[Congressional Record Volume 145, Number 117 (Friday, September 10, 1999)]
[Senate]
[Pages S10733-S10735]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. COLLINS:
  S. 1576. A bill to establish a commission to study the impact of 
deregulation of the airline industry on small town America; to the 
Committee on Commerce, Science, and Transportation.


                 airline deregulation study commission

  Ms. COLLINS. Mr. President, I rise today to introduce legislation 
that would establish a commission to study the impact of deregulation 
of the airline industry on small-town America. For too long, we have 
allowed small and medium-sized communities from Bangor, Maine to 
Billings, Montana to Bristol, Tennessee to weather the effects of 
airline deregulation without adequately assessing how deregulation has 
affected their economic development, the quality and availability of 
air transportation for their residents, and the long-term viability of 
their local airports. It is time to evaluate the effects of airline 
deregulation in a new, meaningful way.
  The 1978 deregulation of the airline industry has dramatically shaped 
the modern airline industry and the way Americans travel. The purpose 
of deregulation was to harness the market in order to foster 
competition that would improve service and lower costs for consumers. 
According to some measures, this market experiment has been a success. 
According to the U.S. Department of Transportation, since the advent of 
deregulation, the average airfare in major hubs has been reduced by 35 
percent. Economists at George Mason University and the Brookings 
Institution estimate that the increased competition resulting from 
deregulation saves consumers billions of dollars.
  Similarly, other studies conducted by the General Accounting Office 
have shown that deregulation has ushered in an overall decline in 
airfares and an improvement in the quality of air service--although 
many of us who fly frequently would take strong issue with the finding 
of improved quality.
  For many large cities, this is as far as the story needs be told. But 
for many smaller and medium-sized communities, several chapters remain. 
The rest of the story tells us that deregulation's benefits are not 
evenly distributed throughout U.S. markets. Although a March 1999 GAO 
report found that, on average, airfares declined about 21 percent from 
1990 to the second quarter of 1998, it also found that airports serving 
small communities have experienced the lowest average decline in 
airfare. Similarly, the Department of Transportation has found that the 
competition encouraged by deregulation has not made its way to all 
parts of our great nation. Indeed, the number of cities served by more 
than two airlines has fallen 41 percent since 1989.
  In short, there are signs that the airline deregulation story is not 
good for smaller and medium-sized communities--like Presque Isle and 
Bangor in my state. There are important areas of inquiry that, I 
believe, no one has yet explored, and that is why I am introducing this 
bill today.
  We need to know more about how airline deregulation has affected 
smaller and medium-sized communities, and we need to focus on the 
relationship between access to affordable, quality airline service and 
the economic development of America's smaller communities. As many 
communities continue to struggle to attract businesses, it is not 
enough for us report that airfares, in the aggregate, have decreased in 
constant dollars. Nor is it sufficient to select certain proxies for 
quality air travel and to conclude that quality has improved. Just as 
not all communities have benefitted equally from our recent prosperity, 
not all can say that deregulation has enhanced their air 
transportation. We need to evaluate how airline deregulation has 
affected these communities' ability to compete for business 
development, job creation, and economic expansion. In the process, we 
need to differentiate between business and leisure travel, as each 
serves a very different set of needs in our communities. And we much 
ask communities how they measure quality service, instead of making 
assumptions that may or may not apply to a given area.

  What I am proposing is a thorough evaluation of the effects of 
airline deregulation on communities--an evaluation that has not yet 
been done, but would happen under the bill I introduce today.
  Mr. President, during the past 20 years, air travel has become 
increasingly linked to business development. Successful businesses 
expect and need to be able to travel quickly over long distances. It is 
expected that a region being considered for business location or 
expansion should be reachable, conveniently, via airplane. Those areas 
without air access, or with access that is restricted by prohibitive 
costs of travel, infrequent flights, or small,

[[Page S10734]]

slower planes are at a distinct disadvantage compared to those areas 
that enjoy accessible, convenient, and economical air service.
  This country's air infrastructure has grown to the point where it now 
rivals our ground transportation infrastructure in its importance to 
the economic viability of communities. It has long been accepted that 
building a highway creates an almost instant corridor of economic 
activity of businesses eager to cut shipping and transportation costs 
by locating close to the stream of commerce. Like a community located 
on an interstate versus one only reachable by back roads, a community 
with a mid-size or small airport underserved by air carriers operates 
at a distinct disadvantage to one located near a large airport.
  Bob Ziegelaar, Director of the Bangor, Maine International Airport, 
perhaps put it best. He tells me, ``Communities like Bangor are at risk 
of being left with service levels below what the market warrants both 
in terms of capacity and quality. The follow-on consequences is a 
decreasing capacity to attract economic growth.''
  This issue is of critical importance and has not received the 
attention it deserves. The legislation I have introduced will result in 
a comprehensive examination of how this complicated issue affects the 
economy of small town America. It would establish a commission of 15 
members from all areas of the country, including at least five members 
from rural areas, to study and report on the effects of airline 
deregulation. The Commission will examine a vital component of the 
deregulated airline industry--the effects on economic development and 
job creation, particularly in areas that are underserved by air 
carriers.
  The Commission will also explore the broader effects of deregulation 
on affordability, accessibility, availability, and the quality of air 
transportation, nationally and in small-sized and medium-sized 
communities. It will explore deregulation's impact on the economical 
viability of smaller airports and the long-term configuration of the 
U.S. passenger air transportation system.
  Mr. President, sometimes the best use we can make of the Senate's 
legislative powers is to study the results of our previous actions. In 
passing airline deregulation, Congress unleashed the power of 
competition with many positive benefits for consumers who live in large 
cities. It is now time to evaluate the impact on residents living in 
small-town America.
  I urge my colleagues to join me in passing this important measure.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1576

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

     SECTION 1. AIRLINE DEREGULATION STUDY COMMISSION.

       (a) Establishment of Commission.--
       (1) Establishment.--There is established a commission to be 
     known as the Airline Deregulation Study Commission (in this 
     section referred to as the ``Commission'').
       (2) Membership.--
       (A) Composition.--Subject to subparagraph (B), the 
     Commission shall be composed of 15 members of whom--
       (i) 5 shall be appointed by the President;
       (ii) 5 shall be appointed by the President pro tempore of 
     the Senate, upon the recommendation of the Majority and 
     Minority leaders of the Senate; and
       (iii) 5 shall be appointed by the Speaker of the House of 
     Representatives, in consultation with the Minority leader of 
     the House of Representatives.
       (B) Members from rural areas.--
       (i) Requirement.--Of the individuals appointed to the 
     Commission under subparagraph (A)--

       (I) one of the individuals appointed under clause (i) of 
     that subparagraph shall be an individual who resides in a 
     rural area; and
       (II) two of the individuals appointed under each of clauses 
     (ii) and (iii) of that subparagraph shall be individuals who 
     reside in a rural area.

       (ii) Geographic distribution.--The appointment of 
     individuals under subparagraph (A) pursuant to the 
     requirement in clause (i) of this subparagraph shall, to the 
     maximum extent practicable, be made so as to ensure that a 
     variety of geographic areas of the country are represented in 
     the membership of the Commission.
       (C) Date.--The appointments of the members of the 
     Commission shall be made not later than 60 days after the 
     date of the enactment of this Act.
       (3) Period of appointment; vacancies.--Members shall be 
     appointed for the life of the Commission. Any vacancy in the 
     Commission shall not affect its powers, but shall be filled 
     in the same manner as the original appointment.
       (4) Initial meeting.--Not later than 30 days after the date 
     on which all members of the Commission have been appointed, 
     the Commission shall hold its first meeting.
       (5) Meetings.--The Commission shall meet at the call of the 
     Chairperson.
       (6) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number of members may 
     hold hearings.
       (7) Chairperson.--The Commission shall select a Chairman 
     and Vice Chairperson from among its members.
       (b) Duties of the Commission.--
       (1) Study.--
       (A) Definitions.--In this subsection, the terms ``air 
     carrier'' and ``air transportation'' have the meanings given 
     those terms in section 40102(a) of title 49, United States 
     Code.
       (B) Contents.--The Commission shall conduct a thorough 
     study of the impacts of deregulation of the airline industry 
     of the United States on--
       (i) the affordability, accessibility, availability, and 
     quality of air transportation, particularly in small-sized 
     and medium-sized communities;
       (ii) economic development and job creation, particularly in 
     areas that are underserved by air carriers;
       (iii) the economic viability of small-sized airports; and
       (iv) the long-term configuration of the United States 
     passenger air transportation system.
       (C) Measurement factors.--In carrying out the study under 
     this subsection, the Commission shall develop measurement 
     factors to analyze the quality of passenger air 
     transportation service provided by air carriers by 
     identifying the factors that are generally associated with 
     quality passenger air transportation service.
       (D) Business and leisure travel.--In conducting 
     measurements for an analysis of the affordability of air 
     travel, to the extent practicable, the Commission shall 
     provide for appropriate control groups and comparisons with 
     respect to business and leisure travel.
       (2) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Commission shall submit an interim 
     report to the President and Congress, and not later than 18 
     months after the date of the enactment of this Act, the 
     Commission shall submit a report to the President and the 
     Congress. Each such report shall contain a detailed statement 
     of the findings and conclusions of the Commission, together 
     with its recommendations for such legislation and 
     administrative actions as it considers appropriate.
       (c) Powers of the Commission.--
       (1) Hearings.--The Commission may hold such hearings, sit 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Commission considers advisable 
     to carry out the duties of the Commission under this section.
       (2) Information from federal agencies.--The Commission may 
     secure directly from any Federal department or agency such 
     information as the Commission considers necessary to carry 
     out the duties of the Commission under this section. Upon 
     request of the Chairperson of the Commission, the head of 
     such department or agency shall furnish such information to 
     the Commission.
       (3) Postal services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the Federal Government.
       (4) Gifts.--The Commission may accept, use, and dispose of 
     gifts or donations of services or property.
       (d) Commission Personnel Matters.--
       (1) Travel expenses.--The members of the Commission shall 
     be allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Commission.
       (2) Staff.--
       (A) In general.--The Chairperson of the Commission may, 
     without regard to the civil service laws and regulations, 
     appoint and terminate an executive director and such other 
     additional personnel as may be necessary to enable the 
     Commission to perform its duties. The employment of an 
     executive director shall be subject to confirmation by the 
     Commission.
       (B) Compensation.--The Chairperson of the Commission may 
     fix the compensation of the executive director and other 
     personnel without regard to the provisions of chapter 51 and 
     subchapter III of chapter 53 of title 5, United States Code, 
     relating to classification of positions and General Schedule 
     pay rates, except that the rate of pay for the executive 
     director and other personnel may not exceed the rate payable 
     for level V of the Executive Schedule under section 5316 of 
     such title.
       (3) Detail of government employees.--Any Federal Government 
     employee may be detailed to the Commission without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status or privilege.

[[Page S10735]]

       (4) Procurement of temporary and intermittent services.--
     The Chairperson of the Commission may procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code, at rates for individuals which do not 
     exceed the daily equivalent of the annual rate of basic pay 
     prescribed for level V of the Executive Schedule under 
     section 5316 of such title.
       (e) Termination of Commission.--The Commission shall 
     terminate 90 days after the date on which the Commission 
     submits its report under subsection (b).
       (f) Authorization of Appropriations.--
       (1) In general.--There is authorized to be appropriated 
     $1,500,000 for fiscal year 2000 to the Commission to carry 
     out this section.
       (2) Availability.--Any sums appropriated pursuant to the 
     authorization of appropriations in paragraph (1) shall remain 
     available until expended.

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