1、214 14 CFR Ch. II (1111 Edition) Pt. 272 PART 272ESSENTIAL AIR SERVICE TO THE FREELY ASSOCIATED STATES Sec. 272.1 Purpose. 272.2 Applicability. 272.3 Places eligible for guaranteed essen-tial air service. 272.4 Applicability of procedures and poli-cies under 49 U.S.C. 4173142. 272.5 Determination of
2、 essential air service. 272.6 Considerations in the determination of essential air service. 272.7 Notice of discontinuance of service. 272.8 Obligation to continue service. 272.9 Selection of a carrier to provide essen-tial air service and payment of com-pensation. 272.10 Conditions applicable to ca
3、rriers serving a subsidized market. 272.11 Effective date of provisions. 272.12 Termination. AUTHORITY: 49 U.S.C. Chapters 401, 402, 416, 461, 1102; sec. 221(a)(5) of the Compact of Free Association, and paragraph 5 of Article IX of the Federal Programs and Services Agree-ment in implementation of t
4、hat Compact (Pub. L. 99239; Pub. L. 99658); Pub. L. 101 219. SOURCE: Amdt. No. 2721, 52 FR 5443, Feb. 23, 1987, unless otherwise noted. 272.1 Purpose. Paragraph 5 of Article IX of the Fed-eral Programs and Services Agreement implementing section 221(a)(5) of the Compact of Free Association between t
5、he United States and the Govern-ments of the Federated States of Mi-cronesia, the Marshall Islands and Palau (the Freely Associated States) provides, among other things, for the Department of Transportation (Depart-ment), as successor to the Civil Aero-nautics Board (Board), to guarantee es-sential
6、air service, with compensation if necessary, to certain places in these islands. Subparagraph 5(h) of the Agreement provides that the Depart-ment shall adopt rules to implement the provisions of paragraph 5 as it in its discretion deems appropriate. Sec-tion 221(a)(5) of the Compact, which was adopt
7、ed by Congress as public laws (Pub. L. 99239, Jan. 14, 1986; Pub. L. 99 658, Nov. 14, 1986), provides that the De-partment (as successor to the Board) has the authority to implement the provisions of paragraph 5 of the Agree-ment. This part implements these pro-visions of paragraph 5. Amdt. No. 2721
8、, 52 FR 5443, Feb. 23, 1987, as amended at 60 FR 43525, Aug. 22, 1995 272.2 Applicability. This part establishes the provisions applicable to the Departments guar-antee of essential air service to places in the Federated States of Micronesia, the Marshall Islands and Palau, and the payment of compen
9、sation for such services. The rule applies to U.S. air carriers and Freely Associated State Air Carriers providing essential air service to these places. Amdt. No. 2721, 52 FR 5443, Feb. 23, 1987, as amended at 60 FR 43525, Aug. 22, 1995 272.3 Places eligible for guaranteed essential air service. (a
10、) Subject to the provisions of this part, and paragraph 5 of Article IX of the Federal Programs and Services Agreement, the Department will make provision for the operation of essential air service, with compensation if nec-essary, to the following places in the Freely Associated States: In the Fede
11、rated States of Micronesia: Ponape, Truk and Yap. In the Marshall Islands: Majuro and Kwaja-lein. In Palau: Koror. (b) The places specified herein in the Federated States of Micronesia, the Marshall Islands or Palau, respec-tively, shall cease to be eligible places under this part if any of those Go
12、vern-ments withdraw from the subsidy pro-visions of Article IX of the Federal Programs and Services Agreement in accordance with paragraph 8 of Article IX or Article XII of that Agreement. Amdt. No. 2721, 52 FR 5443, Feb. 23, 1987, as amended at 60 FR 43525, Aug. 22, 1995 272.4 Applicability of proc
13、edures and policies under 49 U.S.C. 4173142. Since the authority of the Depart-ment to guarantee essential air service is derived from the Federal Programs and Services Agreement and the Com-pact of Free Association, the provi-sions and procedures utilized by the Department in implementation of 49 U
14、.S.C. 4173142 will be followed only to VerDate Mar2010 13:23 Feb 23, 2011 Jkt 223046 PO 00000 Frm 00224 Fmt 8010 Sfmt 8010 Y:SGML223046.XXX 223046WReier-Aviles on DSKGBLS3C1PROD with CFRProvided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-215 Office of th
15、e Secretary, DOT 272.8 the extent determined by the Depart-ment to be consistent with the obliga-tions assumed by the United States in the Agreement and Compact, and the provisions of this part. Amdt. No. 2721, 52 FR 5443, Feb. 23, 1987, as amended at 60 FR 43525, Aug. 22, 1995 272.5 Determination o
16、f essential air service. Procedures for the determination of essential air service under this section, and review of that determination, shall, except to the extent otherwise directed by the Department, be gov-erned by 325.4 (except the application of 49 U.S.C. 41737 in 325.4(b); 325.6(a); 325.8325.
17、11; 325.12 (provided that all documents shall be served on the Presi-dent and the designated authorities of the Freely Associated State con-cerned); and 325.13 and 325.14 of this chapter. Amdt. No. 2721, 52 FR 5443, Feb. 23, 1987, as amended at 60 FR 43525, Aug. 22, 1995 272.6 Considerations in the
18、deter-mination of essential air service. (a) In the determination of essential air service to an eligible Freely Associ-ated State place, the Department shall consider, among other factors, the fol-lowing: (1) The demonstrated level of traffic demand; (2) The amount of compensation nec-essary to mai
19、ntain a level of service sufficient to meet that demand; (3) The extent to which the demand may be accommodated by connecting or other services of U.S., Freely Associ-ated State, or foreign carriers by air through U.S., Freely Associated State, or foreign placesthat provide access to the U.S. air tr
20、ansportation system; (4) Alternative modes of transpor-tation that may be available; and (5) The peculiar needs of the Freely Associated States for air transpor-tation services. (b) The Guidelines for Individual De-terminations of essential air service set forth in part 398 of this chapter shall be
21、applied only to the extent the Department concludes that they are applicable to the special circumstances affecting transportation to the Freely Associated States and reflective of the provisions of this part. (c) Nothing in this part shall be con-strued as providing for a level of essen-tial air se
22、rvice that would exceed the level of service justified by the consid-erations set forth in paragraph (a) of this section. Amdt. No. 2721, 52 FR 5443, Feb. 23, 1987, as amended at 60 FR 43525, Aug. 22, 1995 272.7 Notice of discontinuance of service. (a) An air carrier or Freely Associ-ated State Air
23、Carrier shall not termi-nate, suspend, or reduce air service to any eligible Freely Associated State place, unless it has given notice as specified in this section, if as a result of the reduction of such service the ag-gregate of the remaining air service provided to such place would be below: (1)
24、If the Department has not made a determination of essential air service for such place, the level of service spec-ified in Order 80963; and (2) If the Department has made a de-termination of essential air service for such place, that level of essential air service. (b) An air carrier or Freely Assoc
25、i-ated State Air Carrier wishing to ter-minate, suspend or reduce air service under paragraph (a) shall file a notice of such proposed reduction in service at least 90 days prior to such service re-duction, in accordance with the proce-dures specified in 323.4, 323.6, and 323.7 of this chapter. (c)
26、The notice shall be served on the President and the designated Authori-ties of the Freely Associated State con-cerned, in addition to the persons spec-ified in 323.7. (d) The procedures specified in 323.9323.18, to the extent applicable to 90-day notices filed by certificated air carriers, shall als
27、o be applicable to notices of terminations, suspensions or reductions in service filed under this section. Amdt. No. 2721, 52 FR 5443, Feb. 23, 1987, as amended at 60 FR 43525, Aug. 22, 1995 272.8 Obligation to continue service. (a) If the Department finds that a proposed termination, suspension, or
28、 reduction in service by an air carrier or Freely Associated State Air Carrier VerDate Mar2010 13:23 Feb 23, 2011 Jkt 223046 PO 00000 Frm 00225 Fmt 8010 Sfmt 8010 Y:SGML223046.XXX 223046WReier-Aviles on DSKGBLS3C1PROD with CFRProvided by IHSNot for ResaleNo reproduction or networking permitted witho
29、ut license from IHS-,-,-216 14 CFR Ch. II (1111 Edition) 272.9 will, or may, reduce service to an eligi-ble Freely Associated State place below the level of essential air service to such place, whether or not the De-partment has previously determined the level of essential air service to such place,
30、 the Department may direct the air carrier or Freely Associated State Air Carrier concerned to main-tain service to such place at a level the Department determines will ensure es-sential air service to such place, pend-ing the commencement of alternative service as required to maintain the level of
31、essential air service previously, or thereafter, determined by the De-partment. (b) During any period the Depart-ment requires an air carrier or Freely Associated State Air Carrier to main-tain a level of service proposed to be terminated, suspended or reduced, fol-lowing the filing of a 90 day noti
32、ce in accordance with 272.7, the Department will provide for the payment of com-pensation to such carrier for any losses incurred by that carrier as a result of such required continuation of service in accordance with the procedures set forth in part 271 of this chapter. If the carrier is already re
33、ceiving compensa-tion pursuant to 272.9 of this part, the Department will continue to direct payment of such compensation during any period the carrier is required to maintain service. Such payments shall be made by the Department of Interior from funds appropriated for this pur-pose. (c) The Depart
34、ment will review its order from time to time and will revise the level of required service as nec-essary to maintain only the level of es-sential air service determined by the Department for that place, considering all other service to such place in ac-cordance with 272.6(a)(3). (d) During the perio
35、d any such air carrier or Freely Associated State Air Carrier is required to maintain service under this section, the Department will make every effort to obtain alternative service, with compensation if nec-essary, as required to maintain essen-tial air service to such place. Amdt. No. 2721, 52 FR
36、5443, Feb. 23, 1987, as amended at 60 FR 43525, Aug. 22, 1995 272.9 Selection of a carrier to pro-vide essential air service and pay-ment of compensation. (a) If the Department finds that es-sential air service will not be main-tained to an eligible Freely Associated State place, the Department shal
37、l in-vite applications to provide the service required to maintain essential air serv-ice to such place. (b) If the Department determines that essential air service will not be provided to such place in the absence of the payment of subsidy compensation to a carrier or carriers, the Depart-ment shal
38、l determine the compensa-tion necessary, considering all other service to such place in accordance with 272.6(a)(3), to maintain the level of essential air service determined by the Department under 272.5, and the times and manner of the payment of such compensation. (c) The compensation determined
39、by the Department to be necessary to maintain essential air service to such place shall be paid by the Department of Interior out of funds appropriated for that purpose, to the carrier or car-riers selected by the Department. (d) The Department shall continue to specify compensation to be paid to a
40、carrier or carriers under this section only as long as the Department deter-mines that essential air service will not be provided to the Freely Associ-ated State in the absence of the pay-ment of such compensation. (e) Except as permitted in paragraph (f) of this section, the Department shall select
41、 a U.S. air carrier or car-riers to provide essential air service for compensation. (f) The Department may select a Freely Associated State Air Carrier, holding a foreign air carrier permit issued in accordance with subpart D of part 211 of this chapter, to provide es-sential air service for compens
42、ation, only if (1) No U.S. air carrier is available to provide the required essential air serv-ice; or (2) The compensation necessary for the provision of the required essential air service would be substantially less than the compensation necessary if such essential air service were to be provided
43、by a U.S. air carrier. VerDate Mar2010 13:23 Feb 23, 2011 Jkt 223046 PO 00000 Frm 00226 Fmt 8010 Sfmt 8010 Y:SGML223046.XXX 223046WReier-Aviles on DSKGBLS3C1PROD with CFRProvided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-217 Office of the Secretary, DOT
44、 272.10 (g) Any order of the Department se-lecting a Freely Associated State Air Carrier to provide such essential air service shall be submitted to the Presi-dent of the United States not less than 10 days prior to its effective date and shall be subject to stay or disapproval by the President. (h)
45、 Among the criteria that will be considered by the Department in its de-termination of the carrier or carriers to be selected to perform the required essential air service are: (1) The desirability of developing an integrated linear system of air trans-portation whenever such a system most adequatel
46、y meets the air trans-portation needs of the Freely Associ-ated States concerned; (2) The experience of the applicant in providing scheduled air service in the vicinity of the Freely Associated States for which essential air service is proposed to be provided; (3) The amount of compensation that wil
47、l be required to provide the proposed essential air service; (4) The impact of the proposed serv-ice on service provided to other Freely Associated State points; and (5) The views of the Governments of the Freely Associated States con-cerned. (i) The Department may from time to time, on its own moti
48、on, or upon appli-cation of any carrier or government, review and change its selection of a carrier to provide essential air service, or its determination as to the com-pensation necessary to provide such es-sential air service. (j) All applications or other docu-ments filed or issued in proceedings
49、 under this section shall be served upon the President of the Freely Associated State concerned and the Authorities designated by that Government(s) in accordance with Article II, paragraph 10, of the Federal Programs and Serv-ices Agreement supplemental to the Compact of Free Association, and such Government shall be a party to any such proceeding. In reaching its deter-mination, the Department will care-fully con
