‘(1) ACCESS TO FARES; CONSISTENTLY DELAYED FLIGHTS- Regardless of the method used by a consumer to contact an air carrier or foreign air carrier, the failure of the carrier--
‘(A) to provide full access to all fares for air transportation provided by the air carrier or foreign air carrier; or
‘(B) to disclose, without being requested, the on-time performance and cancellation rate for a chronically delayed or chronically canceled flight whenever a customer makes a reservation or purchases a ticket on such a flight.
‘(A) to prohibit a person (including a governmental entity) that purchases air transportation from only using a portion of the air transportation purchased (including using the air transportation purchased only for 1-way travel instead of round-trip travel); or
‘(B) to assess an additional fee on or charge to--
‘(i) such a person; or
‘(ii) any ticket agent that sold the air transportation to such person.
‘(A) to provide the ticket agent with written notice, and a full statement of reasons for the action, on or before the 90th day preceding the action; and
‘(B) to provide the ticket agent with at least 60 days to correct any deficiency claimed in the written notice,
‘(A) CHRONICALLY DELAYED FLIGHT- The term ‘chronically delayed flight’ means a regularly scheduled flight that has failed to arrive on time (as defined in section 234.2 of title 14, Code of Federal Regulations) at least 40 percent of the time during the most recent 3-month period for which data is available.
‘(B) CHRONICALLY CANCELED FLIGHT- The term ‘chronically canceled flight’ means a regularly scheduled flight at least 30 percent of the departures of which have been canceled during the most recent 3-month period for which data is available.’.
SEC. 102. CLARIFICATION REGARDING ENFORCEMENT OF STATE LAWS.
Section 41713(b)(1) is amended by striking ‘related to a price, route, or service of an air carrier that may provide air transportation under this subpart’ and inserting ‘that directly prescribes a price, route, or level of service for air transportation provided by an air carrier under this subpart’.
SEC. 103. AIRLINE PASSENGER PROTECTION.
(a) IN GENERAL- Subchapter I of chapter 417 is amended by adding at the end the following:
‘Sec. 41722. Air carrier passenger protection
‘(a) EMERGENCY PLANS-
‘(1) IN GENERAL- An air carrier shall ensure access to necessary services and conditions, including food, water, restroom facilities, and the ability to deplane in the event of a weather or other emergency, for all passengers boarded on a flight segment of the air carrier in air transportation.
‘(2) SUBMITTAL OF PLANS- The Secretary of Transportation shall require, not later than the 180th day following the date of enactment of this section, each air carrier to submit to the Secretary an emergency plan containing a description of actions that will be taken by the carrier to comply with paragraph (1).
‘(3) GUIDANCE- Not later than 90 days after the date of enactment of this section, the Secretary shall issue guidance on what the Secretary determines is necessary to meet the requirements of paragraph (2).
‘(1) the aircraft is parked at an airport terminal gate with access to ramp or other facilities through which passengers are customarily boarded and deplaned;
‘(2) the aircraft has remained at the gate more than 1 hour past its scheduled departure time; and
‘(3) the captain of the aircraft has not been informed by air traffic control authorities that the aircraft can be cleared for departure within 30 minutes.
‘(1) EXPLANATION REQUIRED- An announcement by an air carrier of (A) a delay or cancellation of a flight segment, or (B) a diversion of a flight segment to an airport other than the airport at which the flight segment is scheduled to land, shall include an explanation of the reason or reasons for the delay, cancellation, or diversion.
‘(2) PROHIBITION ON FALSE EXPLANATIONS- No air carrier shall provide an explanation under paragraph (1) that the air carrier knows or has reason to know is false.
‘(3) TIMELINESS OF INFORMATION-
‘(A) IN GENERAL- An air carrier shall provide a passenger with timely notice of a delay or cancellation of the flight segment.
‘(B) INFORMATION MONITORS AT AIRPORTS- In complying with subparagraph (A), an air carrier shall ensure that information monitors at the airport concerned display timely and accurate arrival and departure information.
‘(C) ADVANCE NOTICE OF DELAYS AND CANCELLATIONS- In complying with subparagraph (A), an air carrier, whenever practicable, shall attempt to provide a passenger with notice of a delay or cancellation of a flight segment before the passenger departs for the airport.
‘(1) COMPENSATION- In addition to compensation required on the date of enactment of this subsection under part 250 of title 14, Code of Federal Regulations, an air carrier shall provide, at a minimum, to a passenger who is denied boarding involuntarily from an oversold flight segment in air transportation on which the passenger has confirmed reserved space--
‘(A) alternate transportation to the passenger’s final destination;
‘(B) reasonable and immediate compensation for food; and
‘(C) if the scheduled departure time of the alternate transportation is not within the same day as the passenger’s originally scheduled departure time, reasonable and immediate compensation for hotel costs.
‘41722. Air carrier passenger protection.’.
(1) issue a statement that outlines consumer rights of air passengers, including each of the rights specified in section 41722 of title 49, United States Code, as added by this section; and
(2) requires an air carrier to provide the statement to each passenger of the carrier, by conspicuous written material included--
(A) on a safety placard given to the passenger on board an aircraft;
(B) on information available to the passenger at each ticket counter of the air carrier; and
(C) on or with the passenger’s ticket if practicable.
TITLE II--AIR CARRIER COMPETITION
SEC. 201. CONSIDERATION OF UNFAIR PRACTICES IN ISSUANCE OF CERTIFICATES FOR FOREIGN AIR TRANSPORTATION.
Section 41102(d) is amended--
(1) by striking ‘The Secretary’ and inserting the following:
‘(1) SUBMISSION OF DECISIONS TO PRESIDENT- The Secretary’;
(2) by adding at the end the following:
‘(2) CONSIDERATION OF UNFAIR PRACTICES- Before issuing a certificate under subsection (a) authorizing an air carrier to provide foreign air transportation, the Secretary shall consider whether the air carrier has engaged in any unfair or deceptive practice or unfair method of competition in air transportation or the sale of air transportation in the preceding 5-year period.’; and
(3) by aligning paragraph (1) (as designated by paragraph (1) of this section) with paragraph (2) (as added by paragraph (2) of this section).
SEC. 202. UNFAIR METHODS OF COMPETITION.
(a) CODE SHARE AGREEMENTS- Section 41712 is amended by adding at the end the following:
‘(1) IN GENERAL- It shall be an unfair method of competition under subsection (a) for a major air carrier--
‘(A) to prohibit, limit, or otherwise restrict a code share partner of the major air carrier from entering into a code share agreement with another air carrier or foreign air carrier;
‘(B) to fail to utilize gates, facilities, and other assets fully at that airport; and
‘(C) to refuse, deny, or fail to provide a gate, facility, or other asset at such an airport that is underutilized by it, or that will not be fully utilized by it within 1 year, to another carrier on fair, reasonable, and nondiscriminatory terms upon request of the airport, the other air carrier, or the Secretary.
‘(A) CODE SHARE AGREEMENT- The term ‘code share agreement’ means an agreement under which an air carrier’s designator code is used to identify a flight operated by another air carrier or foreign air carrier.
‘(B) CODE SHARE PARTNER- The term ‘code share partner’, with respect to a major air carrier, means an air carrier or foreign air carrier that has entered into a code share agreement with the major air carrier.
‘(C) MAJOR AIR CARRIER- The term ‘major air carrier’ has the meaning given such term in section 41720(a).
‘(D) ASSET- The term ‘asset’ includes slots (as defined in section 41714(h)(4)) and slot exemptions (within the meaning of section 41714(a)(2)).’.
(b) PENALTIES- Section 46301(a) is amended by adding at the end the following:
‘(8) MAXIMUM PENALTY FOR ENGAGING IN UNFAIR METHODS OF COMPETITION- Notwithstanding paragraph (1), the maximum civil penalty that may be assessed against an air carrier for violating section 41712 by engaging, with respect to air transportation on any route, in an unfair method of competition against another air carrier shall be $10,000.’.
SEC. 203. APPROVAL OF SLOT TRANSFERS.
Section 41714 is amended by adding at the end the following:
‘(1) APPROVAL REQUIRED- After the date of enactment of this subsection, an air carrier may transfer a slot to another air carrier only if the transfer is approved by the Secretary.
‘(2) CONSIDERATIONS- In determining whether to approve the transfer of a slot under paragraph (1), the Secretary shall consider--
‘(A) the competitive effects of the transfer;
‘(B) whether the price to be paid for the slot is above or below the market price for similar slots; and
‘(C) whether any air carrier was denied an opportunity to purchase the slot and, if so, the reasons for the denial.
SEC. 204. JOINT VENTURE AGREEMENTS BETWEEN AIR CARRIERS.
Section 41720 is amended by adding at the end the following:
‘(1) STUDY OF COMPETITION-
‘(A) IN GENERAL- The Secretary shall conduct a study of joint venture agreements between air carriers to determine whether such agreements constitute an unfair method of competition within the meaning of section 41712.
‘(B) CONTENTS- In conducting the study, the Secretary shall assess--
‘(i) whether code share agreements unreasonably impair competition between code share partners;
‘(ii) whether joint venture agreements between air carriers result in unfair competitive advantages; and
‘(iii) such other factors as the Secretary determines appropriate.
‘(A) INITIAL REPORT- Not later than 9 months after the date of enactment of this subsection, the Secretary shall transmit to Congress a report on the results of each study conducted under this subsection.
‘(B) UPDATES- The Secretary shall update the study conducted under paragraph (1) every 4 years and transmit an updated report to Congress.’.
SEC. 205. COMPETITIVE ACCESS TO GATES, FACILITIES, AND OTHER ASSETS.
(a) IN GENERAL- Subchapter I of chapter 417 is further amended by adding at the end the following:
‘41723. Competitive access to gates, facilities, and other assets
‘(a) DOT REVIEW OF GATES, FACILITIES, AND OTHER ASSETS- Within 90 days after the date of the enactment of this section, the Secretary of Transportation shall investigate the assignment and usage of gates, facilities, and other assets by major air carriers at the largest 35 airports in the United States in terms of air passenger traffic. The investigation shall include an assessment of--
‘(1) whether, and to what extent, gates, facilities, and other assets are being fully utilized by major air carriers at those airports;
‘(2) whether gates, facilities, and other assets are available for competitive access to enhance competition; and
‘(3) whether the reassignment of gates, facilities, and other assets to, or other means of increasing access to gates, facilities, and other assets for, air carriers (other than dominant air carriers) would improve competition among air carriers at any such airport or provide other benefits to the flying public without compromising safety or creating scheduling, efficiency, or other problems at airports providing service to or from those airports.
‘(1) DOMINANT AIR CARRIER- The term ‘dominant air carrier’ means an air carrier that accounts for more than 50 percent of the enplaned passengers at an airport.
‘(2) MAJOR AIR CARRIER- The term ‘major air carrier’ means an air carrier certificated under section 41102 that accounted for at least 1 percent of domestic scheduled-passenger revenues in the 12 months ending March 31 of each year, as reported to the Department of Transportation pursuant to part 241 of title 14, Code of Federal Regulations, and identified as a reporting carrier periodically in accounting and reporting directives issued by the Office of Airline Information.
‘(3) ASSET- The term ‘asset’ includes slots (as defined in section 41714(h)(4)) and slot exemptions (within the meaning of section 41714(a)(2)).’.
‘41723. Competitive access to gates, facilities, and other assets.’.
SEC. 206. REVIEW OF DOMINANT AIR CARRIER ACTIVITIES.
(a) IN GENERAL- Subchapter I of chapter 417 is further amended by adding at the end the following:
‘Sec. 41724. Review of dominant air carriers activities
‘(a) INVESTIGATIONS- Not later than 90 days after the date of enactment of this section, and biennially thereafter, the Secretary of Transportation shall conduct an investigation of each hub airport to determine whether, in the preceding 5 years, a dominant air carrier at the airport, if any, has--
‘(1) charged higher than average fares for interstate air transportation to or from the airport;
‘(2) engaged in an unfair method of competition in response to a new entrant air carrier at the airport; or
‘(3) limited competition by a new entrant air carrier at the airport by restricting the access of the new entrant to gates, slots, or other essential facilities at the airport on reasonable and competitive terms.
‘(1) AIR TRANSPORTATION- The term ‘air transportation’ includes intrastate air transportation.
‘(2) DOMINANT AIR CARRIER- The term ‘dominant air carrier’, as used with respect to an airport, means an air carrier that accounts for more than 40 percent of the total annual boardings at the airport in the preceding 2-year period or a shorter period specified in paragraph (4).
‘(3) HUB AIRPORT- The term ‘hub airport’ means an airport that each year has at least .25 percent of the total annual boardings in the United States.
‘(4) NEW ENTRANT AIR CARRIER- The term ‘new entrant air carrier’, as used with respect to a airport, means an air carrier that accounts for less than 10 percent of the total annual boardings at the airport in the preceding 2-year period or in a shorter period specified by the Secretary if the carrier has operated at the airport less than 2 years.’.
‘41724. Review of dominant air carriers activities.’.
SEC. 207. INTERNET AIRLINE RESERVATION SYSTEMS.
(a) STUDY- The Comptroller General shall conduct a study on how air carrier competition would be affected by the establishment of an airline reservation system on the Internet by a group of major air carriers.
(b) CONTENTS- The study shall include an analysis of how an airline reservation system described in subsection (a) would affect the method by which consumers purchase tickets for air transportation, including the effects of such a system on ticket agents.
(c) REPORTS- Not later than 9 months after the date of enactment of this Act, the Comptroller General shall transmit to Congress a report on the results of the study.
SEC. 208. FEDERAL POLICIES ON SLOTS AT HIGH DENSITY AIRPORTS.
(a) STUDY- The Comptroller General shall conduct a study on current and evolving Federal policies on slots at high density airports.
(b) CONTENTS- In conducting the study, the Comptroller General shall assess--
(1) the significance of Department of Transportation policies and practices on the control and allocation of slots at high density airports, including the impact of permitting air carriers to control slots on air carrier competition, system capacity, and industry restructuring; and
(2) the potential for replacing airline ticket taxes with scarcity-reflective pricing of slots (including appropriate policies to preserve competition and service to small- and medium-sized communities).
(c) REPORT- Not later than 18 months after the date of enactment of this Act, the Comptroller General shall transmit to Congress a report on the results of the study.
SEC. 209. DEFINITIONS OF DELAYED FLIGHT AND CHRONICALLY DELAYED FLIGHT.
Not later than 60 days after the date of enactment of this Act, the Secretary of Transportation shall issue final regulations defining for purposes of all Department of Transportation regulations, reports, and other documents, what constitutes a delay of a flight of an air carrier and what constitutes chronically delayed flights of air carriers.
