CHAPTER 413 -- FOREIGN AIR TRANSPORTATION                     
      Sec.                                                                     
      41301.  Requirement for a permit.                                        
      41302.  Permits of foreign air carriers.                                 
      41303.  Transfers of permits.                                            
      41304.  Effective periods and amendments, modifications,                 
              suspensions, and revocations of permits.                         
      41305.  Applications for permits.                                        
      41306.  Simplified procedure to apply for, amend, modify, and            
              suspend permits.                                                 
      41307.  Presidential review of actions about foreign air                 
              transportation.                                                  
      41308.  Exemption from the antitrust laws.                               
      41309.  Cooperative agreements and requests.                             
      41310.  Discriminatory practices.                                        
                                                                               
      Sec. 41301. Requirement for a permit                                     
            A foreign air carrier may provide foreign air                      
      transportation only if the foreign air carrier holds a permit            
      issued under this chapter authorizing the foreign air                    
      transportation.                                                          
                                                                               
      Sec. 41302. Permits of foreign air carriers                              
            The Secretary of Transportation may issue a permit to a            
      person (except a citizen of the United States) authorizing the           
      person to provide foreign air transportation as a foreign air            
      carrier if the Secretary finds that --                                   
                (1) the person is fit, willing, and able to provide the        
            foreign air transportation to be authorized by the permit          
            and to comply with this part and regulations of the                
            Secretary; and                                                     
                (2)(A) the person is qualified, and has been designated        
            by the government of its country, to provide the foreign           
            air transportation under an agreement with the United              
            States Government; or                                              
                (B) the foreign air transportation to be provided under        
            the permit will be in the public interest.                         
                                                                               
      Sec. 41303. Transfers of permits                                         
            A permit issued under section 41302 of this title may be           
      transferred only when the Secretary of Transportation approves           
      the transfer because the transfer is in the public interest.             
                                                                               
      Sec. 41304. Effective periods and amendments, modifications,             
      suspensions, and revocations of permits                                  
            (a) General. -- The Secretary of Transportation may                
      prescribe the period during which a permit issued under section          
      41302 of this title is in effect.  After notice and an                   
      opportunity for a hearing, the Secretary may amend, modify,              
      suspend, or revoke the permit if the Secretary finds that action         
      to be in the public interest.                                            
            (b) Suspensions and Restrictions. -- Without a hearing, but        
      subject to the approval of the President, the Secretary --               
                (1) may suspend summarily the permits of foreign air           
            carriers of a foreign country, or amend, modify, or limit          
            the operations of the foreign air carriers under the               
            permits, when the Secretary finds --                               
                    (A) the action is in the public interest; and              
                    (B) the government, an aeronautical authority, or a        
               foreign air carrier of the foreign country, over the            
               objection of the United States Government, has --               
                        (i) limited or denied the operating rights of          
                    an air carrier; or                                         
                        (ii) engaged in unfair, discriminatory, or             
                    restrictive practices that have a substantial              
                    adverse competitive impact on an air carrier               
                    related to air transportation to, from, through,           
                    or over the territory of the foreign country; and          
                (2) to make this subsection effective, may restrict            
            operations between the United States and the foreign               
            country by a foreign air carrier of a third country.               
            (c) Illegal Importation of Controlled Substances. -- The           
      Secretary --                                                             
                (1) in consultation with appropriate departments,              
            agencies, and instrumentalities of the Government, shall           
            reexamine immediately the fitness of a foreign air carrier         
            that --                                                            
                    (A) violates the laws and regulations of the United        
                States related to the illegal importation of a                 
                controlled substance; or                                       
                    (B) does not adopt available measures to prevent           
                the illegal importation of a controlled substance into         
                the United States on its aircraft; and                         
                (2) when appropriate, shall amend, modify, suspend, or         
            revoke the permit of the carrier issued under this chapter.        
            (d) Responses. -- An interested person may file a response         
      with the Secretary opposing or supporting the amendment,                 
      modification, suspension, or revocation of a permit under                
      subsection (a) of this section.                                          
                                                                               
      Sec. 41305. Applications for permits                                     
            (a) Form, Contents, Notice, Response, and Actions on               
      Applications. -- (1) A person must apply in writing to the               
      Secretary of Transportation to be issued a permit under section          
      41302 of this title.  The Secretary shall prescribe regulations          
      to require that the application be --                                    
                (A) verified;                                                  
                (B) in a certain form and contain certain information;         
                (C) served on interested persons; and                          
                (D) accompanied by proof of service on those persons.          
            (2) When an application is filed, the Secretary shall post         
      a notice of the application in the office of the Secretary and           
      give notice of the application to other persons as required by           
      regulations of the Secretary.  An interested person may file a           
      response with the Secretary opposing or supporting the issuance          
      of the permit.  The Secretary shall act on an application as             
      expeditiously as possible.                                               
            (b) Terms. -- The Secretary may impose terms for providing         
      foreign air transportation under the permit that the Secretary           
      finds may be required in the public interest.                            
                                                                               
      Sec. 41306. Simplified procedure to apply for, amend, modify, and        
      suspend permits                                                          
            (a) Regulations. -- The Secretary of Transportation shall          
      prescribe regulations that simplify the procedure for --                 
                (1) acting on an application for a permit to provide           
            foreign air transportation under section 41302 of this             
            title; and                                                         
                (2) amending, modifying, or suspending any part of that        
            permit under section 41304(a) or (b) of this title.                
            (b) Notice and Opportunity To Respond. -- Regulations under        
      this section shall provide for notice and an opportunity for each        
      interested person to file appropriate written evidence and               
      argument.  An oral evidentiary hearing is not required to be             
      provided under this section.                                             
                                                                               
      Sec. 41307.  Presidential review of actions about foreign air            
      transportation                                                           
          The Secretary of Transportation shall submit to the President        
      for review each decision of the Secretary to issue, deny, amend,         
      modify, suspend, revoke, or transfer a certificate issued under          
      section 41102 of this title authorizing an air carrier, or a             
      permit issued under section 41302 of this title authorizing a            
      foreign air carrier, to provide foreign air transportation.  The         
      President may disapprove the decision of the Secretary only if           
      the reason for disapproval is based on foreign relations or              
      national defense considerations that are under the jurisdiction          
      of the President.  The President may not disapprove a decision of        
      the Secretary if the reason is economic or related to carrier            
      selection.  A decision of the Secretary --                               
                (1) is void if the President disapproves the decision          
            and publishes the reasons (to the extent allowed by                
            national security) for disapproval not later than 60 days          
            after it is submitted to the President; or                         
                (2)(A) takes effect as a decision of the Secretary if          
            the President does not disapprove the decision not later           
            than 60 days after the decision is submitted to the                
            President; and                                                     
                (B) when effective, may be reviewed judicially under           
            section 46110 of this title.                                       
                                                                               
      Sec. 41308. Exemption from the antitrust laws                            
            (a) Definition. -- In this section, "antitrust laws" has           
      the same meaning given that term in the first section of the             
      Clayton Act (15 U.S.C. 12).                                              
            (b) Exemption Authorized. -- When the Secretary of                 
      Transportation decides it is required by the public interest, the        
      Secretary, as part of an order under section 41309 or 42111 of           
      this title, may exempt a person affected by the order from the           
      antitrust laws to the extent necessary to allow the person               
      to proceed with the transaction specifically approved by the             
      order and with any transaction necessarily contemplated by the           
      order.                                                                   
            (c) Exemption Required. -- In an order under section 41309         
      of this title approving an agreement, request, modification, or          
      cancellation, the Secretary, on the basis of the findings                
      required under section 41309(b)(1), shall exempt a person                
      affected by the order from the antitrust laws to the extent              
      necessary to allow the person to proceed with the transaction            
      specifically approved by the order and with any transaction              
      necessarily contemplated by the order.                                   
                                                                               
      Sec. 41309. Cooperative agreements and requests                          
            (a) Filing. -- An air carrier or foreign air carrier may           
      file with the Secretary of Transportation a true copy of or, if          
      oral, a true and complete memorandum of, an agreement (except an         
      agreement related to interstate air transportation), or a request        
      for authority to discuss cooperative arrangements (except                
      arrangements related to interstate air transportation), and any          
      modification or cancellation of an agreement, between the air            
      carrier or foreign air carrier and another air carrier, a foreign        
      carrier, or another carrier.                                             
            (b) Approval. -- The Secretary of Transportation shall             
      approve an agreement, request, modification, or cancellation             
      referred to in subsection (a) of this section when the Secretary         
      finds it is not adverse to the public interest and is not in             
      violation of this part.  However, the Secretary shall                    
      disapprove --                                                            
                (1) or, after periodic review, end approval of, an             
            agreement, request, modification, or cancellation, that            
            substantially reduces or eliminates competition unless the         
            Secretary finds that --                                            
                    (A) the agreement, request, modification, or               
                cancellation is necessary to meet a serious                    
                transportation need or to achieve important public             
                benefits (includinginternational comity and foreign            
                policy considerations); and                                    
                    (B) the transportation need cannot be met or those         
                benefits cannot be achieved by reasonably available            
                alternatives that are materially less anticompetitive;         
                or                                                             
                (2) an agreement that --                                       
                    (A) is between an air carrier not directly                 
                operating aircraft in foreign air transportation and a         
                common carrier subject to subtitle IV of this title;           
                and                                                            
                    (B) governs the compensation the common carrier may        
                receive for the transportation.                                
            (c) Notice and Opportunity To Respond or for Hearing. --           
                (1) When an agreement, request, modification, or               
            cancellation is filed, the Secretary of Transportation             
            shall give the Attorney General and the Secretary of State         
            written notice of, and an opportunity to submit written            
            comments about, the filing.  On the initiative of the              
            Secretary of Transportation or on request of the Attorney          
            General or Secretary of State, the Secretary of                    
            Transportation may conduct a hearing to decide whether an          
            agreement, request, modification, or cancellation is               
            consistent with this part whether or not it was approved           
            previously.                                                        
                (2) In a proceeding before the Secretary of                    
            Transportation applying standards under subsection (b)(1)          
            of this section, a party opposing an agreement, request,           
            modification, or cancellation has the burden of proving            
            that it substantially reduces or eliminates competition and        
            that less anticompetitive alternatives are available.  The         
            party defending the agreement, request, modification, or           
            cancellation has the burden of proving the transportation          
            need or public benefits.                                           
                (3) The Secretary of Transportation shall include the          
            findings required by subsection (b)(1) of this section in          
            an order of the Secretary approving or disapproving an             
            agreement, request, modification, or cancellation.                 
                                                                               
      Sec. 41310. Discriminatory practices                                     
            (a) Prohibition. -- An air carrier or foreign air carrier          
      may not subject a person, place, port, or type of traffic in             
      foreign air transportation to unreasonable discrimination.               
            (b) Review and Negotiation of Discriminatory Foreign               
      Charges. -- (1) The Secretary of Transportation shall survey             
      charges imposed on an air carrier by the government of a foreign         
      country or another foreign entity for the use of airport property        
      or airway property in foreign air transportation.  If the                
      Secretary of Transportation decides that a charge is                     
      discriminatory, the Secretary promptly shall report the decision         
      to the Secretary of State.  The Secretaries of State and                 
      Transportation promptly shall begin negotiations with the                
      appropriate government to end the discrimination.  If the                
      discrimination is not ended in a reasonable time through                 
      negotiation, the Secretary of Transportation shall establish a           
      compensating charge equal to the discriminatory charge.  With the        
      approval of the Secretary of State, the Secretary of the Treasury        
      shall impose the compensating charge on a foreign air carrier of         
      that country as a condition to accepting the general declaration         
      of the aircraft of the foreign air carrier when it lands or takes        
      off.                                                                     
            (2) The Secretary of the Treasury shall maintain an account        
      to credit money collected under paragraph (1) of this subsection.        
      An air carrier shall be paid from the account an amount certified        
      by the Secretary of Transportation to compensate the air carrier         
      for the discriminatory charge paid to the government.                    
            (c) Actions Against Discriminatory Activity. -- (1) The            
      Secretary of Transportation may take actions the Secretary               
      considers are in the public interest to eliminate an activity of         
      a government of a foreign country or another foreign entity,             
      including a foreign air carrier, when the Secretary, on the              
      initiative of the Secretary or on complaint, decides that the            
      activity --                                                              
                (A) is an unjustifiable or unreasonable discriminatory,        
            predatory, or anticompetitive practice against an air              
            carrier; or                                                        
                (B) imposes an unjustifiable or unreasonable                   
            restriction on access of  an air carrier to a foreign              
            market.                                                            
            (2) The Secretary of Transportation may deny, amend,               
      modify, suspend, revoke, or transfer under paragraph (1) of this         
      subsection a foreign air carrier permit or tariff under section          
      41302, 41303, 41304(a), 41504(c), 41507, or 41509 of this title.         
            (d) Filing of, and Acting on, Complaints. -- (1) An air            
      carrier or a department, agency, or instrumentality of the United        
      States Government may file a complaint under subsection (c) of           
      this section with the Secretary of Transportation.  The Secretary        
      shall approve, deny, or dismiss the complaint, set the complaint         
      for a hearing or investigation, or begin another proceeding              
      proposing remedial action not later than 60 days after receiving         
      the complaint.  The Secretary may extend the period for acting           
      for additional periods totaling not more than 30 days if the             
      Secretary decides that with additional time it is likely that a          
      complaint can be resolved satisfactorily through negotiations            
      with the government of the foreign country or foreign entity.            
      The Secretary must act not later than 90 days after receiving the        
      complaint.  However, the Secretary may extend this 90-day period         
      for not more than an additional 90 days if, on the last day of           
      the initial 90-day period, the Secretary finds that --                   
                (A) negotiations with the government have progressed to        
            a point that a satisfactory resolution of the complaint            
            appears imminent;                                                  
                (B) an air carrier has not been subjected to economic          
            injury by the government or entity as a result of filing           
            the complaint; and                                                 
                (C) the public interest requires additional time before        
            the Secretary acts on the complaint.                               
            (2) In carrying out paragraph (1) of this subsection and           
      subsection (c) of this section, the Secretary of Transportation          
      shall --                                                                 
                (A) solicit the views of the Secretaries of Commerce           
            and State and the United States Trade Representative;              
                (B) give an affected air carrier or foreign air carrier        
            reasonable notice and an opportunity to submit written             
            evidence and arguments within the time limits of this              
            subsection; and                                                    
                (C) submit to the President under section 41307 or             
            41509(f) of this title actions proposed by the Secretary of        
            Transportation.                                                    
            (e) Review. -- (1) The Secretaries of State, the Treasury,         
      and Transportation and the heads of other departments, agencies,         
      and instrumentalities of the Government shall keep under review,         
      to the extent of each of their jurisdictions, each form of               
      discrimination or unfair competitive practice to which an air            
      carrier is subject when providing foreign air transportation.            
      Each Secretary and head shall --                                         
                (A) take appropriate action to eliminate any                   
            discrimination or unfair competitive practice found to             
            exist; and                                                         
                (B) request Congress to enact legislation when the             
            authority to eliminate the discrimination or unfair                
            practice is inadequate.                                            
            (2) The Secretary of Transportation shall report to                
      Congress annually on each action taken under paragraph (1) of            
      this subsection and on the continuing program to eliminate               
      discrimination and unfair competitive practices.  The Secretaries        
      of State and the Treasury each shall give the Secretary of               
      Transportation information necessary to prepare the report.              
            (f) Reports. -- Not later than 30 days after acting on a           
      complaint under this section, the Secretary of Transportation            
      shall report to the Committee on Public Works and Transportation         
      of the House of Representatives and the Committee on Commerce,           
      Science, and Transportation of the Senate on action taken under          
      this section on the complaint.