[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 142 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 142
To amend title 49, United States Code, to authorize the Secretary of
Transportation to oversee the competitive activities of air carriers
following a concentration in the airline industry, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 3, 2001
Mr. Oberstar introduced the following bill; which was referred to the
Committee on Transportation and Infrastructure
_______________________________________________________________________
A BILL
To amend title 49, United States Code, to authorize the Secretary of
Transportation to oversee the competitive activities of air carriers
following a concentration in the airline industry, 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 Competition Preservation Act
of 2001''.
SEC. 2. OVERSIGHT OF AIR CARRIER PRICING.
(a) In General.--Chapter 415 of title 49, United States Code, is
amended by adding at the end the following:
``Sec. 41512. Oversight of air carrier pricing
``(a) Effective Date.--
``(1) In general.--This section shall take effect
immediately upon a determination by the Secretary of
Transportation that 3 or fewer air carriers account for 70
percent or more of the scheduled revenue passenger miles in
interstate air transportation as a result of--
``(A) the consolidation or merger of the properties
(or a substantial portion of the properties) of 2 or
more of the 7 air carriers that account for the highest
number of scheduled revenue passenger miles in
interstate air transportation into a single entity that
owns or operates the properties previously in separate
ownership; or
``(B) the acquisition (by purchase, lease, or
contract to operate) of the properties (or a
substantial portion of the properties) of 1 or more of
the 7 air carriers described in subparagraph (A) by
another of such carriers.
``(2) Use of data.--For the purpose of determining the
number of scheduled revenue passenger miles under paragraph
(1), the Secretary shall use data from the latest year for
which complete data is available.
``(3) Determination of air carrier concentration.--In
making a determination under paragraph (1), the Secretary shall
attribute to an air carrier those scheduled revenue passenger
miles in interstate air transportation of the air carrier that
is consolidated, merged, or acquired that are associated with
routes adopted by the remaining carrier.
``(b) Fares of Air Carriers.--
``(1) In general.--On the initiative of the Secretary or on
a complaint filed with the Secretary, the Secretary may
undertake an investigation to determine whether an air carrier
is charging a fare or an average fare for interstate air
transportation on a route that is unreasonably high.
``(2) Considerations.--In determining whether a fare or an
average fare of an air carrier for interstate air
transportation on a route is unreasonably high, the Secretary
shall consider, among other factors, whether--
``(A) the fare or average fare is higher than the
fare or average fare charged by the carrier on other
routes in interstate air transportation of comparable
distances;
``(B) the fare or average fare has increased by a
significant amount in excess of any increase in the
cost to operate flights on the route; and
``(C) the range of fares specified on the route or
the carrier's entire fare system offers a reasonable
balance and a fair allocation of costs between
passengers who are primarily price sensitive and
passengers who are primarily time sensitive.
``(3) Actions in response to unreasonable fares.--If the
Secretary determines that an air carrier is charging a fare or
an average fare for interstate air transportation on a route
that is unreasonably high, the Secretary, after providing the
carrier an opportunity for a hearing, may order the carrier--
``(A) to reduce the fare;
``(B) to offer the reduced fare for a specific
number of seats on the route; and
``(C) to offer rebates to individuals who have been
charged the fare.
``(4) Period of effectiveness of order.--An order issued by
the Secretary under this subsection shall remain in effect for
a period to be determined by the Secretary.
``(c) Actions of Dominant Air Carriers in Response to New
Entrants.--If, with respect to a route in interstate air transportation
to or from a hub airport, a dominant air carrier at the airport--
``(1) institutes or changes its fares for air
transportation on the route in a manner that results in fares
that are lower than or comparable to the fares offered by a new
entrant air carrier for such air transportation; and
``(2) increases the passenger capacity at which such fares
are offered on the route to a level which is--
``(A) 2 or more times the capacity previously
offered by the carrier at such fares on the route; and
``(B) 2 or more times the total capacity offered by
the new entrant air carrier on the route, the dominant
air carrier, in the 2-year period beginning on the date that such fares
and additional capacity are instituted, shall continue to offer such
fares with respect to not less than 80 percent of the highest number of
seats per week for which the dominant air carrier has offered the
fares.
``(d) Ensuring Competition at Hub Airports.--
``(1) In general.--On the initiative of the Secretary or on
a complaint filed with the Secretary, the Secretary may
undertake an investigation to determine whether a dominant air
carrier at a hub airport is charging higher than average fares
at the airport.
``(2) Higher than average fares.--For purposes of paragraph
(1), the Secretary may determine that a dominant air carrier is
charging higher than average fares at a hub airport if the
carrier is charging, with respect to 20 percent or more of its
routes in interstate air transportation that begin or end at
the airport, an average fare that is at least 5 percent higher
than the average fare being charged by all air carriers on
routes in interstate air transportation of comparable distances
and density, after adjustments for costs that are carrier or
airport specific, such as passenger facility charges or
employee compensation.
``(3) Actions in response to unfair competition.--If the
Secretary determines under paragraph (1) that a dominant air
carrier is charging higher than average fares at a hub airport,
the Secretary, after providing the carrier an opportunity for a
hearing, may order the carrier to take actions to increase
opportunities for competition at the hub airport, including--
``(A) requiring the carrier to make gates, slots,
and other airport facilities available to other air
carriers on reasonable and competitive terms;
``(B) requiring adjustments in the commissions paid
by the carrier to travel agents;
``(C) requiring adjustments in the carrier's
frequent flyer program; and
``(D) requiring adjustments in the carrier's
corporate discount arrangements and comparable
corporate arrangements.
``(e) Definitions.--In this section, the following definitions
apply:
``(1) Dominant air carrier.--The term `dominant air
carrier', with respect to a hub airport, means an air carrier
that accounts for more than 50 percent of the total annual
boardings at the airport in the preceding 2-year period or a
shorter period specified in paragraph (3).
``(2) Hub airport.--The term `hub airport' means an airport
that each year has at least .25 percent of the total annual
boardings in the United States.
``(3) Interstate air transportation.--The term `interstate
air transportation' includes intrastate air transportation.
``(4) New entrant air carrier.--The term `new entrant air
carrier', with respect to a hub airport, means an air carrier
that accounts for less than 5 percent of the total annual
boardings at the airport in the preceding 2-year period or in a
shorter period specified by the Secretary if the carrier has
operated at the airport less than 2 years.''.
(b) Conforming Amendment.--The analysis for such chapter is amended
by adding at the end the following:
``41512. Oversight of air carrier pricing.''.
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