Airport and Airway Improvement Act of 1981

Title I: Airport and Airway Improvement Act of 1981 - Directs the Secretary of Transportation to review and revise the existing national airport system plan to provide for the development of public-use airports in the United States. Directs that such plan shall include the type and estimated cost of eligible airport development considered by the Secretary to be necessary to provide a safe and efficient system of public-use airports to anticipate and meet the needs of civil aeronautics, to meet requirements in support of the national defense, and to meet the needs of the postal service.

Directs the Department of Defense to make military airports and airport facilities available for civil use to the extent feasible.

States that the costs of site preparation work associated with acquisition, establishment, or improvement of air navigation facilities shall be charged to funds appropriated to the Secretary by this Act.

Authorizes the Secretary of Transportation to make grants from the Airport and Airway Trust Fund for airport development and planning in the form of project grants, block-grants, or block-grant supplements. Limits the annual funding level for such grants for fiscal years 1981 through 1986 to a specified sum.

Prohibits the Secretary from incurring obligations: (1) for such grants after September 30, 1986; and (2) for airport development or planning at ineligible airports.

Authorizes appropriations out of such fund for fiscal years 1981 through 1986 for: (1) the establishment and improvement of air navigation facilities; (2) airport research, engineering and development, and demonstration projects; (3) training State and local government employees to carry out the purposes of this Act; (4) costs of services provided under international agreements relating to the joint financing of air navigation services; and (5) costs incurred in operating and maintaining air navigation facilities in a safe and efficient condition.

Sets forth the method for apportioning the funds made available under this Act.

Specifies conditions which determine eligibility for funding under this Act.

Sets forth procedures for submission of project-grant and block-grant airport development applications and requirements which must be satisfied to approve such applications.

Requires a sponsor of an airport project to hold public hearings where the project-grant application involves the location of an airport, an airport runway, or a major runway extension. Directs that such a grant shall not be made unless the Governor of the State in which the project is to be located certifies in writing to the Secretary that there is a reasonable assurance that the project will be located, designed, constructed, and operated so as to comply with applicable air and water quality standards.

Authorizes the Secretary to approve standards (other than standards for safety of approaches) established by a State for airport development at public-use airports which are not primary airports.

Authorizes the Secretary, in connection with any project-grant, to require the project sponsor to certify that all of the statutory and administrative requirements imposed by this Act will be observed.

Directs that the United States' share of allowable project costs for a project approved under this Act shall not exceed 75 percent of its cost. Establishes higher percentages for projects in States containing specified amounts of public lands.

Imposes upon the Secretary, as a condition precedent to approval of an airport development project contained in a project grant application submitted under this Act, the duty to receive written assurances that: (1) such airport will be available for public use on fair, reasonable, and nondiscriminatory terms; (2) such airport and related facilities will be suitably operated and maintained, with due regard to climatic and flood conditions; (3) the aerial approaches to such airport will be adequately cleared, protected, and hazard-free; (4) land in the immediate vicinity of such airport will be used for purposes compatible with airport operations; (5) such airport's facilities will be available for use by United States Government aircraft; (6) the airport operator or owner will furnish certain land, water, or estate therein to the Federal Government for use in connection with air traffic control, navigation, weather reporting, or communications activities related to air traffic control; (7) the airport operator or owner will maintain a fee and rental structure for the facilities and services being provided to airport users which will make the airport as self-sustaining as possible; (8) the airport and all airport records will be available for the Secretary's inspection; and (9) such operator or owner who receives a grant for the purchase of land for noise compatibility purposes which is conditioned on the disposal of the acquired land at the earliest practicable time will use its best efforts to so dispose of such land.

Authorizes the Secretary to relieve a project sponsor from contractual obligations entered into under this Act, the Airport and Airway Development Act of 1970, or the Federal Airport Act, to provide free space in airport buildings to the Federal Government.

Directs the Secretary, upon approving a project grant application, to transmit an offer to the sponsors thereof to make a grant for the U.S. share of allowable project costs. Sets forth procedures for the execution of such agreements.

Directs the Secretary first to determine that the cost of any airport development or planning project is allowable before the United States pays from amounts appropriated to carry out the provisions of this Act. Sets forth criteria to be used in determining whether such costs are allowable.

Authorizes the Secretary to approve, as allowable costs of an airport development project, terminal development costs in nonrevenue producing public-use areas which are directly related to the movement of passengers and baggage.

Limits, under specified conditions, amounts to be obligated for project costs. Directs that the U.S. share of such costs shall not exceed 50 percent.

Describes project costs not allowed under this Act. Authorizes the Secretary to determine, within certain parameters, the times and amounts in which payments shall be made under such agreements.

Directs that construction work on projects funded under this Act shall be subject to inspection and approval by the Secretary and shall be in accordance with regulations prescribed by the Secretary.

States that contracts in excess of $2,000 for such construction projects shall include provisions establishing minimum rates of wages to be predetermined by the Secretary of Labor in accordance with the Davis-Bacon Act.

Requires that construction contracts for airport development projects grant employment preferences to Vietnam and disabled veterans.

Directs the Secretary of Transportation, in the event that a public airport project will require the use of Federal lands, to request the head of the Federal agency or department controlling such lands to transfer the necessary property interests to the public agency sponsoring the project or which owns or controls the airport involved. Requires the head of such an agency or department to notify the Secretary within four months of its decision with respect to such a request. Exempts from such requests lands under the administration of the National Park Service, units of the National Wildlife Refuge System or similar areas under the jurisdiction of the Bureau of Sport Fisheries and Wildlife, or within any national forest or Indian reservation.

Sets forth criminal penalties for fraudulent acts committed with respect to projects under this Act.

Specifies recordkeeping and auditing requirements in regard to projects under this Act.

Directs the Secretary to take affirmative action to assure that no person shall, on the grounds of race, creed, color, national origin, or sex, be excluded from participating in any activity conducted with funds received from any grant made under this Act.

Provides that no obligation for airport development shall be incurred by the Secretary after September 30, 1981, at any airport which enplanes more than one and four-tenths percent (.50 percent after September 30, 1982) of the total number of passengers enplaned in calendar year 1979 at all commercial service airports. Authorizes other airports after such date to elect not to receive such assistance.

Directs the Secretary to issue criteria pursuant to which an owner or operator of an airport that becomes ineligible to receive Federal assistance under this Act may terminate any existing assurances, requirements, or contractual obligations with the United States that arose from the acceptance of such Federal assistance. Sets forth procedures for the termination of such obligations.

Requires that any airport which receives assistance under this Act, the Federal Airport Act of 1946, the Airport and Airway Development Act of 1970, or the Surplus Property Act of 1944 shall be available for public use on fair and reasonable terms without unjust discrimination.

Repeals sections of the Airport and Airway Development Act of 1970 relating to airport development funding.

Title II: Airport and Airway Revenue Act of 1981 - Amends the Internal Revenue Code to reinstate, and revise the rates of, the taxes on fuel used in noncommercial aviation.

Reduces the airline ticket tax for individual travel from eight to six and one half percent. Reinstates the tax on the use of international travel facilities and the tax on transportation of property by air.

Amends the Airport and Airway Revenue Act of 1970 to continue the transfer of such taxes to the Airport and Airway Trust Fund beyond June 30, 1981. Extends, beyond June 30, 1981, the availability of Trust Fund assets for specified expenditures.

Title III: Miscellaneous - Amends the Federal Aviation Act of 1958 to permit the imposition by a State (or political subdivision thereof) of a tax, fee, head charge, or other charge for the use of any airport that is ineligible to receive Federal assistance for airport development or planning under this Act.

Revises standards by which airports are granted operating certificates.

Amends the Aviation Safety and Noise Abatement Act of 1979 to redefine "airport" and "airport operator" for purposes of such Act.

Limits, to specified air carriers, loan guarantees for the purchase of limited seating aircraft.

Title IV: Accelerated Sunset of the Civil Aeronautics Board - Amends the Federal Aviation Act of 1958 and the Airline Deregulation Act of 1978 to accelerate, to September 30, 1982, the termination of the Civil Aeronautics Board and the transfer of its functions. Revises, to January 1, 1982, the date by which the Board shall submit to Congress a comprehensive review of its implementation of such Acts.