Commercial Aviation Regulatory Reform Act

Summary

Commercial Aviation Regulatory Reform Act - Sets forth the congressional findings that the present system of Federal economic regulation of commercial air transportation is inappropriate for today's modern commercial aviation system and that a progressive transition to an air transportation system which relies to the maximum extent practicable on natural market forces is in the long-term public interest. Amends the Federal Aviation Act of 1958 to revise the definition of "foreign air carrier" so as to authorize the Civil Aeronautics Board to exempt such carriers from the provisions of such Act under certain circumstances. Amends such Act to direct the Board, in the exercise of its duties with respect to interstate and overseas air transportation, to consider as being in the public interest the progressive transition to an air transportation system which relies on natural competitive market forces and the continued access of rural areas to the Nation's air transportation network with direct Federal assistance where appropriate. Directs the Board, with respect to foreign air transportation, to recognize the inherent differences between the competitive dynamics of domestic and foreign air transportation in regulating foreign air transportation. Creates an additional operating authority (license) to engage in charter air transportation or all-cargo air transportation as defined in this Act. Sets forth procedures and eligibility requirements for the issuance of certificates to engage in limited air transportation (scheduled service with aircraft of limited capacity). Stipulates that the Board, in determining whether to issue a certificate for such transportation, may base such decision on information supplied in writing to the Board and without a hearing upon a finding that the applicant is fit and willing to provide such transportation. Authorizes the Board to issue such a certificate pursuant to rules and regulations adopted by the Board which are deemed to be in the public interest without a specific finding that the issuance of a particular license is required by the public convenience and necessity. Sets forth the duties and responsibilities of a carrier issued such a certificate. Exempts air carriers which engage in air transportation solely with aircraft having a maximum passenger capacity of less than 56 passengers or a maximum payload capacity of less than 16,000 pounds from the requirement that they hold a certificate of public convenience and necessity and other provisions of the Federal Aviation Act of 1958 as may be prescribed by the Board if such carrier conforms to such liability insurance requirements and other regulations the Board may adopt. Authorizes the Board to increase such passenger or payload capacity when the public interest so requires. Stipulates that a license to engage in all-cargo interstate or overseas air transportation may be subject to such terms, conditions, and limitations as the public interest may require for a two-year period after the effective date of this Act. Abolishes such regulation at the end of such period. Directs the Board to institute proceedings for the phased removal of all closed door restrictions or any other term, condition, or limitation included in any certificate of public convenience and necessity which is obsolete or inconsistent with the declared policy of this Act. Authorizes an air carrier to terminate any service required by its certificate of public convenience and necessity upon 90 days' notice filed with the Board and served upon each community directly affected by such termination. Authorizes the Board to temporarily suspend such termination. Stipulates that any present certificate authorizing supplemental air transportation shall be deemed to be a license to engage in charter air transportation as well as the carriage of mail. Directs the Board to establish expedited procedures, which need not include oral evidentiary hearings, for processing applications for specified types of operating authority as well as modifications of such authority. Sets forth the factors which the Board must consider in determining whether to use such expedited procedures. Requires the Board to establish procedural deadlines for such Board actions. Sets forth regulations regarding the filing of tariffs by air carriers. Requires that tariffs be filed on 45 days' notice (presently 30 days' notice is required). Eliminates the Postmaster General's authority to require additional schedules for the carriage of mail by air. Establishes limitations on the amount of payment for foreign air carriers for the transportation of mail between the United States and foreign countries. Directs the Board to fix and determine rates of compensation for limited (charter and mail) air transportation. Sets forth the conditions by which the amount of such compensation shall be determined and paid. Eliminates mandatory Board jurisdiction over consolidation, merger, purchase, lease, operating contract, or acquisition of control agreements between air carriers where neither party is a certificated air carrier or a foreign air carrier. Authorizes the Board to require such a carrier to file an application for approval of such actions if it finds that the proposed transaction may restrain competition in air transportation. Authorizes the Board to exempt any person or class of persons (previously air carriers) from the requirements of the Federal Aviation Act of 1958 under specified conditions. Authorizes the Board to conduct its proceedings under such Act without an oral evidentiary hearing if there are no significant issues of material fact to be determined. Restricts the Board's powers to set minimum and maximum fares to air carriers engaged in scheduled interstate and overseas air transportation. Authorizes the Board, when it is of the opinion that an emergency requiring immediate action exists with respect to the economic regulation of air transportation, to take such reasonable actions as may be necessary to meet such emergency. Eliminates the Board's present power to fix rates for the transportation of mail. Allows air carriers to set mail rates in their tariffs. Sets forth the Board's regulatory authority regarding such rates. Authorizes the Postal Service to contract with certificated or licensed air carriers for the transportation of mail if present service to an area is inadequate.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

1. 18 January 1977

   Introduced

   Introduced in Senate

   Source: IntroReferral

2. 18 January 1977

   Introduced

   Referred to Senate Committee on Commerce (Subsequently: Commerce, Science, and Transportation).

   Source: IntroReferral

Votes

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Versions

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Documents

1 official file

• Introduced in Senate

  summary · EN · 18 January 1977

  Open at official source

Sponsors

• Sen. Pearson, James B. [R-KS] · R · Sponsor
• Sen. Baker, Howard H., Jr. [R-TN] · R · Cosponsor
• Sen. Hatfield, Mark O. [R-OR] · R · Cosponsor
• · sscm00 · Standing

Related records

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