CHAPTER 417 - OPERATIONS OF CARRIERS

Title 49 > CHAPTER 417

Sections (55)

§ 41701 Classification of air carriers

The Secretary of Transportation may establish— reasonable classifications for air carriers when required because of the nature of the transportation provided by them; and reasonable requirements for each class when the Secretary decides those requirements are necessary in the public interest. ( Pub. L. 103–272, § 1(e) , July 5, 1994 , 108 Stat. 1140 .)

§ 41702 Interstate air transportation

An air carrier shall provide safe and adequate interstate air transportation. ( Pub. L. 103–272, § 1(e) , July 5, 1994 , 108 Stat. 1140 .)

§ 41703 Navigation of foreign civil aircraft

(a) Permitted Navigation.— A foreign aircraft, not part of the armed forces of a foreign country, may be navigated in the United States only— if the country of registry grants a similar privilege to aircraft of the United States; by an airman holding a certificate or license issued or made valid by the United States Government or the country of registry; if the Secretary of Transportation authorizes the navigation; and if the navigation is consistent with terms the Secretary may prescribe.

(b) Requirements for Authorizing Navigation.— The Secretary may authorize navigation under this section only if the Secretary decides the authorization is— in the public interest; and consistent with any agreement between the Government and the government of a foreign country.

(c) Providing Air Commerce.— The Secretary may authorize an aircraft permitted to navigate in the United States under this section to provide air commerce in the United States. However, the aircraft may take on for compensation, at a place in the United States, passengers or cargo destined for another place in the United States only if— specifically authorized under section 40109(g) of this title ; or under regulations the Secretary prescribes authorizing air carriers to provide otherwise authorized air transportation with foreign registered aircraft under lease or charter to them without crew.

(d) Permit Requirements Not Affected.— This section does not affect section 41301 or 41302 of this title. However, a foreign air carrier holding a permit under section 41302 does not need to obtain additional authorization under this section for an operation authorized by the permit.

(e) Cargo in Alaska.— For the purposes of subsection (c), eligible cargo taken on or off any aircraft at a place in Alaska in the course of transportation of that cargo by any combination of 2 or more air carriers or foreign air carriers in either direction between a place in the United States and a place outside the United States shall not be deemed to have broken its international journey in, be taken on in, or be destined for Alaska. For purposes of paragraph (1), the term “eligible cargo” means cargo transported between Alaska and any other place in the United States on a foreign air carrier (having been transported from, or thereafter being transported to, a place outside the United States on a different air carrier or foreign air carrier) that is carried— under the code of a United States air carrier providing air transportation to Alaska; on an air carrier way bill of an air carrier providing air transportation to Alaska; under a term arrangement or block space agreement with an air carrier; or under the code of a United States air carrier for purposes of transportation within the United States.

§ 41704 Transporting property not to be transported in aircraft cabins

Under regulations or orders of the Secretary of Transportation, an air carrier shall transport as baggage the property of a passenger traveling in air transportation that may not be carried in an aircraft cabin because of a law or regulation of the United States. The carrier is liable to pay an amount not more than the amount declared to the carrier by that passenger for actual loss of, or damage to, the property caused by the carrier. The carrier may impose reasonable charges and conditions for its liability. ( Pub. L. 103–272, § 1(e) , July 5, 1994 , 108 Stat. 1141 .)

§ 41705 Discrimination against individuals with disabilities

(a) In General.— In providing air transportation, an air carrier, including (subject to section 40105(b)) any foreign air carrier, may not discriminate against an otherwise qualified individual on the following grounds: the individual has a physical or mental impairment that substantially limits one or more major life activities. the individual has a record of such an impairment. the individual is regarded as having such an impairment.

(b) Each Act Constitutes Separate Offense.— For purposes of section 46301, a separate violation occurs under this section for each individual act of discrimination prohibited by subsection (a).

(c) Investigation of Complaints.— The Secretary shall— not later than 120 days after the receipt of any complaint of a violation of this section or a regulation prescribed under this section, investigate such complaint; and provide, in writing, to the individual that filed the complaint and the air carrier or foreign air carrier alleged to have violated this section or a regulation prescribed under this section, the determination of the Secretary with respect to— whether the air carrier or foreign air carrier violated this section or a regulation prescribed under this section; the facts underlying the complaint; and any action the Secretary is taking in response to the complaint. The Secretary shall publish disability-related complaint data in a manner comparable to other consumer complaint data. The Secretary shall regularly review all complaints received by air carriers alleging discrimination on the basis of disability and shall report annually to Congress on the results of such review. Not later than 180 days after the date of the enactment of this subsection, the Secretary shall— implement a plan, in consultation with the Department of Justice, the United States Architectural and Transportation Barriers Compliance Board, and the National Council on Disability, to provide technical assistance to air carriers and individuals with disabilities in understanding the rights and responsibilities set forth in this section; and ensure the availability and provision of appropriate technical assistance manuals to individuals and entities with rights or responsibilities under this section.

“Hereafter, none of the funds made available under this Act or any other Act, may be used to implement, carry out, or enforce any regulation issued under section 41705 of title 49 , United States Code, including any regulation contained in part 382 of title 14, Code of Federal Regulations, or any other provision of law (including any Act of Congress, regulation, or Executive order or any official guidance or correspondence thereto), that requires or encourages an air carrier (as that term is defined in section 40102 of title 49 , United States Code) to, on intrastate or interstate air transportation (as those terms are defined in section 40102 of title 49 , United States Code)— provide a peanut-free buffer zone or any other related peanut-restricted area; or restrict the distribution of peanuts, until 90 days after submission to the Congress and the Secretary of a peer-reviewed scientific study that determines that there are severe reactions by passengers to peanuts as a result of contact with very small airborne peanut particles of the kind that passengers might encounter in an aircraft.”

§ 41706 Prohibitions against smoking on passenger flights

(a) Smoking Prohibition in Interstate and Intrastate Air Transportation.— An individual may not smoke— in an aircraft in scheduled passenger interstate or intrastate air transportation; or in an aircraft in nonscheduled passenger interstate or intrastate air transportation, if a flight attendant is a required crewmember on the aircraft (as determined by the Administrator of the Federal Aviation Administration).

(b) Smoking Prohibition in Foreign Air Transportation.— The Secretary of Transportation shall require all air carriers and foreign air carriers to prohibit smoking— in an aircraft in scheduled passenger foreign air transportation; and in an aircraft in nonscheduled passenger foreign air transportation, if a flight attendant is a required crewmember on the aircraft (as determined by the Administrator or a foreign government).

(c) Limitation on Applicability.— If a foreign government objects to the application of subsection (b) on the basis that subsection (b) provides for an extraterritorial application of the laws of the United States, the Secretary shall waive the application of subsection (b) to a foreign air carrier licensed by that foreign government at such time as an alternative prohibition negotiated under paragraph (2) becomes effective and is enforced by the Secretary. If, pursuant to paragraph (1), a foreign government objects to the prohibition under subsection (b), the Secretary shall enter into bilateral negotiations with the objecting foreign government to provide for an alternative smoking prohibition.

(d) Electronic Cigarettes.— The use of an electronic cigarette shall be treated as smoking for purposes of this section. In this section, the term “electronic cigarette” means a device that delivers nicotine to a user of the device in the form of a vapor that is inhaled to simulate the experience of smoking.

(e) Regulations.— The Secretary shall prescribe such regulations as are necessary to carry out this section.

§ 41707 Incorporating contract terms into written instrument

To the extent the Secretary of Transportation prescribes by regulation, an air carrier may incorporate by reference in a ticket or written instrument any term of the contract for providing interstate air transportation. ( Pub. L. 103–272, § 1(e) , July 5, 1994 , 108 Stat. 1141 .)

§ 41708 Reports

(a) Application.— To the extent the Secretary of Transportation finds necessary to carry out this subpart, this section and section 41709 of this title apply to a person controlling an air carrier or affiliated (within the meaning of section 11343(c) of this title ) with a carrier.

(b) Requirements.— The Secretary may require an air carrier or foreign air carrier— to file annual, monthly, periodical, and special reports with the Secretary in the form and way prescribed by the Secretary; and to file the reports under oath; to provide specific answers to questions on which the Secretary considers information to be necessary; and to file with the Secretary a copy of each agreement, arrangement, contract, or understanding between the carrier and another carrier or person related to transportation affected by this subpart.

(c) Diverted and Cancelled Flights.— The Secretary shall require an air carrier referred to in paragraph (2) to file with the Secretary a monthly report on each flight of the air carrier that is diverted from its scheduled destination to another airport and each flight of the air carrier that departs the gate at the airport at which the flight originates but is cancelled before wheels-off time. An air carrier that is required to file a monthly airline service quality performance report pursuant to part 234 of title 14, Code of Federal Regulations, shall be subject to the requirement of paragraph (1). A monthly report filed by an air carrier under paragraph (1) shall include, at a minimum, the following information: For a diverted flight— the flight number of the diverted flight; the scheduled destination of the flight; the date and time of the flight; the airport to which the flight was diverted; wheels-on time at the diverted airport; the time, if any, passengers deplaned the aircraft at the diverted airport; and if the flight arrives at the scheduled destination airport— the gate-departure time at the diverted airport; the wheels-off time at the diverted airport; the wheels-on time at the scheduled arrival airport; and the gate-arrival time at the scheduled arrival airport. For flights cancelled after gate departure— the flight number of the cancelled flight; the scheduled origin and destination airports of the cancelled flight; the date and time of the cancelled flight; the gate-departure time of the cancelled flight; and the time the aircraft returned to the gate. The Secretary shall compile the information provided in the monthly reports filed pursuant to paragraph (1) in a single monthly report and publish such report on the Internet Web site of the Department of Transportation.

§ 41709 Records of air carriers

(a) Requirements.— The Secretary of Transportation shall prescribe the form of records to be kept by an air carrier, including records on the movement of traffic, receipts and expenditures of money, and the time period during which the records shall be kept. A carrier may keep only records prescribed or approved by the Secretary. However, a carrier may keep additional records if the additional records do not impair the integrity of the records prescribed or approved by the Secretary and are not an unreasonable financial burden on the carrier.

(b) Inspection.— The Secretary at any time may— inspect the land, buildings, and equipment of an air carrier or foreign air carrier when necessary to decide under subchapter II of this chapter or section 41102, 41103, or 41302 of this title whether a carrier is fit, willing, and able; and inspect records kept or required to be kept by an air carrier, foreign air carrier, or ticket agent. The Secretary may employ special agents or auditors to carry out this subsection.

§ 41710 Time requirements

When a matter requiring action of the Secretary of Transportation is submitted under section 40109(a) or (c)–(h), 41309, or 42111 of this title and an evidentiary hearing— is ordered, the Secretary shall make a final decision on the matter not later than the last day of the 12th month that begins after the date the matter is submitted; or is not ordered, the Secretary shall make a final decision on the matter not later than the last day of the 6th month that begins after the date the matter is submitted. ( Pub. L. 103–272, § 1(e) , July 5, 1994 , 108 Stat. 1142 .)

§ 41711 Air carrier management inquiry and cooperation with other authorities

In carrying out this subpart, the Secretary of Transportation may— inquire into the management of the business of an air carrier and obtain from the air carrier, and a person controlling, controlled by, or under common control with the carrier, information the Secretary decides reasonably is necessary to carry out the inquiry; confer and hold a joint hearing with a State authority; and exchange information related to aeronautics with a government of a foreign country through appropriate departments, agencies, and instrumentalities of the United States Government. ( Pub. L. 103–272, § 1(e) , July 5, 1994 , 108 Stat. 1142 .)

§ 41712 Unfair and deceptive practices and unfair methods of competition

(a) In General.— On the initiative of the Secretary of Transportation or the complaint of an air carrier, foreign air carrier, air ambulance consumer (as defined by the Secretary of Transportation), or ticket agent, and if the Secretary considers it is in the public interest, the Secretary may investigate and decide whether an air carrier, foreign air carrier, or ticket agent has been or is engaged in an unfair or deceptive practice or an unfair method of competition in air transportation or the sale of air transportation. If the Secretary, after notice and an opportunity for a hearing, finds that an air carrier, foreign air carrier, or ticket agent is engaged in an unfair or deceptive practice or unfair method of competition, the Secretary shall order the air carrier, foreign air carrier, or ticket agent to stop the practice or method.

(b) E-Ticket Expiration Notice.— It shall be an unfair or deceptive practice under subsection (a) for any air carrier, foreign air carrier, or ticket agent utilizing electronically transmitted tickets for air transportation to fail to notify the purchaser of such a ticket of its expiration date, if any.

(c) Disclosure Requirement for Sellers of Tickets for Flights.— It shall be an unfair or deceptive practice under subsection (a) for any ticket agent, air carrier, foreign air carrier, or other person offering to sell tickets for air transportation on a flight of an air carrier to fail to disclose, whether verbally in oral communication or in writing in written or electronic communication, prior to the purchase of a ticket— the name of the air carrier providing the air transportation; and if the flight has more than one flight segment, the name of each air carrier providing the air transportation for each such flight segment. In the case of an offer to sell tickets described in paragraph (1) on an Internet Web site, disclosure of the information required by paragraph (1) shall be provided on the first display of the Web site following a search of a requested itinerary in a format that is easily visible to a viewer.

§ 41713 Preemption of authority over prices, routes, and service

(a) Definition.— In this section, “State” means a State, the District of Columbia, and a territory or possession of the United States.

(b) Preemption.— Except as provided in this subsection, a State, political subdivision of a State, or political authority of at least 2 States may not enact or enforce a law, regulation, or other provision having the force and effect of law related to a price, route, or service of an air carrier that may provide air transportation under this subpart. Paragraphs (1) and (4) of this subsection do not apply to air transportation provided entirely in Alaska unless the transportation is air transportation (except charter air transportation) provided under a certificate issued under section 41102 of this title . This subsection does not limit a State, political subdivision of a State, or political authority of at least 2 States that owns or operates an airport served by an air carrier holding a certificate issued by the Secretary of Transportation from carrying out its proprietary powers and rights. Except as provided in subparagraph (B), a State, political subdivision of a State, or political authority of 2 or more States may not enact or enforce a law, regulation, or other provision having the force and effect of law related to a price, route, or service of an air carrier or carrier affiliated with a direct air carrier through common controlling ownership when such carrier is transporting property by aircraft or by motor vehicle (whether or not such property has had or will have a prior or subsequent air movement). Subparagraph (A)— shall not restrict the safety regulatory authority of a State with respect to motor vehicles, the authority of a State to impose highway route controls or limitations based on the size or weight of the motor vehicle or the hazardous nature of the cargo, or the authority of a State to regulate motor carriers with regard to minimum amounts of financial responsibility relating to insurance requirements and self-insurance authorization; and does not apply to the transportation of household goods, as defined in section 13102 of this title . This paragraph shall not limit the applicability of paragraph (1).

§ 41714 Availability of slots

(a) Making Slots Available for Essential Air Service.— If basic essential air service under subchapter II of this chapter is to be provided from an eligible point to a high density airport (other than Ronald Reagan Washington National Airport), the Secretary of Transportation shall ensure that the air carrier providing or selected to provide such service has sufficient operational authority at the high density airport to provide such service. The operational authority shall allow flights at reasonable times taking into account the needs of passengers with connecting flights. If necessary to carry out the objectives of paragraph (1), the Secretary shall by order grant exemptions from the requirements of subparts K and S of part 93 of title 14, Code of Federal Regulations (pertaining to slots at high density airports), to air carriers using Stage 3 aircraft or to commuter air carriers, unless such an exemption would significantly increase operational delays. If the Secretary finds that an exemption under paragraph (2) would significantly increase operational delays, the Secretary shall take such action as may be necessary to ensure that an air carrier providing or selected to provide basic essential air service is able to obtain access to a high density airport. The Secretary shall issue a final order under this subsection on or before the 60th day after receiving a request from an air carrier for operational authority under this subsection.

(b) Slots for Foreign Air Transportation.— If the Secretary finds it to be in the public interest at a high density airport (other than Ronald Reagan Washington National Airport), the Secretary may grant by order exemptions from the requirements of subparts K and S of part 93 of title 14, Code of Federal Regulations (pertaining to slots at high density airports), to enable air carriers and foreign air carriers to provide foreign air transportation using Stage 3 aircraft. The Secretary may not withdraw a slot at Chicago O’Hare International Airport from an air carrier in order to allocate that slot to a carrier to provide foreign air transportation. The Secretary shall not take a slot at a high density airport from an air carrier and award such slot to a foreign air carrier if the Secretary determines that air carriers are not provided equivalent rights of access to airports in the country of which such foreign air carrier is a citizen. Effective May 1, 2000 , slots at Chicago O’Hare International Airport allocated to an air carrier as of November 1, 1999 , to provide foreign air transportation shall be made available to such carrier to provide interstate or intrastate air transportation.

(c) Slots for New Entrants.— If the Secretary finds it to be in the public interest, the Secretary may by order grant exemptions from the requirements under subparts K and S of part 93 of title 14, Code of Federal Regulations (pertaining to slots at high density airports), to enable new entrant air carriers to provide air transportation at high density airports (other than Ronald Reagan Washington National Airport).

(d) Special Rules for Ronald Reagan Washington National Airport.— Notwithstanding sections 49104(a)(5) and 49111(e) of this title, or any provision of this section, the Secretary may, only under circumstances determined by the Secretary to be exceptional, grant by order to an air carrier currently holding or operating a slot at Ronald Reagan Washington National Airport an exemption from requirements under subparts K and S of part 93 of title 14, Code of Federal Regulations (pertaining to slots at Ronald Reagan Washington National Airport), to enable that carrier to provide air transportation with Stage 3 aircraft at Ronald Reagan Washington National Airport; except that such exemption shall not— result in an increase in the total number of slots per day at Ronald Reagan Washington National Airport; result in an increase in the total number of slots at Ronald Reagan Washington National Airport from 7:00 ante meridiem to 9:59 post meridiem; increase the number of operations at Ronald Reagan Washington National Airport in any 1-hour period by more than 2 operations; result in the withdrawal or reduction of slots operated by an air carrier; result in a net increase in noise impact on surrounding communities resulting from changes in timing of operations permitted under this subsection; and continue in effect on or after the date on which the final rules issued under subsection (f) become effective. Nothing in this subsection shall adversely affect Exemption No. 5133, as from time-to-time amended and extended.

(e) Study.— The Secretary shall continue the Secretary’s current examination of slot regulations and shall ensure that the examination includes consideration of— whether improvements in technology and procedures of the air traffic control system and the use of quieter aircraft make it possible to eliminate the limitations on hourly operations imposed by the high density rule contained in part 93 of title 14 of the Code of Federal Regulations or to increase the number of operations permitted under such rule; the effects of the elimination of limitations or an increase in the number of operations allowed on each of the following: congestion and delay in any part of the national aviation system; the impact of noise on persons living near the airport; competition in the air transportation system; the profitability of operations of airlines serving the airport; and aviation safety; the impact of the current slot allocation process upon the ability of air carriers to provide essential air service under subchapter II of this chapter; the impact of such allocation process upon the ability of new entrant air carriers to obtain slots in time periods that enable them to provide service; the impact of such allocation process on the ability of foreign air carriers to obtain slots; the fairness of such process to air carriers and the extent to which air carriers are provided equivalent rights of access to the air transportation market in the countries of which foreign air carriers holding slots are citizens; the impact, on the ability of air carriers to provide domestic and international air service, of the withdrawal of slots from air carriers in order to provide slots for foreign air carriers; and the impact of the prohibition on slot withdrawals in subsections (b)(2) and (b)(3) of this section on the aviation relationship between the United States Government and foreign governments, including whether the prohibition in such subsections will require the withdrawal of slots from general and military aviation in order to meet the needs of air carriers and foreign air carriers providing foreign air transportation (and the impact of such withdrawal on general aviation and military aviation) and whether slots will become available to meet the needs of air carriers and foreign air carriers to provide foreign air transportation as a result of the planned relocation of Air Force Reserve units and the Air National Guard at O’Hare International Airport. Not later than January 31, 1995 , the Secretary shall complete the current examination of slot regulations and shall transmit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report containing the results of such examination.

(f) Rulemaking.— The Secretary shall conduct a rulemaking proceeding based on the results of the study described in subsection (e). In the course of such proceeding, the Secretary shall issue a notice of proposed rulemaking not later than August 1, 1995 , and shall issue a final rule not later than 90 days after public comments are due on the notice of proposed rulemaking.

(g) Weekend Operations.— The Secretary shall consider the advisability of revising section 93.227 of title 14, Code of Federal Regulations, so as to eliminate weekend schedules from the determination of whether the 80 percent standard of subsection (a)(1) of that section has been met.

(h) Definitions.— In this section and sections 41715–41718 and 41734(h), the following definitions apply: The term “commuter air carrier” means a commuter operator as defined or applied in subpart K or S of part 93 of title 14, Code of Federal Regulations. The term “high density airport” means an airport at which the Administrator limits the number of instrument flight rule takeoffs and landings of aircraft. The term “new entrant air carrier” means an air carrier that does not hold a slot at the airport concerned and has never sold or given up a slot at that airport after December 16, 1985 , and a limited incumbent carrier. The term “slot” means a reservation for an instrument flight rule takeoff or landing by an air carrier of an aircraft in air transportation. The term “limited incumbent air carrier” has the meaning given that term in subpart S of part 93 of title 14, Code of Federal Regulations; except that— “40” shall be substituted for “12” in sections 93.213(a)(5), 93.223(c)(3), and 93.225(h); for purposes of such sections, the term “slot” shall not include— “slot exemptions”; slots operated by an air carrier under a fee-for-service arrangement for another air carrier, if the air carrier operating such slots does not sell flights in its own name, and is under common ownership with an air carrier that seeks to qualify as a limited incumbent and that sells flights in its own name; or slots held under a sale and license-back financing arrangement with another air carrier, where the slots are under the marketing control of the other air carrier; and for Ronald Reagan Washington National Airport, the Administrator shall not count, for the purposes of section 93.213(a)(5), slots currently held by an air carrier but leased out on a long-term basis by that carrier for use in foreign air transportation and renounced by the carrier for return to the Department of Transportation or the Federal Aviation Administration. The term “regional jet” means a passenger, turbofan-powered aircraft with a certificated maximum passenger seating capacity of less than 71. The term “nonhub airport” means an airport that had less than .05 percent of the total annual boardings in the United States as determined under the Federal Aviation Administration’s Primary Airport Enplanement Activity Summary for Calendar Year 1997. The term “small hub airport” means an airport that had at least .05 percent, but less than .25 percent, of the total annual boardings in the United States as determined under the summary referred to in paragraph (7). The term “medium hub airport” means an airport that each year has at least .25 percent, but less than 1.0 percent, of the total annual boardings in the United States as determined under the summary referred to in paragraph (7).

(i) 60-Day Application Process.— Any slot exemption request filed with the Secretary under this section or section 41716 or 41717 (other than subsection (c)) shall include— the names of the airports to be served; the times requested; and such additional information as the Secretary may require. Within 60 days after a slot exemption request under this section or section 41716 or 41717 (other than subsection (c)) is received by the Secretary, the Secretary shall— approve the request if the Secretary determines that the requirements of the section under which the request is made are met; return the request to the applicant for additional information relating to the request to provide air transportation; or deny the request and state the reasons for its denial. If the Secretary returns under paragraph (2)(B) the request for additional information during the first 20 days after the request is filed, then the 60-day period under paragraph (2) shall be tolled until the date on which the additional information is filed with the Secretary. If the Secretary neither approves the request under paragraph (2)(A) nor denies the request under paragraph (2)(C) within the 60-day period beginning on the date the request is received, excepting any days during which the 60-day period is tolled under paragraph (3), then the request is deemed to have been approved on the 61st day, after the request was filed with the Secretary.

(j) Exemptions May Not Be Transferred.— No exemption from the requirements of subparts K and S of part 93 of title 14, Code of Federal Regulations, granted under this section or section 41716, 41717, or 41718 may be bought, sold, leased, or otherwise transferred by the carrier to which it is granted, except through an air carrier merger or acquisition.

(k) Affiliated Carriers.— For purposes of this section and sections 41716, 41717, and 41718, an air carrier that operates under the same designator code, or has or enters into a code-share agreement, with any other air carrier shall not qualify for a new slot or slot exemption as a new entrant or limited incumbent air carrier at an airport if the total number of slots and slot exemptions held by the two carriers at the airport exceed 20 slots and slot exemptions.

§ 41715 Phase-out of slot rules at certain airports

(a) Termination.— The rules contained in subparts S and K of part 93, title 14, Code of Federal Regulations, shall not apply— after July 1, 2002 , at Chicago O’Hare International Airport; and after January 1, 2007 , at LaGuardia Airport or John F. Kennedy International Airport.

(b) Statutory Construction.— Nothing in this section and sections 41714 and 41716–41718 shall be construed— as affecting the Federal Aviation Administration’s authority for safety and the movement of air traffic; and as affecting any other authority of the Secretary to grant exemptions under section 41714.

(c) Factors To Consider.— Before the award of slot exemptions under sections 41714 and 41716–41718, the Secretary of Transportation may consider, among other determining factors, whether the petitioning air carrier’s proposal provides the maximum benefit to the United States economy, including the number of United States jobs created by the air carrier, its suppliers, and related activities. The Secretary should give equal consideration to the consumer benefits associated with the award of such exemptions. Paragraph (1) does not apply in any case in which the air carrier requesting the slot exemption is proposing to use under the exemption a type of aircraft for which there is not a competing United States manufacturer.

§ 41716 Interim slot rules at New York airports

(a) Exemptions for Air Service to Small and Nonhub Airports.— Subject to section 41714(i), the Secretary of Transportation shall grant, by order, exemptions from the requirements under subparts K and S of part 93 of title 14, Code of Federal Regulations (pertaining to slots at high density airports) to any air carrier to provide nonstop air transportation, using an aircraft with a certificated maximum seating capacity of less than 71, between LaGuardia Airport or John F. Kennedy International Airport and a small hub airport or nonhub airport— if the air carrier was not providing such air transportation during the week of November 1, 1999 ; if the number of flights to be provided between such airports by the air carrier during any week will exceed the number of flights provided by the air carrier between such airports during the week of November 1, 1999 ; or if the air transportation to be provided under the exemption will be provided with a regional jet as replacement of turboprop air transportation that was being provided during the week of November 1, 1999 .

(b) Exemptions for New Entrant and Limited Incumbent Air Carriers.— Subject to section 41714(i), the Secretary shall grant, by order, exemptions from the requirements under subparts K and S of part 93 of title 14, Code of Federal Regulations (pertaining to slots at high density airports), to any new entrant air carrier or limited incumbent air carrier to provide air transportation to or from LaGuardia Airport or John F. Kennedy International Airport if the number of slot exemptions granted under this subsection to such air carrier with respect to such airport when added to the slots and slot exemptions held by such air carrier with respect to such airport does not exceed 20; except that the Secretary may grant not to exceed 4 additional slot exemptions at LaGuardia Airport to an incumbent air carrier operating at least 20 but not more than 28 slots at such airport as of October 1, 2004 , to provide air transportation between LaGuardia Airport and a small hub airport or nonhub airport.

(c) Stage 3 Aircraft Required.— An exemption may not be granted under this section with respect to any aircraft that is not a Stage 3 aircraft (as defined by the Secretary).

(d) Preservation of Certain Existing Slot-Related Air Service.— An air carrier that provides air transportation of passengers from LaGuardia Airport or John F. Kennedy International Airport to a small hub airport or nonhub airport, or to an airport that is smaller than a nonhub airport, on or before the date of the enactment of this subsection pursuant to an exemption from the requirements of subparts K and S of part 93 of title 14, Code of Federal Regulations (pertaining to slots at high density airports), or where slots were issued to an air carrier conditioned on a specific airport being served, may not terminate air transportation for that route before July 1, 2003 , unless— before October 1, 1999 , the Secretary received a written air service termination notice for that route; or after September 30, 1999 , the air carrier submits an air service termination notice under section 41719 for that route and the Secretary determines that the carrier suffered excessive losses, including substantial losses on operations on that route during any three quarters of the year immediately preceding the date of submission of the notice.

§ 41717 Interim application of slot rules at Chicago O’Hare International Airport

(a) Slot Operating Window Narrowed.— Effective July 1, 2001 , the requirements of subparts K and S of part 93 of title 14, Code of Federal Regulations, do not apply with respect to aircraft operating before 2:45 post meridiem and after 8:14 post meridiem at Chicago O’Hare International Airport.

(b) Exemptions for Air Service to Small and Nonhub Airports.— Effective May 1, 2000 , subject to section 41714(i), the Secretary of Transportation shall grant, by order, exemptions from the requirements of subparts K and S of part 93 of title 14, Code of Federal Regulations (pertaining to slots at high density airports), to any air carrier to provide nonstop air transportation, using an aircraft with a certificated maximum seating capacity of less than 71, between Chicago O’Hare International Airport and a small hub or nonhub airport— if the air carrier was not providing such air transportation during the week of November 1, 1999 ; if the number of flights to be provided between such airports by the air carrier during any week will exceed the number of flights provided by the air carrier between such airports during the week of November 1, 1999 ; or if the air transportation to be provided under the exemption will be provided with a regional jet as replacement of turboprop air transportation that was being provided during the week of November 1, 1999 .

(c) Exemptions for New Entrant and Limited Incumbent Air Carriers.— The Secretary shall grant, by order, 30 exemptions from the requirements under subparts K and S of part 93 of title 14, Code of Federal Regulations, to any new entrant air carrier or limited incumbent air carrier to provide air transportation to or from Chicago O’Hare International Airport. The Secretary shall grant an exemption under paragraph (1) within 45 days of the date of the request for such exemption if the person making the request qualifies as a new entrant air carrier or limited incumbent air carrier.

(d) Slots Used To Provide Turboprop Service.— Except as provided in paragraph (2), a slot used to provide turboprop air transportation that is replaced with regional jet air transportation under subsection (b)(3) may not be used, sold, leased, or otherwise transferred after the date the slot exemption is granted to replace the turboprop air transportation. An air carrier that otherwise could not use 2 slots as a result of paragraph (1) may use 1 of such slots to provide air transportation. If the Secretary determines that an air carrier that is using a slot under paragraph (2) is no longer providing the air transportation that replaced the turboprop air transportation, the Secretary shall withdraw the slot that is being used under paragraph (2). If the Secretary determines that an air carrier that is using a slot under paragraph (2) is no longer providing the air transportation that replaced the turboprop air transportation with a regional jet, the Secretary shall withdraw the slot being used by the air carrier under paragraph (2) but shall allow the air carrier to continue to hold the exemption granted to the air carrier under subsection (b)(3).

(e) International Service at O’Hare Airport.— Subject to paragraph (2), the requirements of subparts K and S of part 93 of title 14, Code of Federal Regulations, shall be of no force and effect at Chicago O’Hare International Airport after May 1, 2000 , with respect to any aircraft providing foreign air transportation. The Secretary may limit access to Chicago O’Hare International Airport with respect to foreign air transportation being provided by a foreign air carrier domiciled in a country to which an air carrier provides nonstop air transportation from the United States if the country in which that carrier is domiciled does not provide reciprocal airport access for air carriers.

(f) Stage 3 Aircraft Required.— An exemption may not be granted under this section with respect to any aircraft that is not a Stage 3 aircraft (as defined by the Secretary).

(g) Preservation of Certain Existing Slot-Related Air Service.— An air carrier that provides air transportation of passengers from Chicago O’Hare International Airport to a small hub airport or nonhub airport, or to an airport that is smaller than a nonhub airport, on or before the date of the enactment of this subsection pursuant to an exemption from the requirements of subparts K and S of part 93 of title 14, Code of Federal Regulations (pertaining to slots at high density airports), or where slots were issued to an air carrier conditioned on a specific airport being served, may not terminate air transportation service for that route for a period of 1 year after the date on which those requirements cease to apply to such airport unless— before October 1, 1999 , the Secretary received a written air service termination notice for that route; or after September 30, 1999 , the air carrier submits an air service termination notice under section 41719 for that route and the Secretary determines that the carrier suffered excessive losses, including substantial losses on operations on that route during the calendar quarters immediately preceding submission of the notice.

§ 41718 Special rules for Ronald Reagan Washington National Airport

(a) Beyond-Perimeter Exemptions.— The Secretary shall grant, by order, 24 exemptions from the application of sections 49104(a)(5), 49109, 49111(e), and 41714 of this title to air carriers to operate limited frequencies and aircraft on select routes between Ronald Reagan Washington National Airport and domestic hub airports and exemptions from the requirements of subparts K and S of part 93, Code of Federal Regulations, if the Secretary finds that the exemptions will— provide air transportation with domestic network benefits in areas beyond the perimeter described in that section; increase competition by new entrant air carriers or in multiple markets; not reduce travel options for communities served by small hub airports and medium hub airports within the perimeter described in section 49109; and not result in meaningfully increased travel delays.

(b) Within-Perimeter Exemptions.— The Secretary shall grant, by order, 20 exemptions from the requirements of sections 49104(a)(5), 49111(e), and 41714 of this title and subparts K and S of part 93 of title 14, Code of Federal Regulations, to air carriers for providing air transportation to airports within the perimeter established for civil aircraft operations at Ronald Reagan Washington National Airport under section 49109. The Secretary shall develop criteria for distributing slot exemptions for flights within the perimeter to such airports under this paragraph in a manner that promotes air transportation— by new entrant air carriers and limited incumbent air carriers; to communities without existing nonstop air transportation to Ronald Reagan Washington National Airport; to small communities; that will provide competitive nonstop air transportation on a monopoly nonstop route to Ronald Reagan Washington National Airport; or that will produce the maximum competitive benefits, including low fares.

(c) Limitations.— An exemption may not be granted under this section with respect to any aircraft that is not a Stage 3 aircraft (as defined by the Secretary). The exemptions granted— under subsections (a), (b), and (i) and departures authorized under subsection (g)(2) may not be for operations between the hours of 10:00 p.m. and 7:00 a.m.; and under subsections (a), (b), (g), and (i) may not increase the number of operations at Ronald Reagan Washington National Airport in any 1-hour period during the hours between 7:00 a.m. and 9:59 p.m. by more than 5 operations. A non-limited incumbent air carrier utilizing an exemption authorized under subsection (g)(3) for an arrival permitted between the hours of 10:01 p.m. and 11:00 p.m. under this section shall discontinue use of an existing slot during the same time period the arrival exemption is operated. Of the exemptions granted under subsection (b)— without regard to the criteria contained in subsection (b)(1), six shall be for air transportation to small hub airports and nonhub airports; ten shall be for air transportation to medium hub and smaller airports; and four shall be for air transportation to airports without regard to their size. Nothing in this section affects Exemption No. 5133, as from time-to-time amended and extended.

(d) Application Procedures.— The Secretary shall establish procedures to ensure that all requests for exemptions under this section are granted or denied within 90 days after the date on which the request is made.

(e) Applicability of Certain Laws.— Neither the request for, nor the granting of an exemption, under this section shall be considered for purposes of any Federal law a major Federal action significantly affecting the quality of the human environment.

(f) Commuters Defined.— For purposes of aircraft operations at Ronald Reagan Washington National Airport under subpart K of part 93 of title 14, Code of Federal Regulations, the term “commuters” means aircraft operations using aircraft having a certificated maximum seating capacity of 76 or less.

(g) Additional Slot Exemptions.— Not later than 90 days after the date of enactment of the FAA Modernization and Reform Act of 2012, the Secretary shall grant, by order 16 exemptions from— the application of sections 49104(a)(5), 49109, and 41714 to air carriers to operate limited frequencies and aircraft on routes between Ronald Reagan Washington National Airport and airports located beyond the perimeter described in section 49109; and the requirements of subparts K and S of part 93, Code of Federal Regulations. Of the slot exemptions made available under paragraph (1), the Secretary shall make 8 available to limited incumbent air carriers or new entrant air carriers (as such terms are defined in section 41714(h)). Such exemptions shall be allocated pursuant to the application process established by the Secretary under subsection (d). The Secretary shall consider the extent to which the exemptions will— provide air transportation with domestic network benefits in areas beyond the perimeter described in section 49109; increase competition in multiple markets; not reduce travel options for communities served by small hub airports and medium hub airports within the perimeter described in section 49109; not result in meaningfully increased travel delays; enhance options for nonstop travel to and from the beyond-perimeter airports that will be served as a result of those exemptions; have a positive impact on the overall level of competition in the markets that will be served as a result of those exemptions; or produce public benefits, including the likelihood that the service to airports located beyond the perimeter described in section 49109 will result in lower fares, higher capacity, and a variety of service options. Of the slot exemptions made available under paragraph (1), the Secretary shall make 8 available to incumbent air carriers qualifying for status as a non-limited incumbent carrier at Ronald Reagan Washington National Airport as of the date of enactment of the FAA Modernization and Reform Act of 2012. Each such non-limited incumbent air carrier— may operate up to a maximum of 2 of the newly authorized slot exemptions; prior to exercising an exemption made available under paragraph (1), shall discontinue the use of a slot for service between Ronald Reagan Washington National Airport and a large hub airport within the perimeter as described in section 49109, and operate, in place of such service, service between Ronald Reagan Washington National Airport and an airport located beyond the perimeter described in section 49109; shall be entitled to return of the slot by the Secretary if use of the exemption made available to the carrier under paragraph (1) is discontinued; shall have sole discretion concerning the use of an exemption made available under paragraph (1), including the initial or any subsequent beyond perimeter destinations to be served; and shall file a notice of intent with the Secretary and subsequent notices of intent, when appropriate, to inform the Secretary of any change in circumstances concerning the use of any exemption made available under paragraph (1). Notices of intent under paragraph (3)(E) shall specify the beyond perimeter destination to be served and the slots the carrier shall discontinue using to serve a large hub airport located within the perimeter. Beyond-perimeter flight operations carried out by an air carrier using an exemption granted under this subsection shall be subject to the following conditions: An air carrier may not operate a multi-aisle or widebody aircraft in conducting such operations. An air carrier granted an exemption under this subsection is prohibited from transferring the rights to its beyond-perimeter exemptions pursuant to section 41714(j).

(h) Scheduling Priority.— In administering this section, the Secretary shall— afford a scheduling priority to operations conducted by new entrant air carriers and limited incumbent air carriers over operations conducted by other air carriers granted additional slot exemptions under subsection (g) for service to airports located beyond the perimeter described in section 49109; afford a scheduling priority to slot exemptions currently held by new entrant air carriers and limited incumbent air carriers for service to airports located beyond the perimeter described in section 49109, to the extent necessary to protect viability of such service; and consider applications from foreign air carriers that are certificated by the government of Canada if such consideration is required by the bilateral aviation agreement between the United States and Canada and so long as the conditions and limitations under this section apply to such foreign air carriers.

(i) Additional Slot Exemptions.— Not later than 60 days after the date of enactment of the FAA Reauthorization Act of 2024, the Secretary shall grant, by order, 10 exemptions from— the application of sections 49104(a)(5), 49109, and 41714 to air carriers to operate limited frequencies and aircraft on routes between Ronald Reagan Washington National Airport and domestic airports located within or beyond the perimeter described in section 49109; and the requirements of subparts K, S, and T of part 93 of title 14, Code of Federal Regulations. Of the slot exemptions made available under paragraph (1), the Secretary shall make 8 available to incumbent air carriers qualifying for status as a non-limited incumbent carrier at Ronald Reagan Washington National Airport as of the date of enactment of the FAA Reauthorization Act of 2024. Of the slot exemptions made available under paragraph (1), the Secretary shall make 2 available to incumbent air carriers qualifying for status as a limited incumbent carrier at Ronald Reagan Washington National Airport as of the date of enactment of the FAA Reauthorization Act of 2024. The Secretary shall allocate the 10 slot exemptions provided under paragraph (1) pursuant to the application process established by the Secretary under subsection (d), subject to the following: Each air carrier that is eligible under paragraph (2) and paragraph (3) shall be eligible to operate no more and no less than 2 of the newly authorized slot exemptions. The Secretary shall consider the extent to which the exemptions will— enhance options for nonstop travel to beyond-perimeter airports that do not have nonstop service from Ronald Reagan Washington National Airport as of the date of enactment of the FAA Reauthorization Act of 2024; or have a positive impact on the overall level of competition in the markets that will be served as a result of those exemptions. The Metropolitan Washington Airports Authority may not assess any penalty or similar levy against an individual air carrier solely for obtaining and operating a slot exemption authorized under this subsection. Subparagraph (A) shall not be construed as prohibiting the Metropolitan Washington Airports Authority from assessing and collecting any penalty, fine, or other levy, such as a handling fee or landing fee, that is— authorized by the Metropolitan Washington Airports Regulations; agreed to in writing by the air carrier; or charged in the ordinary course of business to an air carrier operating at Ronald Reagan Washington National Airport regardless of whether or not the air carrier obtained a slot exemption authorized under this subsection.

§ 41719 Air service termination notice

(a) In General.— An air carrier may not terminate interstate air transportation from a nonhub airport included on the Secretary of Transportation’s latest published list of such airports, unless such air carrier has given the Secretary at least 45 days’ notice before such termination.

(b) Exceptions.— The requirements of subsection (a) shall not apply when— the carrier involved is experiencing a sudden or unforeseen financial emergency, including natural weather related emergencies, equipment-related emergencies, and strikes; the termination of transportation is made for seasonal purposes only; the carrier involved has operated at the affected nonhub airport for 180 days or less; the carrier involved provides other transportation by jet from another airport serving the same community as the affected nonhub airport; or the carrier involved makes alternative arrangements, such as a change of aircraft size, or other types of arrangements with a part 121 or part 135 air carrier, that continues uninterrupted service from the affected nonhub airport.

(c) Waivers for Regional/Commuter Carriers.— Before January 1, 1995 , the Secretary shall establish terms and conditions under which regional/commuter carriers can be excluded from the termination notice requirement.

(d) Definitions.— In this section, the following definitions apply: The term “part 121 air carrier” means an air carrier to which part 121 of title 14, Code of Federal Regulations, applies. The term “part 135 air carrier” means an air carrier to which part 135 of title 14, Code of Federal Regulations, applies. The term “regional/commuter carrier” means— a part 135 air carrier; or a part 121 air carrier that provides air transportation exclusively with aircraft having a seating capacity of no more than 70 passengers. The term “termination” means the cessation of all service at an airport by an air carrier.

§ 41720 Joint venture agreements

(a) Definitions.— In this section, the following definitions apply: The term “joint venture agreement” means an agreement between two or more major air carriers on or after January 1, 1998 , with regard to (A) code-sharing, blocked-space arrangements, long-term wet leases (as defined in section 207.1 of title 14, Code of Federal Regulations) of a substantial number (as defined by the Secretary by regulation) of aircraft, or frequent flyer programs, or (B) any other cooperative working arrangement (as defined by the Secretary by regulation) between 2 or more major air carriers that affects more than 15 percent of the total number of available seat miles offered by the major air carriers. The term “major air carrier” means a passenger air carrier that is certificated under chapter 411 of this title and included in Carrier Group III under criteria contained in section 04 of part 241 of title 14, Code of Federal Regulations.

(b) Submission of Joint Venture Agreement.— At least 30 days before a joint venture agreement may take effect, each of the major air carriers that entered into the agreement shall submit to the Secretary— a complete copy of the joint venture agreement and all related agreements; and other information and documentary material that the Secretary may require by regulation.

(c) Extension of Waiting Period.— The Secretary may extend the 30-day period referred to in subsection (b) until— in the case of a joint venture agreement with regard to code-sharing, the 150th day following the last day of such period; and in the case of any other joint venture agreement, the 60th day following the last day of such period. If the Secretary extends the 30-day period referred to in subsection (b), the Secretary shall publish in the Federal Register the Secretary’s reasons for making the extension.

(d) Termination of Waiting Period.— At any time after the date of submission of a joint venture agreement under subsection (b), the Secretary may terminate the waiting periods referred to in subsections (b) and (c) with respect to the agreement.

(e) Regulations.— The effectiveness of a joint venture agreement may not be delayed due to any failure of the Secretary to issue regulations to carry out this section.

(f) Memorandum To Prevent Duplicative Reviews.— Promptly after the date of enactment of this section, the Secretary shall consult with the Assistant Attorney General of the Antitrust Division of the Department of Justice in order to establish, through a written memorandum of understanding, preclearance procedures to prevent unnecessary duplication of effort by the Secretary and the Assistant Attorney General under this section and the antitrust laws of the United States, respectively.

(g) Prior Agreements.— With respect to a joint venture agreement entered into before the date of enactment of this section as to which the Secretary finds that— the parties submitted the agreement to the Secretary before such date of enactment; and the parties submitted all information on the agreement requested by the Secretary, the waiting period described in paragraphs (2) and (3) shall begin on the date, as determined by the Secretary, on which all such information was submitted and end on the last day to which the period could be extended under this section.

(h) Limitation on Statutory Construction.— The authority granted to the Secretary under this section shall not in any way limit the authority of the Attorney General to enforce the antitrust laws as defined in the first section of the Clayton Act ( 15 U.S.C. 12 ).

§ 41721 Reports by carriers on incidents involving animals during air transport

(a) In General.— An air carrier that provides scheduled passenger air transportation shall submit monthly to the Secretary a report on any incidents involving the loss, injury, or death of an animal (as defined by the Secretary of Transportation) during air transport provided by the air carrier. The report shall be in such form and contain such information as the Secretary determines appropriate.

(b) Training of Air Carrier Employees.— The Secretary shall work with air carriers to improve the training of employees with respect to the air transport of animals and the notification of passengers of the conditions under which the air transport of animals is conducted.

(c) Sharing of Information.— The Secretary and the Secretary of Agriculture shall enter into a memorandum of understanding to ensure the sharing of information that the Secretary receives under subsection (a).

(d) Publication of Data.— The Secretary shall publish data on incidents and complaints involving the loss, injury, or death of an animal during air transport in a manner comparable to other consumer complaint and incident data.

(e) Air Transport.— For purposes of this section, the air transport of an animal includes the entire period during which an animal is in the custody of an air carrier, from check-in of the animal prior to departure until the animal is returned to the owner or guardian of the animal at the final destination of the animal.

§ 41722 Delay reduction actions

(a) Scheduling Reduction Meetings.— The Secretary of Transportation may request that air carriers meet with the Administrator of the Federal Aviation Administration to discuss flight reductions at severely congested airports to reduce overscheduling and flight delays during hours of peak operation if— the Administrator determines that it is necessary to convene such a meeting; and the Secretary determines that the meeting is necessary to meet a serious transportation need or achieve an important public benefit.

(b) Meeting Conditions.— Any meeting under subsection (a)— shall be chaired by the Administrator; shall be open to all scheduled air carriers; and shall be limited to discussions involving the airports and time periods described in the Administrator’s determination.

(c) Flight Reduction Targets.— Before any such meeting is held, the Administrator shall establish flight reduction targets for the meeting and notify the attending air carriers of those targets not less than 48 hours before the meeting.

(d) Delay Reduction Offers.— An air carrier attending the meeting shall make any offer to meet a flight reduction target to the Administrator rather than to another carrier.

(e) Transcript.— The Administrator shall ensure that a transcript of the meeting is kept and made available to the public not later than 3 business days after the conclusion of the meeting.

§ 41723 Notice concerning aircraft assembly

The Secretary of Transportation shall require, beginning after the last day of the 18-month period following the date of enactment of this section, an air carrier using an aircraft to provide scheduled passenger air transportation to display a notice, on an information placard available to each passenger on the aircraft, that informs the passengers of the nation in which the aircraft was finally assembled. (Added Pub. L. 108–176, title VIII, § 810(a) , Dec. 12, 2003 , 117 Stat. 2590 .)

§ 41724 Musical instruments

(a) In General.— An air carrier providing air transportation shall permit a passenger to carry a violin, guitar, or other musical instrument in the aircraft cabin, without charging the passenger a fee in addition to any standard fee that carrier may require for comparable carry-on baggage, if— the instrument can be stowed safely in a suitable baggage compartment in the aircraft cabin or under a passenger seat, in accordance with the requirements for carriage of carry-on baggage or cargo established by the Administrator; and there is space for such stowage at the time the passenger boards the aircraft. An air carrier providing air transportation shall permit a passenger to carry a musical instrument that is too large to meet the requirements of paragraph (1) in the aircraft cabin, without charging the passenger a fee in addition to the cost of the additional ticket described in subparagraph (E), if— the instrument is contained in a case or covered so as to avoid injury to other passengers; the weight of the instrument, including the case or covering, does not exceed 165 pounds or the applicable weight restrictions for the aircraft; the instrument can be stowed in accordance with the requirements for carriage of carry-on baggage or cargo established by the Administrator; neither the instrument nor the case contains any object not otherwise permitted to be carried in an aircraft cabin because of a law or regulation of the United States; and the passenger wishing to carry the instrument in the aircraft cabin has purchased an additional seat to accommodate the instrument. An air carrier shall transport as baggage a musical instrument that is the property of a passenger traveling in air transportation that may not be carried in the aircraft cabin if— the sum of the length, width, and height measured in inches of the outside linear dimensions of the instrument (including the case) does not exceed 150 inches or the applicable size restrictions for the aircraft; the weight of the instrument does not exceed 165 pounds or the applicable weight restrictions for the aircraft; and the instrument can be stowed in accordance with the requirements for carriage of carry-on baggage or cargo established by the Administrator.

(b) Regulations.— Not later than 2 years after the date of enactment of this section, the Secretary shall issue final regulations to carry out subsection (a).

(c) Effective Date.— The requirements of this section shall become effective on the date of issuance of the final regulations under subsection (b).

§ 41725 Prohibition on certain cell phone voice communications

(a) Prohibition.— The Secretary of Transportation shall issue regulations— to prohibit an individual on an aircraft from engaging in voice communications using a mobile communications device during a flight of that aircraft in scheduled passenger interstate or intrastate air transportation; and that exempt from the prohibition described in paragraph (1) any— member of the flight crew on duty on an aircraft; flight attendant on duty on an aircraft; and Federal law enforcement officer acting in an official capacity.

(b) Definitions.— In this section, the following definitions apply: The term “flight” means, with respect to an aircraft, the period beginning when the aircraft takes off and ending when the aircraft lands. The term “mobile communications device” means any portable wireless telecommunications equipment utilized for the transmission or reception of voice data. The term “mobile communications device” does not include a phone installed on an aircraft.

§ 41726 Strollers

(a) In General.— Except as provided in subsection (b), a covered air carrier shall not deny a passenger the ability to check a stroller at the departure gate if the stroller is being used by a passenger to transport a child traveling on the same flight as the passenger.

(b) Exception.— Subsection (a) shall not apply in instances where the size or weight of the stroller poses a safety or security risk.

(c) Covered Air Carrier Defined.— In this section, the term “covered air carrier” means an air carrier or a foreign air carrier as those terms are defined in section 40102 of title 49 , United States Code.

§ 41727 Passenger Rights 11 So in original. Probably should not be capitalized.

(a) Guidelines.— The Secretary of Transportation shall require each covered air carrier to submit a summarized 1-page document that describes the rights of passengers in air transportation, including guidelines for the following: Compensation (regarding rebooking options, refunds, meals, and lodging) for flight delays of various lengths. Compensation (regarding rebooking options, refunds, meals, and lodging) for flight diversions. Compensation (regarding rebooking options, refunds, meals, and lodging) for flight cancellations. Compensation for mishandled baggage, including delayed, damaged, pilfered, or lost baggage. Voluntary relinquishment of a ticketed seat due to overbooking or priority of other passengers. Involuntary denial of boarding and forced removal for whatever reason, including for safety and security reasons.

(b) Filing of Summarized Guidelines.— Not later than 90 days after each air carrier submits its guidelines to the Secretary under subsection (a), the air carrier shall make available such 1-page document in a prominent location on its website.

§ 41728 Airline passengers with disabilities bill of rights

(a) Airline Passengers With Disabilities Bill of Rights.— The Secretary of Transportation shall develop a document, to be known as the “Airline Passengers with Disabilities Bill of Rights”, using plain language to describe the basic protections and responsibilities of covered air carriers, 1 their employees and contractors, and people with disabilities under section 41705.

(b) Content.— In developing the Airline Passengers with Disabilities Bill of Rights under subsection (a), the Secretary shall include, at a minimum, plain language descriptions of protections and responsibilities provided in law related to the following: The right of passengers with disabilities to be treated with dignity and respect. The right of passengers with disabilities to receive timely assistance, if requested, from properly trained covered air carrier and contractor personnel. The right of passengers with disabilities to travel with wheelchairs, mobility aids, and other assistive devices, including necessary medications and medical supplies, including stowage of such wheelchairs, aids, and devices. The right of passengers with disabilities to receive seating accommodations, if requested, to accommodate a disability. The right of passengers with disabilities to receive announcements in an accessible format. The right of passengers with disabilities to speak with a complaint resolution officer or to file a complaint with a covered air carrier or the Department of Transportation.

(c) Rule of Construction.— The development of the Airline Passengers with Disabilities Bill of Rights under subsections (a) and (b) shall not be construed as expanding or restricting the rights available to passengers with disabilities on the day before the date of enactment of the FAA Reauthorization Act of 2018 pursuant to any statute or regulation.

(d) Consultations.— In developing the Airline Passengers with Disabilities Bill of Rights under subsection (a), the Secretary of Transportation shall consult with stakeholders, including disability organizations and covered air carriers and their contractors.

(e) Display.— Each covered air carrier shall include the Airline Passengers with Disabilities Bill of Rights— on a publicly available internet website of the covered air carrier; and in any pre-flight notifications or communications provided to passengers who alert the covered air carrier in advance of the need for accommodations relating to a disability.

(f) Training.— Covered air carriers and contractors of covered air carriers shall submit to the Secretary of Transportation plans that ensure that employees of covered air carriers and their contractors receive training on the protections and responsibilities described in the Airline Passengers with Disabilities Bill of Rights. The Secretary shall review such plans to ensure the plans address the matters described in subsection (b).

§ 41729 COVID–19 vaccination status

(a) In General.— An air carrier (as such term is defined in section 40102) may not deny service to any individual solely based on the vaccination status of the individual with respect to COVID–19.

(b) Rule of Construction.— Nothing in this section shall be construed to apply to the regulation of intrastate travel, transportation, or movement, including the intrastate transportation of passengers.

§ 41731 Definitions

(a) General.— In this subchapter— “eligible place” means a place in the United States that— was an eligible point under section 419 of the Federal Aviation Act of 1958 before October 1, 1988 ; received scheduled air transportation at any time after January 1, 1990 ; and is not listed in Department of Transportation Orders 89–9–37 and 89–12–52 as a place ineligible for compensation under this subchapter; or was determined, on or after October 1, 1988 , and before the date of the enactment of the FAA Extension, Safety, and Security Act of 2016 ( Public Law 114–190 ), under this subchapter by the Secretary of Transportation to be eligible to receive subsidized small community air service under section 41736(a); had an average of 10 enplanements per service day or more, as determined by the Secretary, during the most recent fiscal year beginning after September 30, 2012 ; had an average subsidy per passenger, as determined by the Secretary— of less than 850 during the most recent fiscal year beginning after September 30, 2026 , regardless of driving miles to the nearest medium or large hub airport; and of less than $650 during the most recent fiscal year for locations that are less than 175 miles from the nearest large or medium hub airport; and is a community that, at any time during the period between September 30, 2010 , and September 30, 2011 , inclusive— received essential air service for which compensation was provided to an air carrier under this subchapter; or received a 140-day notice of intent to terminate essential air service and the Secretary required the air carrier to continue to provide such service to the community. “enhanced essential air service” means scheduled air transportation to an eligible place of a higher level or quality than basic essential air service described in section 41732 of this title .

(b) Limitation on Authority To Decide a Place Not an Eligible Place.— The Secretary may not decide that a place described in subsection (a)(1) of this section is not an eligible place on any basis that is not specifically stated in this subchapter.

(c) Exception for Locations in Alaska and Hawaii.— Subparagraphs (B), (C), and (D) of subsection (a)(1) shall not apply with respect to locations in the State of Alaska or the State of Hawaii.

(d) Exceptions for Locations More Than 175 Driving Miles From the Nearest Large or Medium Hub Airport.— Subsection (a)(1)(B) shall not apply with respect to locations that are more than 175 driving miles from the nearest large or medium hub airport.

(e) Waivers.— The Secretary may waive, on an annual basis, subsections (a)(1)(B) and (a)(1)(C)(iii) with respect to an eligible place if such place demonstrates to the Secretary’s satisfaction that the reason the eligibility requirements of such subsections are not met is due to a temporary decline in demand. Beginning with fiscal year 2027, the Secretary may not provide a waiver of subsection (a)(1)(B) to any location— in more than 2 consecutive fiscal years; or in more than 5 fiscal years within 25 consecutive years. Beginning in fiscal year 2027, the Secretary may not provide a waiver of subsection (a)(1)(C)(iii) to any location— in more than 2 consecutive fiscal years; or in more than 5 fiscal years within 25 consecutive years.

(f) Definition.— For purposes of subsection (a)(1)(B), the term “enplanements” means the number of passengers enplaning, at an eligible place, on flights operated by the subsidized essential air service carrier.

§ 41732 Basic essential air service

(a) General.— Basic essential air service provided under section 41733 of this title is scheduled air transportation of passengers and cargo— to a medium or large hub airport less than 650 miles from an eligible place (unless such airport or eligible place are located in a noncontiguous State); or to a small hub or nonhub airport, when in Alaska or when the nearest medium or large hub airport is more than 400 miles from an eligible place.

(b) Minimum Requirements.— Basic essential air service shall include at least the following: for a place not in Alaska, 2 daily round trips 6 days a week, with not more than one intermediate stop on each flight; or for a place in Alaska, a level of service at least equal to that provided in 1976 or 2 round trips a week, whichever is greater, except that the Secretary of Transportation and the appropriate State authority of Alaska may agree to a different level of service after consulting with the affected community. flights at reasonable times considering the needs of passengers with connecting flights at the airport and at prices that are not excessive compared to the generally prevailing prices of other air carriers for like service between similar places. service provided in aircraft with at least 2 engines and using 2 pilots, unless scheduled air transportation has not been provided to the place in aircraft with at least 2 engines and using 2 pilots for at least 60 consecutive operating days at any time since October 31, 1978 .

(c) Waivers.— Notwithstanding section 41733(e), upon request by an eligible place, the Secretary may waive, in whole or in part, subsections (a) and (b) of this section or subsections (a) through (c) of section 41734. A waiver issued under this subsection shall remain in effect for a limited period of time, as determined by the Secretary.

§ 41733 Level of basic essential air service

(a) Decisions Made Before October 1, 1988.— For each eligible place for which a decision was made before October 1, 1988 , under section 419 of the Federal Aviation Act of 1958, establishing the level of essential air transportation, the level of basic essential air service for that place shall be the level established by the Secretary of Transportation for that place by not later than December 29, 1988 .

(b) Decisions Not Made Before October 1, 1988.— The Secretary shall decide on the level of basic essential air service for each eligible place for which a decision was not made before October 1, 1988 , establishing the level of essential air transportation, when the Secretary receives notice that service to that place will be provided by only one air carrier. The Secretary shall make the decision by the last day of the 6-month period beginning on the date the Secretary receives the notice. The Secretary may impose notice requirements necessary to carry out this subsection. Before making a decision, the Secretary shall consider the views of any interested community and the appropriate State authority of the State in which the community is located. Until the Secretary has made a decision on a level of basic essential air service for an eligible place under this subsection, the Secretary, on petition by an appropriate representative of the place, as defined by the Secretary, shall prohibit an air carrier from ending, suspending, or reducing air transportation to that place that appears to deprive the place of basic essential air service.

(c) Availability of Compensation.— If the Secretary decides that basic essential air service will not be provided to an eligible place without compensation, the Secretary shall provide notice that an air carrier may apply to provide basic essential air service to the place for compensation under this section. In selecting an applicant, the Secretary shall consider, among other factors— the demonstrated reliability of the applicant in providing scheduled air service; the contractual, marketing, code-share, or interline arrangements the applicant has made with a larger air carrier serving the hub airport; the preferences of the actual and potential users of air transportation at the eligible place, including the views of the elected officials representing the users; whether the air carrier has included a plan in its proposal to market its services to the community; for an eligible place in Alaska, the experience of the applicant in providing, in Alaska, scheduled air service, or significant patterns of non-scheduled air service under an exemption granted under section 40109(a) and (c)–(h) of this title; and the total compensation proposed by the air carrier for providing scheduled air service under this section. Under guidelines prescribed under section 41737(a) of this title , the Secretary shall pay the rate of compensation for providing basic essential air service under this section and section 41734 of this title .

(d) Compensation Payments.— The Secretary shall pay compensation under this section at times and in the way the Secretary decides is appropriate. The Secretary shall end payment of compensation to an air carrier for providing basic essential air service to an eligible place when the Secretary decides the compensation is no longer necessary to maintain basic essential air service to the place.

(e) Review.— The Secretary shall review periodically the level of basic essential air service for each eligible place. Based on the review and consultations with an interested community and the appropriate State authority of the State in which the community is located, the Secretary may make appropriate adjustments in the level of service, to the extent such adjustments are to a level not less than the basic essential air service level established under subsection (a) for the airport that serves the community.

(f) Notice to Communities Prior to Termination of Eligibility.— The Secretary shall notify each community receiving basic essential air service for which compensation is being paid under this subchapter on or before the 45th day before issuing any final decision to end the payment of such compensation due to a determination by the Secretary that providing such service requires a rate of subsidy per passenger in excess of the subsidy cap. The Secretary shall establish, by order, procedures by which each community notified of an impending loss of subsidy under paragraph (1) may work directly with an air carrier to ensure that the air carrier is able to submit a proposal to the Secretary to provide essential air service to such community for an amount of compensation that would not exceed the subsidy cap. The Secretary shall provide, by order, information to each community notified under paragraph (1) regarding— the procedures established pursuant to paragraph (2); and the maximum amount of compensation that could be provided under this subchapter to an air carrier serving such community that would comply with basic essential air service and the subsidy cap.

(g) Proposals of State and Local Governments to Restore Eligibility.— If the Secretary, after the date of enactment of this subsection, ends payment of compensation to an air carrier for providing basic essential air service to an eligible place because the Secretary has determined that providing such service requires a rate of subsidy per passenger in excess of the subsidy cap or that the place is no longer an eligible place pursuant to section 41731(a)(1)(B), a State or local government may submit to the Secretary a proposal for restoring compensation for such service. Such proposal shall be a joint proposal of the State or local government and an air carrier. The Secretary shall issue an order restoring the eligibility of the otherwise eligible place to receive basic essential air service by an air carrier for compensation under subsection (c) if— a State or local government submits to the Secretary a proposal under paragraph (1); and the Secretary determines that— the rate of subsidy per passenger under the proposal does not exceed the subsidy cap; the proposal is likely to result in an average number of enplanements per day that will satisfy the requirement in section 41731(a)(1)(B); and the proposal is consistent with the legal and regulatory requirements of the essential air service program.

(h) Subsidy Cap Defined.— In this section, the term “subsidy cap” means the subsidy-per-passenger cap established under section 41731(a)(1)(C).

(i) Community Petition for Review.— An appropriate representative of an eligible place, as defined by the Secretary, may submit to the Secretary a petition expressing no confidence in the air carrier providing basic essential air service under this section and requesting a review by the Secretary. A petition submitted under this subsection shall demonstrate that the air carrier— is unwilling or unable to meet the operational specifications outlined in the order issued by the Secretary specifying the terms of basic essential air service to such place; is experiencing reliability challenges with the potential to adversely affect air service to such place; or is no longer able to provide service to such place at the rate of compensation specified by the Secretary. Not later than 2 months after the date on which the Secretary receives a petition under paragraph (1), the Secretary shall review the operational performance of the air carrier providing basic essential air service to such place that submitted such petition and determine whether such air carrier is fully complying with the obligations specified in the order issued by the Secretary specifying the terms of basic essential air service to such place. If based on a review under paragraph (2), the Secretary determines noncompliance by an air carrier with an order specifying the terms for basic essential air service to the community, the Secretary may— terminate the order issued to the air carrier; and issue a notice pursuant to subsection (c) that an air carrier may apply to provide basic essential air service to such place for compensation under this section and select an applicant pursuant to such subsection. If the Secretary makes a determination under paragraph (3) to terminate an order issued to an air carrier under this section, the Secretary shall ensure continuity in air service to the affected place.

§ 41734 Ending, suspending, and reducing basic essential air service

(a) Notice Required.— Subject to subsection (d), an air carrier may end, suspend, or reduce air transportation to an eligible place below the level of basic essential air service established for that place under section 41733 of this title only after giving the Secretary of Transportation, the appropriate State authority, and the affected communities at least 140 days’ notice before ending, suspending, or reducing that transportation.

(b) Continuation of Service for 30 Days After Notice Period.— If at the end of the notice period under subsection (a) of this section the Secretary has not found another air carrier to provide basic essential air service to the eligible place, the Secretary shall require the carrier providing notice to continue to provide basic essential air service to the place for an additional 30-day period or until another carrier begins to provide basic essential air service to the place, whichever occurs first.

(c) Continuation of Service for Additional 30-Day Periods.— If at the end of the 30-day period under subsection (b) of this section the Secretary decides another air carrier will not provide basic essential air service to the place on a continuing basis, the Secretary shall require the carrier providing service to continue to provide service for additional 30-day periods until another carrier begins providing service on a continuing basis. At the end of each 30-day period, the Secretary shall decide if another carrier will provide service on a continuing basis.

(d) Continuation of Compensation After Notice Period.— If an air carrier receiving compensation under section 41733 for providing basic essential air service to an eligible place is required to continue to provide service to such place under this section after the 140-day notice period under subsection (a), the Secretary— shall provide the carrier with compensation sufficient to pay to the carrier the amount required by the then existing contract for performing the basic essential air service that was being provided when the 140-day notice was given under subsection (a); may pay an additional amount that represents a reasonable return on investment; and may pay an additional return that recognizes the demonstrated additional lost profits from opportunities foregone and the likelihood that those lost profits increase as the period during which the carrier or provider is required to provide the service continues. The Secretary may incorporate contract termination penalties or conditions on compensation into a contract for an air carrier to provide service to an eligible place that take effect in the event an air carrier provides notice that it is ending, suspending, or reducing basic essential air service.

(e) Compensation to Air Carriers Originally Providing Service Without Compensation.— If the Secretary requires an air carrier providing basic essential air service to an eligible place without compensation under section 41733 of this title to continue providing that service after the 140-day notice period required by subsection (a), the Secretary may provide the air carrier with compensation after the end of the 140-day notice period to pay for the fully allocated actual cost to the air carrier of performing the basic essential air service that was being provided when the 140-day notice was given under subsection (a) plus a reasonable return on investment that is at least 5 percent of operating costs.

(f) Finding Replacement Carriers.— When the Secretary requires an air carrier to continue to provide basic essential air service to an eligible place, the Secretary shall continue to make every effort to find another air carrier to provide at least that basic essential air service to the place on a continuing basis.

(g) Transfer of Authority.— If an air carrier, providing basic essential air service under section 41733 of this title between an eligible place and an airport at which the Administrator of the Federal Aviation Administration limits the number of instrument flight rule takeoffs and landings of aircraft, provides notice under subsection (a) of this section of an intention to end, suspend, or reduce that service and another carrier is found to provide the service, the Secretary shall require the carrier providing notice to transfer any operational authority the carrier has to land or take off at that airport related to the service to the eligible place to the carrier that will provide the service, if— the carrier that will provide the service needs the authority; and the authority to be transferred is being used to provide air service to another eligible place.

(h) Nonconsideration of Slot Availability.— In determining what is basic essential air service and in selecting an air carrier to provide such service, the Secretary shall not consider as a factor whether slots at a high density airport are available for providing such service.

(i) Exemption From Hold-In Requirements.— If, after the date of enactment of this subsection, an air carrier commences air transportation to an eligible place that is not receiving scheduled passenger air service as a result of the failure of the eligible place to meet requirements contained in an appropriations Act, the air carrier shall not be subject to the requirements of subsections (b) and (c) with respect to such air transportation.

[§ 41735 Repealed. Pub. L. 118–63, title V, § 561(g), May 16, 2024, 138 Stat. 1216]

§ 41736 Air transportation to noneligible places

(a) Proposals and Decisions.— A State or local government may propose to the Secretary of Transportation that the Secretary provide compensation to an air carrier to provide air transportation to a place that is not an eligible place under this subchapter. Not later than 90 days after receiving a proposal under this section, the Secretary shall— decide whether to designate the place as eligible to receive compensation under this section; and approve the proposal if the State or local government or a person is willing and able to pay 50 percent of the compensation for providing the transportation, and notify the State or local government of the approval; or disapprove the proposal if the Secretary decides the proposal is not reasonable under paragraph (2) of this subsection, and notify the State or local government of the disapproval and the reasons for the disapproval. In deciding whether a proposal is reasonable, the Secretary shall consider, among other factors— the traffic-generating potential of the place; the cost to the United States Government of providing the proposed transportation; and the distance of the place from the closest hub airport.

(b) Approval for Certain Air Transportation.— Notwithstanding subsection (a)(1)(B) of this section, the Secretary shall approve a proposal under this section to compensate an air carrier for providing air transportation to a place in the 48 contiguous States or the District of Columbia and designate the place as eligible for compensation under this section if— at any time before October 23, 1978 , the place was served by a carrier holding a certificate under section 401 of the Federal Aviation Act of 1958; the place is more than 50 miles from the nearest small hub airport or an eligible place; the place is more than 150 miles from the nearest hub airport; and the State or local government submitting the proposal or a person is willing and able to pay 25 percent of the cost of providing the compensated transportation. Paragraph (4) does not apply to any community approved for service under this section during the period beginning October 1, 1991 , and ending December 31, 1997 .

(c) Level of Air Transportation.— If the Secretary designates a place under subsection (a)(1) of this section as eligible for compensation under this section, the Secretary shall decide, not later than 6 months after the date of the designation, on the level of air transportation to be provided under this section. Before making a decision, the Secretary shall consider the views of any interested community, the appropriate State authority of the State in which the place is located, and the State or local government or person agreeing to pay compensation for the transportation under subsection (b)(4) of this section. After making the decision under paragraph (1) of this subsection, the Secretary shall provide notice that any air carrier that is willing to provide the level of air transportation established under paragraph (1) for a place may submit an application to provide the transportation. In selecting an applicant, the Secretary shall consider, among other factors— the factors listed in section 41733(c)(1) of this title ; and the views of the State or local government or person agreeing to pay compensation for the transportation.

(d) Compensation Payments.— The Secretary shall pay compensation under this section when and in the way the Secretary decides is appropriate. The Secretary shall continue to pay compensation under this section only as long as— the air carrier maintains the level of air transportation established by the Secretary under subsection (c)(1) of this section; the State or local government or person agreeing to pay compensation for transportation under this section continues to pay that compensation; and the Secretary decides the compensation is necessary to maintain the transportation to the place. The Secretary may require the State or local government or person agreeing to pay compensation under this section to make advance payments or provide other security to ensure that timely payments are made.

(e) Review.— The Secretary shall review periodically the level of air transportation provided under this section. Based on the review and consultation with any interested community, the appropriate State authority of the State in which the community is located, and the State or local government or person paying compensation under this section, the Secretary may make appropriate adjustments in the level of transportation.

(f) Withdrawal of Eligibility Designations.— After providing notice and an opportunity for interested persons to comment, the Secretary may withdraw the designation of a place under subsection (a)(1) of this section as eligible to receive compensation under this section if the place has received air transportation under this section for at least 2 years and the Secretary decides the withdrawal would be in the public interest. The Secretary by regulation shall prescribe standards for deciding whether the withdrawal of a designation under this subsection is in the public interest. The standards shall include the factors listed in subsection (a)(2) of this section.

(g) Ending, Suspending, and Reducing Air Transportation.— An air carrier providing air transportation for compensation under this section may end, suspend, or reduce that transportation below the level of transportation established by the Secretary under this section only after giving the Secretary, the affected community, and the State or local government or person paying compensation under this section at least 30 days’ notice before ending, suspending, or reducing the transportation.

(h) Sunset.— No proposal under subsection (a) may be accepted by the Secretary after the date of enactment of this subsection. The Secretary may not provide any compensation under this section after the date that is 2 years after the date of enactment of this subsection.

§ 41737 Compensation guidelines, limitations, and claims

(a) Compensation Guidelines.— The Secretary of Transportation shall prescribe guidelines governing the rate of compensation payable under this subchapter. The guidelines shall be used to determine the reasonable amount of compensation required to ensure the continuation of air service or air transportation under this subchapter. The guidelines shall— provide for a reduction in compensation when an air carrier does not provide service or transportation agreed to be provided; consider amounts needed by an air carrier to promote public use of the service or transportation for which compensation is being paid; include expense elements based on representative costs of air carriers providing scheduled air transportation of passengers, property, and mail on aircraft of the type the Secretary decides is appropriate for providing the service or transportation for which compensation is being provided; include provisions under which the Secretary may encourage an air carrier to improve air service for which compensation is being paid under this subchapter by incorporating financial incentives in an essential air service contract based on specified performance goals, including goals related to improving on-time performance, reducing the number of flight cancellations, establishing reasonable fares (including joint fares beyond the hub airport), establishing convenient connections to flights providing service beyond hub airports, and increasing marketing efforts; and include provisions under which the Secretary may execute a long-term essential air service contract to encourage an air carrier to provide air service to an eligible place if it would be in the public interest to do so. Promotional amounts described in paragraph (1)(B) of this subsection shall be a special, segregated element of the compensation provided to a carrier under this subchapter.

(b) Required Finding.— The Secretary may pay compensation to an air carrier for providing air service or air transportation under this subchapter only if the Secretary finds the carrier is able to provide the service or transportation in a reliable way.

(c) Claims.— Not later than 15 days after receiving a written claim from an air carrier for compensation under this subchapter, the Secretary shall— pay or deny the United States Government’s share of a claim; and if denying the claim, notify the carrier of the denial and the reasons for the denial.

(d) Authority To Make Agreements and Incur Obligations.— The Secretary may make agreements and incur obligations from the Airport and Airway Trust Fund established under section 9502 of the Internal Revenue Code of 1986 ( 26 U.S.C. 9502 ) to pay compensation under this subchapter. An agreement by the Secretary under this subsection is a contractual obligation of the Government to pay the Government’s share of the compensation.

(e) Adjustments to Account for Significantly Increased Costs.— If the Secretary determines that air carriers are experiencing significantly increased costs in providing air service or air transportation for which compensation is being paid under this subchapter, the Secretary may increase the rates of compensation payable under this subchapter without regard to any agreement or requirement relating to the renegotiation of contracts or any notice requirement under section 41734. If an adjustment is made under paragraph (1), and total unit costs subsequently decrease to at least the total unit cost reflected in the compensation rate, then the Secretary may reverse the adjustment previously made under paragraph (1) without regard to any agreement or requirement relating to the renegotiation of contracts or any notice requirement under section 41734. In this subsection, the term “significantly increased costs” means a total unit cost increase (but not increases in individual unit costs) of 10 percent or more in relation to the total unit cost reflected in the compensation rate, based on the carrier’s internal audit of its financial statements if such cost increase is incurred for a period of at least 2 consecutive months.

§ 41738 Fitness of air carriers

Notwithstanding section 40109(a) and (c)–(h) of this title, an air carrier may provide air service to an eligible place or air transportation to a place designated under section 41736 of this title only when the Secretary of Transportation decides that— the carrier is fit, willing, and able to perform the service or transportation; and aircraft used to provide the service or transportation, and operations related to the service or transportation, conform to the safety standards prescribed by the Administrator of the Federal Aviation Administration. ( Pub. L. 103–272, § 1(e) , July 5, 1994 , 108 Stat. 1152 .)

§ 41739 Air carrier obligations

If at least 2 air carriers make an agreement to operate under or use a single carrier designator code to provide air transportation, the carrier whose code is being used shares responsibility with the other carriers for the quality of transportation provided the public under the code by the other carriers. ( Pub. L. 103–272, § 1(e) , July 5, 1994 , 108 Stat. 1152 .)

[§ 41740 Repealed. Pub. L. 118–63, title V, § 561(i), May 16, 2024, 138 Stat. 1216]

§ 41741 Insurance

The Secretary of Transportation may pay an air carrier compensation under this subchapter only when the carrier files with the Secretary an insurance policy or self-insurance plan approved by the Secretary. The policy or plan must be sufficient to pay for bodily injury to, or death of, an individual, or for loss of or damage to property of others, resulting from the operation of aircraft, but not more than the amount of the policy or plan limits. ( Pub. L. 103–272, § 1(e) , July 5, 1994 , 108 Stat. 1152 .)

§ 41742 Essential air service authorization

(a) In General.— Out of the amounts received by the Federal Aviation Administration credited to the account established under section 45303 of this title or otherwise provided to the Administration, the sum of 348,544,000 for fiscal year 2024, 342,000,000 for fiscal year 2026, 350,000,000 for fiscal year 2028 to carry out the essential air service program under this subchapter of which not more than $12,000,000 per fiscal year may be used for the marketing incentive program for communities and for State marketing assistance. In addition to amounts authorized under paragraphs (1) and (2), there are authorized to be appropriated such sums as may be necessary for the Secretary of Transportation to hire and employ 4 additional employees for the office responsible for carrying out the essential air service program.

(b) Distribution of Additional Funds.— Notwithstanding any other provision of law, in any fiscal year in which funds credited to the account established under section 45303, including the funds derived from fees imposed under the authority contained in section 45301(a), exceed the $50,000,000 made available under subsection (a)(1), such funds shall be made available immediately for obligation and expenditure to carry out the essential air service program under this subchapter.

(c) Availability of Funds.— The funds made available under this section shall remain available until expended.

§ 41743 Airports not receiving sufficient service

(a) Small Community Air Service Development Program.— The Secretary of Transportation shall establish a program that meets the requirements of this section for improving air carrier service to airports not receiving sufficient air carrier service.

(b) Application Required.— In order to participate in the program established under subsection (a), a community or consortium of communities shall submit an application to the Secretary in such form, at such time, and containing such information as the Secretary may require, including— an assessment of the need of the community or consortium for access, or improved access, to the national air transportation system; and an analysis of the application of the criteria in subsection (c) to that community or consortium.

(c) Criteria for Participation.— In selecting communities, or consortia of communities, for participation in the program established under subsection (a), the Secretary shall apply the following criteria: On the date of submission of the relevant application under subsection (b), the airport serving the community or consortium— is not larger than a small hub airport, as determined using the Department of Transportation’s most recently published classification; and has— insufficient air carrier service; or unreasonably high air fares. The airport presents characteristics, such as geographic diversity or unique circumstances, that will demonstrate the need for, and feasibility of, the program established under subsection (a). Not more than 4 communities or consortia of communities, or a combination thereof, from the same State may be selected to participate in the program in any fiscal year. No more than 40 communities or consortia of communities, or a combination thereof, may be selected to participate in the program in each year for which funds are appropriated for the program. Except as provided in subparagraph (C), no community, consortia of communities, or combination thereof may participate in the program in support of the same project more than once in a 5-year period, but any community, consortia of communities, or combination thereof may apply, subsequent to such participation, to participate in the program in support of a different project at any time. The Secretary may waive the limitation under subparagraph (B) related to projects that are the same if the Secretary determines that the community or consortium spent little or no money on its previous project or encountered industry or environmental challenges, due to circumstances that were reasonably beyond the control of the community or consortium. The Secretary shall give priority to communities or consortia of communities where— air fares are higher than the average air fares for all communities; the community has demonstrated support from at least 1 air carrier to provide service; the community or consortium will provide a portion of the cost of the activity to be assisted under the program from local sources other than airport revenues; the community or consortium has established, or will establish, a public-private partnership to facilitate air carrier service to the public; the assistance will provide material benefits to a broad segment of the travelling public, including business, educational institutions, and other enterprises, whose access to the national air transportation system is limited; the assistance will be used to help restore scheduled passenger air service that has been terminated or substantially reduced (as measured by enplanements, capacity (seats), schedule, connections, or routes); the assistance will be used in a timely fashion; and multiple communities cooperate to submit a regional or multistate application to consolidate air service into one regional airport.

(d) Types of Assistance.— The Secretary may use amounts made available under this section— to provide assistance to an air carrier to subsidize service to and from an underserved airport for a period not to exceed 3 years, which shall begin with each new grant, including same-project new grants, and which shall be calculated on a non-consecutive basis for air carriers that provide air service that is seasonal; to provide assistance to an underserved airport, or an airport where air service has been terminated or substantially reduced, to obtain service to and from the underserved airport; and to provide assistance to an underserved airport to implement such other measures as the Secretary, in consultation with such airport, considers appropriate to improve air service both in terms of the cost of such service to consumers and the availability of such service, including improving air service through marketing and promotion of air service and enhanced utilization of airport facilities.

(e) Authority To Make Agreements.— The Secretary may make agreements to provide assistance under this section. The Secretary may amend the scope of a grant agreement at the request of the community or consortium and any participating air carrier, and may limit the scope of a grant agreement to only the elements using grant assistance or to only the elements achieved, if the Secretary determines that the amendment is reasonably consistent with the original purpose of the project or the community’s current air service needs. There is authorized to be appropriated to the Secretary $15,000,000 for each of fiscal years 2024 through 2028, to carry out this section. Such sums shall remain available until expended.

(f) Designation of Responsible Official.— The Secretary shall designate an employee of the Department of Transportation— to function as a facilitator between small communities and air carriers; to carry out this section; to ensure that the Bureau of Transportation Statistics collects data on passenger information to assess the service needs of small communities; to work with and coordinate efforts with other Federal, State, and local agencies to increase the viability of service to small communities; and to provide policy recommendations to the Secretary and Congress that will ensure that small communities have access to quality, affordable air transportation services.

[§ 41744 Repealed. Pub. L. 118–63, title V, § 561(j), May 16, 2024, 138 Stat. 1216]

§ 41745 Community and regional choice programs

(a) Alternate Essential Air Service Pilot Program.— The Secretary of Transportation shall establish an alternate essential air service pilot program in accordance with the requirements of this section. In carrying out the program, the Secretary, instead of paying compensation to an air carrier to provide essential air service to an eligible place, may provide assistance directly to a unit of local government having jurisdiction over the eligible place or a State within the boundaries of which the eligible place is located. A unit of local government or State receiving assistance for an eligible place under the program may use the assistance for any of the following purposes: To provide assistance to air carriers that will use smaller equipment to provide the service and to consider increasing the frequency of service using such smaller equipment if the Secretary determines that passenger safety would not be compromised by the use of such smaller equipment and if the State or unit of local government waives the minimum service requirements under section 41732(b). To provide assistance to an air carrier to provide on-demand air taxi service to and from the eligible place. To provide assistance to a person to provide scheduled or on-demand surface transportation to and from the eligible place and an airport in another place. In combination with other units of local government in the same region, to provide transportation services to and from all the eligible places in that region at an airport or other transportation center that can serve all the eligible places in that region. To pay for other transportation or related services that the Secretary may permit.

(b) Applications.— An entity seeking to participate in a program under this section shall submit to the Secretary an application in such form and containing such information as the Secretary may require. At a minimum, the application shall include— a statement of the amount of compensation or assistance required; and a description of how the compensation or assistance will be used.

(c) Participation Requirements.— An eligible place for which compensation or assistance is provided under this section in a fiscal year shall not be eligible in that fiscal year for the essential air service that it would otherwise be entitled to under this subchapter.

(d) Subsequent Participation.— A unit of local government participating in the program under this subsection (a) in a fiscal year shall not be prohibited from participating in the basic essential air service program under this subchapter in a subsequent fiscal year if such unit is otherwise eligible to participate in such program.

(e) Funding.— Amounts appropriated or otherwise made available to carry out the essential air service program under this subchapter shall be available to carry out this section.

§ 41746 Tracking service

The Secretary of Transportation shall require a carrier that provides essential air service to an eligible place and that receives compensation for such service under this subchapter to report not less than semiannually— the percentage of flights to and from the place that arrive on time as defined by the Secretary; and such other information as the Secretary considers necessary to evaluate service provided to passengers traveling to and from such place. (Added Pub. L. 108–176, title IV, § 407 , Dec. 12, 2003 , 117 Stat. 2545 .)

[§ 41747 Repealed. Pub. L. 112–95, title IV, § 430, Feb. 14, 2012, 126 Stat. 100]

[§ 41748 Repealed. Pub. L. 118–63, title V, § 561(l), May 16, 2024, 138 Stat. 1217]

§ 41761 Purpose

The purpose of this subchapter is to improve service by jet aircraft to underserved markets by providing assistance, in the form of Federal credit instruments, to commuter air carriers that purchase regional jet aircraft for use in serving those markets. (Added Pub. L. 106–181, title II, § 210(a) , Apr. 5, 2000 , 114 Stat. 96 .)

§ 41762 Definitions

In this subchapter, the following definitions apply: The term “air carrier” means any air carrier holding a certificate of public convenience and necessity issued by the Secretary of Transportation under section 41102. The term “aircraft purchase” means the purchase of commercial transport aircraft, including spare parts normally associated with the aircraft. The term “capital reserve subsidy amount” means the amount of budget authority sufficient to cover estimated long-term cost to the United States Government of a Federal credit instrument, calculated on a net present value basis, excluding administrative costs and any incidental effects on Government receipts or outlays in accordance with provisions of the Federal Credit Reform Act of 1990 ( 2 U.S.C. 661 et seq.). The term “commuter air carrier” means an air carrier that primarily operates aircraft designed to have a maximum passenger seating capacity of 75 or less in accordance with published flight schedules. The term “Federal credit instrument” means a secured loan, loan guarantee, or line of credit authorized to be made under this subchapter. The term “financial obligation” means any note, bond, debenture, or other debt obligation issued by an obligor in connection with the financing of an aircraft purchase, other than a Federal credit instrument. The term “lender” means any non-Federal qualified institutional buyer (as defined by section 230.144A(a) of title 17, Code of Federal Regulations (or any successor regulation) known as Rule 144A(a) of the Security and Exchange Commission and issued under the Security Act of 1933 ( 15 U.S.C. 77a et seq.)), including— a qualified retirement plan (as defined in section 4974(c) of the Internal Revenue Code of 1986) that is a qualified institutional buyer; and a governmental plan (as defined in section 414(d) of the Internal Revenue Code of 1986) that is a qualified institutional buyer. The term “line of credit” means an agreement entered into by the Secretary with an obligor under section 41763(d) to provide a direct loan at a future date upon the occurrence of certain events. The term “loan guarantee” means any guarantee or other pledge by the Secretary under section 41763(c) to pay all or part of any of the principal of and interest on a loan or other debt obligation issued by an obligor and funded by a lender. The term “new entrant air carrier” means an air carrier that has been providing air transportation according to a published schedule for less than 5 years, including any person that has received authority from the Secretary to provide air transportation but is not providing air transportation. The term “obligor” means a party primarily liable for payment of the principal of or interest on a Federal credit instrument, which party may be a corporation, partnership, joint venture, trust, or governmental entity, agency, or instrumentality. The term “regional jet aircraft” means a civil aircraft— powered by jet propulsion; and designed to have a maximum passenger seating capacity of not less than 30 nor more than 75. The term “secured loan” means a direct loan funded by the Secretary in connection with the financing of an aircraft purchase under section 41763(b). The term “underserved market” means a passenger air transportation market (as defined by the Secretary) that— is served (as determined by the Secretary) by a nonhub airport or a small hub airport; is not within a 40-mile radius of an airport that each year has at least .25 percent of the total annual boardings in the United States; and the Secretary determines does not have sufficient air service. (Added Pub. L. 106–181, title II, § 210(a) , Apr. 5, 2000 , 114 Stat. 96 ; amended Pub. L. 108–176, title II, § 225(b)(5) , Dec. 12, 2003 , 117 Stat. 2529 .)

§ 41763 Federal credit instruments

(a) In General.— Subject to this section and section 41766, the Secretary of Transportation may enter into agreements with one or more obligors to make available Federal credit instruments, the proceeds of which shall be used to finance aircraft purchases.

(b) Secured Loans.— A secured loan under this section with respect to an aircraft purchase shall be on such terms and conditions and contain such covenants, representatives, warranties, and requirements (including requirements for audits) as the Secretary determines appropriate. No secured loan may be made under this section— that extends to more than 50 percent of the purchase price (including the value of any manufacturer credits, post-purchase options, or other discounts) of the aircraft, including spare parts, to be purchased; or that, when added to the remaining balance on any other Federal credit instruments made under this subchapter, provides more than $100,000,000 of outstanding credit to any single obligor. The final payment on the secured loan shall not be due later than 18 years after the date of execution of the loan agreement. The secured loan may be subordinate to claims of other holders of obligations in the event of bankruptcy, insolvency, or liquidation of the obligor as determined appropriate by the Secretary. The Secretary, subject to appropriations, may establish fees at a level sufficient to cover all or a portion of the administrative costs to the United States Government of making a secured loan under this section. The proceeds of such fees shall be deposited in an account to be used by the Secretary for the purpose of administering the program established under this subchapter and shall be available upon deposit until expended. The Secretary shall establish a repayment schedule for each secured loan under this section based on the projected cash flow from aircraft revenues and other repayment sources. Scheduled loan repayments of principal and interest on a secured loan under this section shall commence no later than 3 years after the date of execution of the loan agreement. After satisfying scheduled debt service requirements on all financial obligations and secured loans and all deposit requirements under the terms of any trust agreement, bond resolution, or similar agreement securing financial obligations, the secured loan may be prepaid at anytime without penalty. The secured loan may be prepaid at any time without penalty from proceeds of refinancing from non-Federal funding sources.

(c) Loan Guarantees.— A loan guarantee under this section with respect to a loan made for an aircraft purchase shall be made in such form and on such terms and conditions and contain such covenants, representatives, warranties, and requirements (including requirements for audits) as the Secretary determines appropriate. No loan guarantee shall be made under this section— that extends to more than the unpaid interest and 50 percent of the unpaid principal on any loan; that, for any loan or combination of loans, extends to more than 50 percent of the purchase price (including the value of any manufacturer credits, post-purchase options, or other discounts) of the aircraft, including spare parts, to be purchased with the loan or loan combination; on any loan with respect to which terms permit repayment more than 15 years after the date of execution of the loan; or that, when added to the remaining balance on any other Federal credit instruments made under this subchapter, provides more than $100,000,000 of outstanding credit to any single obligor. The Secretary, subject to appropriations, may establish fees at a level sufficient to cover all or a portion of the administrative costs to the United States Government of making a loan guarantee under this section. The proceeds of such fees shall be deposited in an account to be used by the Secretary for the purpose of administering the program established under this subchapter and shall be available upon deposit until expended.

(d) Lines of Credit.— Subject to the requirements of this subsection, the Secretary may enter into agreements to make available lines of credit to one or more obligors in the form of direct loans to be made by the Secretary at future dates on the occurrence of certain events for any aircraft purchase selected under this section. A line of credit under this subsection with respect to an aircraft purchase shall be on such terms and conditions and contain such covenants, representatives, warranties, and requirements (including requirements for audits) as the Secretary determines appropriate. The amount of any line of credit shall not exceed 50 percent of the purchase price (including the value of any manufacturer credits, post-purchase options, or other discounts) of the aircraft, including spare parts. The amount drawn in any year shall not exceed 20 percent of the total amount of the line of credit. Any draw on the line of credit shall represent a direct loan. The line of credit shall be available not more than 5 years after the aircraft purchase date. A third-party creditor of the obligor shall not have any right against the United States Government with respect to any draw on the line of credit. An obligor may assign the line of credit to one or more lenders or to a trustee on the lender’s behalf. A direct loan under this subsection may be subordinate to claims of other holders of obligations in the event of bankruptcy, insolvency, or liquidation of the obligor as determined appropriate by the Secretary. The Secretary, subject to appropriations, may establish fees at a level sufficient to cover all of a portion of the administrative costs to the United States Government of providing a line of credit under this subsection. The proceeds of such fees shall be deposited in an account to be used by the Secretary for the purpose of administering the program established under this subchapter and shall be available upon deposit until expended. The Secretary shall establish a repayment schedule for each direct loan under this subsection. Scheduled loan repayments of principal or interest on a direct loan under this subsection shall commence no later than 3 years after the date of the first draw on the line of credit and shall be repaid, with interest, not later than 18 years after the date of the first draw.

(e) Risk Assessment.— Before entering into an agreement under this section to make available a Federal credit instrument, the Secretary, in consultation with the Director of the Office of Management and Budget, shall determine an appropriate capital reserve subsidy amount for the Federal credit instrument based on such credit evaluations as the Secretary deems necessary.

(f) Conditions.— Subject to subsection (h), the Secretary may only make a Federal credit instrument available under this section if the Secretary finds that— the aircraft to be purchased with the Federal credit instrument is a regional jet aircraft needed to improve the service and efficiency of operation of a commuter air carrier or new entrant air carrier; the commuter air carrier or new entrant air carrier enters into a legally binding agreement that requires the carrier to use the aircraft to provide service to underserved markets; and the prospective earning power of the commuter air carrier or new entrant air carrier, together with the character and value of the security pledged, including the collateral value of the aircraft being acquired and any other assets or pledges used to secure the Federal credit instrument, furnish— reasonable assurances of the air carrier’s ability and intention to repay the Federal credit instrument within the terms established by the Secretary— to continue its operations as an air carrier; and to the extent that the Secretary determines to be necessary, to continue its operations as an air carrier between the same route or routes being operated by the air carrier at the time of the issuance of the Federal credit instrument; and reasonable protection to the United States.

(g) Limitation on Combined Amount of Federal Credit Instruments.— The Secretary shall not allow the combined amount of Federal credit instruments available for any aircraft purchase under this section to exceed— 50 percent of the cost of the aircraft purchase; or $100,000,000 for any single obligor.

(h) Requirement.— Subject to subsection (i), no Federal credit instrument may be made under this section for the purchase of any regional jet aircraft that does not comply with the stage 3 noise levels of part 36 of title 14 of the Code of Federal Regulations, as in effect on January 1, 1999 .

(i) Other Limitations.— No Federal credit instrument shall be made by the Secretary under this section for the purchase of a regional jet aircraft unless the commuter air carrier or new entrant air carrier enters into a legally binding agreement that requires the carrier to provide scheduled passenger air transportation to the underserved market for which the aircraft is purchased for a period of not less than 36 consecutive months after the date that aircraft is placed in service.

§ 41764 Use of Federal facilities and assistance

(a) Use of Federal Facilities.— To permit the Secretary of Transportation to make use of such expert advice and services as the Secretary may require in carrying out this subchapter, the Secretary may use available services and facilities of other agencies and instrumentalities of the United States Government— with the consent of the appropriate Federal officials; and on a reimbursable basis.

(b) Assistance.— The head of each appropriate department or agency of the United States Government shall exercise the duties and powers of that head in such manner as to assist in carrying out the policy specified in section 41761.

(c) Oversight.— The Secretary shall make available to the Comptroller General of the United States such information with respect to any Federal credit instrument made under this subchapter as the Comptroller General may require to carry out the duties of the Comptroller General under chapter 7 of title 31, United States Code.

§ 41765 Administrative expenses

In carrying out this subchapter, the Secretary shall use funds made available by appropriations to the Department of Transportation for the purpose of administration, in addition to the proceeds of any fees collected under this subchapter, to cover administrative expenses of the Federal credit instrument program under this subchapter. (Added Pub. L. 106–181, title II, § 210(a) , Apr. 5, 2000 , 114 Stat. 101 .)

§ 41766 Funding

Of the amounts appropriated under section 106(k) for each of fiscal years 2001 through 2003, such sums as may be necessary may be used to carry out this subchapter, including administrative expenses. (Added Pub. L. 106–181, title II, § 210(a) , Apr. 5, 2000 , 114 Stat. 101 .)

§ 41767 Termination

(a) Authority To Issue Federal Credit Instruments.— The authority of the Secretary of Transportation to issue Federal credit instruments under section 41763 shall terminate on the date that is 5 years after the date of the enactment of this subchapter.

(b) Continuation of Authority To Administer Program for Existing Federal Credit Instruments.— On and after the termination date, the Secretary shall continue to administer the program established under this subchapter for Federal credit instruments issued under this subchapter before the termination date until all obligations associated with such instruments have been satisfied.