Airline Bankruptcy Passenger Protection Act of 1991

Airline Bankruptcy Passenger Protection Act of 1991 - Amends the Federal Aviation Act of 1958 to direct the Secretary of Transportation to issue an order authorizing a covered air carrier to develop an air transportation plan which protects airline ticket holders in the event it becomes a debtor in bankruptcy proceedings after the ticket purchase date.

Provides that if satisfactory plans have not been submitted by a specified deadline, the Secretary must promulgate regulations requiring all covered air carriers to provide air transportation for such ticket holders.

 
S 240 IS
102d CONGRESS
1st Session
S. 240
To amend the Federal Aviation Act of 1958 relating to bankruptcy transportation
plans.
IN THE SENATE OF THE UNITED STATES
January 22 (legislative day, JANUARY 3), 1991
Mrs. KASSEBAUM (for herself, Mr. BOND, Mr. COHEN, Mr. CRANSTON, Mr. DOLE,
Mr. HEINZ, Mr. GRASSLEY, Mr. DANFORTH, and Mr. MCCONNELL) introduced the
following bill; which was read twice and referred to the Committee on Commerce,
Science, and Transportation
A BILL
To amend the Federal Aviation Act of 1958 relating to bankruptcy transportation
plans.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Airline Bankruptcy Passenger Protection Act
  of 1991.'
SEC. 2. REPORTING AND OTHER REQUIREMENTS.
  (a) IN GENERAL- Title IV of the Federal Aviation Act of 1958 (49
  U.S.C. App. 1371-1389) is amended by adding at the end thereof the following
  new section:
`SEC. 420. BANKRUPTCY TRANSPORTATION PLANS.
  `(a) DEVELOPMENT-
  `(1) ORDER- Not later than 60 days after the date of the enactment of
  this section, the Secretary shall issue an order authorizing covered
  air carriers to develop a plan for providing air transportation for any
  person who holds an airline ticket for provision of such transportation
  by a covered air carrier who, after the date of purchase of such ticket,
  becomes a debtor in a case under title 11, United States Code. Such order
  shall also include an exemption in accordance with section 414.
  `(2) DEADLINE FOR SUBMISSION- Any plan developed under paragraph (1) shall
  be submitted to the Secretary for approval within 180 days after the date
  of the enactment of this section.
  `(b) TIME LIMIT AND BASIS FOR APPROVAL- If a plan is submitted to the
  Secretary in accordance with subsection (a), the Secretary shall approve or
  disapprove such plan within 60 days after the date of such submission. If
  the Secretary determines that such plan will provide (or would provide
  if all covered air carriers participate in implementation of such plan)
  satisfactory protection for all persons who hold airline tickets described
  in subsection (a), the Secretary shall approve such plan. Otherwise,
  the Secretary shall disapprove such plan.
  `(c) IMPLEMENTATION OF APPROVED PLANS- If the Secretary approves a plan under
  this section, the Secretary shall issue an order requiring implementation
  of such plan by the covered air carriers who submitted such plan and any
  other covered air carriers. If there are any covered air carriers who did
  not participate in development of a plan approved under this section, such
  carriers shall be treated under such order and plan in the same manner as
  carriers who did participate in development of such plan.
  `(d) REGULATIONS- If a plan described in subsection (a) is not submitted
  within 180 days after the date of the enactment of this section, or if the
  Secretary disapproves a plan submitted in accordance with subsection (a),
  or if the Secretary determines that a plan approved under this section is
  not being implemented in a manner which provides satisfactory protection
  for all persons who hold airline tickets described in subsection (a),
  the Secretary shall issue regulations requiring all covered air carriers
  to provide air transportation for persons who hold such tickets. Such
  regulations must be issued within 90 days after the expiration of such
  180-day period, the date of disapproval of such plan, or the date of such
  determination, as the case may be.
  `(e) DEFINITIONS- For purposes of this section--
  `(1) AIRLINE TICKET- The term `airline ticket' means any written instrument
  that embodies a contract of carriage between a covered air carrier and a
  passenger thereof for interstate or overseas air transportation.
  `(2) COVERED AIR CARRIER- The term `covered air carrier' means--
  `(A) an air carrier which provides interstate or overseas air transportation
  primarily with aircraft having seating for more than 60 passengers and which
  in the 12-month period preceding the date of the enactment of this section,
  enplaned more than .2 percent of the total number of passengers enplaned
  on all aircraft used to provide interstate and overseas air transportation
  in such period; and
  `(B) an air carrier not described in subparagraph (A) who enters into
  an agreement with an air carrier who is described in subparagraph (A)
  to operate under or use a single air carrier designator code to provide
  interstate or overseas air transportation, but only with respect to those
  operations of the carrier not described in subparagraph (A) which are
  carried out under such code.
  `(3) SECRETARY- The term `Secretary' means the Secretary of Transportation.'.
  (b) CONFORMING AMENDMENT TO TABLE OF CONTENTS- The table of contents in
  the first section of the Federal Aviation Act of 1958 is amended by adding
  at the end of the material relating to title IV the following:
`Sec. 420. Bankruptcy transportation plans.
`(a) Development.
`(b) Time limit and basis for approval.
`(c) Implementation of approved plans.
`(d) Regulations.
`(e) Definitions.'.