[As of April 5, 2000]

UNITED STATES CODE

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

SUBPART I - GENERAL

CHAPTER 401 - GENERAL PROVISIONS


    Sec. 40101. Policy

      (a) Economic Regulation. - In carrying out subpart II of this
    part and those provisions of subpart IV applicable in carrying out
    subpart II, the Secretary of Transportation shall consider the
    following matters, among others, as being in the public interest
    and consistent with public convenience and necessity:
        (1) assigning and maintaining safety as the highest priority in
      air commerce.
        (2) before authorizing new air transportation services,
      evaluating the safety implications of those services.
        (3) preventing deterioration in established safety procedures,
      recognizing the clear intent, encouragement, and dedication of
      Congress to further the highest degree of safety in air
      transportation and air commerce, and to maintain the safety
      vigilance that has evolved in air transportation and air commerce
      and has come to be expected by the traveling and shipping public.
        (4) the availability of a variety of adequate, economic,
      efficient, and low-priced services without unreasonable
      discrimination or unfair or deceptive practices.
        (5) coordinating transportation by, and improving relations
      among, air carriers, and encouraging fair wages and working
      conditions.
        (6) placing maximum reliance on competitive market forces and
      on actual and potential competition -
          (A) to provide the needed air transportation system; and
          (B) to encourage efficient and well-managed air carriers to
        earn adequate profits and attract capital, considering any
        material differences between interstate air transportation and
        foreign air transportation.
        (7) developing and maintaining a sound regulatory system that
      is responsive to the needs of the public and in which decisions
      are reached promptly to make it easier to adapt the air
      transportation system to the present and future needs of -
          (A) the commerce of the United States;
          (B) the United States Postal Service; and
          (C) the national defense.
        (8) encouraging air transportation at major urban areas through
      secondary or satellite airports if consistent with regional
      airport plans of regional and local authorities, and if endorsed
      by appropriate State authorities -
          (A) encouraging the transportation by air carriers that
        provide, in a specific market, transportation exclusively at
        those airports; and
          (B) fostering an environment that allows those carriers to
        establish themselves and develop secondary or satellite airport
        services.
        (9) preventing unfair, deceptive, predatory, or anticompetitive
      practices in air transportation.
        (10) avoiding unreasonable industry concentration, excessive
      market domination, monopoly powers, and other conditions that
      would tend to allow at least one air carrier or foreign air
      carrier unreasonably to increase prices, reduce services, or
      exclude competition in air transportation.
        (11) maintaining a complete and convenient system of continuous
      scheduled interstate air transportation for small communities and
      isolated areas with direct financial assistance from the United
      States Government when appropriate.
        (12) encouraging, developing, and maintaining an air
      transportation system relying on actual and potential competition -
          (A) to provide efficiency, innovation, and low prices; and
          (B) to decide on the variety and quality of, and determine
        prices for, air transportation services.
        (13) encouraging entry into air transportation markets by new
      and existing air carriers and the continued strengthening of
      small air carriers to ensure a more effective and competitive
      airline industry.
        (14) promoting, encouraging, and developing civil aeronautics
      and a viable, privately-owned United States air transport
      industry.
        (15) strengthening the competitive position of air carriers to
      at least ensure equality with foreign air carriers, including the
      attainment of the opportunity for air carriers to maintain and
      increase their profitability in foreign air transportation.
        (16) ensuring that consumers in all regions of the United States,
      including those in small communities and rural and remote areas,
      have access to affordable, regularly scheduled air service.
      (b) All-Cargo Air Transportation Considerations. - In carrying
    out subpart II of this part and those provisions of subpart IV
    applicable in carrying out subpart II, the Secretary of
    Transportation shall consider the following matters, among others
    and in addition to the matters referred to in subsection (a) of
    this section, as being in the public interest for all-cargo air
    transportation:
        (1) encouraging and developing an expedited all-cargo air
      transportation system provided by private enterprise and
      responsive to -
          (A) the present and future needs of shippers;
          (B) the commerce of the United States; and
          (C) the national defense.
        (2) encouraging and developing an integrated transportation
      system relying on competitive market forces to decide the extent,
      variety, quality, and price of services provided.
        (3) providing services without unreasonable discrimination,
      unfair or deceptive practices, or predatory pricing.
      (c) General Safety Considerations. - In carrying out subpart III
    of this part and those provisions of subpart IV applicable in
    carrying out subpart III, the Administrator of the Federal Aviation
    Administration shall consider the following matters:
        (1) the requirements of national defense and commercial and
     general aviation.
        (2) the public right of freedom of transit through the
     navigable airspace.
      (d) Safety Considerations in Public Interest. - In carrying out
    subpart III of this part and those provisions of subpart IV
    applicable in carrying out subpart III, the Administrator shall
    consider the following matters, among others, as being in the
    public interest:
        (1) assigning, maintaining, and enhancing safety and security
      as the highest priorities in air commerce.
        (2) regulating air commerce in a way that best promotes safety
      and fulfills national defense requirements.
        (3) encouraging and developing civil aeronautics, including new
      aviation technology.
        (4) controlling the use of the navigable airspace and
      regulating civil and military operations in that airspace in the
      interest of the safety and efficiency of both of those
      operations.
        (5) consolidating research and development for air navigation
      facilities and the installation and operation of those
      facilities.
        (6) developing and operating a common system of air traffic
      control and navigation for military and civil aircraft.
        (7) providing assistance to law enforcement agencies in the
      enforcement of laws related to regulation of controlled
      substances, to the extent consistent with aviation safety.
      (e) International Air Transportation. - In formulating United
    States international air transportation policy, the Secretaries of
    State and Transportation shall develop a negotiating policy
    emphasizing the greatest degree of competition compatible with a
    well-functioning international air transportation system, including
    the following:
        (1) strengthening the competitive position of air carriers to
      ensure at least equality with foreign air carriers, including the
      attainment of the opportunity for air carriers to maintain and
      increase their profitability in foreign air transportation.
        (2) freedom of air carriers and foreign air carriers to offer
      prices that correspond to consumer demand.
        (3) the fewest possible restrictions on charter air
      transportation.
        (4) the maximum degree of multiple and permissive international
      authority for air carriers so that they will be able to respond
      quickly to a shift in market demand.
        (5) eliminating operational and marketing restrictions to the
      greatest extent possible.
        (6) integrating domestic and international air transportation.
        (7) increasing the number of nonstop United States gateway
      cities.
        (8) opportunities for carriers of foreign countries to increase
      their access to places in the United States if exchanged for
      benefits of similar magnitude for air carriers or the traveling
      public with permanent linkage between rights granted and rights
      given away.
        (9) eliminating discrimination and unfair competitive practices
      faced by United States airlines in foreign air transportation,
      including -
          (A) excessive landing and user fees;
          (B) unreasonable ground handling requirements;
          (C) unreasonable restrictions on operations;
          (D) prohibitions against change of gauge; and
          (E) similar restrictive practices.
        (10) promoting, encouraging, and developing civil aeronautics
      and a  viable, privately-owned United States air transport
      industry.
      (f) Strengthening Competition. - In selecting an air carrier to
    provide foreign air transportation from among competing applicants,
    the Secretary of Transportation shall consider, in addition to the
    matters specified in subsections (a) and (b) of this section, the
    strengthening of competition among air carriers operating in the
    United States to prevent unreasonable concentration in the air
    carrier industry.

                                  -SOURCE-
    (Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1094; Pub. L.
    104-264, title IV, Sec. 401(a), Oct. 9, 1996, 110 Stat. 3255.)

                       Historical and Revision Notes
    ---------------------------------------------------------------------
    Revised Section        Source (U.S. Code)     Source (Statutes at
                                                   Large)
    ---------------------------------------------------------------------
    40101(a)               49 App.:1302(a).       Aug. 23, 1958, Pub.
                                                   L. 85-726, Sec.
                                                   102(a), 72 Stat.
                                                   740; Nov. 9, 1977,
                                                   Pub. L. 95-163,
                                                   Sec. 16(b)(1), (2),
                                                   91 Stat. 1284; Oct.
                                                   24, 1978, Pub. L.
                                                   95-504, Sec. 3(a),
                                                   92 Stat. 1705;
                                                   restated Feb. 15,
                                                   1980, Pub. L. 96-
                                                  192, Sec. 2, 94
                                                   Stat. 35.
                           49                     Aug. 23, 1958, Pub.
                           App.:1551(b)(1)(E).     L. 85-726, 72 Stat.
                                                   731, Sec.
                                                   1601(b)(1)(E);
                                                   added Oct. 4, 1984,
                                                   Pub. L. 98-443,
                                                   Sec. 3(e), 98 Stat.
                                                   1704.
    40101(b)               49 App.:1302(b).       Aug. 23, 1958, Pub.
                                                   L. 85-726, 72 Stat.
                                                   731, Sec. 102(b);
                                                   added Nov. 9, 1977,
                                                   Pub. L. 95-163,
                                                   Sec. 16(b)(3), 91
                                                   Stat. 1284.
                           49
                           App.:1551(b)(1)(E).
    40101(c)               49 App.:1347.          Aug. 23, 1958, Pub.
                                                   L. 85-726, Sec.
                                                   306, 72 Stat. 749.
                           49 App.:1655(c)(1).    Oct. 15, 1966, Pub.
                                                   L. 89-670, Sec.
                                                   6(c)(1), 80 Stat.
                                                   938; Jan. 12, 1983,
                                                   Pub. L. 97-449,
                                                   Sec. 7(b), 96 Stat.
                                                   2444.
    40101(d)               49 App.:1303.          Aug. 23, 1958, Pub.
                                                   L. 85-726, Sec.
                                                   103, 72 Stat. 740;
                                                   Nov. 18, 1988, Pub.
                                                   L. 100-690, Sec.
                                                   7202(b), 102 Stat.
                                                   4424.
                           49 App.:1655(c)(1).
    40101(e)               49 App.:1502(b).       Aug. 23, 1958, Pub.
                                                   L. 85-726, 72 Stat.
                                                   731, Sec. 1102(b);
                                                   added Feb. 15,
                                                   1980, Pub. L. 96-
                                                  192, Sec. 17, 94
                                                   Stat. 42.
                           49
                           App.:1551(b)(1)(E).
    40101(f)               49 App.:1302(c).       Aug. 23, 1958, Pub.
                                                   L. 85-726, 72 Stat.
                                                   731, Sec. 102(c);
                                                   added Oct. 31,
                                                   1992, Pub. L. 102-
                                                  581, Sec. 205, 106
                                                   Stat. 4894.
                     -------------------------------

      In this part, the words ''overseas air commerce'' and ''overseas
    air transportation'' are omitted as obsolete because there no
    longer is a distinction in economic or safety regulation between
    ''interstate'' and ''overseas'' air commerce or air transportation.
      In this section, the words ''In carrying out . . . this part''
    are substituted for ''In the exercise and performance of its powers
    and duties under this chapter'' in 49 App.:1302(a), ''In the
    exercise and performance of his powers and duties under this
    chapter'' in 49 App.:1303, and ''In exercising the authority
    granted in, and discharging the duties imposed by, this chapter''
    in 49 App.:1347 for consistency in the revised title and to
    eliminate unnecessary words.
      In subsections (a) and (b), the reference to subpart II is added
    because the policy applies only to economic issues, and under the
    Federal Aviation Act of 1958 (Public Law 85-726, 72 Stat. 731), the
    Civil Aeronautics Board was given responsibility for economic
    issues.
      In subsection (a)(2), the word ''full'' is omitted as surplus.
    The words ''the recommendations of the Secretary of Transportation
    on'' are omitted as obsolete because the Secretary carries out 49
    App.:1302(a). The words ''and full evaluation of any report or
    recommendation submitted under section 1307 of this Appendix'' are
    omitted as obsolete because the report and recommendations are no
    longer required.
      In subsection (a)(4), the words ''by air carriers and foreign air
    carriers'' are omitted as surplus.  The words ''unreasonable
    discrimination'' are substituted for ''unjust discriminations,
    undue preferences or advantages'' for consistency in the revised
    title and to eliminate unnecessary words.
      In subsection (a)(6)(B), the words ''nevertheless'', ''on the one
    hand'', and ''on the other'' are omitted as surplus.
      In subsection (a)(8), before subclause (A), the word
    ''authorities'' is substituted for ''entities'' for consistency in
    the revised title and with other titles of the Code. In subclause
    (A), the words ''sole responsibility'' are omitted as unnecessary
    because of the restatement.
      In subsection (a)(15), the words ''United States'' are omitted as
    surplus because of the definition of ''air carrier'' in section
    40102(a) of the revised title.
      In subsection (b)(3), the words ''unreasonable discrimination''
    are substituted for ''unjust discriminations, undue preferences or
    advantages'' for consistency in the revised title and to eliminate
    unnecessary words.
      In subsections (c) and (d), the reference to subpart III is added
    because the policies apply only to safety issues, and under the
    Federal Aviation Act of 1958 (Public Law 85-726, 72 Stat. 731), the
    Federal Aviation Administration was given responsibility for safety
    issues.
      In subsection (c), before clause (1), the word ''Administrator''
    in section 306 of the Federal Aviation Act of 1958 (Public Law
    85-726, 72 Stat. 749) is retained on authority of 49:106(g). The
    words ''consider the following matters'' are substituted for ''give
    full consideration to'' for consistency in this section.
      In subsection (d)(3), the word ''both'' in 49 App.:1303(c) is
    omitted as surplus the first time it appears.  The words ''of the
    United States'' are omitted for consistency in the revised title
    and because of the definition of ''navigable airspace'' in section
    40102(a) of the revised title.  The words ''of those operations''
    are added for clarity.
      In subsection (d)(5), the word ''both'' in 49 App.:1303(e) is
    omitted as surplus.
      In subsection (e), before clause (1), the words ''the Congress
    intends that'' are omitted as surplus.  In clauses (1) and (4), the
    words ''United States'' are omitted as surplus because of the
    definition of ''air carrier'' in section 40102(a) of the revised
    title.  In clause (2), the word ''prices'' is substituted for
    ''fares and rates'' because of the definition of ''price'' in
    section 40102(a). In clause (8), the words ''places in the United
    States'' are substituted for ''United States points'' for
    consistency in this chapter.  The word ''air'' is added for clarity
    and consistency in this subtitle.  In clause (9)(C), the word
    ''unreasonable'' is substituted for ''undue'' for consistency in
    the revised title and with other titles of the United States Code.

                                 AMENDMENTS

      1996 - Subsec. (d)(1). Pub. L. 104-264, Sec. 401(a)(1)(B), added
    par. (1). Former par. (1) redesignated (2).
      Subsec. (d)(2). Pub. L. 104-264, Sec. 401(a)(1)(A), (2)(A),
    redesignated par. (1) as (2) and struck out ''its development and''
    after ''best promotes''.  Former par. (2) redesignated (3).
      Subsec. (d)(3). Pub. L. 104-264, Sec. 401(a)(1)(A), (2)(B),
    redesignated par. (2) as (3) and substituted ''encouraging and
    developing civil aeronautics, including new aviation technology''
    for ''promoting, encouraging, and developing civil aeronautics''.
    Former par. (3) redesignated (4).
      Subsec. (d)(4) to (7). Pub. L. 104-264, Sec. 401(a)(1)(A),
    redesignated pars. (3) to (6) as (4) to (7), respectively.

                      EFFECTIVE DATE OF 1996 AMENDMENT

      Except as otherwise specifically provided, amendment by Pub. L.
    104-264 applicable only to fiscal years beginning after Sept. 30,
    1996, and not to be construed as affecting funds made available for
    a fiscal year ending before Oct. 1, 1996, see section 3 of Pub. L.
    104-264, set out as a note under section 106 of this title.

                       SHORT TITLE OF 1999 AMENDMENT

      Pub. L. 106-6, Sec. 1, Mar. 31, 1999, 113 Stat. 10, provided
    that: ''This Act (amending sections 106, 44310, 47104, 47115 to
    47117, 48101, and 48103 of this title) may be cited as the 'Interim
    Federal Aviation Administration Authorization Act'.''

                       SHORT TITLE OF 1998 AMENDMENT

      Pub. L. 105-155, Sec. 1, Feb. 11, 1998, 112 Stat. 5, provided
    that: ''This Act (amending section 48102 of this title and enacting
    provisions set out as a note under section 48102 of this title) may
    be cited as the 'FAA Research, Engineering, and Development
    Authorization Act of 1998'.''

                       SHORT TITLE OF 1997 AMENDMENT

      Pub. L. 105-137, Sec. 1, Dec. 2, 1997, 111 Stat. 2640, provided
    that: ''This Act (amending sections 40102, 44302, 44305, 44306,
    44308, and 44310 of this title and enacting provisions set out as a
    note under section 44310 of this title) may be cited as the
    'Aviation Insurance Reauthorization Act of 1997'.''

                       SHORT TITLE OF 1996 AMENDMENT

      Section 1(a) of Pub. L. 104-264 provided that: ''This Act (see
    Tables for classification) may be cited as the 'Federal Aviation
    Reauthorization Act of 1996'.''
      Section 201 of title II of Pub. L. 104-264 provided that: ''This
    title (enacting sections 40121, 40122, 45301, 45303, 48111, and
    48201 of this title, amending sections 106 and 41742 of this title,
    renumbering section 45303 of this title as section 45304, repealing
    former section 45301 of this title, and enacting provisions set out
    as notes under this section and sections 106, 40110, and 41742 of
    this title) may be cited as the 'Air Traffic Management System
    Performance Improvement Act of 1996'.''
      Section 278(a) of Pub. L. 104-264 provided that: ''This section
    (amending section 41742 of this title and enacting provisions set
    out as a note under section 41742 of this title) may be cited as
    the 'Rural Air Service Survival Act'.''
      Section 501 of title V of Pub. L. 104-264 provided that: ''This
    title (amending sections 30305, 44936, and 46301 of this title and
    enacting provisions set out as notes under sections 30305 and 44935
    of this title) may be cited as the 'Pilot Records Improvement Act
    of 1996'.''
      Section 601 of title VI of Pub. L. 104-264 provided that: ''This
    title (enacting section 44724 of this title) may be cited as the
    'Child Pilot Safety Act'.''
      Section 701 of title VII of Pub. L. 104-264 provided that: ''This
    title (enacting sections 1136 and 41113 of this title and
    provisions set out as notes under section 41113 of this title) may
    be cited as the 'Aviation Disaster Family Assistance Act of
    1996'.''
      Section 801 of title VIII of Pub. L. 104-264 provided that:
    ''This title (enacting section 47133 of this title, amending
    sections 46301 and 47107 of this title and section 9502 of Title
    26, Internal Revenue Code, and enacting provisions set out as notes
    under section 47107 of this title) may be cited as the 'Airport
    Revenue Protection Act of 1996'.''
      Section 1101 of title XI of Pub. L. 104-264 provided that: ''This
    title (amending sections 44501, 44508, and 48102 of this title) may
    be cited as the 'FAA Research, Engineering, and Development
    Management Reform Act of 1996'.''

                       SHORT TITLE OF 1994 AMENDMENT

      Pub. L. 103-305, Sec. 1(a), Aug. 23, 1994, 108 Stat. 1569,
    provided that: ''This Act (enacting sections 41311, 41714, 41715,
    47129, 47130, and 47509 of this title, amending sections 106,
    10521, 11501, 40102, 40113, 40116, 40117, 41713, 41734, 44502,
    44505, 44938, 45301, 46301, 47101, 47102, 47104 to 47107, 47109 to
    47111, 47115, 47117 to 47119, 47504, 48101 to 48104, and 48108 of
    this title and section 9502 of Title 26, Internal Revenue Code,
    renumbering former section 47129 of this title as section 47131 of
    this title, enacting provisions set out as notes under this section
    and sections 10521, 11501, 40102, 40105, 40117, 41311, 41715,
    44502, 45102, 47101, 47107, 47124, and 49101 of this title, and
    repealing provisions set out as a note under section 1348 of former
    Title 49, Transportation) may be cited as the 'Federal Aviation
    Administration Authorization Act of 1994'.''
      Pub. L. 103-305, title III, Sec. 301, Aug. 23, 1994, 108 Stat.
    1589, provided that: ''This title (enacting section 47509 of this
    title, amending sections 44505 and 48102 of this title, and
    enacting provisions set out as notes under this section and section
    49101 of this title) may be cited as the 'Federal Aviation
    Administration Research, Engineering, and Development Authorization
    Act of 1994'.''

                   SECTION REFERRED TO IN OTHER SECTIONS

      This section is referred to in sections 106, 40105, 40118, 41109,
    47101 of this title; title 39 section 5402.