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U.S. Code as of:
01/19/04
Section 41735. Enhanced essential air service
(a) Proposals. - (1) A State or local government may submit a
proposal to the Secretary of Transportation for enhanced essential
air service to an eligible place for which basic essential air
service is being provided under section 41733 of this title. The
proposal shall -
(A) specify the level and type of enhanced essential air
service the State or local government considers appropriate; and
(B) include an agreement related to compensation required for
the proposed service.
(2) The agreement submitted under paragraph (1)(B) of this
subsection shall provide that -
(A) the State or local government or a person pay 50 percent of
the compensation required for the proposed service and the United
States Government pay the remaining 50 percent; or
(B)(i) the Government pay 100 percent of the compensation; and
(ii) if the proposed service is not successful for at least a
2-year period under the criteria prescribed by the Secretary
under paragraph (3) of this subsection, the eligible place is not
eligible for air service or air transportation for which
compensation is paid by the Secretary under this subchapter.
(3) The Secretary shall prescribe by regulation objective
criteria for deciding whether enhanced essential air service to an
eligible place under this section is successful in terms of -
(A) increasing passenger usage of the airport facilities at the
place; and
(B) reducing the amount of compensation provided by the
Secretary under this subchapter for that service.
(b) Decisions. - Not later than 90 days after receiving a
proposal under subsection (a) of this section, the Secretary shall
-
(1) approve the proposal if the Secretary decides the proposal
is reasonable; or
(2) if the Secretary decides the proposal is not reasonable,
disapprove the proposal and notify the State or local government
of the disapproval and the reasons for the disapproval.
(c) Compensation Payments. - (1) The Secretary shall pay
compensation under this section when and in the way the Secretary
decides is appropriate. Compensation for enhanced essential air
service under this section may be paid only for the costs incurred
in providing air service to an eligible place that are in addition
to the costs incurred in providing basic essential air service to
the place under section 41733 of this title. The Secretary shall
continue to pay compensation under this section only as long as -
(A) the air carrier maintains the level of enhanced essential
air service;
(B) the State or local government or person agreeing to pay
compensation under this section continues to pay the
compensation; and
(C) the Secretary decides the compensation is necessary to
maintain the service to the place.
(2) The Secretary may require the State or local government or
person agreeing to pay compensation under this section to make
advance payments or provide other security to ensure that timely
payments are made.
(d) Review. - (1) The Secretary shall review periodically the
enhanced essential air service provided to each eligible place
under this section.
(2) For service for which the Government pays 50 percent of the
compensation, based on the review and consultation with the
affected community and the State or local government or person
paying the remaining 50 percent of the compensation, the Secretary
shall make appropriate adjustments in the type and level of service
to the place.
(3) For service for which the Government pays 100 percent of the
compensation, based on the review and consultation with the State
or local government submitting the proposal, the Secretary shall
decide whether the service has succeeded for at least a 2-year
period under the criteria prescribed under subsection (a)(3) of
this section. If unsuccessful, the place is not eligible for air
service or air transportation for which compensation is paid by the
Secretary under this subchapter.
(e) Ending, Suspending, and Reducing Air Transportation. - An air
carrier may end, suspend, or reduce air transportation to an
eligible place below the level of enhanced essential air service
established for that place by the Secretary under this section only
after giving the Secretary, the affected community, and the State
or local government or person paying compensation for that service
at least 30 days' notice before ending, suspending, or reducing the
service. This subsection does not relieve the carrier of an
obligation under section 41734 of this title.
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