Air Service Improvement Act

(Measure passed House, amended, roll call #814 (363-8))

Air Service Improvement Act - Amends the Federal Aviation Act of 1958 to direct the Civil Aeronautics Board, in the performance of its duties, to assign the highest priority to safety in air transportation, and to place maximum reliance on competitive market forces while encouraging new air carriers and preventing industry concentration.

Stipulates that the Federal Government shall have preemptive rights with regard to interstate air carriers.

Directs the Board and the Secretary of Transportation to jointly prepare a report to be submitted to the Congress by January 1, 1980, concerning direct and indirect Federal, State, and local governmental subsidization of United States scheduled air transportation.

Directs the Secretary to prepare and submit to the Congress and the Board an annual report on the effects during the preceding year of the implementation of this Act on the level of air safety and to make annual recommendations regarding the level of surveillance necessary to enforce air safety regulations and the level of staffing necessary to carry out such surveillance.

Establishes time limitations during which the Board must dispense with applications for certificates of public convenience and necessity to engage in air transportation. Authorizes the Board to dismiss an application on its merits without a hearing within 90 days of its filing date. Deems such dismissal a final order for purposes of judicial review.

Requires the Board to issue certificates to engage in regular interstate or overseas air transportation, temporary air transportation, or supplemental air transportation if certain conditions are met and the proposed service is consistent with public convenience and necessity (previously certificates for such interstate and overseas air transportation could only be granted if public convenience and necessity so required).

Stipulates that if certain round trip air carriers in interstate or overseas transportation fail to provide specified flight schedules, the Board is authorized to grant their routes to the first air carrier applicant meeting the requirements of the Board and the Secretary of Transportation. Establishes procedures for such route suspension and reissuance to a new air carrier.

Authorizes air carriers which hold certificates to engage in foreign air transportation, on any scheduled flight in foreign air transportation, to transport persons, property, and mail between points in the United States between which it is authorized to operate during such flight.

Establishes an experimental entry program for certain air carriers to engage in nonstop service in overseas or interstate transportation on routes currently assigned to another carrier. Directs the Board to conduct a study of the procedure for such program and to report its findings to the Congress by June 30, 1980.

Authorizes the Board to issue certificates to engage in air transportation on a temporary basis if the Board determines that a test period is desirable in order to evaluate the proposed new services.

Establishes time limitations during which the Board must act upon an air carrier's application for removal or modification of a term, condition, or limitation attached to its certificate.

Directs the Board to establish simplified procedures for the disposition of applications for certificates or permits to engage in air transportation and for the alteration, suspension, or transfer of such certificates.

Authorizes intrastate air carriers operating aircraft capable of carrying 30 or more persons to enter into through service and joint fare agreements with air carriers or foreign air carriers.

Permits the Board to deny new route authority to an applicant only upon a finding that clear and convincing evidence exists that such transportation is inconsistent with the public convenience and necessity.

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.

Requires certain air carriers that are the only carriers between two points to notify the Board and the community involved 90 days in advance of any proposed suspension or termination of nonstop or single-plane air transportation services.

Revises the rate determination elements for airmail transportation compensation for 1964, 1965 and 1966.

Sets forth procedures and factors to be considered in the disposal of applications for approval of consolidation, merger, or acquisition of control agreements by the Board. Authorizes the Board to dispose of such applications without a hearing under specified circumstances. Prohibits the Board from approving such agreements or pooling agreements which would substantially lessen competition unless certain findings are made.

Prohibits contracts between air carriers relating to pooling or to the apportionment of revenues for the purpose of providing financial assistance to an air carrier whose employees are engaged in a lawful work stoppage (airline mutual aid pacts).

Authorizes the Board to exempt persons from specified Clayton Act antitrust violations if it is in the public interest to do so.

Revises the proceedings of the Board upon a filing by an air carrier of any pooling contract or agreement, including the requirement that the Board provide to the Secretary of Transportation and the Attorney General written notice and opportunity to comment upon any such filed contract or agreement.

Authorizes the Board to exempt persons from the provisions of the Act under specified conditions.

Exempts air carriers which provide passenger service solely with aircraft which have a maximum passenger capacity of fewer than 56 passengers or cargo service with aircraft having a maximum payload capacity of fewer than 18,000 pounds (commuter air carriers) from the requirement that such a carrier hold a certificate of public convenience and necessity and such other requirements as the Board may promulgate by regulation. Authorizes the Board to decrease such passenger or cargo capacity when the public interest so requires.

Authorizes the Board to establish rates of compensation to be paid to commuter air carriers when no adequate service would otherwise be provided between two points. Sets forth factors which the Board is to consider in determining the amount of such compensation.

Directs the Board by January 1, 1980 to conduct a review of all points which have been deleted from a certificate or to which service has been suspended without a condition that substitute service be provided to determine whether Federal financial assistance should be provided to commuter air carriers to provide essential air transportation.

Requires the Administrator of the Federal Aviation Administration to effectucate safety standards for commuter airlines within 18 months and to impose such requirements on commuter airlines so as to assure that the level of safety provided passengers on such carriers is equivalent to the level of safety provided on other certificated air carriers to the maximum extent possible.

Prohibits air carriers from terminating, suspending, or reducing air transportation services to communities below standards of essential air transportation as established by the Board unless the carrier has given the Board, the appropriate State agency or agencies, and the community affected at least 90 days notice of its intentions to do so. Requires the Board to assist such an affected community to secure essential air transportation services from another carrier and empowers the Board to require an air carrier serving such notice to continue to provide essential services until another carrier is found. Stipulates that if such a carrier is required to perform such services for more than a 90 day period the Board shall compensate the carrier for any lossess incurred in complying with such a requirement. Terminates the Board's authority to require the continuation of essential air transportation services ten years after the enactment of this Act.

Restricts the President's powers to disapprove actions of the Board with respect to certificates or permits to engage in foreign air transportation. Stipulates that the President may only disapprove such actions solely on the basis of foreign relations or national defense considerations and not upon the basis of economic or carrier selection considerations.

Establishes restrictions with respect to the authority of the Board to prescribe minimum or maximum fares in air transportation.

Provides for the withholding from public disclosure of certain information contained in any application, report, or document filed under the Act.

Increases the value of air craft purchase loans which may be outstanding in order to be eligible for Federal guarantees. Increases the maximum time limits during which an aircraft purchase loan may be repaid. Prohibits any such Federal loan guarantee to be made for the purchase of any new turbojet powered aircraft not in compliance with Federal noise standards. Makes intrastate air carriers eligible to participate in the federally guaranteed aircraft purchase loan program.

Establishes sunset provisions with respect to the Board to become effective on December 31, 1982.

Directs the Board, by December 31, 1981, to submit to Congress a comprehensive review of its implementation of the provisions of the Act.

Establishes the Airline Employees' Protective Account in the U.S. Treasury.

Prohibits the Secretary of Transportation or the Administrator of the Federal Aviation Administration from imposing administrative aviation user charges which did not exist on January 1, 1973, or from increasing such fees if they were in effect on such date without congressional approval.

Directs the President to create a board to investigate and to report to the President within 30 days on the labor dispute between the Wein Air Alaska, Incorporated, and the Air Line Pilots Association.