
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 49USC41509]

 
                        TITLE 49--TRANSPORTATION
 
                     SUBTITLE VII--AVIATION PROGRAMS
 
                     PART A--AIR COMMERCE AND SAFETY
 
                     subpart ii--economic regulation
 
                          CHAPTER 415--PRICING
 
Sec. 41509. Authority of the Secretary of Transportation to 
        suspend, cancel, and reject tariffs for foreign air 
        transportation
        
    (a) Cancellation and Rejection.--(1) On the initiative of the 
Secretary of Transportation or on a complaint filed with the Secretary, 
the Secretary may conduct a hearing to decide whether a price for 
foreign air transportation contained in an existing or newly filed 
tariff of an air carrier or foreign air carrier, a classification, rule, 
or practice affecting that price, or the value of the transportation 
provided under that price, is lawful. The Secretary may begin the 
hearing at once and without an answer or another formal pleading by the 
air carrier or foreign air carrier, but only after reasonable notice. 
If, after the hearing, the Secretary decides that the price, 
classification, rule, or practice is or will be unreasonable or 
unreasonably discriminatory, the Secretary may cancel or reject the 
tariff and prevent the use of the price, classification, rule, or 
practice.
    (2) With or without a hearing, the Secretary may cancel or reject an 
existing or newly filed tariff of a foreign air carrier and prevent the 
use of a price, classification, rule, or practice when the Secretary 
decides that the cancellation or rejection is in the public interest.
    (3) In deciding whether to cancel or reject a tariff of an air 
carrier or foreign air carrier under this subsection, the Secretary 
shall consider--
        (A) the effect of the price on the movement of traffic;
        (B) the need in the public interest of adequate and efficient 
    transportation by air carriers and foreign air carriers at the 
    lowest cost consistent with providing the transportation;
        (C) the standards prescribed under law related to the character 
    and quality of transportation to be provided by air carriers and 
    foreign air carriers;
        (D) the inherent advantages of transportation by aircraft;
        (E) the need of the air carrier and foreign air carrier for 
    revenue sufficient to enable the air carrier and foreign air 
    carrier, under honest, economical, and efficient management, to 
    provide adequate and efficient air carrier and foreign air carrier 
    transportation;
        (F) whether the price will be predatory or tend to monopolize 
    competition among air carriers and foreign air carriers in foreign 
    air transportation;
        (G) reasonably estimated or foreseeable future costs and 
    revenues for the air carrier or foreign air carrier for a reasonably 
    limited future period during which the price would be in effect; and
        (H) other factors.

    (b) Suspension.--(1)(A) Pending a decision under subsection (a)(1) 
of this section, the Secretary may suspend a tariff and the use of a 
price contained in the tariff or a classification, rule, or practice 
affecting that price.
    (B) The Secretary may suspend a tariff of a foreign air carrier and 
the use of a price, classification, rule, or practice when the 
suspension is in the public interest.
    (2) A suspension becomes effective when the Secretary files with the 
tariff and delivers to the air carrier or foreign air carrier affected 
by the suspension a written statement of the reasons for the suspension. 
To suspend a tariff, reasonable notice of the suspension must be given 
to the affected carrier.
    (3) The suspension of a newly filed tariff may be for periods 
totaling not more than 365 days after the date the tariff otherwise 
would go into effect. The suspension of an existing tariff may be for 
periods totaling not more than 365 days after the effective date of the 
suspension. The Secretary may rescind at any time the suspension of a 
newly filed tariff and allow the price, classification, rule, or 
practice to go into effect.
    (c) Effective Tariffs and Prices When Tariff Is Suspended, Canceled, 
or Rejected.--(1) If a tariff is suspended pending the outcome of a 
proceeding under subsection (a) of this section and the Secretary does 
not take final action in the proceeding during the suspension period, 
the tariff goes into effect at the end of that period subject to 
cancellation when the proceeding is concluded.
    (2)(A) During the period of suspension, or after the cancellation or 
rejection, of a newly filed tariff (including a tariff that has gone 
into effect provisionally), the affected air carrier or foreign air 
carrier shall maintain in effect and use--
        (i) the corresponding seasonal prices, or the classifications, 
    rules, and practices affecting those prices or the value of 
    transportation provided under those prices, that were in effect for 
    the carrier immediately before the new tariff was filed; or
        (ii) another price provided for under an applicable 
    intergovernmental agreement or understanding.

    (B) If the suspended, canceled, or rejected tariff is the first 
tariff of the carrier for the covered transportation, the carrier, for 
the purpose of operations during the period of suspension or pending 
effectiveness of a new tariff, may file another tariff containing a 
price or another classification, rule, or practice affecting the price, 
or the value of the transportation provided under the price, that is in 
effect (and not subject to a suspension order) for any air carrier 
providing the same transportation.
    (3) If an existing tariff is suspended or canceled, the affected air 
carrier or foreign air carrier, for the purpose of operations during the 
period of suspension or pending effectiveness of a new tariff, may file 
another tariff containing a price or another classification, rule, or 
practice affecting the price, or the value of the transportation 
provided under the price, that is in effect (and not subject to a 
suspension order) for any air carrier providing the same transportation.
    (d) Response to Refusal of Foreign Country To Allow Air Carrier To 
Charge a Price.--When the Secretary finds that the government or an 
aeronautical authority of a foreign country has refused to allow an air 
carrier to charge a price contained in a tariff filed and published 
under section 41504 of this title for foreign air transportation to the 
foreign country--
        (1) the Secretary, without a hearing--
            (A) may suspend any existing tariff of a foreign air carrier 
        providing transportation between the United States and the 
        foreign country for periods totaling not more than 365 days 
        after the date of the suspension; and
            (B) may order the foreign air carrier to charge, during the 
        suspension periods, prices that are the same as those contained 
        in a tariff (designated by the Secretary) of an air carrier 
        filed and published under section 41504 of this title for 
        foreign air transportation to the foreign country; and

        (2) a foreign air carrier may continue to provide foreign air 
    transportation to the foreign country only if the government or 
    aeronautical authority of the foreign country allows an air carrier 
    to start or continue foreign air transportation to the foreign 
    country at the prices designated by the Secretary.

    (e) Standard Foreign Fare Level.--(1)(A) In this subsection, 
``standard foreign fare level'' means--
        (i) for a class of fares existing on October 1, 1979, the fare 
    between 2 places (as adjusted under subparagraph (B) of this 
    paragraph) filed for and allowed by the Civil Aeronautics Board to 
    go into effect after September 30, 1979, and before August 13, 1980 
    (with seasonal fares adjusted by the percentage difference that 
    prevailed between seasons in 1978), or the fare established under 
    section 1002(j)(8) of the Federal Aviation Act of 1958 (Public Law 
    85-726, 72 Stat. 731), as added by section 24(a) of the 
    International Air Transportation Competition Act of 1979 (Public Law 
    96-192, 94 Stat. 46); or
        (ii) for a class of fares established after October 1, 1979, the 
    fare between 2 places in effect on the effective date of the 
    establishment of the new class.

    (B) At least once every 60 days for fuel costs, and at least once 
every 180 days for other costs, the Secretary shall adjust the standard 
foreign fare level for the particular foreign air transportation to 
which the standard foreign fare level applies by increasing or 
decreasing that level by the percentage change from the last previous 
period in the actual operating cost for each available seat-mile. In 
adjusting a standard foreign fare level, the Secretary may not make an 
adjustment to costs actually incurred. In establishing a standard 
foreign fare level and making adjustments in the level under this 
paragraph, the Secretary may use all relevant or appropriate information 
reasonably available to the Secretary.
    (2) The Secretary may not decide that a proposed fare for foreign 
air transportation is unreasonable on the basis that the fare is too low 
or too high if the proposed fare is neither more than 5 percent higher 
nor 50 percent lower than the standard foreign fare level for the same 
or essentially similar class of transportation. The Secretary by 
regulation may increase the 50 percent specified in this paragraph.
    (3) Paragraph (2) of this subsection does not apply to a proposed 
fare that is not more than--
        (A) 5 percent higher than the standard foreign fare level when 
    the Secretary decides that the proposed fare may be unreasonably 
    discriminatory or that suspension of the fare is in the public 
    interest because of an unreasonable regulatory action by the 
    government of a foreign country that is related to a fare proposal 
    of an air carrier; or
        (B) 50 percent lower than the standard foreign fare level when 
    the Secretary decides that the proposed fare may be predatory or 
    discriminatory or that suspension of the fare is required because of 
    an unreasonable regulatory action by the government of a foreign 
    country that is related to a fare proposal of an air carrier.

    (f) Submission of Orders to President.--The Secretary shall submit 
to the President an order made under this section suspending, canceling, 
or rejecting a price for foreign air transportation, and an order 
rescinding the effectiveness of such an order, before publishing the 
order. Not later than 10 days after its submission, the President may 
disapprove the order on finding disapproval is necessary for United 
States foreign policy or national defense reasons.
    (g) Compliance as Condition of Certificate or Permit.--This section 
and compliance with an order of the Secretary under this section are 
conditions to any certificate or permit held by an air carrier or 
foreign air carrier. An air carrier or foreign air carrier may provide 
foreign air transportation only as long as the carrier maintains prices 
for that transportation that comply with this section and orders of the 
Secretary under this section.

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1135.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
           Revised  Section                    Source (U.S. Code)              
 Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
41509(a)(1)...........................  49 App.:1482(j)(1) (1st          Aug. 2
3, 1958, Pub. L. 85-726, 72 Stat.
                                         sentence words before            731, 
Sec.  1002(j)(1), (2); added Mar.
                                         semicolon, 2d sentence related   22, 1
972, Pub. L. 92-259, Sec.  3(a),
                                         to tariffs of air carriers and   86 St
at. 96; restated Feb. 15, 1980,
                                         foreign air carriers), (2)       Pub. 
L. 96-192, Secs.  14, 15, 94
                                         (1st sentence words before       Stat.
 40.
                                         semicolon, 2d sentence related
                                         to tariffs of air carriers and
                                         foreign air carriers).
                                        49 App.:1551(b)(1)(E).           Aug. 2
3, 1958, Pub. L. 85-726, 72 Stat.
                                                                          731, 
Sec.  1601(a)(4)(B) (related to
                                                                          Sec. 
 403(c)(3)), (b) (1)(E); added
                                                                          Oct. 
4, 1984, Pub. L. 98-443, Sec.
                                                                          3(c),
 (e), 98 Stat. 1703, 1704.
41509(a)(2)...........................  49 App.:1482(j)(1) (2d sentence
                                         related to tariffs of foreign
                                         air carriers), (2) (2d
                                         sentence related to tariffs of
                                         foreign air carriers).
                                        49 App.:1551(b)(1)(E).
41509(a)(3)...........................  49 App.:1482(j)(5).              Aug. 2
3, 1958, Pub. L. 85-726, 72 Stat.
                                                                          731, 
Sec.  1002(j)(5); added Mar. 22,
                                                                          1972,
 Pub. L. 92-259, Sec.  3(a), 86
                                                                          Stat.
 98; Feb. 15, 1980, Pub. L. 96-
                                                                          192, 
Sec.  16, 94 Stat. 42.
                                        49 App.:1551(b)(1)(E).
41509(b)..............................  49 App.:1373(c)(3).              Aug. 2
3, 1958, Pub. L. 85-726, 72 Stat.
                                                                          731, 
Sec.  403(c)(3); added Oct. 24,
                                                                          1978,
 Pub. L. 95-504, Sec.  22, 92
                                                                          Stat.
 1724.
                                        49 App.:1482(j)(1) (1st
                                         sentence words after
                                         semicolon, 3d sentence), (2)
                                         (1st sentence words after
                                         semicolon).
                                        49 App.:1551(a)(4)(B) (related
                                         to 49 App.:1373(c)(3)),
                                         (b)(1)(E).
41509(c)(1)...........................  49 App.:1482(j)(1) (4th
                                         sentence), (2) (3d sentence).
                                        49 App.:1551(b)(1)(E).
41509(c)(2)...........................  49 App.:1482(j)(1) (5th, last
                                         sentences).
41509(c)(3)...........................  49 App.:1482(j)(2) (last
                                         sentence).
41509(d)..............................  49 App.:1482(j)(3).              Aug. 2
3, 1958, Pub. L. 85-726, 72 Stat.
                                                                          731, 
Sec.  1002(j)(3), (4); added Mar.
                                                                          22, 1
972, Pub. L. 92-259, Sec.  3(a),
                                                                          86 St
at. 98.
                                        49 App.:1551(b)(1)(E).
41509(e) (1)(A).......................  49 App.:1482(j)(7).              Aug. 2
3, 1958, Pub. L. 85-726, 72 Stat.
                                                                          731, 
Sec.  1002(j)(6), (7), (9), (10);
                                                                          added
 Feb. 15, 1980, Pub. L. 96-192,
                                                                          Sec. 
 24(a), 94 Stat. 45, 47.
41509(e) (1)(B).......................  49 App.:1482(j)(9).
                                        49 App.:1551(b)(1)(E).
41509(e)(2), (3)......................  49 App.:1482(j)(6), (10).
                                        49 App.:1551(b)(1)(E).
41509(f)..............................  49 App.:1461(b).                 Aug. 2
3, 1958, Pub. L. 85-726, 72 Stat.
                                                                          731, 
Sec.  801(b); added Mar. 22,
                                                                          1972,
 Pub. L. 92-259, Sec.  2, 86
                                                                          Stat.
 96.
                                        49 App.:1551(b)(1)(E).
41509(g)..............................  49 App.:1482(j)(4).
                                        49 App.:1551(b)(1)(E).
-------------------------------------------------------------------------------
---------------------------------

    In subsection (a)(1) and (2), the words ``take action to'' are 
omitted as surplus.
    In subsection (a)(1), the words ``individual or joint (between air 
carriers, between foreign air carriers, or between an air carrier or 
carriers and a foreign air carrier or carriers)'' and ``and, if it so 
orders'' are omitted as surplus. The words ``unreasonable or 
unreasonably discriminatory'' are substituted for ``unjust or 
unreasonable, or unjustly discriminatory, or unduly preferential, or 
unduly prejudicial'' for consistency in the revised title and to 
eliminate unnecessary words. See the revision notes following 49:10101.
    In subsection (a)(3), before clause (A), the words ``In deciding 
whether to cancel or reject a tariff of an air carrier or foreign air 
carrier under this subsection'' are substituted for ``In exercising and 
performing its powers and duties under this subsection with respect to 
the rejection or cancellation of rates for the carriage of persons or 
property'' for consistency in this section and to eliminate unnecessary 
words. In clause (B), the words ``of persons and property'' are omitted 
as surplus.
    In subsection (b)(1), the words ``contained in the tariff'' are 
added for clarity.
    In subsection (b)(1)(A), the words ``such hearing and'' are omitted 
as surplus.
    In subsection (b)(1)(B), the words ``or in the case of'' are omitted 
as surplus.
    In subsection (b)(2), the text of 49 App.:1373(c)(3) is omitted as 
obsolete. Reference to 49 App.:1482(g) is omitted because 49 
App.:1482(g) does not relate to foreign air transportation and 49 
App.:1551(a)(5)(D) provides that 49 App.:1482(g) ceased to be in effect 
on January 1, 1985, except insofar as it related to foreign air 
transportation. Reference to 49 App.:1482(j) is omitted because it 
consistently has been interpreted that the minimum notice requirement 
does not apply to foreign air transportation.
    In subsection (b)(3), the words ``for periods totaling not more than 
365 days after'' are substituted for ``a period or periods not exceeding 
365 days in the aggregate beyond the time when'' and ``a period or 
periods not exceeding 365 days in the aggregate from'' to eliminate 
unnecessary words.
    In subsection (c)(1), the words ``a tariff is suspended pending the 
outcome of a proceeding under subsection (a) of this section'' are added 
for clarity. The words ``and the Secretary does not take final action in 
the proceeding during the suspension period'' are substituted for ``the 
proceeding has not been concluded and an order made within the period of 
suspension or suspensions'' and ``the proceeding has not been concluded 
within the period of suspension or suspensions'' to eliminate 
unnecessary words. The words ``or if the Board shall otherwise so 
direct'' are omitted as surplus because under subsection (b)(3) of this 
section the Secretary may rescind a suspension at any time.
    In subsection (c)(2)(A), before clause (i), the words ``or 
suspensions'' are omitted because of 1:1. In clause (i), the words 
``corresponding seasonal'' are added for clarity.
    In subsection (c)(2)(B) and (3), the words ``providing the same 
transportation'' are substituted for ``engaged in the same foreign air 
transportation'' for consistency in this chapter and to eliminate 
unnecessary words.
    In subsection (c)(2)(B), the words ``of the carrier for the covered 
transportation'' and ``during the period of suspension or'' are added 
for clarity.
    In subsection (c)(3), the words ``If an existing tariff is suspended 
or canceled'' are added for clarity. The words ``following cancellation 
of an existing tariff'' are omitted as surplus.
    In subsection (d), the word ``properly'' is omitted as surplus. In 
clause (1)(A), the words ``the operation of'' are omitted as surplus. 
The words ``periods totaling not more than 365 days after the date of 
the suspension'' are substituted for ``for a period or periods not 
exceeding three hundred and sixty-five days in the aggregate from the 
date of such suspension'' for clarity and to eliminate unnecessary 
words. In subclause (B), the words ``or suspensions'' are omitted 
because of 1:1. In clause (2), the words ``by the Secretary'' are added 
for clarity.
    In subsection (e)(1)(B), the words ``within 30 days after February 
15, 1980'' are omitted as executed. The words ``as the case may be'' are 
omitted as surplus.
    In subsection (e)(2), the text of 49 App.:1482(j)(6)(A) is omitted 
as expired. The words ``with respect to any proposed increase filed with 
the Board after the 180th day after February 15, 1980'' and ``with 
respect to any proposed decrease filed after February 15, 1980'' are 
omitted as obsolete. The words ``of persons'' are omitted as surplus 
because a ``fare'' is only for passengers. The words ``The Secretary by 
regulation may increase the 50 percent specified in this paragraph'' are 
substituted for 49 App.:1482(j)(10) for clarity.
    In subsection (e)(3)(A), the words ``unreasonably discriminatory'' 
are substituted for ``unduly preferential, unduly prejudicial, or 
unjustly discriminatory'' to eliminate unnecessary words and for 
consistency in the revised title. See the revision notes following 
49:10101.
    In subsection (g), the words ``express'' and ``now . . . or 
hereafter issued'' are omitted as surplus. The words ``may provide 
foreign air transportation only as long as'' are substituted for ``shall 
be a condition to the continuation of the affected service'' for 
clarity.

                       References in Text

    Section 1002(j)(8) of the Federal Aviation Act of 1958, referred to 
in subsec. (e)(1)(A)(i), is section 1002(j)(8) of Pub. L. 85-726, which 
was classified to section 1482(j)(8) of former Title 49, Transportation, 
prior to repeal by Pub. L. 103-272, Sec. 7(b), July 5, 1994, 108 Stat. 
1379.

                  Section Referred to in Other Sections

    This section is referred to in sections 40109, 41310, 41504, 41505, 
46110, 46301 of this title.
