Friendly Skies Restoration Act

Friendly Skies Restoration Act - Amends Federal aviation law to define major air carrier joint venture agreements as agreements with regard to code-sharing, blocked-space arrangements, long-term wet leases of a substantial number of aircraft, or frequent flyer programs, or any other cooperative working arrangement between two or more major air carriers that affects more than ten percent of the total number of available seat miles offered by such carriers. Requires any major air carrier that has entered into such an agreement to submit to the Secretary certain information regarding it.

Directs the Secretary of Transportation to allocate slots (arrival and departure spaces) at each slot-controlled airport for assignment to new entrant air carriers (carriers currently not holding slots) and limited incumbent carriers (carriers holding less than 12 slots at a particular airport). Outlines application procedures for the receipt of such slots at high density airports.

Directs the Secretary to withdraw from major carriers at each airport a specified percentage of slots for auction to qualified applicants through competitive bidding, as long as the auctioned slot will or is likely to increase competition among carriers. Allows only new entrant and limited incumbent air carriers to participate in such auctions. Requires deposits in an auction trust fund.

Directs the Secretary to conduct a public inquiry and submit to the Congress a report evaluating the competitive bidding process used. Provides special rules, including rules governing the resale or reversion of purchased slots.

Authorizes the Secretary that has determined that an air carrier is or has engaged in an unfair method of competition with respect to air transportation on a route to require such carrier, as a condition of continued authority to provide air service, to maintain for a period not to exceed two years levels of capacity and fare pricing that are similar to that which was determined exclusionary. Sets forth a civil penalty for such violations.

Authorizes the President to allow an air carrier the use of another air carrier's slot that is not being used because of a labor strike involving such carrier.

Authorizes the Secretary when it is determined that a price charged or received by an air carrier for service on a noncompetitive air route, or a classification, rule, or practice affecting that price or the value of the transportation provided under that price, is or will be unreasonable, to change the price, classification, rule, or practice, or order the air carrier to stop charging or collecting the unreasonable price, classification, rule, or practice.

Directs the Secretary to submit to the Congress, and make available to the public, a quarterly report: (1) containing a ranking of the ten domestic routes with the highest and lowest average costs to the passenger; and (2) ranking the large hub airports by market concentration using the Herfindahl-Hirschmann Index as a measure and identifying the market share of each airline operating at each airport.

Directs the Secretary to study and report to the Congress on the ability of and proposals for new entrant carriers, and carriers with less than five percent of the departures at a major hub airport, to obtain permanent gates and other airport facilities on terms substantially equivalent to the those provided to incumbent carriers.