Laws: Cases and Codes : U.S. Code : Title 49 : Section 41735


   
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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