An Act to amend title XIII of the Federal Aviation Act of 1958 to expand the types of risks which the Secretary of Transportation may insure or reinsure, and for other purposes.
PL 95-163 (H.R.6010), enacted 11/09/1977

91 STAT. 1278 
PUBLIC LAW 95-163—NOV. 9, 1977 
Nov. 9, 1977 
[H.R. 6010] 
Federal Aviation 
Act of 1958, 
amendments. 
49 use 1531. 
49 use 1532. 
Public Law 95-163 
95th Congress 
An Act 
To amend title XIII of the Federal Aviation Act of 1958 to expand the types of 
risks which the Secretary of Transportation may insure or reinsure, and for 
other purposes. 
Be it enacted hy the Seriate and House of Representatives 
of the 
United States 
of America 
in Congress asserribled^ That (a) section 
1301 of the Federal Aviation Act of 1958 (49 U.S.C. 1531) is amended 
to read as follows: 
a DEriNITIONS 
"SEC. 1301. As used in this title— 
"(1) the term 'American aircraft' means any civil aircraft of 
the United States and any aircraft owned or chartered by, or 
made available to, the United States or any department or agency 
thereof, the government of any State, territory, or possession of 
the United States, or any political subdivision thereof, or the 
District of Columbia; 
"(2) the terms 'insurance company' and 'insurance carrier' 
include any mutual or stock insurance company, reciprocal insur-
ance association, and any group or association authorized to do an 
aviation insurance business in any State of the United States; and 
"(3) the term 'Secretary' means the Secretary of Transporta-
tion.", 
(b) The center heading of title X I I I of the Federal Aviation Act 
of 1958 is amended by striking out "WAR R I S K " and inserting in 
lieu thereof 
"AVIATION". 
SEC. 2. Section 1302 of the Federal Aviation Act of 1958 is amended 
to read as follows: 
"AUTHORITY To 
INSURE 
(( 
Approval. 
AUTHORITY OF THE SECRETARY 
"SEC. 1302. (a)(1) 
The Secretary, with the approval of the 
President, and after such consultation with interested agencies of the 
Government as the President may require, may provide insurance and 
reinsurance against loss or damage arising out of any risk from the 
operation of an aircraft in the manner and to the extent provided by 
this title, whenever it is determined by the Secretary that such insur-
ance cannot be obtained on reasonable terms and conditions from any 
company authorized to do an insurance business in a State of the 
United States. 
"(2) The President shall approve insurance or reinsurance under 
paragraph (1) of this subsection only if he has first made a determi-
nation that the continuation of the American aircraft, or the foreign-
flag aircraft, operation to be insured or reinsured is necessary to carry 
out the foreign policy of the United States. 
"(3) Insurance shall be issued under this title only to cover any 
risk from the operation of an aircraft while such aircraft is (A) 
engaged in foreign air commerce, or (B) being operated between two 
or more points all of which are outside of the United States. 
PUBLIC LAW 95-163—NOV. 9, 1977 
91 STAT. 1279 
;, 
"BASIS OF INSURANCE 
"(b) The premium charged for any insurance or reinsurance issued 
under any provision of this title shall be based, insofar as practicable, 
upon consideration of the risk involved. 
Premium. 
"PERIOD OF COVERAGE 
"(c) No insurance or reinsurance may be provided by the Secretary 
under this title for an initial period of more than sixty days. Such Extension, 
insurance or reinsurance may be extended for additional periods each 
of which shall not exceed sixty days, but only if, before each such 
extension, the President makes the same determination with respect 
to such extension as he is required to make under paragraph (2) of 
subsection (a) of this section for the initial provision of such insur-
ance or reinsurance.". 
SEC. 3. Section 1303 of the Federal Aviation Act of 1958 is amended 49 USC 1533. 
to read as follows: 
"INSURABLE PERSONS, PROPERTY, OR INTERESTS 
"SEC. 1303. The Secretary may provide the insurance and reinsur-
ance, authorized by section 1302 with respect to the following persons, ^"•te, p- 1278. 
property, or interest: 
" (1) American aircraft and those foreign-flag aircraft engaged 
in aircraft operations deemed by the President to be necessary to 
carry out the foreign policy of the United States. 
"(2) Cargoes transported or to be transported on any aircraft 
referred to in paragraph (1), including shipments by express 
or registered mail; air cargoes owned by citizens or residents of the 
United States, its territories, or possessions; air cargoes imported 
to, or exported from the United States, its territories, or posses-
sions and air cargoes sold or purchased by citizens or residents 
of the United States, its territories, or possessions, under con-
tracts of sale or purchase by the terms of which the risk of loss 
or the obligation to provide insurance against such risks is assumed 
by or falls upon a citizen or resident of the United States, its ter-
ritories, or possessions; air cargoes transported between any point 
in the United States and any point in a territory or possession 
of the United States, between any point in any such territory or 
possession and any point in any other such territory or possession, 
or between any point in any such territory or possession and any 
other point in the same territory or possession. 
"(3) The personal effects and baggage of the captains, pilots, 
officers, members of the crews of any aircraft referred to in 
paragraph (1), and of other persons employed or transported 
on such aircraft. 
"(4) Captains, pilots, officers, members of the crews of any 
aircraft referred to in paragraph (1), and other persons employed 
or transported thereon against loss of life, injury, or detention. 
"(5) Statutory or contractual obligations or other liabilities 
of any aircraft referred to in paragraph (1) or of the owner or 
operator of such aircraft of the nature customarily covered by 
insurance.". 
SEC. 4. (a) Subsection (b) of section 1305 of the Federal Aviation Reinsurance 
Act of 1958 (49 U.S.C. 1535) is amended by striking out "rates" each premiums, 
place it appears and inserting in lieu thereof "premiums". 
91 STAT. 1280 
PUBLIC LAW 95-163—NOV. 9, 1977 
Premiums. 
Authority 
expiration. 
(b) Thecenterheadingof such subsection (b) is amended by strik-
ing out "RATES" and inserting in lieu thereof "PREMIUMS". 
SEC. 
5. (a) Subsection (b) of section 1307 of the Federal Aviation 
Act of 1958 (49 U.S.C. 1537) is amended by striking out "rates of 
premium provided for in this title: Provided^ That" and inserting in 
lieu thereof "the premiums provided for in this title, except that . 
(b) The center heading of such subsection (b) is amended by strik-
ing out "RATES" and inserting in lieu thereof "PREMIUMS". 
SEC. 
6. Section 1312 of the Federal Aviation Act of 1958 (49 U.S.C. 
1542) is amended by striking out "May 7,1977." and inserting in lieu 
thereof "September 30,1982.". 
SEC. 
7. (a) 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 XIII—WAR RISK INSURANCE" 
is amended by striking out 
"TITLE XIII—WAR RISK INSURANCE 
"" ' 
"Sec. 1301. Definitions. 
"(a) American aircraft. 
"(b) War risks. 
•'••ij-.'::. 
»*' 
"(c) Secretary. 
" (d) Insurance company and insurance carrier. 
"Sec. 1302. Authority to insure. 
"(a) Power of the Secretary. 
"(b) Basis of insurance. 
"Sec. 1303. Insurable persons, property, or interests. 
"(a) Aircraft. 
~ . , - 
"(b) Cargo. 
" (c) Personal effects and baggage. 
"(d) Persons. 
"(e) Other interests." 
and inserting in lieu thereof 
"TITLE XIII—^AVIATION INSURANCE 
"Sec. 1301. Definitions. 
"Sec. 1302. Authority to insure. 
, 
" (a) Authority of the Secretary. 
"(b) Basis of insurance. 
"(c) Period of coverage. 
"Sec. 1303. Insurable persons, property, or interests.". 
(b) That portion of the table of contents contained in the first 
section of such Act which appears under the side heading 
"Sec. 1305. Reinsurance." 
is amended by striking out 
• . . 
"(b) Rates for reinsurance." 
, 
; 
and inserting in lieu thereof 
-. 
• 
"(b) Premiums for reinsurance.". 
(c) That portion of the table of contents contained in the first 
section of such Act which appears under the side heading 
"Sec. 1307. Administrative powers of Secretary." 
is amended by striking out 
"(b) Forms, policies, amounts insured, and rates." 
and inserting in lieu thereof 
' 
"(b) Forms, policies, amounts insured, and premiums." 
PUBLIC LAW 95-163—NOV. 9, 1977 
91 STAT. 1281 
"Handicapped 
person." 
"Retired." 
Study. 
Report to 
>'l 
Congress. 
49 use 1373 
note. 
Through ser\ice 
by intrastate 
carriers. 
SEC. 8. (a) Section 403(b) (1) of the Federal Aviation Act of 1958 Reduced fares. 
(49 U.S.C. 1373(b) (1)) is amended by striking out "to ministers of 
religion on a space available basis." and inserting in lieu thereof "on 
a space-available basis to any minister of religion, any person who is 
sixty years of age or older and retired, any person who is sixty-five 
years of age or older, and to any handicapped person and any attend-
ant required by such handicapped person. For the purposes of this 
subsection, the term 'handicapped person' means any person who has 
severely impaired vision or hearing, and any other physically or men-
tally handicapped person, as defined by the Board. For purposes of 
this subsection, the term 'retired' means no longer gainfullyemployed 
as defined by the Board.". 
(b) Within six months after the date of enactment of this section, 
the Board shall study and report to Congress on the feasibility and 
economic impact of air carriers and foreign air carriers providing 
reduced-rate transportation on a space-available basis to persons 
twenty-one years of age or younger. 
SEC. 9. Section 401(d) of the Federal Aviation Act of 1958 (49 
U.S.C. 1371(d)) is amended by adding at the end thereof the follow-
ing new paragraph: 
"(4) (A) Notwithstanding any other provision of this Act, any citi-
zen of the United States who undertakes, within the State of Cali-
fornia or the State of Florida, the carriage of persons or property as 
a common carrier for compensation or hire with aircraft capable of 
carrying thirty or more persons pursuant to authority for such car-
riage (i) within the State of California, granted by the Public Utili-
ties Commission of such State, or (ii) within the State of Florida, 
granted 
by the Public 
Service Commission of 
such State, is 
authorized— 
" ( I ) to establish services for persons and property which 
includes transportation by such citizen over its routes in Cali-
fornia or Florida and transportation by an air carrier or foreign 
air carrier in air transportation; and 
" ( I I ) subject to the requirements of section 412 of this title, to 
enter into an agreement with any air carrier or foreign air carrier 
for the establishment of joint fares, rates, and services for such 
through service. 
"(B) The joint fares or rates established under clause (II) of sub-
paragraph (A) of this paragraph shall be the lowest of— 
"(i) the sum of the applicable fare or rate for service in Cali-
fornia approved by such Public Utilities Commission, or the sum 
'* 
of the applicable fare or rate for service in Florida approved by 
such Public Service Commission, and the applicable fare or rate 
for that part of the through service provided by the air carrier 
'' 
or foreign air carrier; 
"(ii) a joint fare or rate established and filed in accordance 
•' 
with section 403 of this Act; or 
Infra. 
"(iii) a joint fare or rate established by the Board in accord-
ance witli section 1002 of this Act.". 
Post, p. 1286. 
SEC. 10. (a) The first sentence of section 403(c) of the Federal 
Aviation Act of 1958 (49 U,S.C. 1373) is amended to read as follows: 
''No change shall be made in any rate, fare, or charge, or any classifi-
cation, rule, regulation, or practice aft'ecting such rate, fare, or charge, 
or the value of the service thereunder, specified in any effective tariff— 
"(1) of any air carrier, or foreign air carrier, directly engaged 
in the operation of aircraft if such rate, fare, or charge is for the 
' • 
carriage of property in air transportation, except after sixty 
49 use 1382. 
Joint fares 
or rates. 
91 STAT. 1282 
PUBLIC LAW 95-163—NOV. 9, 1977 
Post, p. 1286. 
Effective dates. 
49 use 1373 
note. 
Ante, p. 1281. 
49 use 1482 
note. 
Local service air 
carriers, 
compensation. 
26 use 172. 
49 use 1376 
note. 
Supra. 
26 use 172. 
Mail 
transportation, 
payments. 
days' notice of the proposed change filed, posted, and published 
in accordance with subsection (a) of this section; and 
"(2) (A) of any air carrier, or foreign air carrier, if such rate, 
fare, or charge is for the carriage of persons in air transportation, 
or (B) of any air carrier, or foreign air carrier, not directly 
engaged in the operation of aircraft if such rate, fare, or charge 
is for the carriage of property in air transportation, except after 
forty-five days' notice of the proposed change filed, posted, and 
published in accordance with subsection (a) of this section.". 
(b) The first sentence of section 1002(g) of such Act (49 U.S.C. 
1482) is amended by inserting "at least fifteen days before the day 
on which such tariff would otherwise go into effect" immediately after 
"and delivering to the air carrier affected thereby". 
SEC. 11. (a) The amendment made by subsection (a) of section 10 
of this Act shall apply to any tariff change filed by any air carrier or 
foreign air carrier in accordance with section 403(c) of the Federal 
Aviation Act of 1958 after the thirtieth day after the date of enact-
ment of this section. 
(b) The amendment made by subsection (b) of section 10 of this 
Act shall apply to any tariff change filed by any air carrier for inter-
state or overseas air transportation in accordance with section 403 (c) 
of the Federal Aviation Act of 1958 after the thirtieth day after the 
date of enactment of this section. 
SEC. 12. (a) Section 406(b) of the Federal Aviation Act of 1958 
(49 U.S.C. 1376(b)) is amended by adding at the end thereof the 
following new sentence: "In determining compensation for any local 
service air carrier for the year 1966 in accordance with the provisions 
of this subsection, the Board shall apply Local Service Class Subsidy 
Eate III-A as set forth in Board order E-23850 (44 CAB 637 et seq.), 
except that the Board shall not apply that part of such order which 
requires the Board to take into account any decrease in the Federal 
income tax liability of such carrier for such year resulting from any 
net operating loss carryback pursuant to section 172 of the Internal 
Revenue Code of 1954.". 
(b) In the event that the Civil Aeronautics Board in determining 
the amount of compensation to be paid to any local service air carrier 
for the year 1966 in accordance with the provisions of section 406 (b) 
of the Federal Aviation Act of 1958 took into account any decrease in 
the Federal income tax liability for such air carrier for such year 
resulting from any net operating loss carryback pursuant to section 
172 of the Internal Revenue Code of 1954, the Board shall redetermine 
the compensation to be paid to such air carrier in accordance with sec-
tion 406(b) as amended by this section, and shall make payment to 
such air carrier of any amount owed to such carrier as provided in 
such redetermination. 
SEC. 13. Section 406(a) of the Federal Aviation Act of 1958 (49 
U.S.C. 1376) is amended by inserting at the end thereof the following 
new sentences: "Nothing in this section shall prohibit the Board from 
making payments as compensation for the transportation of mail by 
aircraft, the facilities used and useful therefor, and the services con-
nected therewith, for the period August 1,1973, through July 31,1975, 
where such payments have already been provided by Board order, to 
the holder of a certificate authorizing the transportation of mail by 
aircraft, to the account or for the benefit of any air carrier designated 
an 'air taxi operator' hj^ the Board, which provided air transportation 
between points named in the holder's certificate in satisfaction of an 
PUBLIC LAW 95-163—NOV. 9, 1977 
91 STAT. 1283 
express condition to the suspension by Board order of the holder's 
certificate authority to engage in air transportation between those 
points. In no event shall such payments differ from the amount previ-
ously provided by such Board order.". 
SEC. 14. Section 501(b) of the Federal Aviation Act of 1958 (49 
U.S.C. 1401 (b)) is amended to read as follows: 
"ELIGIBILITY FOR REGISTRATION 
"(b) An aircraft shall be eligible for registration if, but only if— 
" ( 1 ) ( A ) itis— 
"(i) owned by a citizen of the United States (other than a 
corporation) or by an individual citizen of a foreign country 
who has lawfully been admitted for permanent residence in 
the United States; or 
"(ii) owned by a corporation lawfully organized and doing 
business under the laws of the United States or any State 
thereof so long as such aircraft is based and primarily used 
in the United States; and 
"(B) it is not registered under the laws of any foreign country; 
or 
" (2) it is an aircraft of the Federal Grovernment, or of a State, 
territory, or possession of the United States or the District of 
Columbia or a political subdivision thereof. 
For purposes of this subsection, the Secretary of Transportation shall, 
by regulation, define the term 'based and primarily used in the United 
States'.". 
SEC. 15. (a) Section 601(d) of the Federal Aviation Act of 1958 (49 
"U.S.C. 1421), relating to emergency locator transmitters, is amended 
as follows: 
(1) In paragraph (1), immediately before ", minimum stand-
ards" insert the following: "and except as provided in paragraph 
(3) of this subsection". 
(2) By adding at the end thereof the following new para-
graph : 
"(3) The Administrator shall issue regulations which permit. Regulations, 
subject to such limitations and conditions as he prescribes in such 
regulations, the operation of any aircraft equipped with an emer-
gency locator transmitter during any period for which such 
transmitter has been removed from such aircraft for inspection, 
' repair, modification, or replacement.". 
(b) (1) Section 601 of such Act is amended by relettering subsec-
tion (d), relating to aviation fuel standards, as subsection (e). 
(2) Any reference to such relettered subsection (e) shall be relet-
tered accordingly. 
(c) That portion of the table of contents contained in the first 
section of such Act which appears under the side heading 
"Sec. 601. General safety powers and duties." 
is amended by striking out 
"(d) Aviation fuel standards." 
and inserting in lieu thereof the following : 
"(d) Emergency locator transmittere. 
"(e) Aviation fuel standards." 
SEC. 16. (a) Section 102 of the Federal Aviation Act of 1958 is 
49 USC 1302. 
amended by inserting under the center heading the following sub-
section heading: 
Emergency 
locator 
transmitters. 
Aviation fuel 
standards. 
49 USC 1421 
note. 
91 STAT. 1284 
PUBLIC LAW 95-163—NOV. 9, 1977 
' *
^ 
'^ 
"GENERAL FACTORS FOR CONSIDERATION". ' ' *'^ 
' 
- . ' 
49 use 1302. 
(b) Section 102 of such Aot is amended— 
(1) by striking out "In the exercise and performance of its 
i' 
powers and duties under this Act," and inserting in lieu thereof 
"(a) In the exercise and performance of its powers and duties 
under this Act,"; 
(2) by redesignating existing clauses (a) through (f) as (1) 
through (6), respectively; and 
(3) by adding at the end thereof the following new subsec-
tion: 
"FACTORS FOR ALL-CARGO AIR SERVICE 
"(b) In addition to the declaration of policy set forth in subsection 
(a) of this section, the Board, in the exercise and performance of its 
powers and duties under this Act with respect to all-cargo air service 
shall consider the following, among other things, as being in the public 
interest: 
"(1) The encouragement and development of an expedited 
all-cargo air service system, provided by private enterprise, 
responsive to (A) the present and future needs of shippers, (B) 
the commerce of the United States, and (C) the national defense. 
1 
"(2) The encouragement and development of an integrated 
transportation system relying upon competitive market forces to 
determine the extent, variety, quality, and price of such services. 
t 
"(3) The provision of services without unjust discriminations, 
undue preferences or advantages, unfair or deceptive practices, 
or predatory pricing.". 
(c) That portion of the table of contents contained in the first sec-
49 use 1301 
tion of the Federal Aviation Act of 1958 which appears under the 
note- 
center heading 
,.. 
"TITLE I—^GENERAL PROVISIONS" 
is amended by striking out 
"Sec. 102. Declaration of Policy : The Board." 
and inserting in lieu thereof 
"Sec. 102. Declaration of Policy: The Board. 
" (a) General factors for consideration. 
"(b) Factors for all-cargo air service.". 
SEC. 17. (a) Title IV of the Federal Aviation Act of 1958 (49 U.S.C. 
1371 et seq.) is amended by adding at the end therof the following 
>,/ .ifi<. 
new section: 
. 
i 
. . . i 
i- 
•_ 
"CERTIFICATE FOR ALL-CARGO A I R SERVICE 
(; 
A P P L I C A T I O N 
' 
' '- • 
49 use 1388. 
"SEC. 418. (a) (1) Any citizen of the United States who has a valid 
49 use 1371. 
certificate issued under section 401(d) (1) of this title and who pro-
vided scheduled all-cargo air service at any time during the period 
from January 1, 1977, through the date of enactment of this section 
may, during the forty-five-day period which begins on the date of 
enactment of this section, submit an application to the Board for a 
certificate under this section to provide all-cargo air service. Such 
application shall contain such information and be in such form as the 
.... 
. =
. '. 
Board shall by regulation require. 
"(2) Any citizen of the United States who (A) operates pursuant 
49 use 1386. 
to an exemption granted by the Board under section 416 of this title, 
PUBLIC LAW 95-163—NOV. 9, 1977 
91 STAT. 1285 
and (B) provided scheduled all-cargo air service continuously (other 
than for interruptions caused by labor disputes) during the 12-month 
period ending on the date of enactment of this section, or whose prede-
cessor in interest provided such service during such period, may, 
during the forty-five-day period which begins on the date of enact-
ment of this section, submit an application to the Board for a cer-
tificate under this section to provide all-cargo air service. Such 
• >
' 
application shall contain such information and be in such form as 
the Board shall by regulation require. 
" (3) After the three hundred and sixty-fifth day which begins after 
the date of enactment of this section, any citizen of the United States 
maj^ submit an application to the Board for a certificate under this 
section to provide all-cargo air service. Such application shall con-
tain such information and be in such form as the Board shall by 
regulation require. 
a 
ISSUANCE AND REVOCATION OF CERTIFICATE 
"(b) (1) (A) Not later than sixty days after any application is sub-
mitted pursuant to paragraph (1) or (2) of subsection (a) of this 
section, the Board shall issue a certificate under this section authorizing 
the all-cargo air service covered by the application. 
"(B) No later than one hundred and eighty days after any applica-
tion is submitted pursuant to paragraph (3) of subsection (a) of this 
section, the Board shall issue a certificate under this section authorizing 
the whole or any part of the all-cargo air service covered by the appli-
cation unless it finds that the applicant is not fit, willing, and able to 
provide such service and to comply with any rules and regulations 
promulgated by the Board. 
"(2) Any certificate issued by the Board under this section may 
contain such reasonable conditions and limitations as the Board deems 
necessary, except that such terms and conditions shall not restrict the 
points which may be served, or the rates which may be charged, by 
the holder of such certificate. 
"(3) Notwithstanding any other provision of this section, no certif-
icate issued by the Board under this section shall authorize all-cargo 
air service between any pair of points both of which are within the 
State of Alaska or the State of Hawaii. 
"(4) If any all-cargo air service authorized by a certificate issued 
under this subsection is not performed to the minimum extent pre-
scribed by the Board, it may by order, entered after notice and oppor-
tunity for a hearing, direct that such certificate shall, thereafter, cease 
to be effective to the extent of such service. 
"EXEMPTIONS 
"(c) Any applicant who is issued a certificate under this section 
shall, with respect to any all-cargo air service provided in accordance 
with such certificate, be exempt from the requirements of section 401 
(a) of this Act, and any other section of this Act which the Board by 49 USC 1371. 
rule determines appropriate, and any rule, regulation, or procedure 
issued pursuant to any such section. 
a 
AIR CARRIER STATUS 
"(d) Any applicant who is issued a certificate under this section 
shall be an air carrier for the purposes of this Act, except to the extent 
.%TiK'--' 
91 STAT. 1286 
PUBLIC LAW 95-163—NOV. 9, 1977 
"All-cargo air 
service." 
Complaints. 
Infra. 
Maximum and/or 
minimum rate, 
fare, or charge. 
Unfair rate or 
charge, 
correction. 
such carrier is exempt from any requirement of the Act pursuant to 
this section.". 
(b) Section 101 of such Act (49 U.S.C. 1301) is amended by— 
(1) renumbering paragraphs (11) through (38), and any ref-
erences thereto, as paragraphs (12) through (39), respectively; 
and 
(2) inserting immediately after paragraph (10), the following 
new paragraph: 
" (11) 'All-cargo air service' means— 
" (A) the carriage by aircraft of only (i) property as a common 
carrier for compensation or hire, or (ii) mail, or both, in com-
merce between a place in any State of the United States, or the 
District of Columbia, and a place in any other State of the United 
States, or the District of Columbia; or between places in the same 
State of the United States through the airspace over any place 
outside thereof; or between places in the same territory or pos-
session of the United States, or the District of Columbia; 
"(B) the carriage by aircraft of only (i) property as a common 
carrier for compensation or hire, or (ii) mail, or both, in com-
merce between a place in any State of the United States or the 
District of Columbia and any place in the Commonwealth of 
Puerto Rico or the Virgin Islands or between a place in the Com-
monwealth of Puerto Rico and a place in the Virgin Islands; 
whether such commerce moves wholly by aircraft or partly by aircraft 
and partly by other forms of transportation.". 
(c) That portion of the table of contents contained in the first sec-
tion of such Act which appears under the center heading 
"TITLE IV—AIR CARRIER ECONOMIC REGULATION" 
is amended by adding at the end thereof 
"Sec. 418. Certificate for all-cargo air service. 
r 
"(a) Application. 
;; 
"(b) Issuance and revocation of certificate. 
"(c) Exemptions. 
"(d) Air carrier status.". 
SEC. 18. (a) Subsection (d) of section 1002 of the Federal Aviation 
Act of 1958 (49 U.S.C. 1482(d)) is amended by— 
(1) striking out "Whenever," and inserting in lieu thereof 
"(1) Except as provided in paragraph (2) of this subsection, 
whenever,"; 
(2) striking out "interstate" and inserting in lieu thereof 
"interstate air transportation of persons, air transportation of 
property within the State of Alaska, air transportation of prop-
erty within the State of Hawaii,"; 
(3) striking out "effective: Provided., That as to rates, fares, 
and charges for overseas air transportation, the Board shall deter-
mine and prescribe only a just and reasonable maximum or mini-
mum, or maximum and minimum rate, fare, or charge." and 
inserting in lieu thereof "effective."; and 
(4) adding at the end thereof the following new paragraphs: 
" (2) With respect to rates, fares, and charges for overseas air trans-
portation, the Board shall determine and prescribe only a just and 
reasonable maximum or minimum, or maximum and minimum rate, 
fare, or charge. 
"(3) Whenever, after notice and hearing, upon complaint, or upon 
its own initiative, the Board shall be of the opinion that any individual 
or joint rate or charge demanded, charged, collected, or received by any 
PUBLIC LAW 95-163—NOV. 9, 1977 
91 STAT. 1287 
air carrier for interstate air transportation of property or any classi-
fication, rule, regulation, or practice affecting such rate or charge, or 
the value of the service thereunder, is or will be unjustly discrimina-
tory, or unduly preferential, or unduly prejudicial, or predatory the 
Board shall alter such rate, charge, classification, rule, regulation, or 
practice to the extent necessary to correct such discrimination, prefer-
ence, prejudice, or predatory practice and make an order that the air 
carrier or foreign air carrier shall discontinue demanding, charging, 
collecting, or receiving any such discriminatory, preferential, preju-
dicial, or predatory rate or charge or enforcing any such discrimi-
natory, preferential, prejudicial, or predatory classification, rule, 
regulation, or practice.". 
(b) The last sentence of subsection (g) of such section 1002 is Rate suspension, 
amended to read as follows: "If the proceeding has not been con- ^^ U
S
C 1482. 
eluded and an order made within the period of suspension, the pro-
posed rate, fare, charge, classification, rule, regulation, or practice 
shall go into effect at the end of such period, except that this sub-
section shall not apply to any initial tariff filed by any air carrier. 
The Board shall not suspend any proposed tariff under this subsection 
because of the proposed rate, fare, charge, classification, rule, regu-
lation, or practice stated therein unless the Board is empowered to find 
such proposed rate, fare, charge, classification, rule, regulation, or 
practice unjust or unreasonable and empowered to determine and pre-
scribe the lawful rate, fare, charge, classification, rule, regulation, or 
practice, or the lawful maximum or minimum, or maximum and mini-
mum rate, fare, or charge.". 
(c) The first sentence of subsection (h) of such section 1002 is 
amended by striking out "air transportation" and inserting in lieu 
thereof "interstate air transportation of persons, air transportation 
of property within the State of Alaska, air transportation of property 
within the State of Hawaii, or overseas or foreign air transportation". 
(d) Subsection (i) of such section 1002 is amended by striking out 
"interstate" and inserting in lieu thereof "interstate air transportation 
of persons, air transportation of property within the State of Alaska, 
air transportation of property within the State of Hawaii,". 
(e) (1) Such section 1002 is amended by adding at the end thereof 
the following new subsection: 
u 
DEFINrriONS 
"(k) (1) For purposes of this section, the term 'interstate air trans-
portation of property' means— 
"(A) the carriage by aircraft of property as a common carrier 
for compensation or hire in commerce between a place in any 
State of the United States, or the District of Columbia, and a 
place in any other State of the United States, or the District of 
Columbia (other than the carriage by aircraft of property by a 
common carrier between any pair of points both of which are 
within the State of Alaska or Hawaii if such carriage is part of 
the continuous carriage of such property and another common 
carrier provides, as part of such continuous carriage, the carriage 
by aircraft of such property between any pair of points one of 
which is within the State of Alaska or Hawaii and the other of 
which is not within the same State); or between places in the 
same State of the United States (other than the State of Alaska 
or Hawaii) through the airspace over any place outside thereof; 
91 STAT. 1288 
PUBLIC LAW 95-163—NOV. 9, 1977 
or between places in the same territory or possession of the United 
States, or the District of Columbia; 
"(B) the carriage by aircraft of property as a common carrier 
for compensation or hire, in commerce between a place in any 
State of the United States or the District of Columbia and any 
place in the Commonwealth of Puerto Eico or the Virgin Islands 
or between a place in the Commonwealth of Puerto Rico and a 
place in the Virgin Islands; 
whether such commerce moves wholly by aircraft or partly by air-
craft and partly by other forms of transportation. 
"(2) For purposes of this section, the term 'overseas air transpor-
tation' means— 
• • 
• 
"(A) the carriage by aircraft of persons as a common carrier 
- " ^ " 
for compensation or hire in commerce between a place in any 
State of the United States, or the District of Columbia, and any 
place in a territory or possession of the United States; or between 
a place in a territory or possession of the United States, and a 
place in any other territory or possession of the United States; 
} 
"(B) the carriage by aircraft of property as a common carrier 
for compensation or hire in commerce between a place in any 
I 
State of the United States, or the District of Columbia, and any 
place in a territory or possession of the United States (other 
than the Commonwealth of Puerto Rico and the Virgin Islands) ; 
or between a place in a territory or possession of the United 
States (other than the Commonwealth of Puerto Rico and the 
Virgin Islands), and a place in any other territory or possession 
of the United States (other than the Commonwealth of Puerto 
Rico and the Virgin Islands); 
whether such commerce moves wholly by aircraft or partly by air-
craft and partly by other forms of transportation. 
"(3) For purposes of this section, the term 'air transportation of 
property within the State of Alaska' means the carriage by aircraft of 
property (A) by a common carrier for compensation or hire in com-
merce between any pair of points both of which are within the State 
of Alaska if such carriage is part of the continuous carriage of such 
property and another common carrier provides, as part of such con-
tinuous carriage, the carriage by aircraft of such property between 
any pair of points one of which is within the State of Alaska and the 
other of which is not within such State, or (B) by a common carrier 
for compensation or hire in commerce between places in the State of 
Alaska through the airspace over any place outside thereof, whether 
such commerce moves wholly by aircraft or partly by aircraft and 
partly by other forms of transportation. 
"(4) For purposes of this section, the term 'air transportation of 
property within the State of Hawaii' means the carriage by aircraft 
of property (A) by a common carrier for compensation or hire in 
commerce between any pair of points both of which are within the 
State of Hawaii if such carriage is part of the continuous carriage of 
such property and another common carrier provides, as part of such 
continuous carriage, the carriage by aircraft of such property between 
any pair of points one of which is within the State of Hawaii and 
the other of which is not within such State, or (B) by a common 
carrier for compensation or hire in commerce between places in the 
State of Hawaii through the airspace over any place outside thereof, 
whether such commerce moves wholly by aircraft or partly by aircraft 
and partly by other forms of transportation.". 
PUBLIC LAW 95-163—NOV. 9, 1977 
91 STAT. 1289 
(2) That portion of the table of contents contained in the first 
section of such Act which appears under the side heading 
"Sec. 1002. Complaints 
Board." 
to and investigations by tlie Administrator and the 
is amended by adding at the end thereof 
- ^ 
"(k) Definitions.". 
SEC. 19. (a) Notwithstanding section 16 of the Federal Airport Act 
(as in effect on April 26, 1950), the Secretary of Transportation is 
authorized, subject to the provisions of section 4 of the Act of Octo-
ber 1, 1949 (50 App. U.S.C. 1622c), and the provisions of subsection 
(b) of this section, to grant releases from any of the terms, conditions, 
reservations, and restrictions contained in Patent Number 1,128,955, 
dated April 26, 1950, by which the United States gave and granted 
a patent in certain property to the city of Redmond, Oregon, for 
airport purposes. 
(b) Any release granted by the Secretary of Transportation under 
subsection (a) of this section shall be subject to the following 
conditions: 
(1) The city of Redmond, Oregon, shall agree that in convey-
ing any interest in the property which the United States granted 
the city by Patent Number 1,128,955, dated April 26, 1950, the 
city will receive an amount for such interest which is equal to 
^' the fair market value (as determined pursuant to regulations 
'• issued by such Secretary). 
(2) Any such amount so received by the city shall be used by 
the city for the development, improvement, operation, or main-
tenance of a public airport. 
Approved November 9, 1977. 
Redmond, Oreg. 
property 
restrictions, 
release. 
49 use 1115 
note. 
, 
i,, 
Conditions. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 95-301 (Comm. on Public Works and Transportation) and 
No. 95-773 (Comm. of Conference). 
SENATE REPORT No. 95-199 accompanying S. 1325 (Comm. on Commerce, Science, 
and Transportation). 
CONGRESSIONAL RECORD, Vol. 123 (1977): 
May 17, considered and passed House. 
May 27, considered and passed Senate, amended, in lieu of S. 1325. 
"• 
June 8, House concurred in Senate amendment with an amendment. 
1;: 
Oct. 20, Senate concurred in House amendment with an amendment. 
Oct. 28, Senate agreed to conference report. 
Nov. 2, House agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 13, No. 46: 
Nov. 9, Presidential statement.