§ 41736 — Air Transportation To Noneligible Places

(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 (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) 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. (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. (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) 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) 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) 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. (1) No proposal under subsection (a) may be accepted by the Secretary after the date of enactment of this subsection. (2) The Secretary may not provide any compensation under this section after the date that is 2 years after the date of enactment of this subsection.