An Act to amend title XIII of the Federal Aviation Act of 1958 to expand the types of risks which the Secretary of Transportation may insure or reinsure, and for other purposes.

(Conference report filed in House, H. Rept. 95-773)

Amends the Federal Aviation Act of 1958 to authorize the Secretary of Transportation to insure domestic and foreign air carriers against loss or damage arising out of any risk (previously only war risks) from the operation of an aircraft if the President determines that the operation of such aircraft is necessary to carry out the foreign policy of the United States and such insurance is otherwise unavailable. Stipulates that such insurance shall be for a maximum period of 60 days and may only cover risks while the aircraft is engaged in foreign commerce or operating between points outside the United States. Allows the Secretary to reinsure such aircraft if the President determines that its continued operation is necessary to carry out the foreign policy of the United States.

Extends the authority of the Secretary to provide insurance and reinsurance under such Act from May 7, 1977, to September 30, 1982.

Permits airlines to grant reduced fares on a space-available basis to any minister of religion, and certain handicapped, retired and aged individuals. Directs the Civil Aeronautics Board to report on the feasibility of such fares for persons 21 years of age or younger.

Authorizes an air carrier operating within the State of California or the State of Florida to enter into an agreement with any air carrier for the establishment of joint fares, rates, and services for through service. through service.

Requires (1) 60 days notice of an airline's proposed change in fares for the transportation of property, and (2) 45 days notice of such change in fares for the transportation of persons. Directs the Board, in suspending the effect of a proposed rate change, to implement such suspension at least 15 days before such rate change would take effect.

Directs the Board, in fixing compensation for transportation of mail by a local carrier in 1966, to disregard any decrease in the Federal income tax liability for such carrier.

Allows the Civil Aeronautics Board to pay a subsidy to an air taxi operator, as compensation for the transportation of mail by the aircraft during the period August 1, 1973 through July 31, 1975.

Permits aircraft owned by citizens of foreign countries admitted for permanent residence in the United States, and aircraft owned by corporations lawfully organized and doing business under the laws of the United States, or any State thereof, which are based and primarily used in the United States, to be registered in the United States.

Directs the Administrator of the Federal Aviation Administration to issue regulations permitting the operation of civil aircraft, subject to the statutory requirement concerning emergency locator transmitters, during any period for which the transmitter has been removed for inspection, repair, modification or replacement.

Permits all-cargo carriers to obtain certificates to operate all-cargo services to any point within the United States. Stipulates that all-cargo airservice within Alaska and Hawaii will continue to be governed by existing law.

Authorizes the Secretary to permit the city of Redmond, Oregon, to dispose of surplus airport property not needed for airport purposes.