[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 831 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 831

   To direct the Comptroller General to conduct a study of the legal 
requirements and policies followed by the Department of Transportation 
  in deciding whether to approve international alliances between air 
    carriers and foreign air carriers and grant exemptions from the 
antitrust laws in connection with such international alliances, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 3, 2009

 Mr. Oberstar introduced the following bill; which was referred to the 
Committee on Transportation and Infrastructure, and in addition to the 
Committee on the Judiciary, for a period to be subsequently determined 
 by the Speaker, in each case for consideration of such provisions as 
        fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
   To direct the Comptroller General to conduct a study of the legal 
requirements and policies followed by the Department of Transportation 
  in deciding whether to approve international alliances between air 
    carriers and foreign air carriers and grant exemptions from the 
antitrust laws in connection with such international alliances, 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. ANTITRUST EXEMPTIONS.

     (a) Study.--The Comptroller General shall conduct a study of the 
legal requirements and policies followed by the Department in deciding 
whether to approve international alliances under section 41309 of title 
49, United States Code, and grant exemptions from the antitrust laws 
under section 41308 of such title in connection with such international 
alliances.
    (b) Issues To Be Considered.--In conducting the study under 
subsection (a), the Comptroller General, at a minimum, shall examine 
the following:
            (1) Whether granting exemptions from the antitrust laws in 
        connection with international alliances has resulted in public 
        benefits, including an analysis of whether such benefits could 
        have been achieved by international alliances not receiving 
        exemptions from the antitrust laws.
            (2) Whether granting exemptions from the antitrust laws in 
        connection with international alliances has resulted in reduced 
        competition, increased prices in markets, or other adverse 
        effects.
            (3) Whether international alliances that have been granted 
        exemptions from the antitrust laws have implemented pricing or 
        other practices with respect to the hub airports at which the 
        alliances operate that have resulted in increased costs for 
        consumers or foreclosed competition by rival (nonalliance) air 
        carriers at such airports.
            (4) Whether increased network size resulting from 
        additional international alliance members will adversely affect 
        competition between international alliances.
            (5) The areas in which immunized international alliances 
        compete and whether there is sufficient competition among 
        immunized international alliances to ensure that consumers will 
        receive benefits of at least the same magnitude as those that 
        consumers would receive if there were no immunized 
        international alliances.
            (6) The minimum number of international alliances that is 
        necessary to ensure robust competition and benefits to 
        consumers on major international routes.
            (7) Whether the different regulatory and antitrust 
        responsibilities of the Secretary and the Attorney General with 
        respect to international alliances have created any significant 
        conflicting agency recommendations, such as the conditions 
        imposed in granting exemptions from the antitrust laws.
            (8) Whether, from an antitrust standpoint, requests for 
        exemptions from the antitrust laws in connection with 
        international alliances should be treated as mergers, and 
        therefore be exclusively subject to a traditional merger 
        analysis by the Attorney General and be subject to advance 
        notification requirements and a confidential review process 
        similar to those required under section 7A of the Clayton Act 
        (15 U.S.C. 18a).
            (9) Whether the Secretary should amend, modify, or revoke 
        any exemption from the antitrust laws granted by the Secretary 
        in connection with an international alliance.
    (c) Report.--Not later than one year after the date of enactment of 
this Act, the Comptroller General shall submit to the Secretary of 
Transportation, the Committee on Transportation and Infrastructure of 
the House of Representatives, and the Committee on Commerce, Science, 
and Transportation of the Senate a report on the results of the study 
under subsection (a), including any recommendations of the Comptroller 
General as to whether there should be changes in the authority of the 
Secretary under title 49, United States Code, or policy changes that 
the Secretary can implement administratively, with respect to approving 
international alliances and granting exemptions from the antitrust laws 
in connection with such international alliances.
    (d) Adoption of Recommended Policy Changes.--Not later than one 
year after the date of receipt of the report under subsection (c), and 
after providing notice and an opportunity for public comment, the 
Secretary shall issue a written determination as to whether the 
Secretary will adopt the policy changes, if any, recommended by the 
Comptroller General in the report or make any other policy changes with 
respect to approving international alliances and granting exemptions 
from the antitrust laws in connection with such international 
alliances.
    (e) Sunset Provision.--
            (1) In general.--An exemption from the antitrust laws 
        granted by the Secretary on or before the last day of the 3-
        year period beginning on the date of enactment of this Act in 
        connection with an international alliance, including an 
        exemption granted before the date of enactment of this Act, 
        shall cease to be effective after such last day unless the 
        exemption is renewed by the Secretary.
            (2) Timing for renewals.--The Secretary may not renew an 
        exemption under paragraph (1) before the date on which the 
        Secretary issues a written determination under subsection (d).
            (3) Standards for renewals.--The Secretary shall make a 
        decision on whether to renew an exemption under paragraph (1) 
        based on the policies of the Department in effect after the 
        Secretary issues a written determination under subsection (d).
    (f) Definitions.--In this section, the following definitions apply:
            (1) Exemption from the antitrust laws.--The term 
        ``exemption from the antitrust laws'' means an exemption from 
        the antitrust laws granted by the Secretary under section 41308 
        of title 49, United States Code.
            (2) Immunized international alliance.--The term ``immunized 
        international alliance'' means an international alliance for 
        which the Secretary has granted an exemption from the antitrust 
        laws.
            (3) International alliance.--The term ``international 
        alliance'' means a cooperative agreement between an air carrier 
        and a foreign air carrier to provide foreign air transportation 
        subject to approval or disapproval by the Secretary under 
        section 41309 of title 49, United States Code.
            (4) Department.--The term ``Department'' means the 
        Department of Transportation.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.
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