Sec. 427. ESSENTIAL AIR SERVICE CONTRACT GUIDELINES
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## SEC. 427 ESSENTIAL AIR SERVICE CONTRACT GUIDELINES ###
(a)Compensation Guidelines Section 41737(a)(1) is amended— ####
(1)by striking “and” at the end of subparagraph (B); ####
(2)in subparagraph
(C)by striking the period at the end and inserting a semicolon; and ####
(3)by adding at the end the following: > > ##### “(D) > > 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 > > > ##### “(E) > > 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.” > . ###
(b)Deadline for Issuance of Revised Guidance **[**[49 U.S.C. 41737 note](/us/usc/t49/s41737)**]** Not later than 1 year after the date of enactment of this Act, the Secretary of Transportation shall issue revised guidelines governing the rate of compensation payable under subchapter II of chapter 417 that incorporate the amendments made by this section. ###
(c)Update Not later than 2 years after the date of issuance of revised guidelines pursuant to subsection (b), the Secretary shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate an update of the extent to which the revised guidelines have been implemented and the impact, if any, such implementation has had on air carrier performance and community satisfaction with air service for which compensation is being paid under subchapter II of chapter 417.
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Sec. 427
ESSENTIAL AIR SERVICE CONTRACT GUIDELINES
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