Sec. 554. Small community air service

540 words·~2 min read·/bill/115/hr/2997/ih/section-554

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Section 41743(c) of title 49, United States Code, is amended— by striking paragraph

(1)and inserting the following: 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. ; and in paragraph (5)— by redesignating subparagraphs

(E)and

(F)as subparagraphs

(F)and (G), respectively; and by inserting after subparagraph

(D)the following: the assistance will be used to help restore scheduled passenger air service that has been terminated; . Section 41743(e)(2) of title 49, United States Code, is amended to read as follows: There is authorized to be appropriated to the Secretary $6,000,000 for each of fiscal years 2018 through 2023 to carry out this section, of which $4,800,000 per fiscal year shall be used to carry out the pilot program established under subsection (i). Such sums shall remain available until expended. . Section 41743 of title 49, United States Code, is amended by adding at the end the following: The Secretary shall establish a regional air transportation pilot program to provide operating assistance to air carriers in order to provide air service to communities not receiving sufficient air carrier service. The Secretary shall provide grants under the program to encourage and maintain air service at reasonable airfares between communities that have experienced, as determined by the Secretary, significant declines in air service. In order to participate in the program, a State, local government, economic development authority, or other public entity shall submit to the Secretary an application, in a manner that the Secretary prescribes, that contains— an identification of an air carrier that has provided a written agreement to provide the air service in partnership with the applicant; assurances that the applicant will provide the non-Federal share and that the non-Federal share is not derived from airport revenue; a proposed route structure serving not more than 8 communities; and a timeline for commencing the air service to the communities within the proposed route structure. The Secretary may approve up to 3 applications each fiscal year, subject to the availability of funds, if the Secretary determines that— the proposal of the applicant can reasonably be expected to encourage and improve levels of air service between the relevant communities; the applicant has adequate financial resources to ensure the commitment to the communities; the airports serving the communities are nonhub, small hub, or medium hub airports, as determined using the Department of Transportation’s most recently published classifications; and the air carrier commits to serving the communities for at least 2 years. The Secretary shall prioritize applications that— would initiate new or reestablish air service in communities where air fares are higher than the average air fares for all communities; are more likely to result in self-sustaining air service at the end of the program; request a Federal share lower than 50 percent; and propose to use grant funds in a timely fashion. The Federal share of the cost of operating assistance provided under the program may not exceed 50 percent. This subsection shall cease to be effective on October 1, 2023. .