AIR TRANSPORTATION ARRANGEMENTS In CERTAIN STATES.

SEC. 116. AIR TRANSPORTATION ARRANGEMENTS In CERTAIN STATES. (a) In General.—Notwithstanding any provision of section 41309(a) of title 49, United States Code, to the contrary, air carriers providing air transportation on flights which both originate and terminate at points within the same State may file an agreement, request, modification, or cancellation of an agreement within the scope of that section with the Secretary of Transportation upon a declaration by the Governor of the State that such agreement, request, modification, or cancellation is necessary to ensure the continuing availability of such air transportation within that State. (b) Approval of Secretary.—The Secretary may approve any such agreement, request, modification, or cancellation and grant an exemption under section 41308(c) of title 49, United States Code, to the extent necessary to effectuate such agreement, request, modification, or cancellation, without regard to the provisions of section 41309(b ) or (c) of that title. (c) Public Interest Requirement.—The Secretary may approve such an agreement, request, modification, or cancellation if the Secretary determines that— (1) the State to which it relates has extraordinary air transportation needs and concerns; and (2) approval is in the public interest. (d) Termination.—An approval under subsection (b) and an exemption under section 41308(c) of title 49, United States Code, granted under subsection (b) shall terminate on the earlier of the 2 following dates; (1) A date established by the Secretary in the Secretary’s discretion. (2) October 1, 2002. (e) Extension.—Notwithstanding subsection (d), if the Secretary determines that it is in the public interest, the Secretary may extend the termination date under subsection (d)(2) until a date no later than October 1, 2003. (f) Reports.—If the Secretary approves any such agreement, request, modification, or cancellation under this section and grants an exemption, the Secretary shall transmit a report to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives within 6 months describing what actions have been taken by the air carriers to which the exemption was granted. The Secretary shall also notify those committees if the Secretary extends the termination date under subsection (e).