[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1734 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1734

     To amend title 49, United States Code, to establish consumer 
protections for airline passengers, to promote air carrier competition, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 3, 2001

   Mr. Sweeney (for himself, Mr. Dingell, Mr. Crowley, Ms. Lee, Mr. 
DeFazio, Mr. McHugh, Mr. Frank, Mr. Gilman, Mr. McNulty, Mr. Moore, Ms. 
   Slaughter, Mrs. Kelly, Ms. DeLauro, Mr. LaFalce, Mr. English, Mr. 
 Baldacci, Mr. Terry, Mr. Ney, Mr. Udall of Colorado, Mr. Nadler, Mr. 
  Hinchey, Mr. Kanjorski, Mrs. Lowey, Mr. Larson of Connecticut, Mr. 
 Filner, and Mrs. Mink of Hawaii) introduced the following bill; which 
   was referred to the Committee on Transportation and Infrastructure

_______________________________________________________________________

                                 A BILL


 
     To amend title 49, United States Code, to establish consumer 
protections for airline passengers, to promote air carrier competition, 
                        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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Airline Passenger 
Bill of Rights Act''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Amendments to title 49, United States Code.
                 TITLE I--AIRLINE PASSENGER PROTECTION

Sec. 101. Fair treatment of airline passengers.
Sec. 102. Clarification regarding enforcement of State laws.
Sec. 103. Airline passenger protection.
                   TITLE II--AIR CARRIER COMPETITION

Sec. 201. Consideration of unfair practices in issuance of certificates 
                            for foreign air transportation.
Sec. 202. Unfair methods of competition.
Sec. 203. Approval of slot transfers.
Sec. 204. Joint venture agreements between air carriers.
Sec. 205. Competitive access to gates, facilities, and other assets.
Sec. 206. Review of dominant air carrier activities.
Sec. 207. Internet airline reservation systems.
Sec. 208. Federal policies on slots at high density airports.
Sec. 209. Definitions of delayed flight and chronically delayed flight.

SEC. 2. AMENDMENTS TO TITLE 49, UNITED STATES CODE.

    Except as otherwise specifically provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision of law, the reference shall be 
considered to be made to a section or other provision of title 49, 
United States Code.

                 TITLE I--AIRLINE PASSENGER PROTECTION

SEC. 101. FAIR TREATMENT OF AIRLINE PASSENGERS.

    Section 41712 is amended by adding at the end the following:
    ``(c) Specific Practices.--For purposes of subsection (a), the 
terms `unfair or deceptive practice' and `unfair method of competition' 
include each of the following:
            ``(1) Access to fares; consistently delayed flights.--
        Regardless of the method used by a consumer to contact an air 
        carrier or foreign air carrier, the failure of the carrier--
                    ``(A) to provide full access to all fares for air 
                transportation provided by the air carrier or foreign 
                air carrier; or
                    ``(B) to disclose, without being requested, the on-
                time performance and cancellation rate for a 
                chronically delayed or chronically canceled flight 
                whenever a customer makes a reservation or purchases a 
                ticket on such a flight.
            ``(2) Pricing policies.--Any action of an air carrier or 
        foreign air carrier--
                    ``(A) to prohibit a person (including a 
                governmental entity) that purchases air transportation 
                from only using a portion of the air transportation 
                purchased (including using the air transportation 
                purchased only for 1-way travel instead of round-trip 
                travel); or
                    ``(B) to assess an additional fee on or charge to--
                            ``(i) such a person; or
                            ``(ii) any ticket agent that sold the air 
                        transportation to such person.
            ``(3) Termination of ticket agents.--In the case of a 
        termination, cancellation, nonrenewal, or substantial change in 
        the competitive circumstances of the appointment of a ticket 
        agent by an air carrier or foreign air carrier, the failure of 
        the air carrier or foreign air carrier--
                    ``(A) to provide the ticket agent with written 
                notice, and a full statement of reasons for the action, 
                on or before the 90th day preceding the action; and
                    ``(B) to provide the ticket agent with at least 60 
                days to correct any deficiency claimed in the written 
                notice,
        except in cases of insolvency, an assignment for the benefit of 
        creditors, bankruptcy, or nonpayment of sums due under the 
        appointment.
            ``(4) Definitions.--In this subsection, the following 
        definitions apply:
                    ``(A) Chronically delayed flight.--The term 
                `chronically delayed flight' means a regularly 
                scheduled flight that has failed to arrive on time (as 
                defined in section 234.2 of title 14, Code of Federal 
                Regulations) at least 40 percent of the time during the 
                most recent 3-month period for which data is available.
                    ``(B) Chronically canceled flight.--The term 
                `chronically canceled flight' means a regularly 
                scheduled flight at least 30 percent of the departures 
                of which have been canceled during the most recent 3-
                month period for which data is available.''.

SEC. 102. CLARIFICATION REGARDING ENFORCEMENT OF STATE LAWS.

    Section 41713(b)(1) is amended by striking ``related to a price, 
route, or service of an air carrier that may provide air transportation 
under this subpart'' and inserting ``that directly prescribes a price, 
route, or level of service for air transportation provided by an air 
carrier under this subpart''.

SEC. 103. AIRLINE PASSENGER PROTECTION.

    (a) In General.--Subchapter I of chapter 417 is amended by adding 
at the end the following:
``Sec. 41722. Air carrier passenger protection
    ``(a) Emergency Plans.--
            ``(1) In general.--An air carrier shall ensure access to 
        necessary services and conditions, including food, water, 
        restroom facilities, and the ability to deplane in the event of 
        a weather or other emergency, for all passengers boarded on a 
        flight segment of the air carrier in air transportation.
            ``(2) Submittal of plans.--The Secretary of Transportation 
        shall require, not later than the 180th day following the date 
        of enactment of this section, each air carrier to submit to the 
        Secretary an emergency plan containing a description of actions 
        that will be taken by the carrier to comply with paragraph (1).
            ``(3) Guidance.--Not later than 90 days after the date of 
        enactment of this section, the Secretary shall issue guidance 
        on what the Secretary determines is necessary to meet the 
        requirements of paragraph (2).
    ``(b) Right To Exit Aircraft.--No air carrier operating an aircraft 
in air transportation shall prevent or hinder (including by failing to 
assist) any passenger from exiting the aircraft (under the same 
circumstances as any member of the flight crew is permitted to exit the 
aircraft) if--
            ``(1) the aircraft is parked at an airport terminal gate 
        with access to ramp or other facilities through which 
        passengers are customarily boarded and deplaned;
            ``(2) the aircraft has remained at the gate more than 1 
        hour past its scheduled departure time; and
            ``(3) the captain of the aircraft has not been informed by 
        air traffic control authorities that the aircraft can be 
        cleared for departure within 30 minutes.
    ``(c) Delay, Cancellation, or Diversion.--
            ``(1) Explanation required.--An announcement by an air 
        carrier of (A) a delay or cancellation of a flight segment, or 
        (B) a diversion of a flight segment to an airport other than 
        the airport at which the flight segment is scheduled to land, 
        shall include an explanation of the reason or reasons for the 
        delay, cancellation, or diversion.
            ``(2) Prohibition on false explanations.--No air carrier 
        shall provide an explanation under paragraph (1) that the air 
        carrier knows or has reason to know is false.
            ``(3) Timeliness of information.--
                    ``(A) In general.--An air carrier shall provide a 
                passenger with timely notice of a delay or cancellation 
                of the flight segment.
                    ``(B) Information monitors at airports.--In 
                complying with subparagraph (A), an air carrier shall 
                ensure that information monitors at the airport 
                concerned display timely and accurate arrival and 
                departure information.
                    ``(C) Advance notice of delays and cancellations.--
                In complying with subparagraph (A), an air carrier, 
                whenever practicable, shall attempt to provide a 
                passenger with notice of a delay or cancellation of a 
                flight segment before the passenger departs for the 
                airport.
            ``(4) Guidance.--Not later than 1 year after the date of 
        enactment of this section, the Secretary shall issue guidance 
        to assist air carriers in carrying out this subsection.
    ``(d) Overbooking.--
            ``(1) Compensation.--In addition to compensation required 
        on the date of enactment of this subsection under part 250 of 
        title 14, Code of Federal Regulations, an air carrier shall 
        provide, at a minimum, to a passenger who is denied boarding 
        involuntarily from an oversold flight segment in air 
        transportation on which the passenger has confirmed reserved 
        space--
                    ``(A) alternate transportation to the passenger's 
                final destination;
                    ``(B) reasonable and immediate compensation for 
                food; and
                    ``(C) if the scheduled departure time of the 
                alternate transportation is not within the same day as 
                the passenger's originally scheduled departure time, 
                reasonable and immediate compensation for hotel costs.
            ``(2) Check in time.--A passenger shall be eligible for 
        involuntary denied boarding compensation under this section and 
        applicable regulations of the Department of Transportation with 
        respect to a flight segment of an air carrier if the passenger 
        checks in for the flight segment at the appropriate airport 
        gate at any time before the door of the aircraft for the flight 
        segment is closed at the airport gate.
            ``(3) Regulations.--Not later than 90 days after the date 
        of enactment of this section, the Secretary shall modify 
        regulations contained in part 250 of title 14, Code of Federal 
        Regulations, to conform with the requirements of this 
        subsection and to implement the recommendations contained in 
        the Department of Transportation Inspector General's Final 
        Report entitled `Airlines Commitment to Customer Service'.''.
    (b) Conforming Amendment.--The analysis for subchapter I of chapter 
417 is amended by adding at the end the following:

``41722. Air carrier passenger protection.''.
    (c) Passenger Rights Publication.--Not later than 180 days after 
the date of enactment of this Act, the Secretary shall, by rule--
            (1) issue a statement that outlines consumer rights of air 
        passengers, including each of the rights specified in section 
        41722 of title 49, United States Code, as added by this 
        section; and
            (2) requires an air carrier to provide the statement to 
        each passenger of the carrier, by conspicuous written material 
        included--
                    (A) on a safety placard given to the passenger on 
                board an aircraft;
                    (B) on information available to the passenger at 
                each ticket counter of the air carrier; and
                    (C) on or with the passenger's ticket if 
                practicable.

                   TITLE II--AIR CARRIER COMPETITION

SEC. 201. CONSIDERATION OF UNFAIR PRACTICES IN ISSUANCE OF CERTIFICATES 
              FOR FOREIGN AIR TRANSPORTATION.

    Section 41102(d) is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
            ``(1) Submission of decisions to president.--The 
        Secretary'';
            (2) by adding at the end the following:
            ``(2) Consideration of unfair practices.--Before issuing a 
        certificate under subsection (a) authorizing an air carrier to 
        provide foreign air transportation, the Secretary shall 
        consider whether the air carrier has engaged in any unfair or 
        deceptive practice or unfair method of competition in air 
        transportation or the sale of air transportation in the 
        preceding 5-year period.''; and
            (3) by aligning paragraph (1) (as designated by paragraph 
        (1) of this section) with paragraph (2) (as added by paragraph 
        (2) of this section).

SEC. 202. UNFAIR METHODS OF COMPETITION.

    (a) Code Share Agreements.--Section 41712 is amended by adding at 
the end the following:
    ``(d) Code Share Agreements.--
            ``(1) In general.--It shall be an unfair method of 
        competition under subsection (a) for a major air carrier--
                    ``(A) to prohibit, limit, or otherwise restrict a 
                code share partner of the major air carrier from 
                entering into a code share agreement with another air 
                carrier or foreign air carrier;
                    ``(B) to fail to utilize gates, facilities, and 
                other assets fully at that airport; and
                    ``(C) to refuse, deny, or fail to provide a gate, 
                facility, or other asset at such an airport that is 
                underutilized by it, or that will not be fully utilized 
                by it within 1 year, to another carrier on fair, 
                reasonable, and nondiscriminatory terms upon request of 
                the airport, the other air carrier, or the Secretary.
            ``(2) Definitions.--In this section, the following 
        definitions apply:
                    ``(A) Code share agreement.--The term `code share 
                agreement' means an agreement under which an air 
                carrier's designator code is used to identify a flight 
                operated by another air carrier or foreign air carrier.
                    ``(B) Code share partner.--The term `code share 
                partner', with respect to a major air carrier, means an 
                air carrier or foreign air carrier that has entered 
                into a code share agreement with the major air carrier.
                    ``(C) Major air carrier.--The term `major air 
                carrier' has the meaning given such term in section 
                41720(a).
                    ``(D) Asset.--The term `asset' includes slots (as 
                defined in section 41714(h)(4)) and slot exemptions 
                (within the meaning of section 41714(a)(2)).''.
    (b) Penalties.--Section 46301(a) is amended by adding at the end 
the following:
            ``(8) Maximum penalty for engaging in unfair methods of 
        competition.--Notwithstanding paragraph (1), the maximum civil 
        penalty that may be assessed against an air carrier for 
        violating section 41712 by engaging, with respect to air 
        transportation on any route, in an unfair method of competition 
        against another air carrier shall be $10,000.''.

SEC. 203. APPROVAL OF SLOT TRANSFERS.

    Section 41714 is amended by adding at the end the following:
    ``(l) Slot Transfers.--
            ``(1) Approval required.--After the date of enactment of 
        this subsection, an air carrier may transfer a slot to another 
        air carrier only if the transfer is approved by the Secretary.
            ``(2) Considerations.--In determining whether to approve 
        the transfer of a slot under paragraph (1), the Secretary shall 
        consider--
                    ``(A) the competitive effects of the transfer;
                    ``(B) whether the price to be paid for the slot is 
                above or below the market price for similar slots; and
                    ``(C) whether any air carrier was denied an 
                opportunity to purchase the slot and, if so, the 
                reasons for the denial.
            ``(3) Annual reports.--Not later than 1 year after the date 
        of enactment of this subsection, and annually thereafter, the 
        Secretary shall transmit to Congress a report on the approval 
        and disapproval of slot transfers under this subsection.''.

SEC. 204. JOINT VENTURE AGREEMENTS BETWEEN AIR CARRIERS.

    Section 41720 is amended by adding at the end the following:
    ``(i) Studies of Joint Venture Agreements.--
            ``(1) Study of competition.--
                    ``(A) In general.--The Secretary shall conduct a 
                study of joint venture agreements between air carriers 
                to determine whether such agreements constitute an 
                unfair method of competition within the meaning of 
                section 41712.
                    ``(B) Contents.--In conducting the study, the 
                Secretary shall assess--
                            ``(i) whether code share agreements 
                        unreasonably impair competition between code 
                        share partners;
                            ``(ii) whether joint venture agreements 
                        between air carriers result in unfair 
                        competitive advantages; and
                            ``(iii) such other factors as the Secretary 
                        determines appropriate.
            ``(2) Study of scheduling practices.--The Secretary shall 
        conduct a study of air carrier scheduling practices for the 
        purpose of making recommendations to Congress on improving air 
        carrier scheduling in order to reduce flight delays.
            ``(3) Reports.--
                    ``(A) Initial report.--Not later than 9 months 
                after the date of enactment of this subsection, the 
                Secretary shall transmit to Congress a report on the 
                results of each study conducted under this subsection.
                    ``(B) Updates.--The Secretary shall update the 
                study conducted under paragraph (1) every 4 years and 
                transmit an updated report to Congress.''.

SEC. 205. COMPETITIVE ACCESS TO GATES, FACILITIES, AND OTHER ASSETS.

    (a) In General.--Subchapter I of chapter 417 is further amended by 
adding at the end the following:
``Sec. 41723. Competitive access to gates, facilities, and other assets
    ``(a) DOT Review of Gates, Facilities, and Other Assets.--Within 90 
days after the date of the enactment of this section, the Secretary of 
Transportation shall investigate the assignment and usage of gates, 
facilities, and other assets by major air carriers at the largest 35 
airports in the United States in terms of air passenger traffic. The 
investigation shall include an assessment of--
            ``(1) whether, and to what extent, gates, facilities, and 
        other assets are being fully utilized by major air carriers at 
        those airports;
            ``(2) whether gates, facilities, and other assets are 
        available for competitive access to enhance competition; and
            ``(3) whether the reassignment of gates, facilities, and 
        other assets to, or other means of increasing access to gates, 
        facilities, and other assets for, air carriers (other than 
        dominant air carriers) would improve competition among air 
        carriers at any such airport or provide other benefits to the 
        flying public without compromising safety or creating 
        scheduling, efficiency, or other problems at airports providing 
        service to or from those airports.
    ``(b) Authority of Secretary To Make Gates, Facilities, and Other 
Assets Available.--The Secretary shall require a major air carrier, 
upon application by another air carrier or on the Secretary's own 
motion to make gates, facilities, and other assets available to other 
air carriers on terms that are fair, reasonable, and nondiscriminatory 
to ensure competitive access to those airports if the Secretary 
determines, on the basis of the investigation conducted under 
subsection (a), that such gates, facilities, and other assets are not 
available and that competition would be enhanced thereby at those 
airports.
    ``(c) Definitions.--In this section, the following definitions 
apply:
            ``(1) Dominant air carrier.--The term `dominant air 
        carrier' means an air carrier that accounts for more than 50 
        percent of the enplaned passengers at an airport.
            ``(2) Major air carrier.--The term `major air carrier' 
        means an air carrier certificated under section 41102 that 
        accounted for at least 1 percent of domestic scheduled-
        passenger revenues in the 12 months ending March 31 of each 
        year, as reported to the Department of Transportation pursuant 
        to part 241 of title 14, Code of Federal Regulations, and 
        identified as a reporting carrier periodically in accounting 
        and reporting directives issued by the Office of Airline 
        Information.
            ``(3) Asset.--The term `asset' includes slots (as defined 
        in section 41714(h)(4)) and slot exemptions (within the meaning 
        of section 41714(a)(2)).''.
    (b) Conforming Amendment.--The analysis for subchapter I of chapter 
417 is further amended by adding at the end the following:

``41723. Competitive access to gates, facilities, and other assets.''.

SEC. 206. REVIEW OF DOMINANT AIR CARRIER ACTIVITIES.

    (a) In General.--Subchapter I of chapter 417 is further amended by 
adding at the end the following:
``Sec. 41724. Review of dominant air carriers activities
    ``(a) Investigations.--Not later than 90 days after the date of 
enactment of this section, and biennially thereafter, the Secretary of 
Transportation shall conduct an investigation of each hub airport to 
determine whether, in the preceding 5 years, a dominant air carrier at 
the airport, if any, has--
            ``(1) charged higher than average fares for interstate air 
        transportation to or from the airport;
            ``(2) engaged in an unfair method of competition in 
        response to a new entrant air carrier at the airport; or
            ``(3) limited competition by a new entrant air carrier at 
        the airport by restricting the access of the new entrant to 
        gates, slots, or other essential facilities at the airport on 
        reasonable and competitive terms.
    ``(b) Action.--If the Secretary determines that a dominant air 
carrier at a hub airport has engaged in an act described in subsection 
(a), the Secretary, after providing notice and an opportunity for a 
hearing, shall take such action as may be necessary to increase 
opportunities for competition at the airport and to report to Congress 
on the action taken.
    ``(c) Non-Hub Airports.--On the initiative of the Secretary or in 
response to a complaint filed with the Secretary, the Secretary may 
conduct an inquiry described in subsection (a) at an airport other than 
a hub airport and may order the dominant air carrier at the airport, if 
any, to take such action as may be necessary to increase opportunities 
for competition at the airport and to report to Congress on the action 
taken.
    ``(d) Definitions.--In this section, the following definitions 
apply:
            ``(1) Air transportation.--The term `air transportation' 
        includes intrastate air transportation.
            ``(2) Dominant air carrier.--The term `dominant air 
        carrier', as used with respect to an airport, means an air 
        carrier that accounts for more than 40 percent of the total 
        annual boardings at the airport in the preceding 2-year period 
        or a shorter period specified in paragraph (4).
            ``(3) 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.
            ``(4) New entrant air carrier.--The term `new entrant air 
        carrier', as used with respect to a airport, means an air 
        carrier that accounts for less than 10 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 subchapter I of chapter 
417 is further amended by adding at the end the following:

``41724. Review of dominant air carriers activities.''.

SEC. 207. INTERNET AIRLINE RESERVATION SYSTEMS.

    (a) Study.--The Comptroller General shall conduct a study on how 
air carrier competition would be affected by the establishment of an 
airline reservation system on the Internet by a group of major air 
carriers.
    (b) Contents.--The study shall include an analysis of how an 
airline reservation system described in subsection (a) would affect the 
method by which consumers purchase tickets for air transportation, 
including the effects of such a system on ticket agents.
    (c) Reports.--Not later than 9 months after the date of enactment 
of this Act, the Comptroller General shall transmit to Congress a 
report on the results of the study.

SEC. 208. FEDERAL POLICIES ON SLOTS AT HIGH DENSITY AIRPORTS.

    (a) Study.--The Comptroller General shall conduct a study on 
current and evolving Federal policies on slots at high density 
airports.
    (b) Contents.--In conducting the study, the Comptroller General 
shall assess--
            (1) the significance of Department of Transportation 
        policies and practices on the control and allocation of slots 
        at high density airports, including the impact of permitting 
        air carriers to control slots on air carrier competition, 
        system capacity, and industry restructuring; and
            (2) the potential for replacing airline ticket taxes with 
        scarcity-reflective pricing of slots (including appropriate 
        policies to preserve competition and service to small- and 
        medium-sized communities).
    (c) Report.--Not later than 18 months after the date of enactment 
of this Act, the Comptroller General shall transmit to Congress a 
report on the results of the study.

SEC. 209. DEFINITIONS OF DELAYED FLIGHT AND CHRONICALLY DELAYED FLIGHT.

    Not later than 60 days after the date of enactment of this Act, the 
Secretary of Transportation shall issue final regulations defining for 
purposes of all Department of Transportation regulations, reports, and 
other documents, what constitutes a delay of a flight of an air carrier 
and what constitutes chronically delayed flights of air carriers.
                                 <all>