International Air Transportation Competition Act of 1979
PL 96-192 (S.1300), enacted 02/15/1980

PUBLIC LAW 96-192—FEB. 15, 1980 
94 STAT. 35 
Public Law 96-192 
96th Congress 
An Act 
To amend the Federal Aviation Act of 1958 in order to promote competition in 
international air transportation, provide greater opportunities for United States 
air carriers, establish goals for developing United States international aviation 
negotiating policy, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That this Act may be 
cited as the "International Air Transportation Competition Act of 
1979". 
SEC. 2. Section 102(a) of the Federal Aviation Act of 1958 (49 U.S.C. 
1302(a)) is amended to read as follows: 
"DECLARATION OF POLICY: THE BOARD 
Feb. 15, 1980 
rS. 13001 
International 
Air 
Transportation 
Competition Act 
of 1979. 
49 u s e 1301 
note. 
FACTORS FOR INTERSTATE, OVERSEAS, AND FOREIGN AIR 
TRANSPORTATION 
"SEC. 102. (a) In the exercise and performance of its powers and 
duties under this Act, the Board shall consider the following, among 
other things, as being in the public interest, and in accordance with 
the public convenience and necessity: 
"(1) The assignment and maintenance of safety as the highest 
priority in air commerce, and prior to the authorization of new 
air transportation services, full evaluation of the recommenda-
tions of the Secretary of Transportation on the safety implica-
tions of such new services and full evaluation of any report or 
recommendation submitted under section 107 of this Act. 
"(2) The prevention of any deterioration in established safety 
procedures, recognizing the clear intent, encouragement, and 
dedication of the Congress to the furtherance of the highest 
degree of safety in air transportation and air commerce, and the 
maintenance of the safety vigilance that has evolved within air 
transportation and air commerce and has come to be expected by 
the traveling and shipping public. 
"(3) The availability of a variety of adequate, economic, effi-
cient, and low-price services by air carriers and foreign air 
carriers without unjust discriminations, undue preferences or 
advantages, or unfair or deceptive practices, the need to improve 
relations among, and coordinate transportation by, air carriers, 
and the need to encourage fair wages and equitable working 
conditions for air carriers. 
"(4) The placement of maximum reliance on competitive mar-
ket forces and on actual and potential competition (A) to provide 
the needed air transportation system, and (B) to encourage 
efficient and well-managed carriers to earn adequate profits and 
to attract capital, taking account, nevertheless, of material 
differences, if any, which may exist between interstate and 
overseas air transportation, on the one hand, and foreign air 
transportation, on the other. 
49 u s e 1307. 
94 STAT. 36 
PUBLIC LAW 96-192—FEB. 15, 1980 
"(5) The development and maintenance of a sound regulatory 
environment which is responsive to the needs of the public and in 
which decisions are reached promptly in order to facilitate 
adaption of the air transportation system to the present and 
future needs of the domestic and foreign commerce of the United 
States, the Postal Service, and the national defense. 
"(6) The encouragement of air service at major urban areas in 
the United States through secondary or satellite airports, where 
consistent with regional sdrport plans of regional and local 
authorities, and when such encouragement is endorsed by appro-
priate State entities encouraging such service by air carriers 
whose sole responsibilitv in any specific market is to provide 
service exclusively at the secondary or satellite airport, and 
fostering an environment which reasonably enables such carri-
ers to establish themselves and to develop their secondary or 
satellite airport services. 
"(7) The prevention of unfEiir, deceptive, predatory, or anticom-
petitive practices in air transportation, and the avoidance o
f
— 
"(A) unreasonable industry concentration, excessive mar-
ket domination, and monopoly power; and 
"(B) other conditions; 
that would tend to allow one or more air carriers or foreign air 
carriers unreasonably to increEise prices, reduce services, or 
exclude competition in air transportation. 
"(8) The maintenance of a comprehensive and convenient 
system of continuous scheduled interstate and overseas airline 
service for small communities and for isolated areas in the 
United States, with direct Federal assistance where appropriate. 
"(9) The encouragement, development, and maintenance of an 
air transportation system relying on actued and potential compe-
tition to provide efficiency, mnovation, and low prices, and to 
determine the variety, quality, and price of air transportation 
services. 
'XIO) The encouragement of entry into air transportation 
markets by new air carriers, the encouragement of entry into 
additional air trsmsportation markets by existing air carriers, 
and the continued strengthening of small air carriers so as to 
assure a more effective, competitive airline industry. 
"(11) The promotion, encouragement, and development of civil 
aeronautics and a viable, privately owned United States air 
transport industry. 
"(12) The strengthening of the competitive position of United 
States air carriers to at least assure equality with foreign air 
carriers, including the attainment of opportunities for United 
States air carriers to maintain and increase their profitability, in 
foreign air transportation.". 
Repeal. 
SEC. 3. (a) Section 102(c) of the Federal Aviation Act of 1958 (49 
U.S.C. 1302(c)) is repealed. 
(b) That portion of the table of contents contained in the first 
section of the Federal Aviation Act of 1958 which appears under the 
side heading 
"Sec. 102. Declaration of policy: The Board." 
is amended by striking out 
"(a) Factors for interstate and overseas air transportation. 
"(b) Factors for £dl<argo service. 
"(c) Factors for foreign air transportation." 
and inserting in lieu thereof 
PUBLIC LAW 96-192—FEB. 15, 1980 
94 STAT. 37 
"(a) Factors for interstate, overseas, and foreign air transportation. 
"(b) Factors for all<argo service.". 
SEC. 4. Sections 401(dXl) through 401(dX3) of the Federal Aviation 
Act of 1958 (49 U.S.C. 1371 (dXD through (dX3)) are amended to read 
as follows: 
"ISSUANCE OF CERTIFICATE 
"(dXD The Board shall issue a certificate authorizing the whole or 
any part of the transportation covered by the application, if it finds 
that the applicant is fit, willing, and able to perform such transporta-
tion properly and to conform to the provisions of this Act and the 
rules, regulations, and requirements of the Board hereunder, and 
that such transportation is consistent with the public convenience 
and necessity; otherwise such application shall be denied. 
"(2) In the case of an application for a certificate to engage in 
temporary air transportation, the Board may issue a certificate 
authorizing the whole or any part thereof for such limited periods as 
is consistent with the public convenience and necessity, if it finds that 
the applicant is fit, willing, and able properly to perform such 
transportation and to conform to the provisions of this Act and the 
rules, regulations, and requirements of the Board hereunder. 
"(3) In the case of an application for a certificate to engage in 
charter air transportation, the Board may issue a certificate to any 
applicant, not holding a certificate under paragraph (1) or (2) of this 
subsection on January 1,1977, authorizing interstate air transporta-
tion of persons, which authorizes the whole or any part thereof for 
such periods, as is consistent with the public convenience and 
necessity, if it finds that the applicant is fit, willing, and able properly 
to perform the transportation covered by the application and to 
conform to the provisions of this Act and the rules, regulations, and 
requirements of the Board hereunder.". 
SEC. 5. The first sentence of section 401(eX2) of the Federal Aviation 
Act of 1958 (49 U.S.C. 1371(eX2)) is amended by striking out the words 
", insofar as the operation is to take place without the United 
States,". 
SEC. 6. Section 401(g) of the Federal Aviation Act of 1958 (49 U.S.C. 
1371(g)) is amended to read as follows: 
Temporary air 
transportation. 
Charter air 
transportation. 
AUTHORITY TO MODIFY, SUSPEND, OR REVOKE 
"(gXD The Board upon petition or complaint or upon its own 
initiative, after notice and hearings, or pursuant to the simplified 
procedures under subsection (p) of this section, may alter, amend, 
modify, or suspend any such certificate, in whole or in part, if the 
public convenience and necessity so require, or may revoke any such 
certificate, in whole or in part, for intentional failure to comply with 
any provision of this title or any order, rule, or regulation issued 
hereunder or any term, condition, or limitation of such certificate. No 
such certificate shall be revoked unless the holder thereof fails to 
comply, within a reasonable time to be fixed by the Board, with an 
order of the Board commanding obedience to the provision, or to the 
order (other than an order issued in accordance with this sentence), 
rule, regulation, term, condition, or limitation found by the Board to 
have been violated. No certificate to engage in foreign air transporta-
tion may be altered, amended, modified, suspended, or revoked 
pursuant to the simplified procedures of subsection (p) of this section 
if the holder of such certificate requests an oral evidentiary hearing 
Foreign air 
transportation, 
oral hearing. 
94 STAT. 38 
PUBLIC LAW 96-192—FEB. 15, 1980 
Protest or 
memorandum. 
Foreign air 
transportation. 
or the Board finds that, under all the facts and circumstances, an oral 
evidentiary hearing is required in the public interest. 
"(2) Any interested person may file with the Board a protest or 
memorandum in support of or in opposition to the alteration, amend-
ment, modification, suspension, or revocation of a certificate pursu-
ant to paragraph (1) of this subsection. 
"(3) Notwithstanding the provisions of paragraph (1) of this subsec-
tion, the Board may suspend or revoke authority of an air carrier to 
serve any point in foreign air transportation authorized in a certifi-
cate issued under this section, upon notice and with a reasonable 
opportunity for the affected carrier to present its views, but without 
hearing, if the carrier has notified the Board in accordance with 
subsection (j) of this section or any regulation of the Board that it 
proposes to suspend all service provided by that carrier to such point, 
or, except at a point which is provided seasonal service comparable to 
that provided during the previous year, if the carrier has failed to 
provide any regularly scheduled service to the point for 90 days 
preceding the date of the Board's notice to the carrier of its proposed 
action.". 
SEC. 7. Section 402(b) of the Federal Aviation Act of 1958 (49 U.S.C. 
1372(b)) is amended to read as follows: 
Foreign air 
carriers. 
ISSUANCE OF PERMIT 
"(b) The Board is empowered to issue such a permit if it finds (1) 
that the applicant is fit, willing, and able properly to perform such 
foreign air transportation and to conform to the provisions of this Act 
and the rules, regulations, and requirements of the Board hereunder 
and (2) either that the applicant is qualified, and has been designated 
by its government, to perform such foreign air transportation under 
the terms of an agreement with the United States, or that such 
transportation will be in the public interest.". 
SEC. 8. The third sentence of section 402(d) of the Federal Aviation 
Act of 1958 (49 U.S.C. 1372(d)) is amended by striking out "Such 
application shall be set for public hearing and the" and inserting in 
lieu thereof "The". 
SEC. 9. Section 402(f) of the Federal Aviation Act of 1958 (49 U.S.C. 
1372(0) is amended by inserting "(1)" immediately after "(0" and by 
adding at the end thereof the following new paragraph: 
"(2) Whenever the Board finds that the government, aeronautical 
authorities, or foreign air carriers of any foreign country have, over 
the objections of the Government of the United States, impaired, 
limited, or denied the operating rights of United States air carriers, 
or engaged in unfair, discriminatory, or restrictive practices with a 
substantial adverse competitive impact upon United States carriers, 
with respect to air transportation services to, from, through, or over 
the territory of such country, the Board may, without hearing but 
subject to the approval of the President of the United States, 
summarily suspend the permits of the foreign air carriers of such 
country, or alter, modify, amend, condition, or limit operations under 
such permits, if it finds such action to be in the public interest. The 
Board may also, without hearing but subject to Presidential approval, 
to the extent necessary to make the operation of this paragraph 
effective, restrict operations between such foreign country and the 
United States by any foreign air carrier of a third country.". 
SEC. 10. Section 407(a) of the Federal Aviation Act of 1958 (49 U.S.C. 
1377(a)) is gunended by inserting the phrase "or foreign air carrier" 
PUBLIC LAW 96-192—FEB. 15, 1980 
94 STAT. 39 
immediately after the words "air carrier" each time those words 
appear therein. 
SEC. 11. Section 412 of the Federal Aviation Act of 1958 (49 U.S.C. 
1382) is amended by— 
(1) striking subsections (a) and (b) thereof; 
(2) redesignating subsections (c), (d), and (e) as subsections (a), 
(b), and (c), respectively; 
(3) strildng the words ", affecting interstate or overseas air 
transportation and" in subsection (aXD, as so redesignated by 
this section; 
(4) inserting the words ", including international comity or 
foreign policy considerations," immediately after "public bene-
fits" in paragraph (aX2XAXi), as so redesignated by this section; 
(5) inserting the words "affecting interstate or overseas air 
transportation," immediately after the word "agreement," in 
paragraph (aX2XAXiii), as so redesignated by this section; 
(6) inserting the words "or foreign air carrier" immediately 
after the words "air carrier" the first two times those words 
appear in subsection (aXl), as so redesignated by this section; and 
(7) striking out "or (c)", inserting ", the Secretary of State," 
after "shall provide to the Attx)mey General", and striking out 
"such Secretary" and inserting in lieu thereof "either Secre-
tary", in subsection (b), as redesignated by this section. 
SEC. 12. (a) The center heading for section 412(a) of the Federal 
Aviation Act of 1958, as redesignated by section 11 of this Act, is 
amended by striking out 
AFFECTING INTERSTATE OR OVERSEAS AIR TRANSPORTATION . 
(b) That portion of the table of contents contained in the first 
section of the Federal Aviation Act of 1958 which appears under the 
side heading 
"Sec. 412. Pooling and other agreements." 
is amended to read as follows: 
"(a) Filing and approval of agreements. 
"(b) Proceedings upon filing. 
"(c) Mutual aid agreement.". 
SEC. 13. Section 416(b) of the Federal Aviation Act of 1958 (49 U.S.C. 
1386) is amended by adding at the end thereof the following new 
paragraph: 
"(7) The Board may by order, to the extent it finds that such action 
is required in the public interest, exempt any foreign air carrier for a 
period not to exceed 30 days from the requirements or limitations of 
this Act, to the extent necessary to authorize the foreign air carrier to 
carry passengers, cargo, or mail in interstate or overseas air transpor-
tation in certain markets if the Board, after consultation with the 
Secretary of Transportation, finds that— 
"(A) because of an emergency created by unusual circum-
stances not arising in the normal course of business, traffic in 
such markets cannot be accommodated by air carriers holding 
certificates under section 401 of this Act; 
"(B) all possible efforts have been made to accommodate such 
traffic by utilizing the resources of such air carriers (including, 
for example, the use of foreign aircraft, or sections of foreign 
aircraft, that are under lease or charter to such air carriers, and 
the use of such air carriers' reservation systems to the extent 
practicable); 
Foreign air 
carrier 
exemption. 
Ante, p. 37. 
94 STAT. 40 
PUBLIC LAW 96-192—FEB. 15, 1980 
"(C) such authorization is necessary to avoid undue hardship 
for the traffic in such market that cannot be accommodated by 
Ante, p. 37. 
air carriers holding certificates under section 401 of this Act; and 
"(D) in any c£ise where the inability to accommodate traffic in a 
market results from a labor dispute, the granting of such an 
exemption will not result in an undue advantage to any party to 
such dispute. 
Whenever the Board grants such authority to a foreign air carrier 
under this paragraph, the Board shall— 
"(i) assure that any air transportation provided by the foreign 
carrier under such authority is made available on fair and 
reasonable terms; 
"(ii) continuously monitor the passenger load factor of air 
carriers in such market that hold certificates under section 401 of 
this Act; and 
"(iii) review such authority no less frequently than once every 
30 days to assure that the unusual circumstances that created 
the need for such authority still exist. 
The Board may renew any exemption under this paragraph (includ-
ing any renewal thereof) for a period not to exceed 30 days. In no 
event shall any authorization to a foreign siir carrier under this 
paragraph remain in effect for more than 5 days after the unusual 
circumstances that created the need for such authorization have 
ceased.". 
SEC. 14. Section 10020'X1) of the Federal Aviation Act of 1958 (49 
U.S.C. 14820X1)) is amended to read as follows: 
"SUSPENSION AND REJECTION OF RATES IN FOREIGN AIR 
TRANSPORTATION 
"(jXD Whenever any air carrier or foreign air carrier shall file with 
the Board a tariff stating a new individual or joint Gjetween air 
carriers, between foreign air carriers, or between an air carrier or 
carriers and a foreign air carrier or carriers) rate, fare, or charge for 
foreign air transportation or any classification, rule, regulation, or 
practice affecting such rate, fare, or charge, or the value of the service 
thereunder, the Board is empowered, upon complaint or upon its own 
initiative, at once, and, if it so orders, without euiswer or other formal 
pleading by the air carrier or foreign air carrier, but upon reasonable 
notice, to enter upon a hearing concerning the lawfulness of such 
rate, fare, or charge, or such classification, rule, regulation, or 
practice; and pending such hearing and the decision thereon, or in the 
case of a tariff filed by a foreign air carrier if such action is in the 
public interest, the Board, by filing with such tariff, and delivering to 
the air carrier or foreign air carrier affected thereby, a statement in 
writing of its reasons for such suspension, may suspend the operation 
of such tariff and defer the use of such rate, fare, or charge, or such 
classification, rule, regulation, or practice, for a period or periods not 
exceeding 365 days in the aggregate beyond the time when such tariff 
would otherwise go into effect. If, after hearing, the Board shall be of 
the opinion that such rate, fare, or charge, or such classification, rule, 
regulation, or practice, is or will be unjust or unreasonable, or 
unjustly discriminatory, or unduly preferential, or unduly prejudi-
cial, or in the case of a tariff filed by a foreign £dr carrier if the Board 
concludes with or without hearing that such action is in the public 
interest, the Board may take action to reject or cancel such tariff and 
prevent the use of such rate, fare, or charge, or such classification, 
rule, regulation, or practice. The Board may at any time rescind the 
PUBLIC LAW 96-192—FEB. 15, 1980 
94 STAT. 41 
suspension of such tariff and permit the use of such rate, fare, or 
charge, or such cleissification, rule, regulation, or practice. If the 
proceeding has not been concluded and an order made within the 
period of suspension or suspensions, or if the Board shall otherwise so 
direct, the proposed rate, fare, charge, classification, rule, regulation, 
or practice shall go into effect subject, however, to being canceled 
when the proceeding is concluded. During the period of any suspen-
sion or suspensions, or following rejection or cancellation of a tariff, 
including tariffs which have gone into effect provisionally, the 
affected air carrier or foreign air carrier shall maintain in effect and 
use the rate, fare, or charge, or the classification, rule, regulation, or 
practice affecting such rate, fare, or charge, or the value of service 
thereunder which was in effect immediately prior to the filing of the 
new tariff or such other rate, fare or charge as may be provided for 
under an applicable intergovernmental agreement or understanding. 
If the suspension, rejection, or cancellation is of an initial tariff, the 
affected air carrier or foreign air carrier may file for purposes of 
operations pending effectiveness of a new tariff, a tariff embodying 
any rate, fare, or charge, or any classification, rule, regulation, or 
practice affecting such rate, fare, or charge, or the value of service 
thereunder, that may be currently in effect (and not subject to a 
suspension order) for any air carrier engaged in the same foreign air 
transportation.". 
SEC. 15. Section 1002(jX2) of the Federal Aviation Act of 1958 (49 
U.S.C. 1482(jX2)) is amended to read as follows: 
"(2) With respect to any existing tariff of an air carrier or foreign 
air carrier stating rates, fares, or charges for foreign air transporta-
tion, or any classification, rule, regulation, or practice affecting such 
rate, fare, or charge, or the value of the service thereunder, the Board 
is empowered, upon complaint or upon its own initiative, at once and, 
if it so orders, without answer or other formal pleading by the air 
carrier or foreign air carrier, but upon reasonable notice, to enter 
into a hearing concerning the lawfulness of such rate, fare, or charge, 
or such classification, rule, regulation, or practice; and pending such 
hearing and the decision thereon, or in the case of a tariff filed by a 
foreign air carrier if such action is in the public interest, the Board 
upon reasonable notice, and by filing with such tariff, and delivering 
to the air carrier or foreign air carrier affected thereby, a statement 
in writing of its reasons for such suspension, and the effective date 
thereof, may suspend the operation of such tariff and defer the use of 
such rate, fare, or charge, or such classification, rule, regulation, or 
practice, following the effective date of such suspension, for a period 
or periods not exceeding 365 days in the aggregate from the effective 
date of such suspension. If, after hearing, the Board shall be of the 
opinion that such rate, fare, or charge, or such classification, rule, 
regulation, or practice, is or will be unjust or unreasonable, or 
unjustly discriminatory, or unduly preferential, or unduly prejudi-
cial, or in the case of a tariff filed by a foreign air carrier if the Board 
concludes with or without hearing that such action is in the public 
interest, the Board may take action to cancel such tariff and prevent 
the use of such rate, fare, or charge, or such classification, rule, 
regulation, or practice. If the proceeding has not been concluded 
within the period of suspension or suspensions, the tariff shall again 
go into effect subject, however, to being canceled when the proceeding 
is concluded. For the purposes of operation during the period of such 
suspension, or the period following cancellation of an existing tariff 
pending effectiveness of a new tariff, the air carrier or foreign air 
carrier may file a tariff embodying any rate, fare, or charge, or anj 
Suspension of 
tariff. 
94 STAT. 42 
PUBLIC LAW 96-192—FEB. 15, 1980 
classification, rule, regulation, or practice affecting such rate, fare, or 
charge, or the value of service thereunder, that may be currently in 
effect (and not subject to a suspension order) for any air carrier 
engaged in the same foreign air transportation.". 
SEC. 16. Section 1002(jX5) of the Federal Aviation Act of 1958 (49 
U.S.C. 1482(jX5)) is amended by (1) striking the word "and" at the end 
of subparagraph (E) thereof, (2) striking the period at the end of 
subparagraph (F) and inserting in lieu thereof "; and", and (3) adding 
at the end thereof the following new subparagraph: 
"(G) reasonably estimated or foreseeable future costs and 
revenues for such air carrier or foreign air carrier for a reason-
ably limited future period during which the rate at issue would 
be in effect.". 
SEC. 17. Section 1102 of the Federal Aviation Act of 1958 (49 U.S.C. 
1502) is amended by inserting "(a)" immediately after "SEC. 1102." 
and by adding at the end thereof the following new subsections: 
"GOALS FOR INTERNATIONAL AVIATION POUCY 
"(b) In formulating United States international air transportation 
policy, the Congress intends that the Secretary of State, the Secretary 
of Transportation, and the Civil Aeronautics Board shall develop a 
negotiating policy which emphasizes the greatest degree of competi-
tion that is compatible with a well-functioning international air 
transportation system. This includes, among other things: 
"(1) the strengthening of the competitive position of United 
States air carriers to at least assure equality with foreign air 
carriers, including the attainment of opportunities for United 
States air carriers to maintain and increase their profitability, in 
foreign air transportation; 
"(2) freedom of air carriers and foreign air carriers to offer 
fares and rates which correspond with consumer demand; 
"(3) the fewest possible restrictions on charter air trans-
portation; 
"(4) the maximum degree of multiple and permissive interna-
tional authority for United States air carriers so that they will be 
able to respond quickly to shifts in market demand; 
"(5) the elimination of operational and marketing restrictions 
to the greatest extent possible; 
"(6) the integration of domestic and international air transpor-
tation; 
"(7) an increase in the number of nonstop United States 
gateway cities; 
"(8) opportunities for carriers of foreign countries to increase 
their access to United States points if exchanged for benefits of 
similar magnitude for United States carriers or the traveling 
public with permanent linkage between rights granted and 
rights given away; 
"(9) the elimination of discrimination and unfair competitive 
practices faced by United States airlines in foreign air transpor-
tation, including excessive landing and user fees, unreasonable 
ground handling requirements, undue restrictions on operations, 
prohibitions against change of gauge, and similar restrictive 
practices; and 
"(10) the promotion, encouragement, and development of civil 
aeronautics and a viable, privately owned United States air 
transport industry. 
PUBLIC LAW 96-192—FEB. 15, 1980 
94 STAT. 43 
"CONSULTATION WITH AFFECTED GROUPS 
"(c) To assist in developing and implementing such an interna-
tional aviation negotiating policy, the Secretaries of State and Trans-
portation and the Civil Aeronautics Board shall consult, to the 
maximum extent practicable, with the Secretary of Commerce, the 
Secretary of Defense, airport operators, scheduled air carriers, 
charter air carriers, airline labor, consumer interest groups, travel 
agents and tour orgeinizers, and other groups, institutions, and 
government agencies affected by international aviation policy con-
cerning both broad policy gO£ds and individual negotiations. 
"OBSERVER STATUS FOR CONGRESSIONAL REPRESENTATIVES 
"(d) The President shall grant to at least one representative of each 
House of Congress the privilege to attend international aviation 
negotiations as an observer if such privilege is requested in advance 
in writing.". 
SEC. 18. (a) The center heading for section 1102 of the Federal 
Aviation Act of 1958 is amended to read as follows: 
^^ use 1502. 
"INTERNATIONAL AGREEMENTS 
"ACTIONS OF THE BOARD AND SECRETARY OF TRANSPORTATION". 
(b) That portion of the table of contents contained in the first 
section of the Federal Aviation Act of 1958 which appears under the 
center heading 
"TITLE XI—MISCELLANEOUS" 
is amended by striking out 
"Sec. 1102. International agreements." 
and inserting in lieu thereof 
"Sec. 1102. International agreements. 
"(a) Actions of the Board and Secretary of Transportation. 
"(b) Goals for international aviation policy. 
"(c) Consultation with affected groups. 
"(d) Observer status for Congressioneil representatives.". 
SEC. 19. Section 1104 of the Federal Aviation Act of 1958 (49 U.S.C. 
1504) is amended by striking the words "international negotiations 
and" and inserting in lieu thereof "international negotiations or". 
SEC. 20. The third sentence of section 1108(b) of the Federal 
Aviation Act of 1958 (49 U.S.C. 1508(b)) is amended by inserting 
immediately before the period at the end thereof the following: 
", unless specifically authorized under section 416(b)(7) of this Act or Ante, p. 39. 
under regulations prescribed by the Secretary authorizing United 
States air carriers to engage in otherwise authorized common car-
riage and carriage of mail with foreign registered aircraft under lease 
or charter to them without crew". 
SEC. 21. Section 1117 of the Federal Aviation Act of 1958 (49 U.S.C. 
1517) is amended to read as follows: 
94 STAT. 44 
PUBLIC LAW 96-192—FEB. 15, 1980 
"TRANSPORTATION OF GOVERNMENT-FINANCED PASSENGERS AND 
PROPERTY 
"TRANSPORTATION BETWEEN THE UNITED STATES AND A PLACE OUTSIDE 
THEREOF 
"SEC. 1117. (a) Except as provided in subsection (c) of this section, 
whenever any executive department or other agency or instrumen-
tality of the United States shall procure, contract for, or otherwise 
obtain for its own account or in furtherance of the purposes or 
pursuant to the terms of any contract, agreement, or other special 
arrangement made or entered into under which payment is made by 
the United States or pa3maent is made from funds appropriated, 
owned, controlled, granted, or conditionally granted or utilized by or 
otherwise established for the account of the United States, or shall 
furnish to or for the account of any foreign nation, or any interna-
tional agency, or other organization, of whatever nationality, without 
provisions for reimbursement, any transportation of persons (and 
their personal effects) or property by air between a place in the 
United States and a place outside thereof, the appropriate agency or 
agencies shall take such steps as may be necessary to assure that such 
transportation is provided by air carriers holding certificates under 
49 use 1871. 
section 401 of this Act to the extent authorized by such certificates or 
by regulations or exemption of the Civil Aeronautics Board and to the 
extent service by such ceirriers is available. 
"TRANSPORTATION BETWEEN TWO PLACES OUTSIDE THE UNITED STATES 
"(b) Except as provided in subsection (c) of this section, whenever 
persons (and their personal effects) or property described in subsec-
tion (a) of this section are transported by air between two places both 
of which are outside the United States, the appropriate agency or 
agencies shsdl take such steps as may be necessary to assure that such 
transportation is provided by air carriers holding certificates under 
section 401 of this Act to the extent authorized by such certificates or 
by regulations or exemption of the Civil Aeronautics Board and to the 
extent service by such carriers is reeisonably available. 
"TRANSPORTATION PURSUANT TO BILATERAL AGREEMENT 
"(c) Nothing in this section shall preclude the transportation of 
persons (and their personal effects) or property by foreign air carriers 
if such transportation is provided for under the terms of a bilateral or 
multilateral air transport agreement between the United States and 
a foreign government or governments and if such agreement (1) is 
consistent with the goals for international aviation policy set forth in 
Ante, p. 42. 
section 1102(b) of this Act and (2) provides for the exchange of rights 
or benefits of similar magnitude. 
"DISALLOWANCE OF IMPROPER EXPENDITURE BY COMPTROLLER 
GENERAL 
"(d) The Comptroller CJeneral of the United States shall disallow 
any expenditure from appropriated funds for payment for personnel 
or cargo transportation in violation of this section in the absence of 
satisfactory proof of the necessity therefor. Nothing in this section 
shall prevent the application to such traffic of the antidiscrimination 
provisions of this Act.". 
PUBLIC LAW 96-192—FEB. 15, 1980 
94 STAT. 45 
SEC. 22. That portion of the table of contents contained in the first 
section of the Federal Aviation Act of 1958 which appears under the 
center heading 
"TITLE XI—MISCELLANEOUS" 
is amended by striking out 
"Sec. 1117. Transportation of Government-financed passengers and property." 
and inserting in lieu thereof 
"Sec. 1117. Transportation of Government-financed passengers and property. 
"(a) Transportation between the United States and a place outside 
thereof. 
"(b) Transportation between two places outside the United States. 
"(c) Transportation pursuant to bilateral agreement. 
"(d) Disallowance of improper expenditure by Comptroller General.". 
SEC. 23. Section 2 of the International Air Transportation Fair 
Competitive Practices Act of 1974 (49 U.S.C. 1159b) is amended by 
redesignating subsections (b) and (c) as subsections (c) and (d), 
respectively, and adding a new subsection (b) as follows: 
"(b)(1) Whenever the Civil Aeronautics Board, upon complaint or 
upon its own initiative, determines that a foreign government or 
instrumentality, including a foreign air carrier (A) engages in unjusti-
fiable or unreasonable discriminatory, predatory, or anticompetitive 
practices against a United States air carrier or (B) imposes unjustifia-
ble or unreasonable restrictions on access of a United States air 
carrier to foreign markets, the Board may take such action as it 
deems to be in the public interest to eliminate such practices or 
restrictions. Such actions may include, but are not limited to, the 
denial, transfer, alteration, modification, amendment, cancellation, 
suspension, limitation, or revocation of any foreign air carrier permit 
or tariff pursuant to the powers of the Board under the Federal 
Aviation Act of 1958. 
"(2) Any United States air carrier or any agency of the Government 
of the United States may file a complaint under this section with the 
Civil Aeronautics Board. The Board shall approve, deny, dismiss, set 
such complaint for hearing or investigation, or institute other pro-
ceedings proposing remedial action within 60 days after receipt of the 
complaint. The Board may extend the period for taking such action 
for an additional period or periods of up to 30 days each if the Board 
concludes that it is likely that the complaint can be satisfactorily 
resolved through negotiations with the foreign government or instru-
mentality during such additional period, but in no event may the 
aggregate period for taking action under this subsection exceed 180 
days from receipt of the complaint. In considering any complaint, or 
in any proceedings under its own initiative, under this subsection the 
Board shall (A) solicit the views of the Department of State and the 
Department of Transportation and (B) provide any affected air 
carrier or foreign air carrier with reasonable notice and such oppor-
tunity to file written evidence and argument as is consistent with 
acting on the complaint within the time limits set forth in this 
subsection. 
"(3) Any action proposed by the Board pursuant to this section shall 
be transmitted to the President pursuant to section 801 of the Federal 
Aviation Act of 1958 (49 U.S.C. 1461).". 
SEC. 24. (a) Section 1002(j) of the Federal Aviation Act of 1958 (49 
U.S.C. 1482(j)) is amended by adding at the end thereof the following 
new paragraphs: 
Discriminatory, 
predatory, or 
anticompetitive 
practices. 
49 u s e 1301 
note. 
Complaint, 
filing. 
Solicitation of 
views. 
Transmittal to 
President. 
94 STAT. 46 
PUBLIC LAW 96-192—FEB. 15, 1980 
Foreign air 
fares. 
"Standard 
foreign fare 
level." 
Unjust or 
unreasonable 
fares, 
determination. 
"(6) The Board shall not have authority to find any fare for foreign 
air transportation of persons to be unjust or unreasonable on the 
basis that such fare is too low or too high i
f
— 
"(A) with respect to any proposed increase filed with the Board 
on or after the date of enactment of this paragraph, and before 
the 180th day after such date of enactment, such proposed fare 
would not be more than the standard foreign fare level for the 
same or essentially similar class of service. No such fare shall be 
suspended, unless the Board determines that it may be unduly 
preferential, unduly prejudicial, or unjustly discriminatory or 
that suspension is in the public interest because of unreasonable 
regulatory actions by a foreign government with respect to fare 
proposals of an air carrier; or 
"(B) with respect to any proposed increase filed with the Board 
after the 180th day after the date of enactment of this paragraph 
such proposed fare would not be more than 5 percent higher than 
the standard foreign fare level for the same or essentially similar 
class of service. No such fare shall be suspended, unless the 
Board determines that it may be unduly preferential, unduly 
prejudicial, or unjustly discriminatory or that suspension is in 
the public interest because of unreasonable regulatory actions by 
a foreign government with respect to fare proposals of an air 
carrier; or 
"(C) with respect to any proposed decrease filed after the date 
of enactment of this paragraph, the fare would not be more than 
50 percent lower than the standard foreign fare level for the 
same or essentially similar class of service, except that this 
provision shall not apply to anv proposed decrease in any fare if 
the Board determines that such proposed fare may be predatory 
or discriminatory or that suspension of any such fare is required 
because of unreasonable regulatory actions by a foreign govern-
ment with respect to fare proposals by an air carrier. 
"(7) For purposes of this subsection, 'standard foreign fare level' 
means that fare level (as adjusted only in accordance with paragraph 
(9) of this subsection) filed for and permitted by the Civil Aeronautics 
Board to go into effect on or after October 1,1979 and before the 180th 
day after the date of enactment of this paragraph (with seasonal fares 
adjusted by the percentage difference that prevailed between seasons 
in 1978), or the fare level established under paragraph (8), for each 
pair of points, for each class of fare existing on that date, and in effect 
on the effective date of the establishment of each additional class of 
fare established after October 1,1979. 
"(8XA) The Board is authorized, on the basis of oral evidentiary 
hearings before an administrative law judge, to determine that a fare 
between two points on October 1, 1979 is unjust or unreasonable. 
Such oral evidentiary hearing shall be completed within 180 days of 
enactment of this section, and the Board may establish such dead-
lines including the deadline for the judge's decision as the Board may 
deem necessary to meet such requirement. If the Board determines 
that such a fare is unjust or unreasonable, the Board shall, on the 
basis of such hearing record, establish the standard foreign fare level 
between such points. 
"(B) Standard foreign fare levels shall not be established under this 
paragraph for points between which the passengers carried by United 
States carriers in foreign air transportation are, in the aggregate, 
more than 25 percent of the total passengers carried by United States 
air carriers in foreign air transportation during the most recent 12-
month period for which data is available. 
PUBLIC LAW 96-192—FEB. 15, 1980 
94 STAT. 47 
"(C) The establishment of a standard foreign fare level under this 
paragraph does not permit a reduction in fares. 
"(D) No standard foreign fare level established under this para-
graph shall take effect on or before the 180th day after the date of 
enactment of this paragraph. 
"(E) The authority given the Board by subparagraph (A) of this 
paragraph shall expire on the 180th day after the date of enactment 
of this paragraph. 
"(9) The Board shall, within 30 days after the date of enactment of 
this paragraph, and not less often than every 60 days thereafter with 
respect to fuel costs and not less often than every 180 days with 
respect to all other costs, adjust each standard foreign fare level for 
the particular foreign air transportation to which such standard 
foreign fare level applies by increasing or decreasing such standard 
foreign fare level, as the case may be, by the percentage change from 
the last previous period in the actual operating cost per available 
seatmile. In determining the standard foreign fare level, the Board 
shall make no adjustment to costs acutally incurred. In establishing 
standard foreign fare levels and making the adjustments called for in 
this paragraph, the Board may use all relevant or appropriate 
information reasonably available to it. 
"(10) The Board may by rule increase the percentage specified in 
paragraph (6KC) of this subsection.". 
(b) Section 403(cXl) of the Federal Aviation Act of 1958 (49 U.S.C. 
1373(c)(1)) is amended bv (1) inserting the words "or foreign air 
carrier" after the words 'air carrier" each time those words appear 
therein and (2) inserting the words "or foreign air carrier's" after the 
words "air carrier's". 
(c) Section 403(c)(2) of the Federal Aviation Act of 1958 (49 U.S.C. 
1373(c)(2)) is amended to read as follows: 
"(2) If the effect of any proposed tariff change would be to institute 
a fare that is outside of the applicable range of fares specified in 
subparagraphs (A) and (B) of section 1002(dX4) or subparagraphs (A), 
(B), and (C) of section 1002(j)(6) of this Act, or specified by the Board 
under section 1002(d)(7) or section 1002(j)(9) of this Act, or would be to 
institute a fare to which such range of fares does not apply, then such 
proposed change shall not be implemented except after 60 days' 
notice filed in accordance with regulations prescribed by the Board.". 
SEC. 25. Section 1002(c) of the Federal Aviation Act of 1958 (49 
U.S.C. 1482(c)) is amended by inserting the words ", subject to section 
1102(a) of this Act," immediately before the words "issue an appropri-
ate order". 
SEC. 26. (a) Paragraph (1) of section 401(n) of the Federal Aviation 
Act of 1958 (49 U.S.C. 1371(n)(l)) is amended to read as follows: 
"(1) Notwithstanding any other provision of this title, no air carrier 
providing air transportation under a certificate issued under this 
section shall commingle, on the same flight, passengers being trans-
ported in interstate, overseas, or foreign charter air transportation 
with passengers being transported in scheduled interstate, overseas, 
or foreign air transportation, except that this subsection shall not 
apply to the carriage of passengers in air transportation under group 
fare tariffs.". 
(b) Paragraph (1) of section 401(n) of the Federal Aviation Act of 
1958 (49 U.S.C. 1371(n)(l)) and the authority of the Civil Aeronautics 
Board with respect to such paragraph shall cease to be in effect on 
December 31,1981. 
SEC. 27. Section 414 of the Federal Aviation Act of 1958 (49 U.S.C. 
1384) is amended by adding at the end thereof the following new 
Fare 
adjustment. 
49 u s e 1482. 
49 u s e 1502. 
Commingling of 
passengers. 
79-194 
O—81—pt. 1 
7 : QL3 
94 STAT. 48 
PUBLIC LAW 96-192—FEB. 15, 1980 
"Anti-trust 
laws." 
Fee collection. 
"United States." 
Love Field, Tex. 
sentence: "Notwithstanding the preceding sentence, on the basis of 
the findings required by subsection (a)(2)(A)(i) of section 412, the 
Board shall, as part of any order under such section which approves 
any contract, agreement, or request or any modification or cancella-
tion thereof, exempt any person affected by such order from the 
operations of the 'anti-trust laws' set forth in subsection (a) of the first 
section of the Clayton Act (15 U.S.C. 12) to the extent necessary to 
enable such person to proceed with the transaction specifically 
approved by the Board in such order and with those transactions 
necessarily contemplated by such order.". 
SEC. 28. Section 45 of the Airline Deregulation Act of 1978 (49 
U.S.C. 1341 note) is amended by inserting "(a)" after "SEC. 45." and by 
adding at the end thereof the following new subsections: 
"(b) Nothing in this section shall prohibit the Secretary of Trans-
portation or the Administrator of the Federal Aviation Administra-
tion from collecting a fee, charge, or price for any test, authorization, 
certificate, permit, or rating, administered or issued outside the 
United States, relating to any airman or repair station. 
"(c) For purposes of this section, the term 'United States' shall have 
the meaning given such term in section 101 of the Federal Aviation 
Act of 1958 (49 U.S.C. 1301).". 
SEC. 29. (a) Except as provided in subsection (c), notwithstanding 
any other provision of law, neither the Secretary of Transportation, 
the Civil Aeronautics Board, nor any other officer or employee of the 
United States shall issue, reissue, amend, revise, or otherwise modify 
(either by action or inaction) any certificate or other authority to 
permit or otherwise authorize any person to provide the transporta-
tion of individuals, by air, as a common carrier for compensation or 
hire between Love Field, Texas, and one or more points outside the 
State of Texas, except (1) charter air transportation not to exceed ten 
flights per month, and (2) air transportation provided by commuter 
airlines operating aircraft with a passenger capacity of 56 passengers 
or less. 
(b) Except as provided in subsections (a) and (c), notwithstanding 
any other provision of law, or any certificate or other authority 
heretofore or hereafter issued thereunder, no person shall provide or 
offer to provide the transportation of individuals, by air, for compen-
sation or hire as a common carrier between Love Field, Texas, and 
one or more points outside the State of Texas, except that a person 
providing service to a point outside of Texas from Love Field on 
November 1, 1979, may continue to provide service to such point. 
(c) Subsections (a) and (b) shall not apply with respect to, and it is 
found consistent with the public convenience and necessity to author-
ize, transportation of individuals, by air, on a flight between Love 
Field, Texas, and one or more points within the States of Louisiana, 
Arkansas, Oklahoma, New Mexico, and Texas by an air carrier, if (1) 
such air carrier does not offer or provide any through service or 
ticketing with another air carrier or foreign air carrier, and (2) such 
air carrier does not offer for sale transportation to or from, and the 
flight or aircraft does not serve, any point which is outside any such 
State. Nothing in this subsection shall be construed to give authority 
not otherwise provided by law to the Secretary of Transportation, the 
Civil Aeronautics Board, any other officer or employee of the United 
States, or any other person. 
PUBUC LAW 96-192—FEB. 15,1980 
94 STAT. 49 
(d) This section shall not take effect if enacted after the enactment Effective date. 
of the Aviation Safety and Noise Abatement Act of 1979. 
Post. p. 50. 
Approved February 15, 1980. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 96-602 accompanying H.R. 5481 (Comm. on Public Works and 
Transportation) and No. 96-716 (Comm. of Conference). 
SENATE REPORTS: No. 96-329 (Comm. on Commerce, Science, and Transportation) 
and No. 96-531 (Comm. of Conference). 
CONGRESSIONAL RECORD: 
Vol. 125 (1979): Sept. 29, considered and passed Senate. 
Nov. 13, H.R. 5481 considered and passed Senate; passage vacat-
ed and S. 1300, amended, passed in lieu. 
Vol. 126 (1980): Jan. 31, Senate agreed to conference rep)ort. 
Feb. 4, House agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS: 
Vol. 16, No. 7 (1980): Feb. 15, Presidential statement.