Summary: H.R.11145 — 95th Congress (1977-1978)All Information (Except Text)

There is one summary for H.R.11145. Bill summaries are authored by CRS.

Shown Here:
Introduced in House (02/24/1978)

Air Service Improvement Act - Amends the Federal Aviation Act of 1958 to direct the Civil Aeronautics Board, in the performance of its duties, to consider reliance on competitive market forces in the airline industry and the encouragement of new air carriers as being in the public interest and in accordance with public convenience and necessity.

Stipulates that the Federal government shall have preemptive powers with respect to air carriers holding valid certificates or licenses under such Act or who were granted exemptions in order to provide interstate or overseas air transportation.

Stipulates that such preemption shall not take effect with respect to carriers solely engaged in intrastate air service as of August 1, 1977 and which were subsequently granted a license, certificate, or exemption to engage in additional transportation until at least 25 percent of the carrier's revenues for the preceeding year are derived from interstate air transportation.

Establishes time limitations during which the Civil Aeronautics Board must dispense with applications for certificates of public convenience and necessity to engage in air transportation. Authorizes the Board to dismiss an application on its merits without a hearing within 90 days of its filing date. Deems such dismissal a final order for purposes of judicial review.

Requires the Board to issue certificates to engage in regular interstate or overseas air transportation, temporary air transportation, or supplemental air transportation if certain conditions are met and the proposed service is consistent with public convenience and necessity (previously certificates for such interstate and overseas air transportation could only be granted if public convenience and necessity so required).

Stipulates that if an air carrier holding round trip nonstop authority between any two points in interstate air transportation does not exercise such authority to a specified extent the Board shall issue a certificate authorizing such transportation to another carrier applying for such authority. Establishes procedures for the granting of such an application.

Directs the Board to establish a program by which specified air carriers may engage in nonstop service between additional pairs of points not currently authorized by an existing certificate or license.

Authorizes air carriers which hold certificates to engage in foreign air transportation, on any scheduled flight in foreign air transportation, to transport persons, property, and mail between points in the United States between which it is authorized to operate during such flight.

Creates a rebuttable presumption that regular, temporary, and supplemental interstate or overseas air transportation covered by an application to engage in such transportation is consistent with the public convenience and necessity.

Authorizes the Board to issue certificates to engage in air transportation on a temporary basis if the Board determines that a test period is desirable in order to evaluate the proposed new services.

Establishes time limitations during which the Board must act upon an air carrier's application for removal or modification of a term, condition, or limitation attached to its certificate.

Prohibits the transfer of a certificate except where necessary to carry out a consolidation or a merger approved under this Act.

Allows air carriers to terminate or reduce below a specified level any air transportation required by its certificate upon 90 days' notice filed with the Board and served upon each community directly affected thereby. Authorizes the Board to temporarily suspend such proposed action in order to allow arrangements to be made for substitute air transportation.

Directs the Board to establish simplified procedures for the disposition of applications for certificates or permits to engage in air transportation and for the alteration, suspension, or transfer of such certificates.

Directs the Board, in determining the compensation to be paid for local air mail service, to disregard a carrier's revenues other than the revenue received from the service for which the compensation is being paid until January 1, 1983.

Sets forth procedures and factors to be considered in the disposal of applications for approval of consolidation, merger, or acquisition of control agreements by the Board. Authorizes the Board to dispose of such applications without a hearing under specified circumstances. Prohibits the Board from approving such agreements or pooling agreements which would substantially lessen competition unless certain findings are made.

Authorizes the Board to exempt persons from the provisions of the Federal Aviation Act of 1958 under specified conditions.

Exempts air carriers which provide passenger service solely with aircraft which have a maximum passenger capacity of fewer than 56 passengers or cargo service with aircraft having a maximum payload capacity of fewer than 18,000 pounds from the requirement that such a carrier hold a certificate of public convenience and necessity and such other requirements as the Board may promulgate by regulation. Authorizes the Board to increase such passenger or cargo capacity when the public interest so requires.

Authorizes the Board to establish rates of compensation to be paid to commuter air carriers when no adequate service would otherwise be provided between two points. Sets forth factors which the Board is to consider in determining the amount of such compensation.

Directs the Board by January 1, 1980 to conduct a review of all points which have been deleted from a certificate or to which service has been suspended without a condition that substitute service be provided to determine whether Federal financial assistance should be provided to commuter air carriers to provide essential air transportation.

Restricts the President's powers to disapprove actions of the Board with respect to certificates or permits to engage in foreign air transportation. Stipulates that the President may only disapprove such actions solely on the basis of foreign relations or national defense considerations and not upon the basis of economic or carrier selection considerations.

Establishes restrictions with respect to the authority of the Board to prescribe minimum or maximum fares in air transportation.

Increases the maximum time limits during which an aircraft purchase loan may be repaid and increases the value of loans which may be outstanding in order to be eligible for Federal guarantees of such loans.

Establishes sunset provisions with respect to the Board to become effective on Demember 31, 1985.

Directs the Board, by January 1, 1983, to submit to Congress a comprehensive review of its implementation of the provisions of the Federal Aviation Act of 1958.