§41736 — Title 49 Transportation | U.S. Code

Summary

State or local governments can ask the Secretary of Transportation to pay an airline to fly to a place that is not normally eligible for federal compensation. The Secretary must decide within 90 days whether to approve the request. The Secretary will approve if the State, local government, or another payer will cover 50 percent of the cost, unless a special rule applies for places in the 48 contiguous States or Washington, D.C. that were served before October 23, 1978 — those places qualify if they are more than 50 miles from the nearest small hub or eligible place, more than 150 miles from the nearest hub, and the local payer agrees to cover 25 percent. In deciding, the Secretary looks at things like how much traffic the place could generate, the cost to the U.S. government, and how far it is from the nearest hub airport. If a place is approved, the Secretary must set the required level of service within 6 months and consider community and State views. The Secretary will invite airlines to apply and use standard selection rules plus the payer’s views. Federal payments continue only while the airline keeps the service level, the payer keeps paying, and the Secretary finds the subsidy necessary. The Secretary can require advance payments or security, review and adjust service levels, and can withdraw a designation after at least 2 years of service if it is in the public interest. An airline must give at least 30 days’ notice before ending or cutting service. No new proposals may be accepted after the date this rule was enacted, and no compensation may be paid after 2 years from that enactment date.

Title 49, §41736

Transportation — Source: USLM XML via OLRC

(a)(1)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—

(A)decide whether to designate the place as eligible to receive compensation under this section; and

(B)(i)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

(ii)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.

(2)In deciding whether a proposal is reasonable, the Secretary shall consider, among other factors—

(A)the traffic-generating potential of the place;

(B)the cost to the United States Government of providing the proposed transportation; and

(C)the distance of the place from the closest hub airport.

(b)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—

(1)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;

(2)the place is more than 50 miles from the nearest small hub airport or an eligible place;

(3)the place is more than 150 miles from the nearest hub airport; and

(4)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.

(c)(1)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.

(2)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—

(A)the factors listed in section 41733(c)(1) of this title; and

(B)the views of the State or local government or person agreeing to pay compensation for the transportation.

(d)(1)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—

(A)the air carrier maintains the level of air transportation established by the Secretary under subsection (c)(1) of this section;

(B)the State or local government or person agreeing to pay compensation for transportation under this section continues to pay that compensation; and

(C)the Secretary decides the compensation is necessary to maintain the transportation to the place.

(2)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)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)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)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)(1)No proposal under subsection (a) may be accepted by the Secretary after the date of enactment of this subsection.

(2)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.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 41736(a)49 App.:1389(d)(1), (2)(A), (C).Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, § 419(d); added Oct. 24, 1978, Pub. L. 95–504, § 33(a), 92 Stat. 1732; Dec. 8, 1983, Pub. L. 98–213, § 10, 97 Stat. 1461; Oct. 4, 1984, Pub. L. 98–443, § 9(r), 98 Stat. 1708; restated Dec. 30, 1987, Pub. L. 100–223, § 202(a)(1), (2), (b)(1), 101 Stat. 1507, 1513. 41736(b)49 App.:1389(d)(2)(B). 41736(c)(1)49 App.:1389(d)(3)(A). 41736(c)(2)49 App.:1389(d)(4). 41736(d)49 App.:1389(d)(5), (7), (8). 41736(e)49 App.:1389(d)(3)(B). 41736(f)49 App.:1389(d)(2)(D). 41736(g)49 App.:1389(d)(6). In subsection (a)(1), before clause (A), the words “that the Secretary provide compensation to an air carrier to provide air transportation” are substituted for “for compensated air transportation in accordance with this subsection” for clarity. In clause (B)(i), the word “transportation” is substituted for “proposed compensated air transportation” to eliminate unnecessary words. In subsections (c)–(g), the word “transportation” is substituted for “service” for consistency with the source provisions restated in subsections (a) and (b) of this section. In subsections (c)(1) and (e), the words “appropriate State authority” are substituted for “State agency” for clarity and consistency with the source provisions restated in section 41734(a) of the revised title. In subsection (d), the text of 49 App.:1389(d)(5) is omitted as unnecessary because of the restatement. In subsection (f), the word “prescribe” is substituted for “establish” for consistency in the revised title and with other titles of the United States Code.

Editorial Notes

References in Text

section 401 of the Federal Aviation Act of 1958, referred to in subsec. (b)(1), is section 401 of Pub. L. 85–726, which was classified to section 1371 of former Title 49, Transportation, and was repealed by Pub. L. 103–272, § 7(b), July 5, 1994, 108 Stat. 1379, the first section of which enacted subtitles II, III, and V to X of Title 49, Transportation. For disposition of section 1371 of former Title 49, see Table at the beginning of Title 49. The date of enactment of this subsection, referred to in subsec. (h), is the date of enactment of Pub. L. 115–254, which was approved Oct. 5, 2018.

Amendments

2018—Subsec. (h). Pub. L. 115–254 added subsec. (h). 2000—Subsec. (b). Pub. L. 106–181 inserted concluding provisions.

Statutory Notes and Related Subsidiaries

Effective Date

of 2000 AmendmentAmendment by Pub. L. 106–181 applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as a note under section 106 of this title.

§41736 Air Transportation to Noneligible Places