period referred to in paragraph
(2) or the 30-day period referred to in paragraph
(4), as the case may be, the Secretary shall—
‘‘(A) decide whether to terminate the in-
vestigation of the joint venture or institute a
formal proceeding to determine if the joint ven-
ture agreement violates this section; and
‘‘(B) if the Secretary decides that imple-
mentation of the joint venture agreement ap-
pears likely to be an unfair or deceptive practice
or an unfair method of competition in violation
of this section, institute a proceeding to deter-
mine if the implementation of the joint venture
agreement will constitute such a violation.
‘‘(6) STAY AFTER INSTITUTION OF PROCEED-
ING.—If the Secretary institutes a proceeding under
paragraph (5), the Secretary may enter an order to
stay the implementation of the joint venture agree-
ment by the parties to the agreement during the 6-
month period beginning on the date of issuance of
the order.
‘‘(7) PRIOR
AGREEMENT.—With respect to a
joint venture agreement entered into before the date
of enactment of this section as to which the Sec-
retary finds that—
‘‘(A) the parties have submitted the agree-
ment to the Secretary before such date of en-
actment; and
‘‘(B) the parties have submitted all infor-
mation on the agreement requested by the Sec-
retary, the waiting periods described in para-
graphs (2) and (4) shall begin on the date, as
determined by the Secretary, on which all such
information was submitted and end on the last
day to which the period could be extended
under this section.
‘‘(8) TERMINATION OF WAITING PERIOD.—At
any time after the date of submission of a joint ven-
ture agreement under paragraph (2), the Secretary
may terminate the waiting periods referred to in
paragraphs (2) and (4) with respect to the agree-
ment.
‘‘(9) REVIEW
OF
DECISIONS.—Any decision
made by the Secretary under this subsection with re-
spect to a joint venture agreement may be reviewed
by the Secretary after the expiration of the 3-year
period beginning on the date of the decision.
‘‘(10) MEMORANDUM
TO
PREVENT
DUPLICA-
TIVE REVIEWS.—Promptly after the date of enact-
ment of this section, the Secretary shall consult with
the Assistant Attorney General of the Antitrust Di-
vision of the Department of Justice in order to es-
tablish, through a written memorandum of under-
standing, preclearance procedures to prevent unnec-
essary duplication of effort by the Secretary and the
Assistant Attorney General under this section and
the United States antitrust laws, respectively.
‘‘(11) LIMITATION ON STATUTORY CONSTRUC-
TION.— The authority granted to the Secretary
under this subsection shall not in any way limit the
authority of the Attorney General to enforce the
antitrust laws as defined in the first section of the
Clayton Act (15 U.S.C. 12).’’.
SEC. 4. REDISTRIBUTION OF SLOTS BY AUCTION.
(a) IN GENERAL.—Subpart III of part A of subtitle
VII of title 49, United States Code, is amended by adding
at the end the following:
‘‘CHAPTER 455—SLOT AUCTIONS
‘‘Sec.
‘‘45501. General authority to create, withdraw, and auction slots.
‘‘45502. Auction.
‘‘45503. Special rules.
‘‘45504. Definitions.
‘‘§ 45501. General authority to create, withdraw, and
auction slots
‘‘(a) IN GENERAL.—The Secretary of Transportation
shall allocate slots at each slot-controlled airport for as-
signment to new entrant air carriers and limited incum-
bent carriers in accordance with this chapter.
‘‘(b) APPLICATION PROCESS—
‘‘(1) REQUEST FOR SLOTS.—An air carrier with
appropriate Federal Aviation Administration safety
certification and Department of Transportation eco-
nomic certification may submit a request to the Sec-
retary for slots at a high density airport. The appli-
cation shall include—
‘‘(A) the markets to be served;
‘‘(B) the times requested;
‘‘(C) information on the passenger demand
for the service to be provided; and
‘‘(D) such additional information as the
Secretary may require.
‘‘(2) ACTION ON REQUEST; FAILURE TO ACT.—
Within 45 days after a request under paragraph (1)
is received by the Secretary, the Secretary shall—
‘‘(A) approve the request for processing if
the Secretary believes that—
‘‘(i) the applicant can operate the
service for a period of not less than 180
days; and
‘‘(ii) the service will improve the com-
petitive environment; or
‘‘(B) return the request to the applicant
for further information.
If the Secretary neither approves the request under
subparagraph (A) nor returns the request under
subparagraph (B) within the 45-day period begin-
ning on the date it is received, then the request is
deemed to have been approved on the 45th day.
‘‘(c) ALLOCATION PROCESS.—
‘‘(1) IF SLOTS ARE AVAILABLE.—If an applica-
tion under subsection (b) is approved for processing,
the Secretary first shall allocate slots within 60 min-
utes of the requested times if—
‘‘(A) unused slots are available; or
‘‘(B) slots may be awarded through the ex-
emption process in accordance with the Federal
Aviation Administration’s air traffic priorities.
‘‘(2) IF SLOTS ARE UNAVAILABLE.—If an appli-
cation under subsection (b) is approved for process-
ing but the requested slots are not available for allo-
cation under paragraph (1), then the Secretary may
withdraw slots under subsection (d) for auction
under section 45502 or create new slots.
‘‘(d) WITHDRAWAL OF SLOTS FOR AUCTION.—
‘‘(1) WITHDRAWAL OF EXISTING SLOT ASSIGN-
MENTS.—The Secretary shall withdraw, from major
carriers at each airport—
‘‘(A) for the first auction under this sec-
tion, not more than 10 percent of the
auctionable slots assigned to such carriers at
that airport; and
‘‘(B) for any subsequent auction under this
section, not more than 5 percent of the
auctionable slots assigned to such carriers at
that airport.
‘‘(2) FREQUENCY.—Auctions under this section
shall not be held more frequently than 24 months
after the date of the preceding auction.
‘‘(3) AUCTIONABLE
SLOTS.—For purposes of
this subsection, an auctionable slot is—
‘‘(A) a slot assigned to an air carrier in
1985 that is still assigned to that air carrier, or
a slot received in even exchange with another
air carrier for a slot assigned to that air carrier
in 1985; and
‘‘(B) any slot other than a slot used by a
major carrier to provide direct service to an air-
port that is a small or medium hub airport.
‘‘§ 45502. Auction
‘‘(a) GENERAL
AUTHORITY.—The Secretary of
Transportation shall assign a slot to a qualified applicant
through the use of a system of competitive bidding.
‘‘(b) USES TO WHICH BIDDING MAY APPLY.—A slot
may be assigned under this subsection if the Secretary de-
termines that the assignment of such slot will, or is rea-
sonably likely to, increase competition among air carriers
nationally, regionally, or in the markets affected by the
slot assignment in accordance with section 45501(b).
‘‘(c) DESIGN OF SYSTEMS OF COMPETITIVE BID-
DING.—In identifying slots to be withdrawn for auction
under section 45501(d)(1), in specifying eligibility and
other characteristics of such slots, and in designing the
methodologies for use under this subsection, the Secretary
shall include safeguards to protect the public interest in
the use of the slots and shall seek to promote the following
objectives:
‘‘(1) Increasing competition in the provision of
air transportation in a way that benefits the public.
‘‘(2) Promoting economic opportunity and com-
petition and ensuring that air transportation at com-
petitive rates is readily accessible to the American
people by avoiding excessive concentration of slots
among major air carriers.
‘‘(3) Recovery for the public of a portion of the
value of the slots made available by competitive bid-
ding and the avoidance of unjust enrichment
through the methods employed to award slots.
‘‘(4) Efficient and intensive use of slots.
‘‘(d) BIDDER QUALIFICATION.—No air carrier (other
than a new entrant air carrier or a limited incumbent car-
rier) may participate in a system of competitive bidding
under this section. No license shall be granted to an appli-
cant selected pursuant to this section unless the Secretary
determines that the applicant is qualified to utilize the slot
or slots to be so assigned.
‘‘(e) RULES OF CONSTRUCTION.—Nothing in this
section, or in the use of competitive bidding, shall—
‘‘(1) alter slots allocation criteria and proce-
dures established by the other provisions of this sub-
title;
‘‘(2) diminish the authority of the Secretary
under the other provisions of this subtitle to regulate
or reclaim slots;
‘‘(3) be construed to convey any rights, includ-
ing any expectation of renewal of a slot assignment,
that differ from the rights that apply to other slots
at the same airport that were not issued pursuant
to this section; or
be deposited in the Airport and Airway Trust Fund
established under section 9502 of the Internal Reve-
nue Code of 1986.
‘‘(2) DEPOSIT AND USE OF AUCTION ESCROW
ACCOUNTS.—Any deposits the Secretary may require
for the qualification of any person to bid in a system
of competitive bidding pursuant to this subsection
shall be deposited in an interest bearing account at
a financial institution designated for purposes of this
subsection by the Secretary (after consultation with
the Secretary of the Treasury). Within 45 days fol-
lowing the conclusion of the competitive bidding—
‘‘(A) the deposits of successful bidders
shall be paid to the Treasury;
‘‘(B) the deposits of unsuccessful bidders
shall be returned to such bidders; and
‘‘(C) the interest accrued to the account
shall be returned to each successful and unsuc-
cessful bidder in the ratio that the amount de-
posited by the bidder bears to the total amount
deposited by all bidders, except that before re-
turning such amounts the Secretary shall de-
duct a sum equal to the administrative expenses
incurred by the Secretary in conducting the
auction and shall transfer such sum to the Air-
port and Airway Trust Fund.
‘‘(h) EVALUATION.—Not later than 180 days after
the initiation of competitive bidding under this section, the
Secretary shall conduct a public inquiry and submit to the
Congress a report—
‘‘(1) containing a statement of the revenues ob-
tained, and a projection of the future revenues, from
the use of competitive bidding systems under this
section;
‘‘(2) describing the methodologies established
by the Secretary pursuant to subsections (c) and
(d);
‘‘(3) comparing the relative advantages and dis-
advantages of such methodologies in terms of attain-
ing the objectives described in such subsections; and
‘‘(4) recommending any statutory changes that
are needed to improve the competitive bidding proc-
ess.
‘‘§ 45503. Special rules
‘‘(a) RESALE
OR
REVERSION
OF
PURCHASED
SLOTS.—
‘‘(1) RESALE.—A slot assigned by competitive
bidding under section 45502 may be—
‘‘(A) sold by the air carrier to which it was
assigned only to a new entrant air carrier or
limited incumbent carrier within 24 months of
the slot acquisition; or
‘‘(B) leased to any air carrier, except that
any such leased slot shall be sold to a new en-
trant air carrier or limited incumbent air car-
rier that offers to purchase it.
‘‘(2) REVERSION.—A slot assigned by competi-
tive bidding under section 45502 that is lost by the
air carrier to which it was assigned under section
93.227 of title 14 of the Code of Federal Regula-
tions shall be returned to the Federal Aviation Ad-
ministration.
‘‘(b) OTHER EXISTING SLOTS.—
‘‘(1) EXPIRATION.—Any slot not withdrawn for
assignment under this chapter shall continue in ef-
fect until the earlier of—
‘‘(A) the date on which it is subsequently
withdrawn for such assignment; or
‘‘(B) the date on which it expires or is
withdrawn according to the terms of its assign-
ment.
‘‘(2) FUTURE
REVENUES.—Any amount paid
for assignment or use of an expired slot shall be
treated in accordance with the provisions of section
45502(h) as if received under that section.
‘‘§ 45504. Definitions
‘‘In this chapter, the following definitions apply:
‘‘(1) HIGH DENSITY AIRPORT.—The term ‘high
density airport’ has the meaning given it by section
41714(h)(2).
‘‘(2) NEW ENTRANT AIR CARRIER; LIMITED IN-
CUMBENT
CARRIER.—The terms ‘new entrant air
carrier’ and ‘limited incumbent carrier’ have the
meaning given such terms by section 93.213 of title
14, Code of Federal Regulations, except that the
term does not include an air carrier at a high den-
sity airport that has a substantial marketing ar-
rangement, as determined by the Secretary, with an-
other air carrier holding more than 10 percent of the
slots at the airport or an air carrier that is owned
or controlled, in whole or in part, by such a carrier.
‘‘(3) MAJOR CARRIER.—The term ‘major car-
rier’ means an air carrier to which part 121 of such
title applies.
‘‘(4) MEDIUM HUB AIRPORT.—The term ‘me-
dium hub airport’ means an airport that each year
has at least 0.25 percent, but less than 1.00 percent,
of the total annual boardings in the United States.
‘‘(5) SLOT.—The term ‘slot’ has the meaning
given that term by section 41714(h)(4).
‘‘(6) SMALL HUB AIRPORT.—The term ‘small
hub airport’ has the meaning given that term by sec-
tion 41731(a)(5).’’.
(b) CLERICAL AMENDMENT.—The analysis for such
subtitle is amended by inserting after the item relating
to chapter 453 the following:
‘‘455. SLOT AUCTIONS ......................................................................... 45501’’.
SEC. 5. PENALTIES FOR UNFAIR METHODS OF COMPETI-
TION.
(a) IN GENERAL.—Chapter 463 of title 49, United
States Code, is amended by adding at the end the follow-
ing:
‘‘§ 46317. Penalties for unfair methods of competition
‘‘(a) MAINTENANCE OF LEVELS OF CAPACITY AND
FARE PRICING.—If the Secretary determines that an air
carrier is or has violated section 41712 by engaging, with
respect to air transportation on any route, in an unfair
method of competition, as defined by regulation issued
under Docket Number OST–98–3713 or any other regula-
tion issued by the Department of Transportation, the Sec-
retary may require the carrier, as a condition of continued
authority to provide service on such route, to maintain for
a period of not more than 2 years levels of capacity and
fare pricing that are similar to that which was determined
exclusionary.
‘‘(b) MAXIMUM CIVIL PENALTY.—Notwithstanding
section 46301(a)(1), the maximum civil penalty for the
violation described in subsection (a) shall be $10,000.’’.
(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 463 of such title is amended by adding at the end the
following:
‘‘Sec. 46317. Penalties for unfair methods of competition.’’.
SEC. 6. REALLOCATION OF SLOTS DURING LABOR STRIKES.
Section 41714 of title 49, United States Code, is
amended by adding at the end the following:
‘‘(i) REALLOCATION
OF
SLOTS
DURING
LABOR
STRIKES.—If an air carrier is not using a slot allocated
to the carrier during the period of a labor strike involving
the carrier, the President may authorize another carrier
to use the slot, as well as airport gates and other facilities
associated with the slot, during such period. The President
shall require a carrier so authorized to reimburse appro-
priate persons for use of the slot and associated facili-
ties.’’.
SEC. 7. REGULATION OF ROUTES IN AIR TRANSPORTATION
WITH INSUFFICIENT COMPETITION.
(a) IN GENERAL.—Chapter 415 of title 49, United
States Code, is amended by adding at the end the follow-
ing:
‘‘§ 41512. Authority of the Secretary of Transpor-
tation to change prices, classifications,
rules, and practices for noncompetitive
routes in air transportation
‘‘(a) GENERAL.—When the Secretary of Transpor-
tation decides that a price charged or received by an air
carrier for service on a noncompetitive route in air trans-
portation, or a classification, rule, or practice affecting
that price or the value of the transportation provided
under that price, is or will be unreasonable, the Secretary
may—
‘‘(1) change the price, classification, rule, or
practice as necessary; and
‘‘(2) order the air carrier to stop charging or
collecting the unreasonable price or carrying out the
unreasonable classification, rule, or practice.
‘‘(b) NONCOMPETITIVE ROUTES IN AIR TRANSPOR-
TATION.—For purposes of subsection (a), a noncompeti-
tive route in air transportation is a route for which the
Secretary determines—
‘‘(1) that there are less than 2 air carriers in
full competition, as defined by the Secretary by reg-
ulation; or
‘‘(2) that an air carrier controls more than 60
percent of the market share, as determined based on
annual passenger enplanements.
‘‘(c) WHEN SECRETARY MAY ACT.—The Secretary
may act under this section on the Secretary’s own initia-
tive or on a complaint filed with the Secretary and only
after notice and an opportunity for a hearing.’’.
(b) CONFORMING AMENDMENT.—The analysis for
such chapter is amended by adding at the end the follow-
ing new item:
‘‘41512. Authority of the Secretary of Transportation to change prices, classi-
fications, rules, and practices for noncompetitive routes in air
transportation.’’.
SEC. 8. DISCLOSURE OF ROUTE COMPETITION AND CON-
SUMER VALUE INFORMATION.
(a) REPORTS RANKING AIR CARRIER ROUTES BY AV-
ERAGE COST TO PASSENGERS.—
(1) IN GENERAL.—The Secretary shall submit
to Congress, and make available to the public, a
quarterly report containing a ranking of the 10 do-
mestic routes with the highest average cost to the
passenger and the 10 domestic routes with the low-
est average cost to the passenger. The report shall
identify the airlines that operate on each of those
routes.
(2) REQUIREMENTS.—In developing reports
under this subsection, the Secretary shall consider
such factors and criteria as the Secretary considers
appropriate.
(b) REPORTS RANKING LARGE HUB AIRPORTS BY
MARKET CONCENTRATION.—The Secretary shall submit
to Congress, and make available to the public, a quarterly
report ranking the large hub airports by market con-
centration using the measure known as the Herfindahl-
Hirschmann Index and identifying the market share of
each airline operating at each of those airports.
(c) DEADLINE.—The Secretary shall begin submit-
ting reports under this section not later than 180 days
after the date of enactment of this Act.
SEC. 9. FACILITIES ACCESS.
(a) STUDY.—The Secretary of Transportation shall
conduct a study on the ability of and proposals for new
entrant carriers, and carriers with less than 5 percent of
the departures at a major hub airport, to obtain perma-
nent gates and other facilities at the airport on terms sub-
stantially equivalent to the terms provided to incumbent
carriers at the airport.
(b) REPORT.—Not later than 1 year after the date
of enactment of this Act, the Secretary shall transmit to
Congress a report containing the results of the study con-
ducted under subsection (a), including an assessment of
any impact of proposals referred to in subsection (a) on
State and local units of government.
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