Laws: Cases and Codes : U.S. Code : Title 49 : Section 41736


   
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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