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U.S. Code as of:
01/19/04
Section 41736. Air transportation to noneligible places
(a) Proposals and Decisions. - (1) A State or local government
may propose to the Secretary of Transportation that the Secretary
provide compensation to an air carrier to provide air
transportation to a place that is not an eligible place under this
subchapter. Not later than 90 days after receiving a proposal under
this section, the Secretary shall -
(A) decide whether to designate the place as eligible to
receive compensation under this section; and
(B)(i) approve the proposal if the State or local government or
a person is willing and able to pay 50 percent of the
compensation for providing the transportation, and notify the
State or local government of the approval; or
(ii) disapprove the proposal if the Secretary decides the
proposal is not reasonable under paragraph (2) of this
subsection, and notify the State or local government of the
disapproval and the reasons for the disapproval.
(2) In deciding whether a proposal is reasonable, the Secretary
shall consider, among other factors -
(A) the traffic-generating potential of the place;
(B) the cost to the United States Government of providing the
proposed transportation; and
(C) the distance of the place from the closest hub airport.
(b) Approval for Certain Air Transportation. - Notwithstanding
subsection (a)(1)(B) of this section, the Secretary shall approve a
proposal under this section to compensate an air carrier for
providing air transportation to a place in the 48 contiguous States
or the District of Columbia and designate the place as eligible for
compensation under this section if -
(1) at any time before October 23, 1978, the place was served
by a carrier holding a certificate under section 401 of the
Federal Aviation Act of 1958;
(2) the place is more than 50 miles from the nearest small hub
airport or an eligible place;
(3) the place is more than 150 miles from the nearest hub
airport; and
(4) the State or local government submitting the proposal or a
person is willing and able to pay 25 percent of the cost of
providing the compensated transportation.
Paragraph (4) does not apply to any community approved for service
under this section during the period beginning October 1, 1991, and
ending December 31, 1997.
(c) Level of Air Transportation. - (1) If the Secretary
designates a place under subsection (a)(1) of this section as
eligible for compensation under this section, the Secretary shall
decide, not later than 6 months after the date of the designation,
on the level of air transportation to be provided under this
section. Before making a decision, the Secretary shall consider the
views of any interested community, the appropriate State authority
of the State in which the place is located, and the State or local
government or person agreeing to pay compensation for the
transportation under subsection (b)(4) of this section.
(2) After making the decision under paragraph (1) of this
subsection, the Secretary shall provide notice that any air carrier
that is willing to provide the level of air transportation
established under paragraph (1) for a place may submit an
application to provide the transportation. In selecting an
applicant, the Secretary shall consider, among other factors -
(A) the factors listed in section 41733(c)(1) of this title;
and
(B) the views of the State or local government or person
agreeing to pay compensation for the transportation.
(d) Compensation Payments. - (1) The Secretary shall pay
compensation under this section when and in the way the Secretary
decides is appropriate. The Secretary shall continue to pay
compensation under this section only as long as -
(A) the air carrier maintains the level of air transportation
established by the Secretary under subsection (c)(1) of this
section;
(B) the State or local government or person agreeing to pay
compensation for transportation under this section continues to
pay that compensation; and
(C) the Secretary decides the compensation is necessary to
maintain the transportation 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.
(e) Review. - The Secretary shall review periodically the level
of air transportation provided under this section. Based on the
review and consultation with any interested community, the
appropriate State authority of the State in which the community is
located, and the State or local government or person paying
compensation under this section, the Secretary may make appropriate
adjustments in the level of transportation.
(f) Withdrawal of Eligibility Designations. - After providing
notice and an opportunity for interested persons to comment, the
Secretary may withdraw the designation of a place under subsection
(a)(1) of this section as eligible to receive compensation under
this section if the place has received air transportation under
this section for at least 2 years and the Secretary decides the
withdrawal would be in the public interest. The Secretary by
regulation shall prescribe standards for deciding whether the
withdrawal of a designation under this subsection is in the public
interest. The standards shall include the factors listed in
subsection (a)(2) of this section.
(g) Ending, Suspending, and Reducing Air Transportation. - An air
carrier providing air transportation for compensation under this
section may end, suspend, or reduce that transportation below the
level of transportation established by the Secretary under this
section only after giving the Secretary, the affected community,
and the State or local government or person paying compensation
under this section at least 30 days' notice before ending,
suspending, or reducing the transportation.
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