[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2748 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2748

To amend title 49, United States Code, to provide assistance and slots 
 with respect to air carrier service between high density airports and 
airports not receiving sufficient air service, to improve jet aircraft 
        service to underserved markets, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 28, 1997

Mr. Duncan (for himself, Mr. Blunt, Mr. Fox of Pennsylvania, Mr. Ewing, 
   Mr. Cook, Mr. Walsh, Mr. Quinn, and Mr. McGovern) introduced the 
 following bill; which was referred to the Committee on Transportation 
                           and Infrastructure

_______________________________________________________________________

                                 A BILL


 
To amend title 49, United States Code, to provide assistance and slots 
 with respect to air carrier service between high density airports and 
airports not receiving sufficient air service, to improve jet aircraft 
        service to underserved markets, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Airline Service Improvement Act of 
1997''.

     TITLE I--SERVICE TO AIRPORTS NOT RECEIVING SUFFICIENT SERVICE

SEC. 101. AVAILABILITY OF SLOTS.

    (a) Period of Effectiveness.--
            (1) Slots for foreign air transportation.--Section 41714(b) 
        of title 49, United States Code, is amended by striking 
        paragraph (4).
            (2) Slots for new entrants.--Section 41714(c) of such title 
        is amended--
                    (A) by striking ``(1) In general.--'';
                    (B) by striking paragraph (2); and
                    (C) by moving the text of paragraph (1) so that it 
                follows the subsection heading and its margin is 
                aligned with the margin for subsection (g).
    (b) Slots for Airports Not Receiving Sufficient Service.--Section 
41714 of such title is amended--
            (1) by striking subsections (e) and (f) and inserting the 
        following:
    ``(e) Slots for Airports Not Receiving Sufficient Service.--
            ``(1) Exemptions.--Notwithstanding the Metropolitan 
        Washington Airports Act of 1986, the Secretary may by order 
        grant exemptions from the requirements under subparts K and S 
        of part 93 of title 14, Code of Federal Regulations (pertaining 
        to slots at high density airports), to enable air carriers to 
        provide nonstop air transportation using aircraft that comply 
        with the stage 3 noise levels of part 36 of such title 14 
        between a high density airport and a small hub airport or 
        nonhub airport that the Secretary determines is not receiving 
        sufficient air carrier service to and from such high density 
        airport.
            ``(2) Limitations.--No more than 2 exemptions per hour may 
        be granted under this subsection for slots at any high density 
        airport, and no more than 6 exemptions per day may be granted 
        under this subsection for slots at Washington National Airport.
            ``(3) Application.--An air carrier interested in an 
        exemption under this subsection shall submit to the Secretary 
        an application for such exemption. No application may be 
        submitted to the Secretary before the last day of the 30-day 
        period beginning on the date of the enactment of this 
        subsection.
            ``(4) Deadline for decision.--The Secretary shall make a 
        decision with regard to granting an exemption under this 
        subsection not later than the 120th day following the date of 
        the application for the exemption. If the Secretary does not 
        make the decision on or before such 120th day, the air carrier 
        applying for the service may provide such service until the 
        Secretary makes the decision or the Administrator of the 
        Federal Aviation Administration determines that providing such 
        service would have an adverse effect on air safety.
            ``(5) Period of effectiveness.--An exemption granted under 
        this subsection may remain in effect while the air carrier for 
        whom the exemption is granted continues to provide nonstop air 
        transportation between the airport that the Secretary 
        determined was not receiving sufficient air carrier service and 
        the high density airport.
            ``(6) Definitions.--In this subsection, the following 
        definitions apply:
                    ``(A) Nonhub airport.--The term `nonhub airport' 
                means an airport that each year has less than .05 
                percent of the total annual boardings in the United 
                States; and
                    ``(B) Small hub airport.--The term `small hub 
                airport' means an airport that each year has at least 
                .05 percent, but less than .25 percent, of the total 
annual boardings in the United States.''; and
            (2) by redesignating subsections (g) and (h) as subsections 
        (f) and (e).

SEC. 102. FUNDING FOR AIR CARRIER SERVICE TO AIRPORTS NOT RECEIVING 
              SUFFICIENT SERVICE.

    Section 41742(b) is amended to read as follows:
    ``(b) Funding for Small Community Air Service.--
            ``(1) Source of funding.--Notwithstanding any other 
        provision of law, moneys credited to the account established 
        under section 45303(a) of this title, including the funds 
        derived from fees imposed under the authority contained in 
        section 45301(a) of this title, shall be used to carry out the 
        essential air service program under this subchapter.
            ``(2) Funding for air carrier service to airports not 
        receiving sufficient service and rural air safety.--Any amounts 
        from fees imposed under section 45301(a) that the Secretary 
        determines will not be obligated or expended by the last day of 
        a fiscal year for the purpose of funding the essential air 
        service program under this subchapter shall be made available 
        in such fiscal year to the Administration as follows:
                    ``(A) First, not to exceed $10,000,000 in each 
                fiscal year beginning after September 30, 1998--
                            ``(i) for assisting an air carrier to 
                        purchase aircraft to provide air transportation 
                        to an underserved airport, to purchase slots to 
                        provide air service between a high density 
                        airport and an airport that the Secretary 
                        determines is not receiving sufficient air 
                        carrier service to and from such high density 
                        airport, and to subsidize service to and from 
                        an underserved airport for a period not to 
                        exceed 3 years; and
                            ``(ii) for assisting an underserved airport 
                        to market service to and from the underserved 
                        airport.
                    ``(B) Second, for use under this subchapter in 
                improving rural air safety at airports with less than 
                100,000 annual boardings.
            ``(3) Underserved airport.--In this subsection, the term 
        `underserved airport' means a nonhub airport or small hub 
        airport that the Secretary determines is not receiving 
        sufficient air carrier service.''.

SEC. 103. UNFAIR COMPETITION COMPLAINTS.

    Section 41712 of title 49, United States Code, is amended--
            (1) by inserting ``(a) In General.--'' before ``On''; and
            (2) by adding at the end the following:
    ``(b) Deadline for Decision on Unfair Competition Complaints.--The 
Secretary shall make a decision on any complaint the Secretary receives 
under this section regarding whether an air carrier has been or is 
engaged in an unfair method of competition in air transportation or the 
sale of air transportation not later than 180 days after the date of 
receipt of the complaint.''.

            TITLE II--REGIONAL AIR SERVICE INCENTIVE PROGRAM

SEC. 201. AMENDMENT OF TITLE 49, UNITED STATES CODE.

    (a) In General.--Chapter 417 of title 49, United States Code, is 
amended by adding at the end the following:

        ``SUBCHAPTER III--REGIONAL AIR SERVICE INCENTIVE PROGRAM

``Sec. 41761. Purpose
    ``The purpose of this subchapter is to improve service by jet 
aircraft to underserved markets by providing assistance, in the form of 
loan guarantees, to commuter air carriers that purchase regional jet 
aircraft for use in serving those markets.
``Sec. 41762. Definitions
    ``In this subchapter, the following definitions apply:
            ``(1) Aircraft purchase loan.--The term `aircraft purchase 
        loan' means any loan made for the purchase of commercial 
        transport aircraft, including spare parts normally associated 
        with the aircraft.
            ``(2) Air carrier.--The term `air carrier' means any air 
        carrier holding a certificate of public convenience and 
        necessity issued by the Secretary of Transportation under 
        section 41102.
            ``(3) Commuter air carrier.--The term `commuter air 
        carrier' means an air carrier that primarily operates aircraft 
        designed to have a maximum passenger seating capacity of 75 or 
        less in accordance with published flight schedules.
            ``(4) New entrant air carrier.--The term `new entrant air 
        carrier' means an air carrier that has been providing air 
transportation according to a published schedule for less than 5 years, 
including any person that has received authority from the Secretary to 
provide air transportation but is not providing air transportation.
            ``(5) Nonhub airport.--The term `nonhub airport' means an 
        airport that each year has less than .05 percent of the total 
        annual boardings in the United States.
            ``(6) Regional jet aircraft.--The term `regional jet 
        aircraft' means a civil aircraft--
                    ``(A) powered by jet propulsion; and
                    ``(B) designed to have a maximum passenger seating 
                capacity of not less than 30 nor more than 75.
            ``(7) Small hub airport.--The term `small hub airport' 
        means an airport that each year has at least .05 percent, but 
        less than .25 percent, of the total annual boardings in the 
        United States.
            ``(8) Underserved market.--The term `underserved market' 
        means a passenger air transportation market (as defined by the 
        Secretary) that--
                    ``(A) is served (as determined by the Secretary) by 
                a nonhub airport or a small hub airport;
                    ``(B) is not within a 40-mile radius of an airport 
                that each year has at least .25 percent of the total 
                annual boardings in the United States; and
                    ``(C) the Secretary determines does not have 
                sufficient air service.
``Sec. 41763. Loan guarantees
    ``(a) In General.--The Secretary of Transportation may guarantee 
any lender against loss of principal or interest on any aircraft 
purchase loan made by that lender to a commuter air carrier or new 
entrant air carrier.
    ``(b) Form, Terms, and Conditions.--A guarantee shall be made under 
subsection (a)--
            ``(1) in such form and on such terms and conditions; and
            ``(2) pursuant to such regulations;
as the Secretary considers to be necessary and consistent with this 
subchapter.
``Sec. 41764. Conditions and limitations
    ``(a) Limitations on Funds.--Subject to subsection (d), no loan 
guarantee shall be made under this subchapter--
            ``(1) extending to more than the unpaid interest and 90 
        percent of the unpaid principal of any loan;
            ``(2) on any loan or combination of loans for more than 90 
        percent of the purchase price of the aircraft, including spare 
        parts, to be purchased with the loan or loan combination;
            ``(3) on any loan with respect to which terms permit 
        repayment more than 15 years after the date the loan is made;
            ``(4) in any case in which the total face amount of the 
        loan and any other loans to the same air carrier or corporate 
        predecessor of that air carrier that are guaranteed and 
        outstanding under the terms of this subchapter exceed 
        $100,000,000.
    ``(b) Conditions for Making Loans.--Subject to subsection (c), the 
Secretary of Transportation may only make a loan guarantee under this 
subchapter if the Secretary finds that--
            ``(1) the aircraft to be purchased with the loan is a 
        regional jet aircraft needed to improve the service and 
        efficiency of operation of the commuter air carrier or new 
        entrant air carrier;
            ``(2) the commuter air carrier or new entrant air carrier 
        agrees to use the aircraft to provide service to underserved 
        markets; and
            ``(3) the prospective earning power of the commuter air 
        carrier or new entrant air carrier, together with the character 
        and value of the security pledged, furnish--
                    ``(A) reasonable assurances of the air carrier's 
                ability and intention to repay the loan within the term 
                of the loan--
                            ``(i) to continue its operations as an air 
                        carrier; and
                            ``(ii) to the extent that the Secretary 
                        determines to be necessary, to continue its 
                        operations as an air carrier between the same 
                        route or routes being operated by the air 
                        carrier at the time of the loan guarantee; and
                    ``(B) reasonable protection to the United States.
    ``(c) Requirement.--Subject to subsection (d), no loan guarantee 
may be made under this subchapter on any loan or combination of loans 
for the purchase of any regional jet aircraft that does not comply with 
the stage 3 noise levels of part 36 of title 14 of the Code of Federal 
Regulations, as in effect on January 1, 1997.
    ``(d) Other Limitations.--No loan guarantee shall be made by the 
Secretary under this subchapter on any loan for the purchase of a 
regional jet aircraft unless the commuter air carrier or new entrant 
air carrier agrees that it will provide scheduled passenger air 
transportation to the underserved market for which the aircraft is 
purchased for a period of not less than 24 consecutive months after the 
aircraft is placed in service.
``Sec. 41765. Fees
    ``The Secretary of Transportation shall prescribe and collect from 
a lending institution a reasonable guarantee fee in connection with 
each loan guaranteed under this subchapter.
``Sec. 41766. Use of Federal facilities and assistance
    ``(a) Use of Federal Facilities.--To permit the Secretary of 
Transportation to make use of such expert advice and services as the 
Secretary may require in carrying out this subchapter, the Secretary 
may use available services and facilities of other agencies and 
instrumentalities of the Federal Government--
            ``(1) with the consent of the appropriate Federal 
        officials; and
            ``(2) on a reimbursable basis.
    ``(b) Assistance.--The head of each appropriate department or 
agency of the Federal Government shall exercise the duties and 
functions of that head in such manner as to assist in carrying out the 
policy specified in section 41761.
    ``(c) Oversight.--The Secretary shall make available to the 
Comptroller General of the United States such information with respect 
to the loan guarantee program conducted under this subchapter as the 
Comptroller General may require to carry out the duties of the 
Comptroller General under chapter 7 of title 31.
``Sec. 41767. Receipts; payments
    ``(a) Miscellaneous.--Amounts received by the Secretary of 
Transportation under this subchapter shall be credited to miscellaneous 
receipts of the Treasury.
    ``(b) Payments.--Payments to lenders required as a consequence of 
any loan guarantee made under this subchapter may be made from funds 
appropriated pursuant to the authorization under section 202 of the 
Airline Service Improvement Act of 1997.
    ``(c) Administrative Expenses.--In carrying out this subchapter, 
the Secretary shall use funds made available by appropriations to the 
Department of Transportation for the purpose of administration to cover 
administrative expenses of the loan guarantee program under this 
subchapter.
``Sec. 41768. Termination
    ``The authority of the Secretary of Transportation under section 
41763 shall terminate on the date that is 5 years after the date of the 
enactment of this subchapter.''.
    (b) Conforming Amendment.--The analysis for chapter 417 of such 
title is amended by adding at the end the following:

        ``SUBCHAPTER III--REGIONAL AIR SERVICE INCENTIVE PROGRAM

``Sec.
``41761. Purpose.
``41762. Definitions.
``41763. Loan guarantees.
``41764. Conditions and limitations.
``41765. Fees.
``41766. Use of Federal facilities and assistance.
``41767. Receipts; payments.
``41768. Termination.''.

SEC. 202. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary to carry out subchapter III of chapter 417 of title 49, 
United States Code.
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