NATIONAL COMMISSION TO PROMOTE A STRONG AND COMPETITIVE AIRLINE INDUSTRY.

SEC. 204. NATIONAL COMMISSION TO PROMOTE A STRONG AND COMPETITIVE AIRLINE INDUSTRY. (a) Findings.—Congress finds the following: (1) The Nation’s airlines must be part of an intermodal transportation system that will move people and goods in the fastest, most efficient manner. (2) The Nation’s airlines provide our connections with the global economy. A strong airline industry is essential to our Nation’s ability to compete in the international marketplace. (3) The Nation’s airlines are in a state of financial distress, having lost more than $6,000,000,000 in 1990 and 1991. These losses threaten the ability of our airlines to accommodate the growing aviation traffic demands of the 1990’s which threaten to undermine our Nation’s ability to compete in the global economy. (4) Because of the airline industry’s financial distress and the absence of government policies to promote competition, there has been a precipitous decline in the number of major airlines. Of the 22 airlines which entered the industry following airline deregulation, only 2 are now operating. The rest have either gone out of business or merged with other carriers. (5) Concentration in the airline industry has advanced rapidly in the past few years. The top 4 major airlines now control 67 percent of aviation traffic and the top 7 airlines now control 91 percent of aviation traffic. Three major airlines, carrying 19 percent of aviation traffic, are in chapter 11 bankruptcy and their survival is in doubt. (6) The continued success of a deregulated airline system requires the spur of effective actual and potential competition to force airlines to provide high quality service at the lowest possible fares. (7) Further reductions in the number of major airlines may leave the industry without sufficient competition to ensure a continuation of the benefits consumers have received under airline deregulation. (b) Establishment.—There is established a commission to be known as the “National Commission to Ensure a Strong Competitive Airline Industry” (hereinafter in this section referred to as the “Commission”). (c) Functions.— (1) Investigation and study.—The Commission shall make a complete investigation and study of the financial condition of the airline industry, the adequacy of competition in the airline industry, and legal impediments to a financially strong and competitive airline industry. (2) Policy recommendations.—Based on the results of the investigation and study to be conducted under paragraph (1), the Commission shall recommend to the President and Congress those policies which need to be adopted to— 106 STAT. 4892 (A) achieve the national goal of a strong and competitive airline system which will facilitate the ability of the Nation to compete in the global economy; (B) provide adequate levels of competition and service at reasonable fares in cities of all sizes; (C) retard the flow of United States air carrier bankruptcies and accompanying loss of jobs for United States citizens; (D) provide a stable work environment for airline industry employees; and (E) continue to reduce noise for citizens around airports without damaging the economic or competitive positions of the air carriers. (3) Consideration of aircraft noise abatement.—In carrying out the study and investigation under paragraph (1), the Commission shall take into account aircraft noise abatement, a priority established by Congress by enactment of the Airport Noise and Capacity Act of 1990. (d) Specific Matters To Be Addressed.—The Commission shall specifically investigate and study under subsection (c)(1) the following: (1) Financial condition of airline industry.—The current financial condition of the airline industry and how the industry’s financial condition is likely to change over the next 5 years, including— (A) the profits or losses likely to be achieved by the airline industry over the next 5 years; (B) whether or not any profits realized will be adequate to permit airlines to acquire the capital equipment necessary to meet the demand of the traveling public in a safe and efficient manner, while complying with environmental regulations; and (C) whether or not any major airlines are likely to fail or sell major assets in order to survive. (2) Adequacy of competition.—The current state of competition in the airline industry, how the structure of airline industry competition is likely to change over the next 5 years, and whether or not the expected level of competition will be sufficient to continue the consumer benefits of airline deregulation. (3) Legal impediments to a financially strong and competitive airline industry.—Whether or not the Federal Government should take any legislative or administrative actions to improve the financial conditions of the airline industry or to enhance airline competition, including whether or not any changes are needed in the legal and administrative policies which govern— (A) the initial award and the transfer of international airline routes; (B) the allocation of slots at high density airports; (C) the allocation of gates, particularly at airports dominated by 1 or a limited number of airlines; (D) frequent flier programs; (E) airline computer reservations systems; (F) the rights of foreign investors to invest in United States airlines; 106 STAT. 4893 (G) the taxes and user fees imposed on United States airlines; (H) the regulatory responsibilities imposed on United States airlines; (I) the bankruptcy laws of the United States and related fitness rules administered by the Department of Transportation as they apply to airlines; and (J) the obligations of failing airlines to meet pension obligations. (4) International aviation policy.—Whether or not the policies and strategies followed by the United States in international aviation are promoting the ability of United States airlines to achieve long-term competitive success in international markets, including— (A) the Government’s general negotiating policy; (B) the desirability of multilateral rather than bilateral negotiations; (C) whether or not foreign countries have developed the necessary infrastructure of airports and airways to enable United States airlines to provide the service needed to meet the demand for aviation service between the United States and such countries; (D) the rights granted foreign airlines to provide service in United States domestic markets (“cabotage”); and (E) the rights granted foreign investors to invest in United States airlines. (5) Assessment of aircraft manufacturing industry.—The state of the United States aircraft manufacturing industry and make recommendations to the President and Congress concerning policies that will help foster a healthy, competitive United States aircraft manufacturing industry. (6) Study of incentives for expedited fleet conversion.—The possibility of long-term loan guarantees and tax incentives for air carriers to expedite the conversion of the commercial airline fleet from Stage 2 to Stage 3 aircraft in advance of the deadlines established by the Airport Noise and Capacity Act of 1990. (e) Membership.— (1) Appointment.—The Commission shall be composed of 7 members as follows: (A) 1 member appointed by the President. (B) 3 members appointed by the Speaker of the House of Representatives. (C) 3 members appointed by the majority leader of the Senate. (2) Qualifications.— (A) In general.—Members appointed pursuant to paragraph (1) shall be appointed from among individuals who are experts in transportation policy (including representatives of Federal, State, and local government and other public authorities owning or operating airports) and organizations representing airlines, passengers, shippers, airline employees, aircraft manufacturers, general aviation, and the financial community. (B) Sectors represented.—Members appointed pursuant to paragraph (1) shall be appointed in a manner such that the interests of both large hub airports and 106 STAT. 4894small airports with commercial air service will be taken into consideration. One member of the Commission shall be a citizen representing a consensus among citizen noise groups or noise affected municipalities. (3) Terms.—Members shall be appointed for the life of the Commission. (4) Vacancies.—A vacancy in the Commission shall be filled in the manner in which the original appointment was made. (5) Travel expenses.—Members shall serve without pay but shall receive travel expenses, including per diem in lieu of subsistence, in accordance with sections 5702 and 5703 of title 5, United States Code. (6) Chairman.—The Chairman of the Commission shall be elected by the members. (f) Staff.—The Commission may appoint and fix the pay of such personnel as it considers appropriate. (g) Staff of Federal Agencies.—Upon request of the Commission, the head of any department or agency of the United States may detail, on a reimbursable basis, any of the personnel of that department or agency to the Commission to assist it in carrying out its duties under this section. (h) Administrative Support Services.—Upon the request of the Commission, the Administrator of General Services shall provide to the Commission, on a reimbursable basis, the administrative support services necessary for the Commission to carry out its responsibilities under this section. (i) Obtaining Official Data.—The Commission may secure directly from any department or agency of the United States information (other than information required by any statute of the United States to be kept confidential by such department or agency) necessary for the Commission to carry out its duties under this section. Upon request of the Commission, the head of that department or agency shall furnish such nonconfidential information to the Commission. (j) Report.—Not later than 6 months after the date on which initial appointments of members to the Commission are completed, the Commission shall transmit to the President and Congress a report on the activities of the Commission, including recommendations made by the Commission under subsection (c)(2). (k) Termination.—The Commission shall terminate on the 180th day following the date of transmittal of the report under subsection (j). All records and papers of the Commission shall thereupon be delivered by the Administrator of General Services for deposit in the National Archives.