[Congressional Record Volume 154, Number 155 (Saturday, September 27, 2008)]
[House]
[Pages H10206-H10208]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 AIR CARRIAGE OF INTERNATIONAL MAIL ACT

  Mr. CLAY. Mr. Speaker, I move to suspend the rules and pass the 
Senate 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.
  The Clerk read the title of the Senate bill.
  The text of the Senate bill is 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 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 inserting after ``transportation.'' the following: 
     ``Nothing in this section shall

[[Page H10207]]

     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.
  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Missouri (Mr. Clay) and the gentleman from Virginia (Mr. Davis) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Missouri.


                             General Leave

  Mr. CLAY. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days in which to revise and extend their remarks.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Missouri?
  There was no objection.
  Mr. CLAY. Mr. Speaker, I yield myself such time as I may consume.
  S. 3536 would eliminate the Department of Transportation's 
international rate-setting authority and allow the Postal Service to 
contract with U.S. air carriers for international mail transportation 
rates and services.
  The Postal Service currently spends well over $200 million annually 
to transport international mail, at rates set by regulation, not the 
marketplace. The current system for setting international mail air 
transportation rates is almost 30 years old and does not accurately 
reflect the cost of international mail carriage in today's highly 
competitive markets.
  Both the GAO and the Postal Service Office of Inspector General 
support the end of DOT's role in setting international mail rates. 
Indeed, the bill has the support of the United States air carriers and 
the Postal Service and reflects the collaborative efforts of both 
groups to develop legislation they could embrace.
  Allowing the Postal Service to negotiate and contract for the 
international air transportation of mail at fair and reasonable prices 
means approximately $50 million a year in savings. According to the 
Postal Service, ``roughly half of that savings would be passed through 
to the Department of Defense, which reimburses the Postal Service for 
the transportation of international military mail.'' As such, S. 3536 
also enjoys the support of the Department of Defense Military Postal 
Service Agency and DOT.
  I commend my colleague, Senator Carper, for his leadership on this 
important legislation. I also commend Chairman Waxman and Ranking 
Member Tom Davis for their strong support over the years to allow the 
Postal Service to obtain savings for postal customers and secure much 
more competitive mail rates.

                              {time}  1530

  In closing, I support the passage of S. 3536.
  Mr. Speaker, I reserve the balance of my time.
  Mr. DAVIS of Virginia. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, one of the many things we tried to accomplish during our 
long effort to update the Postal Reorganization Act was to find a way 
to save the U.S. Postal Service money by allowing it to competitively 
award contracts to transport international mail between any of the 
points in foreign air transportation.
  Despite Chairman Waxman's and my best efforts, we failed to come to 
an agreement on this issue before the Postal Reform bill passed in 
2006. Over the past year, the Postal Service and the American airline 
industry have worked on an agreement that I think both parties can 
support, and that agreement is the legislation before us today.
  This bill will allow the Postal Service to competitively award 
contracts to U.S. airlines for the transportation of international mail 
overseas. The legislation also would save money for the U.S. Department 
of Defense, which reimburses the Postal Service for the transportation 
of mail overseas. This bill enables the Postal Service to participate 
in today's highly competitive market and secure much more competitive 
mail rates, maximizing efficiency and providing better service for 
postal customers.
  It is well known that the Postal Service is under serious financial 
strain and that this agreement will help, in part, to eliminate some of 
that burden. It is estimated the Postal Service could save up to $50 
million as a result of the enactment of this legislation.
  It's disappointing to see that there is a thread of protectionism 
running through this legislation in that non-American airlines are not 
free to compete on an even footing with American-owned airlines. This 
means the taxpayer won't always be getting the very best deal possible.
  But Postal Service needs relief and postal customers deserve better 
and more cost-effective service, and this bill advances that. This bill 
seeks to accomplish this, and for this reason I support the bill and 
ask my colleagues to do the same.
  I want to thank, again, Mr. Waxman, Mr. Clay, Senator Carper on the 
Senate side, along with Mrs. Collins of Maine for their support in 
bringing this together.
  Mr. Speaker, I yield back the balance of my time.
  Mr. CLAY. Mr. Speaker, before I close, I would like to publicly say 
what a pleasure it has been to serve with my friend from Virginia (Mr. 
Davis). He was the former chairman of the Oversight and Government 
Reform Committee and now the ranking member. But since I got here in 
2000, he has been nothing but a friend to me, and I appreciate his 
service. I know we're getting close to adjournment, but I'm sure this 
won't be the last time we hear from Tom Davis. 
  Mr. DAVIS of Virginia. Thank you very much.
  Mr. WAXMAN. Madam Speaker, enclosed is an exchange of letters between 
the Chairmen of the House Committee on Oversight and Government Reform 
and the House Committee on Transportation and Infrastructure regarding 
S. 3536 the ``Air Carriage of International Mail Act.''

         House of Representatives, Committee on Transportation and 
           Infrastructure,
                               Washington, DC, September 27, 2008.
     Hon. Henry A. Waxman,
     Chairman, Committee on Oversight and Government Reform, 
         Washington, DC.
       Dear Chairman Waxman: I write to you regarding S. 3536, the 
     ``Air Carriage of International Mail Act''.

[[Page H10208]]

       S. 3536 contains provisions that fall within the 
     jurisdiction of the Committee on Transportation and 
     Infrastructure. I recognize and appreciate your desire to 
     bring this legislation before the House in an expeditious 
     manner and, accordingly, I will not seek a sequential 
     referral of the bill. However, I agree to waive consideration 
     of this bill with the mutual understanding that my decision 
     to forego a sequential referral of the bill does not waive, 
     reduce, or otherwise affect the jurisdiction of the Committee 
     on Transportation and Infrastructure over S. 3536.
       Please place a copy of this letter and your response 
     acknowledging the Committee on Transportation and 
     Infrastructure's jurisdictional interest in the Congressional 
     Record during consideration of the measure on the House 
     Floor.
       I look forward to working with you as we prepare to pass 
     this important legislation.
           Sincerely,
                                          James L. Oberstar, M.C.,
                                                         Chairman.
                                  ____
                                  
                                    Congress of the United States,


                                     House of Representatives,

                               Washington, DC, September 27, 2008.
     Hon. James Oberstar,
     Chairman, Committee on Transportation and Infrastructure, 
         Washington, DC.
       Dear Chairman Oberstar: I write to you regarding S. 3536, 
     the ``Air Carriage International Mail Act.''
       I agree that provisions in S. 3536 are of jurisdictional 
     interest to the Committee on Transportation and 
     Infrastructure. I appreciate your willingness to waive rights 
     to further consideration of S. 3536, and I acknowledge that 
     through this waiver, your Committee is not relinquishing its 
     jurisdiction over the relevant provisions of S. 3536.
       This exchange of letters will be placed in the 
     Congressional Record as part of the consideration of S. 3536 
     in the House.
       I thank you for working with me to pass this important 
     legislation.
           Sincerely,
                                                  Henry A. Waxman,
                                                         Chairman.

  Mr. CLAY. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Missouri (Mr. Clay) that the House suspend the rules and 
pass the Senate bill, S. 3536.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. DAVIS of Virginia. Mr. Speaker, I object to the vote on the 
ground that a quorum is not present and make the point of order that a 
quorum is not present.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.
  The point of no quorum is considered withdrawn.

                          ____________________