
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document affected by Public Law 107-67 Section 651]
[CITE: 39USC5402]

 
                        TITLE 39--POSTAL SERVICE
 
                     PART V--TRANSPORTATION OF MAIL
 
                CHAPTER 54--TRANSPORTATION OF MAIL BY AIR
 
Sec. 5402. Contracts for transportation of mail by air

    (a) The Postal Service may contract with any certificated air 
carrier, without advertising for bids, in such manner and under such 
terms and conditions as it deems appropriate, for the transportation of 
mail by aircraft between any of the points in foreign air transportation 
between which the carrier is authorized by the Secretary of 
Transportation to engage in the transportation of mail. Such contracts 
shall be for the transportation of at least 750 pounds of mail per 
flight, and no more than 5 percent, based on weight, of the 
international mail transported under any such contract shall consist of 
letter mail. Any such contract shall be filed with the Secretary of 
Transportation not later than 90 days before its effective date. Unless 
the Secretary of Transportation shall determine otherwise (under 
criteria prescribed by section 40101(a) of title 49) not later than 10 
days prior to the effective date of the contract, such contract shall 
become effective.
    (b) When the Postal Service deems that the transportation of mail by 
aircraft is required between points in foreign air transportation 
between which the Secretary of Transportation has not authorized an air 
carrier or combination of air carriers to engage in the transportation 
of mail, it may contract with any air carrier in such manner and under 
such terms and conditions as it may deem appropriate for the 
transportation of any class or classes of mail. The transportation of 
mail under contracts entered into under this subsection is not, except 
for sections 40109(a) and (c)-(h) and 42112 of title 49, air 
transportation within the provisions of part A of subtitle VII of title 
49. The Postal Service shall cancel such contract, in whole or in 
respect to certain points as the certificate shall require, upon the 
issuance by the Secretary of Transportation of an authorization under 
chapters 411 and 413 of title 49 to any air carrier to engage in the 
transportation of mail by aircraft between any of the points named in 
the contract, and the inauguration of scheduled service by such carrier.
    (c) If the Postal Service determines that service by certificated 
air carriers or combination of air carriers between any pair or pairs of 
points in foreign air transportation is not adequate for its purposes, 
it may contract for a period of not more than 4 years, without 
advertising for bids, in such manner and under such terms and conditions 
as it may deem appropriate, with any air taxi operator or combination 
thereof for such air transportation service. Contracts made under this 
subsection may be renewed at the existing rate by mutual agreement 
between the holder and the Postal Service. The Postal Service, with the 
consent of the air taxi operator, may adjust the compensation under such 
contracts for increased or decreased costs occasioned by changed 
conditions occurring during the contract term. The Postal Service shall 
cancel such a contract when the Secretary of Transportation authorizes 
an additional certificated carrier or carriers to provide service 
between any pair or pairs of points covered by the contract, and such 
carrier or carriers inaugurate schedules adequate for its purposes.
    (d) The Postal Service may determine rates and contract with any air 
carrier for the transportation of mail by aircraft in interstate air 
transportation either through negotiations or competitive bidding.
    (e) For purposes of this section, the terms ``air carrier'', 
``interstate air transportation'', and ``foreign air transportation'' 
have the meanings given such terms in section 40102(a) of title 49.
    (f) The authority of the Secretary of Transportation and the Postal 
Service under subsections (a), (b), and (c) of this section shall also 
apply, and the authority of the Postal Service under subsection (d) 
shall not apply, to the transportation of mail by aircraft between any 
two points both of which are within the State of Alaska and between 
which the air carrier is authorized by the Secretary to engage in the 
transportation of mail.
    (g)(1) The Postal Service, in selecting carriers of non-priority 
bypass mail to any point served by more than one carrier in the State of 
Alaska, shall, at a minimum, require that any such carrier shall--
        (A) hold a certificate of public convenience and necessity 
    issued under section 41102(a) of title 49;
        (B) operate at least 3 scheduled flights each week to such 
    point;
        (C) exhibit an adherence to such scheduled flights to the best 
    of the abilities of such carrier; and
        (D) have provided scheduled service within the State of Alaska 
    for at least 12 consecutive months with aircraft--
            (i) up to 7,500 pounds payload capacity before being 
        selected as a carrier of nonpriority bypass mail at an 
        applicable intra-Alaska bush service mail rate; and
            (ii) over 7,500 pounds payload capacity before being 
        selected as a carrier of nonpriority bypass mail at the intra-
        Alaska mainline service mail rate.

    (2) The Postal Service--
        (A) may provide direct mainline non-priority bypass mail service 
    to any bush point in the State of Alaska, without regard to 
    paragraph (1)(B), if such service is equal to or better than 
    interline service in cost and quality; and
        (B) shall deduct the non-priority bypass mail poundage flown on 
    direct mainline flights to bush points within the State of Alaska by 
    any carrier, from such carrier's allocation of the total poundage of 
    non-priority bypass mail transported to the nearest appropriate 
    Postal Service hub point in any month.

    (3)(A) The Postal Service shall determine the bypass mail bush 
points and hub points described under paragraph (2)(B) after 
consultation with the State of Alaska and the affected local communities 
and air carriers.
    (B) Any changes in the determinations of the Postal Service under 
subparagraph (A) shall be made--
        (i) after consultation with the State of Alaska and the affected 
    local communities and air carriers; and
        (ii) after giving 12 months public notice before any such change 
    takes effect.

(Pub. L. 91-375, Aug. 12, 1970, 84 Stat. 772; Pub. L. 98-443, 
Sec. 9(g)(4), Oct. 4, 1984, 98 Stat. 1707; Pub. L. 100-238, title I, 
Sec. 137, Jan. 8, 1988, 101 Stat. 1767; Pub. L. 103-272, Sec. 4(g)(2), 
July 5, 1994, 108 Stat. 1364; Pub. L. 103-429, Sec. 5, Oct. 31, 1994, 
108 Stat. 4378; Pub. L. 104-52, title VI, Sec. 631(a), Nov. 19, 1995, 
109 Stat. 505.)


                               Amendments

    1995--Subsec. (f). Pub. L. 104-52, Sec. 631(a)(1), substituted 
``The'' for ``During the period beginning January 1, 1985, and ending 
January 1, 1999, the''.
    Subsec. (g)(1)(D). Pub. L. 104-52, Sec. 631(a)(2), amended subpar. 
(D) generally. Prior to amendment, subpar. (D) read as follows: ``have 
provided scheduled service within the State of Alaska for at least 12 
months before being selected as a carrier of non-priority bypass mail.''
    1994--Subsec. (a). Pub. L. 103-272, Sec. 4(g)(2)(A), substituted 
``section 40101(a) of title 49'' for ``section 1302 of title 49''.
    Subsec. (b). Pub. L. 103-272, Sec. 4(g)(2)(B), substituted 
``sections 40109(a) and (c)-(h) and 42112 of title 49'' for ``sections 
1371(k) and 1386(b) of title 49'', ``part A of subtitle VII of title 
49'' for ``sections 1301-1542 of title 49'', and ``chapters 411 and 413 
of title 49'' for ``sections 1371-1386 of title 49''.
    Subsec. (d). Pub. L. 103-272, Sec. 4(g)(2)(C), inserted ``determine 
rates and'' after ``Service may'' and struck out ``and overseas'' after 
``in interstate''.
    Subsec. (e). Pub. L. 103-272, Sec. 4(g)(2)(D), struck out `` 
`overseas air transportation','' before ``and `foreign'', and 
substituted ``section 40102(a) of title 49'' for ``section 101 of the 
Federal Aviation Act of 1958 (49 U.S.C. 1301)''.
    Subsec. (g)(1)(A). Pub. L. 103-429 substituted ``section 41102(a) of 
title 49'' for ``section 401 of the Federal Aviation Act of 1958 (49 
U.S.C. 1371)''.
    1988--Subsec. (f). Pub. L. 100-238, Sec. 137(1), substituted 
``January 1, 1999'' for ``January 1, 1989''.
    Subsec. (g). Pub. L. 100-238, Sec. 137(2), added subsec. (g).
    1984--Subsec. (a). Pub. L. 98-443, Sec. 9(g)(4)(A)-(C), substituted 
``Secretary of Transportation'' for ``Civil Aeronautics Board'' wherever 
appearing, substituted ``between any of the points in foreign air 
transportation'' for ``between any of the points'', and struck out ``10 
percent of the domestic mail transported under any such contract or'' 
before ``5 percent''.
    Subsec. (b). Pub. L. 98-443, Sec. 9(g)(4)(A), (D), substituted 
``Secretary of Transportation'' for ``Civil Aeronautics Board'' wherever 
appearing and ``required between points in foreign air transportation'' 
for ``required between points''.
    Subsec. (c). Pub. L. 98-443, Sec. 9(g)(4)(A), (E), substituted 
``Secretary of Transportation'' for ``Civil Aeronautics Board'' and 
``pairs of points in foreign air transportation is not adequate'' for 
``pairs of points is not adequate''.
    Subsecs. (d) to (f). Pub. L. 98-443, Sec. 9(g)(4)(F), added subsecs. 
(d) to (f).


                    Effective Date of 1995 Amendment

    Section 631(b) of Pub. L. 104-52 provided that:
    ``(1) Subject to paragraph (2), the amendment made by subsection (a) 
[amending this section] shall be effective on and after August 1, 1995.
    ``(2) Subparagraph (D) of section 5402(g)(1) title 39, United States 
Code (as in effect before the amendment made under subsection (a)), 
shall apply to a carrier, if such carrier--
        ``(A) has an application pending before the Department of 
    Transportation for approval under section 41102 or 41110(e) of title 
    39, [probably should be ``49,''] United States Code, before August 
    1, 1995; and
        ``(B) would meet the requirements of such subparagraph if such 
    application were approved and such certificate were purchased.''


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-443 effective Jan. 1, 1985, see section 9(v) 
of Pub. L. 98-443, set out as a note under section 5314 of Title 5, 
Government Organization and Employees.

                  Section Referred to in Other Sections

    This section is referred to in section 5401 of this title; title 49 
sections 41901, 41902.
