[Congressional Record Volume 154, Number 154 (Friday, September 26, 2008)]
[Senate]
[Pages S9865-S9866]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 AIR CARRIAGE OF INTERNATIONAL MAIL ACT

  Mr. WHITEHOUSE. Mr. President, I ask unanimous consent that the 
Committee on Homeland Security and Governmental Affairs be discharged 
from further consideration of S. 3536 and that the Senate proceed to 
its immediate consideration.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 3536) to amend section 5402 of title 39, United 
     States Code, to modify the authority relating to United 
     States Postal Service air transportation contracts, and for 
     other purposes.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. WHITEHOUSE. Mr. President, I ask unanimous consent that the bill 
be read a third time and passed, the motion to reconsider be laid upon 
the table, with no intervening action or debate, and that any 
statements related thereto be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 3536) was ordered to be engrossed for a third reading, 
was read the third time, and passed, as follows:

                                S. 3536

       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 ``Air Carriage of 
     International Mail Act''.

     SEC. 2. AIR CARRIAGE OF INTERNATIONAL MAIL.

       (a) Contracting Authority.--Section 5402 of title 39, 
     United States Code, is amended by striking subsections (b) 
     and (c) and inserting the following:
       ``(b) International Mail.--
       ``(1) In general.--
       ``(A) Except as otherwise provided in this subsection, the 
     Postal Service may contract for the transportation of mail by 
     aircraft between any of the points in foreign air 
     transportation only with certificated air carriers. A 
     contract may be awarded to a certificated air carrier to 
     transport mail by air between any of the points in foreign 
     air transportation that the Secretary of Transportation has 
     authorized the carrier to serve either directly or through a 
     code-share relationship with one or more foreign air 
     carriers.
       ``(B) If the Postal Service has sought offers or proposals 
     from certificated air carriers to transport mail in foreign 
     air transportation between points, or pairs of points within 
     a geographic region or regions, and has not received offers 
     or proposals that meet Postal Service requirements at a fair 
     and reasonable price from at least 2 such carriers, the 
     Postal Service may seek offers or proposals from foreign air 
     carriers. Where service in foreign air transportation meeting 
     the Postal Service's requirements is unavailable at a fair 
     and reasonable price from at least 2 certificated air 
     carriers, either directly or through a code-share 
     relationship with one or more foreign air carriers, the 
     Postal Service may contract with foreign air carriers to 
     provide the service sought if, when the Postal Service seeks 
     offers or proposals from foreign air carriers, it also seeks 
     an offer or proposal to provide that service from any 
     certificated air carrier providing service between those 
     points, or pairs of points within a geographic region or 
     regions, on the same

[[Page S9866]]

     terms and conditions that are being sought from foreign air 
     carriers.
       ``(C) For purposes of this subsection, the Postal Service 
     shall use a methodology for determining fair and reasonable 
     prices for the Postal Service designated region or regions 
     developed in consultation with, and with the concurrence of, 
     certificated air carriers representing at least 51 percent of 
     available ton miles in the markets of interest.
       ``(D) For purposes of this subsection, ceiling prices 
     determined pursuant to the methodology used under 
     subparagraph (C) shall be presumed to be fair and reasonable 
     if they do not exceed the ceiling prices derived from--
       ``(i) a weighted average based on market rate data 
     furnished by the International Air Transport Association or a 
     subsidiary unit thereof; or
       ``(ii) if such data are not available from those sources, 
     such other neutral, regularly updated set of weighted average 
     market rates as the Postal Service, with the concurrence of 
     certificated air carriers representing at least 51 percent of 
     available ton miles in the markets of interest, may 
     designate.
       ``(E) If, for purposes of subparagraph (D)(ii), concurrence 
     cannot be attained, then the most recently available market 
     rate data described in this subparagraph shall continue to 
     apply for the relevant market or markets.
       ``(2) Contract process.--The Postal Service shall contract 
     for foreign air transportation as set forth in paragraph (1) 
     through an open procurement process that will provide--
       ``(A) potential offerors with timely notice of business 
     opportunities in sufficient detail to allow them to make a 
     proposal;
       ``(B) requirements, proposed terms and conditions, and 
     evaluation criteria to potential offerors; and
       ``(C) an opportunity for unsuccessful offerors to receive 
     prompt feedback upon request.
       ``(3) Emergency or unanticipated conditions; inadequate 
     lift space.--The Postal Service may enter into contracts to 
     transport mail by air in foreign air transportation with a 
     certificated air carrier or a foreign air carrier without 
     complying with the requirements of paragraphs (b)(1) and (2) 
     if--
       ``(A) emergency or unanticipated conditions exist that make 
     it impractical for the Postal Service to comply with such 
     requirements; or
       ``(B) its demand for lift exceeds the space available to it 
     under existing contracts and--
       ``(i) there is insufficient time available to seek 
     additional lift using procedures that comply with those 
     requirements without compromising the Postal Service's 
     service commitments to its own customers; and
       ``(ii) the Postal Service first offers any certificated air 
     carrier holding a contract to carry mail between the relevant 
     points the opportunity to carry such excess volumes under the 
     terms of its existing contract.
       ``(c) Good Faith Effort Required.--The Postal Service and 
     potential offerors shall put a good-faith effort into 
     resolving disputes concerning the award of contracts made 
     under subsection (b).''.
       (b) Conforming Amendments to Title 49.--
       (1) Section 41901(a) is amended by striking ``39.'' and 
     inserting ``39, and in foreign air transportation under 
     section 5402(b) and (c) of title 39.''.
       (2) Section 41901(b)(1) is amended by striking ``in foreign 
     air transportation or''.
       (3) Section 41902 is amended--
       (A) by striking ``in foreign air transportation or'' in 
     subsection (a);
       (B) by striking subsection (b) and inserting the following:
       ``(b) Statements on Places and Schedules.--Every air 
     carrier shall file with the United States Postal Service a 
     statement showing--
       ``(1) the places between which the carrier is authorized to 
     transport mail in Alaska;
       ``(2) every schedule of aircraft regularly operated by the 
     carrier between places described in paragraph (1) and every 
     change in each schedule; and
       ``(3) for each schedule, the places served by the carrier 
     and the time of arrival at, and departure from, each such 
     place.'';
       (C) by striking ``subsection (b)(3)'' each place it appears 
     in subsections (c)(1) and (d) and inserting ``subsection 
     (b)(2)''; and
       (D) by striking subsections (e) and (f).
       (4) Section 41903 is amended by striking ``in foreign air 
     transportation or'' each place it appears.
       (5) Section 41904 is amended--
       (A) by striking ``to or in foreign countries'' in the 
     section heading;
       (B) by striking ``to or in a foreign country'' and 
     inserting ``between two points outside the United States''; 
     and
       (C) by inserrting after ``transportation.'' the following: 
     ``Nothing in this section shall affect the authority of the 
     Postal Service to make arrangements with noncitizens for the 
     carriage of mail in foreign air transportation under 
     subsections 5402(b) and (c) of title 39.''.
       (6) Section 41910 is amended by striking the first sentence 
     and inserting ``The United States Postal Service may weigh 
     mail transported by aircraft between places in Alaska and 
     make statistical and -administrative computations necessary 
     in the interest of mail service.''.
       (7) Chapter 419 is amended--
       (A) by striking sections 41905, 41907, 41908, and 41911; 
     and
       (B) redesignating sections 41906, 41909, 41910, and 49112 
     as sections 41905, 41906, 41907, and 41908, respectively.
       (8) The chapter analysis for chapter 419 is amended by 
     redesignating the items relating to sections 41906, 41909, 
     41910, and 49112 as relating to sections 41905, 41906, 41907, 
     and 41908, respectively.
       (9) Section 101(f) of title 39, United States Code, is 
     amended by striking ``mail and shall make a fair and 
     equitable distribution of mail business to carriers providing 
     similar modes of transportation services to the Postal 
     Service.'' and inserting ``mail.''.
       (10) Subsections (b) and (c) of section 3401 of title 39, 
     United States Code, are amended--
       (A) by striking ``at rates fixed and determined by the 
     Secretary of Transportation in accordance with section 41901 
     of title 49'' and inserting ``or, for carriage of mail in 
     foreign air transportation, other air carriers, air taxi 
     operators or foreign air carriers as permitted by section 
     5402 of this title'';
       (B) by striking ``at rates not to exceed those so fixed and 
     determined for scheduled United States air carriers'';
       (C) by striking ``scheduled'' each place it appears and 
     inserting ``certificated''; and
       (D) by striking the last sentence in each such subsection.
       (11) Section 5402(a) of title 39, United States Code, is 
     amended--
       (A) by inserting `` `foreign air carrier'.'' after `` 
     `interstate air transportation','' in paragraph (2);
       (B) by redesignating paragraphs (7) through (23) as 
     paragraphs (8) through (24) and inserting after paragraph (6) 
     the following:
       ``(7) the term `certificated air carrier' means an air 
     carrier that holds a certificate of public convenience and 
     necessity issued under section 41102(a) of title 49;'';
       (C) by redesignating paragraphs (9) through (24), as 
     redesignated, as paragraphs (10) through (25), respectively, 
     and inserting after paragraph (8) the following:
       ``(9) the term `code-share relationship' means a 
     relationship pursuant to which any certificated air carrier 
     or foreign air carrier's designation code is used to identify 
     a flight operated by another air carrier or foreign air 
     carrier;''; and
       (D) by inserting ``foreign air carrier,'' after ``terms'' 
     in paragraph (2).
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2008.

                          ____________________