[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 907 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 907
To amend title 49, United States Code, to promote air carrier
competition, to establish consumer protections for airline passengers,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 7, 2001
Mr. Dingell introduced the following bill; which was referred to the
Committee on Transportation and Infrastructure
_______________________________________________________________________
A BILL
To amend title 49, United States Code, to promote air carrier
competition, to establish consumer protections for airline passengers,
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
Competition and Passenger Rights Act of 2001''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. Amendments to title 49, United States Code.
TITLE I--AIR CARRIER COMPETITION
Sec. 101. Consideration of unfair practices in issuance of certificates
for foreign air transportation.
Sec. 102. Unfair methods of competition.
Sec. 103. Approval of slot transfers.
Sec. 104. Joint venture agreements between air carriers.
Sec. 105. Regulation of dominant air carriers.
Sec. 106. Reallocation of airport slots, gates, and facilities
following air carrier mergers and
acquisitions.
Sec. 107. Internet airline reservation systems.
Sec. 108. Federal policies on slots at high density airports.
TITLE II--AIRLINE PASSENGER PROTECTION
Sec. 201. Fair treatment of airline passengers.
Sec. 202. Clarification regarding enforcement of State laws.
Sec. 203. Airline passenger protection.
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--AIR CARRIER COMPETITION
SEC. 101. 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. 102. UNFAIR METHODS OF COMPETITION.
(a) Code Share Agreements.--Section 41712 is amended by adding at
the end the following:
``(c) Code Share Agreements.--
``(1) In general.--It shall be an unfair method of
competition under subsection (a) for a major air carrier 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.
``(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).''.
(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. 103. 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. 104. JOINT VENTURE AGREEMENTS BETWEEN AIR CARRIERS.
Section 41720 is amended by adding at the end the following:
``(i) Study of Joint Venture Agreements.--
``(1) 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.
``(2) Contents.--In conducting the study, the Secretary
shall assess--
``(A) whether air carriers act as competitors with
their code share partners;
``(B) whether joint venture agreements between air
carriers result in unfair competitive advantages; and
``(C) such other factors as the Secretary
determines appropriate.
``(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 the study.
``(B) Updates.--The Secretary shall update the
study every 4 years and transmit an updated report to
Congress.''.
SEC. 105. REGULATION OF DOMINANT AIR CARRIERS.
(a) In General.--Subchapter I of chapter 417 is amended by adding
at the end the following:
``Sec. 41722. Regulation of dominant air carriers
``(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) Orders.--
``(1) In general.--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, may order the carrier
to increase opportunities for competition at the airport.
``(2) Types of actions.--An order issued under paragraph
(1) may require a dominant air carrier at a hub airport--
``(A) to reduce fares for interstate air
transportation to or from the airport;
``(B) to offer reduced fares for air transportation
to or from the airport for a specific number of seats
on specific routes;
``(C) to offer rebates to passengers of the carrier
who have been charged excessive fares for air
transportation to or from the airport;
``(D) to make gates, slots, and other facilities at
the airport available to other air carriers on
reasonable and competitive terms;
``(E) to make adjustments in the carrier's frequent
flyer program;
``(F) to make adjustments in the carrier's
corporate discount arrangements and comparable
corporate arrangements; and
``(G) to take such other actions as the Secretary
determines appropriate.
``(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 actions described in subsection (b).
``(d) Considerations.--In determining whether to require a dominant
air carrier to reduce a fare for air transportation under subsection
(b), the Secretary shall consider among other factors--
``(1) whether the fare or average fare is higher than the
fare or average fare charged by the carrier on other routes in
air transportation of comparable distances;
``(2) whether 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
``(3) whether the range of fares specified on the route
offers a reasonable balance and a fair allocation of costs
between passengers who are primarily price sensitive and
passengers who are primarily time sensitive.
``(e) 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', 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', 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 amended by adding at the end the following:
``41722. Regulation of dominant air carriers.''.
SEC. 106. REALLOCATION OF AIRPORT SLOTS, GATES, AND FACILITIES
FOLLOWING AIR CARRIER MERGERS AND ACQUISITIONS.
(a) In General.--Subchapter I of chapter 417, as amended by section
105(a) of this Act, is amended by adding at the end the following:
``Sec. 41723. Reallocation of airport slots, gates, and facilities
following air carrier mergers and acquisitions
``(a) Mergers and Acquisitions Resulting in Dominant Air
Carriers.--If, after January 1, 2001, a major air carrier acquires the
assets or voting securities of any other air carrier (or a substantial
portion of such assets or voting securities), the Secretary of
Transportation shall conduct a review of the airports served by the air
carrier established as result of such acquisition to determine whether
the air carrier is a dominant air carrier at any of such airports.
``(b) Reallocation of Slots, Gates, and Facilities.--If the
Secretary determines under subsection (a) that an air carrier is a
dominant air carrier at an airport, the Secretary shall--
``(1) issue an order requiring the operator of the airport
to reallocate (including by modification of existing contracts,
as necessary) 10 percent of the airport gates and facilities
that are leased to the dominant air carrier to new entrant air
carriers (if there is sufficient demand for such gates and
facilities by new entrant air carriers); and
``(2) if the airport is a high density airport, reallocate
20 percent of the slots of the dominant air carrier to new
entrant air carriers (if there is sufficient demand for such
slots by new entrant air carriers).
``(c) Deadline.--The reallocation of slots and airport gates and
facilities under subsection (b) shall be completed not later than 1
year after the date of the acquisition referred to in subsection (a).
``(d) Noncompliance by Airports.--
``(1) Penalty for noncompliance.--
``(A) First year.--If an airport does not comply
with an order issued under subsection (b)(1), the
Secretary shall withhold, on the first day of the first
fiscal year following the date of such noncompliance, 5
percent of the amount required to be apportioned to the
airport for such fiscal year under section 47114.
``(B) Subsequent years.--On the first day of each
fiscal year following a fiscal year for which the
Secretary withholds amounts from the apportionment of
an airport under subparagraph (A), the Secretary shall
withhold 10 percent of the amount required to be
apportioned to the airport for such fiscal year under
section 47114 unless the airport complies with the
order referred to in subparagraph (A) throughout the
preceding fiscal year.
``(2) Effect of noncompliance.--Funds withheld from the
apportionment of an airport under paragraph (1) shall be added
to the discretionary fund.
``(e) Definitions.--In this section, the following definitions
apply:
``(1) Airport facilities.--The term `airport facilities'
includes ticket counters, office space, space to house
computers, and aprons at airports.
``(2) Dominant air carrier.--The term `dominant air
carrier' means--
``(A) with respect to a high density airport, an
air carrier that has (or is projected in the following
year to have) at least 20 percent of the annual
passenger boardings at the airport; and
``(B) with respect to an airport other than a high
density airport, an air carrier that accounts for (or
is projected in the following year to account for) at
least 40 percent of the annual passenger boardings at
the airport.
``(3) New entrant air carrier.--The term `new entrant air
carrier', with respect to a airport, means an air carrier that
accounts for less than 10 percent of the total annual boardings
at the airport.
``(4) High density airport; slot.--The terms `high density
airport' and `slot' have meanings given such terms by section
41714(h).
``(5) Major air carrier.--The term `major air carrier' has
the meaning given such term by section 41720.''.
(b) Conforming Amendment.--The analysis for subchapter I of chapter
417, as amended by section 105(b) of this Act, is amended by adding at
the end the following:
``41723. Reallocation of airport slots, gates, and facilities following
air carrier mergers and acquisitions.''.
SEC. 107. 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 90 days after the date of enactment of
this Act, the Comptroller General shall transmit to Congress a report
on the results of the study.
SEC. 108. 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.
TITLE II--AIRLINE PASSENGER PROTECTION
SEC. 201. FAIR TREATMENT OF AIRLINE PASSENGERS.
Section 41712, as amended by section 102(a) of this Act, is amended
by adding at the end the following:
``(d) 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 inform the consumer of the lowest
available fare from the carrier for the air
transportation requested by the consumer on the date
and in the class of service specified by the consumer,
as well as the number of seats available at that fare;
``(B) to provide the consumer with full access to
all fares for air transportation provided by the
carrier; or
``(C) to inform the consumer if the air
transportation requested by the consumer includes a
flight segment that in the preceding calendar month, at
least 40 percent of the time, was either canceled or
delayed by 30 minutes or more past the flight segment's
scheduled arrival time.
``(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.''.
SEC. 202. 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. 203. AIRLINE PASSENGER PROTECTION.
(a) In General.--Subchapter I of chapter 417, as amended by section
106(a) of this Act, is amended by adding at the end the following:
``Sec. 41724. 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 each air carrier to submit to the Secretary an
emergency plan containing a detailed description of actions
that will be taken by the carrier to comply with paragraph (1).
``(3) Failure to submit plans.--The Secretary shall suspend
the authority of an air carrier to provide air transportation
if the carrier fails to submit a plan in accordance with
paragraph (2). The suspension shall continue until the carrier
submits the plan.
``(4) Regulations.--Not later than 180 days after the date
of enactment of this section, the Secretary shall issue final
regulations to require plans under 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 15 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 or misleading explanations.--No
air carrier shall provide an explanation under paragraph (1)
that the air carrier knows or has reason to know is false or
misleading.
``(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) Regulations.--Not later than 1 year after the date of
enactment of this section, the Secretary shall issue
regulations to carry out this subsection.
``(d) Excessive Departure and Arrival Delay.--
``(1) Liability imposed.--An air carrier shall be liable to
each passenger on a flight segment of the air carrier in air
transportation for an excessive departure or arrival delay of
the aircraft.
``(2) Amount of liability.--
``(A) Delays of more than 2 but less than 3
hours.--If the excessive departure or arrival delay is
more than 2 but less than 3 hours, the amount of
liability under paragraph (1) shall be 200 percent of
the price paid by the passenger for transportation by
the air carrier.
``(B) Delays of 3 hours or more.--If the excessive
departure or arrival delay is 3 hours or more, the
amount of liability under paragraph (1) shall be--
``(i) the amount determined under
subparagraph (A), plus
``(ii) an additional 100 percent of the
price paid by the passenger for such
transportation multiplied by the number of
hours (or portion thereof) that such period
exceeds 3 hours.
``(3) Excessive departure or arrival delay.--In paragraph
(1), the term `excessive departure or arrival delay' means a
period of time in excess of 2 hours--
``(A) in the case of departure delay, beginning
when the door of an aircraft is closed at an airport
and ending when the aircraft takes off from the airport
or when the door of the aircraft is open for deplaning
of passengers at the airport; and
``(B) in the case of arrival delay, beginning upon
touchdown of an aircraft at an airport and ending when
the door of the aircraft is open for deplaning of
passengers at the airport.
``(4) Treatment of certain delays.--Notwithstanding
paragraph (3), a departure delay in excess of 2 hours shall not
be treated as an excessive departure delay for purposes of
paragraph (1) if the Administrator of the Federal Aviation
Administration determines that the departure delay was the
result of--
``(A) an air traffic control directive and that the
carrier did not receive notification that it would
receive such directive prior to the scheduled departure
time of the flight; or
``(B) a mechanical problem with the aircraft or
other safety concern.
``(e) 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 a confirmed seat--
``(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 adjust the maximum dollar amounts specified
in section 250.5 of such title to account for inflation.''.
(b) Conforming Amendment.--The analysis for subchapter I of chapter
417, as amended by section 106(b) of this Act, is amended by adding at
the end the following:
``41724. Airline passenger rights.''.
(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
41724 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.
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