Airline Deregulation Act of 1978

Summary

Air Transportation Regulatory Reform Act - Amends the Federal Aviation Act of 1958 to direct the Civil Aeronautics Board in the performance of its duties with respect to interstate and overseas air transportation to consider competition in the provision of air transportation and the maintenance of a system to provide airline service to small communities as being consistent with the public convenience and necessity. Expresses the Congressional intent that the provisions of this Act shall not have a deleterious effect on the standards of safety currently attained in the air transportation industry. Directs the Secretary of Transportation to conduct a continuous review of the effects of this Act on the standard of safety in air transportation, and, based on such study, to take such steps as may be necessary to insure that such safety standards are maintained. Revises the standard which the Board is to apply in issuing certificates of public convenience and necessity for scheduled overseas or interstate air transportation. Directs the Board to issue such a certificate upon a finding that the air transportation applied for is consistent with the public convenience and necessity (under the present standard such service would have to be required by the public convenience and necessity). Requires air carriers which propose to terminate, suspend, or reduce air transportation to give at least 90 days notice to the Board, the Community affected, and the agency of the State in which such community is located. Directs the Board to make every reasonable effort to secure another air carrier to provide the essential air transportation being terminated, reduced, or suspended. Authorizes the Board to permit an air carrier to suspend air services being provided by it, without notice, if such action is in the public interest and so long as essential air transportation is maintained. Prohibits the Board from authorizing a suspension for more than 30 days without a hearing if requested by the community affected. Authorizes any air carrier to petition the Board to have granted to it the authority of another air carrier to provide nonstop scheduled interstate or overseas air transportation between two points. Requires the Board to grant such authority upon a determination that the authority sought has not been exercised by the present carrier up to a specified amount. Requires the Board to act upon such petitions within a specified period of time. Prohibits the Board from including a closed-door restriction in any certificate issued on or after January 1, 1978. Stipulates that on such date any present closed-door restriction on an existing certificate shall be null and void. Exempts from such prohibition closed-door restrictions between points within the State of Hawaii and those restrictions which resulted from the sale, transfer, or exchange by one air carrier of its authority to provide air transportation in any market to another air carrier. Establishes an automatic market entry program under which specified air carriers may enter into new routes automatically and without review by the Board. Stipulates that during 1979 and 1980 such carriers may select one segment for scheduled nonstop air service and two segments per year thereafter for automatic market entry so long as cumulative statute miles in any one year does not exceed 3,000 miles. Establishes limitations on the routes which may be chosen for such automatic entry for a five year period. Requires the Board beginning on March 1, 1980, to submit annual reports to Congress regarding the automatic market entry program. Requires the Board to submit a comprehensive evaluation report on the operation of such program by March 1, 1983. Authorizes the Board, on an emergency basis, to modify the automatic market entry program in order to avert substantial public harm to the national air transportation system. Authorizes air carriers holding certificates for scheduled air transportation to engage in charter air transportation. Stipulates that: a carrier with more than 200,000,000 scheduled aircraft miles may operate no more than two percent of its total system scheduled miles in off-route charter trips; a carrier with less than 200,000,000 but more than 60,000,000 such miles may operate no more than five percent of such miles in off-route charter trips; and a charter with less than 60,000,000 such miles may operate no more than ten percent of such miles in off-route charter trips. 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. Stipulates that such subsidy payments may be made only to carriers entitled to receive compensation for the performance of service during the 12 months ending June 30, 1977. Terminates all such payments after January 1, 1986. Requires the Board to notify the Secretary of Transportation and the Attorney General of any application for approval of air carrier mergers or the acquisition of control transactions. Prohibits the Board from approving transactions which would result in, or be in furtherance of, a conspiracy or combination to monopolize the business of air transportation in the United States. Prohibits the Board from approving such a transaction which would have the effect of substantially lessening competition in any region of the United States or which would tend to create a monopoly unless the Board finds that the anticompetitive effects of such a transaction are outweighed by the public interest. Sets forth time limits during which the Board must act on such applications for approval. Authorizes the Board to act on applications not involving an air carrier directly engaged in the operation of aircraft without a hearing under specified circumstances. Allows air carriers to file agreements or requests for authority to discuss agreements or cooperative working arrangements with the Board. Establishes procedures which the Board is to follow in acting upon such agreements or requests. Enumerates factors and conditions which the Board is to take into account in approving or disapproving such agreements or requests. Immunizes individuals from the operation of the antitrust laws insofar as is necessary to enable such a person to engage in air transportation activities specifically approved by the Board. Authorizes the Board to exempt any person or class of persons from air carrier economic regulation if such an exemption is consistent with the public interest. States that air carriers which engage in interstate or overseas air transportation exclusively with aircraft with a seating capacity of 36 or less and a maximum certificated gross takeoff weight of 40,000 pounds or less shall not be required to obtain a certificate of public convenience and necessity under specified circumstances. Authorizes the Board to exempt foreign air carriers not directly engaged in the operation of aircraft in foreign air transportation from the provisions of the Federal Aviation Act of 1958 if such exemption is in the public interest. Authorizes the Board to determine fair and reasonable amounts of compensation for, and to make payments of such compensation to, eligible air carriers which provides or will provide essential air transportation to eligible points. Establishes criteria for the Board to consider in determining the points eligible for such subsidies. Authorizes air carriers to compete for such subsidized service to eligible points. Directs the Board to insure that essential air transportation is provided to eligible points until January 18, 1979. Establishes procedures the Board is to follow to insure such service when an air carrier serving such a point notifies the Board that its service is to be suspended, terminated, or reduced below the level determined by the Board to be essential. Authorizes the Board to issue a new type of certificate for local air transportation. Stipulates that, in order to be eligible for such certification, the air carrier must provide such service with aircraft having a seating capacity of 36 passengers or less and a maximum certificated gross takeoff weight of 40,000 pounds or less. Precludes the Board from designating the geographic area or the terminal or intermediate points within or between which local air transportation is to be provided. Exempts such carriers from specified provisions of such Act. Authorizes the Board to issue certificates to engage in interstate or overseas charter air transportation. Establishes eligibility requirements for such certification. Prohibits the Board from authorizing charter air transportation between points within the State of Alaska unless the Board determines that such transportation is required by public convenience and necessity. Prohibits direct air carriers or foreign air carriers from entering into interlocking relationships with persons who sell or organize charters in interstate or overseas air transportation or in U.S. originating foreign air transportation. Requires all certificated air carriers with such regulations or orders issued by the Board governing the filing and approval of policies of insurance or plans for self- insurance. Prohibits carriers from carrying charter and scheduled passengers on the same flight in interstate or overseas air transportation. Stipulates that Board regulations shall not restrict the marketability, flexibility, accessibility, or variety of charter trips except to the extent required by the public interest and shall in no event be more restrictive than those charter regulations in effect on July 1, 1977. Prohibits any State from regulating air carriers certificated by the Board. Removes the Board's present power to specify the fares to be charged by a carrier and stipulates that the Board may only set forth the lawful maximum or minimum fare to be charged if it determines that the existing or proposed fare is unreasonable. Establishes a zone of fares which the Board may not find as unreasonable based on fares in effect on July 1, 1977. Establishes time limits during which the Board is to act on applications, complaints, or petitions regarding interstate or overseas air transportation. Authorizes the Board to make such determinations without a hearing under specified circumstances. Directs the Secretary of Labor to make monthly payments to eligible airline employees who have been deprived of employment or who have been adversely affected with respect to compensation as a result of the changes in the air transportation regulatory structure encompassed in this Act. Directs the Secretary to establish guidelines to determine the amount of such assistance. Requires air carriers, in hiring employees, to give preference to the terminated or furloughed employees of another carrier. Establishes the Airline Employees Protective Account within the Treasury of the United States in order to make such assistance payments. Authorizes the Secretary of Transportation to make loan guarantees to lenders who make loans to air carriers holding a certificate to engage in local air transportation and to carriers holding certificates of public convenience and necessity for local or regional air service. Increases the total face value of eligible loans from $30,000,000 to $100,000,000

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3 official files

• Public Law (PDF)

  Public Law · EN · 25 October 1978

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• Conference report filed in House

  summary · EN · 12 October 1978

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• Introduced in Senate

  summary · EN · 6 February 1978

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