Sec. 741. Essential air service

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Section 41731 of title 49, United States Code, is amended— by striking subsection

(a)and inserting the following: In this subchapter, the term eligible place means a place in the United States that— is at least 75 miles from the nearest medium or large hub airport, if within the 48 contiguous states, which shall not be waived; had an average of 10 enplanements per service day or more, as determined by the Secretary, during the most recent fiscal year; during the most recent fiscal year had an average subsidy per passenger, as determined by the Secretary, of— less than $500 for locations that are less than 175 driving miles from the nearest large or medium hub airport; and less than $1,000 for all locations, regardless of driving distance to a hub; 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 notice of intent to terminate essential air service and the Secretary required the air carrier to continue to provide such service to the community. ; in subsection (b), by striking subsection (a)(1) of this section and inserting subsection

(a); in subsection (c), by striking Subparagraphs (B), (C), and

(D)of subsection (a)(1) and inserting Paragraphs (2), (3), and

(4)of subsection

(a); in subsection (d), by striking Subsection (a)(1)(B) and inserting Subsection (a)(2) ; by striking subsection

(e)and inserting the following: The Secretary may waive, on an annual basis, subsection (a)(2) or subsection (a)(3)(A) with respect to a location if the location demonstrates to the Secretary’s satisfaction that the reason the location averages fewer than 10 enplanements per day or has a subsidy higher than $500 per passenger is due to a temporary decline in demand; provided, that the Secretary may not provide more than 2 consecutive waivers of subsection (a)(2) or subsection (a)(3)(A) to any location. ; and in subsection (f), by striking subsection (a)(1)(B) and inserting subsection (a)(2) . Section 41732 of title 49, United States Code, is amended— in subsection (a)(1), by striking hub airport and all that follows through beyond that airport and inserting medium or large hub airport ; and in subsection (b)— in paragraph (2), by striking and at prices and all that follows through the period; and by striking paragraphs

(3)through (6). Section 41733 of title 49, United States Code, is amended— in subsection (c)(1)— by striking subparagraph

(B)and inserting the following: the contractual, marketing arrangements, code-share, or interline arrangements the applicant has made with a larger air carrier serving the hub airport; ; by striking subparagraph

(C)and redesignating subparagraphs

(D)through

(F)as subparagraphs

(C)through (E), respectively; in subparagraph (D), as so redesignated, by striking and after the semicolon; in subparagraph (E), as so redesignated, by striking the period at the end and inserting ; and ; and by adding at the end the following: service provided in aircraft with at least 2 engines and using 2 pilots. ; and in subsection (h), by striking by section 332 of the Department of Transportation and Related Agencies Appropriations Act, 2000 ( and inserting Public Law 106–69 ; 113 Stat. 1022) under section 41731(a)(3) . Section 41734 of title 49, United States Code, is amended— in subsection (a)— by striking An air carrier and inserting Subject to subsection (d), an air carrier ; and by striking 90 and inserting 180 ; by striking subsection

(d)and inserting the following: If an air carrier receiving compensation under section 41733 of this title for providing basic essential air service to an eligible place is required to continue to provide service to the place under this section after the 180-day notice period under subsection

(a)of this section, 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 180-day notice was given under subsection

(a)of this section; 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 impose contract termination penalties or conditions on compensation that take effect in the event an air carrier provides notice that it is ending, suspending, or reducing basic essential air service. ; in subsection (e), by striking providing that service after the 90-day notice period and all that follows through the period at the end of paragraph

(2)and inserting providing that service after the 180-day notice period required by subsection (a), the Secretary may provide the air carrier with compensation after the end of the 180-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 180-day notice was given under subsection

(a)plus a reasonable return on investment that is at least 5 percent of operating costs. ; and in subsection (f), by inserting air after find another . Section 41735 of title 49, United States Code, and the item relating to such section in the analysis for subchapter II of chapter 417 of such title, are repealed. Section 41736 of title 49, United States Code, and the item relating to such section in the analysis for subchapter II of chapter 417 of such title, are repealed. Section 41737(d) of title 49, United States Code, is amended— by striking

(1)before The Secretary may ; and by striking paragraph (2). Section 41740 of title 49, United States Code, and the item relating to such section in the analysis for subchapter II of chapter 417 of such title, are repealed. Section 41742(a) of title 49, United States Code, is amended— in paragraph (1), by striking $50,000,000 and inserting $154,400,000 ; in paragraph (2), by striking $155,000,000 for fiscal year 2018, and all that follows through 2023 and inserting $335,000,000 for fiscal year 2024, $340,000,000 for fiscal year 2025, $342,000,000 for fiscal year 2026, $342,000,000 for fiscal year 2027, and $350,000,000 for fiscal year 2028 ; and by striking paragraph (3). The amendments made by paragraph

(1)shall take effect on October 1, 2023. Section 41744 of title 49, United States Code, and the item relating to such section in the analysis for subchapter II of chapter 417 of such title, are repealed. Section 41745 of title 49, United States Code, is amended— in subsection (a)(3), by striking subparagraph

(E)and redesignating subparagraph

(F)as subparagraph (E); by striking subsections

(b)and (c); and by redesignating subsections

(d)through

(g)as subsections

(b)through (e), respectively. Section 41748 of title 49, United States Code, and the item relating to such section in the analysis for subchapter II of chapter 417 of such title, are repealed.

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Pub. L. 106-69
113 Stat. 1022

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Sec. 741

Essential air service

Pub. L.Pub. L. 106-69

Stat.113 Stat. 1022

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