Page:United States Statutes at Large Volume 117.djvu/2562

 PUBLIC LAW 108–176—DEC. 12, 2003

117 STAT. 2543

air transportation to an eligible place that is not receiving scheduled passenger air service as a result of the failure of the eligible place to meet requirements contained in an appropriations Act, the air carrier shall not be subject to the requirements of subsections (b) and (c) with respect to such air transportation.’’. SEC.

402.

ADJUSTMENTS TO INCREASED COSTS.

ACCOUNT

FOR

SIGNIFICANTLY

(a) IN GENERAL.—Section 41737 is amended by adding at the end the following: ‘‘(e) ADJUSTMENTS TO ACCOUNT FOR SIGNIFICANTLY INCREASED COSTS.— ‘‘(1) IN GENERAL.—If the Secretary determines that air carriers are experiencing significantly increased costs in providing air service or air transportation for which compensation is being paid under this subchapter, the Secretary may increase the rates of compensation payable under this subchapter without regard to any agreement or requirement relating to the renegotiation of contracts or any notice requirement under section 41734. ‘‘(2) READJUSTMENT IF COSTS SUBSEQUENTLY DECLINE.—If an adjustment is made under paragraph (1), and total unit costs subsequently decrease to at least the total unit cost reflected in the compensation rate, then the Secretary may reverse the adjustment previously made under paragraph (1) without regard to any agreement or requirement relating to the renegotiation of contracts or any notice requirement under section 41734. ‘‘(3) SIGNIFICANTLY INCREASED COSTS DEFINED.—In this subsection, the term ‘significantly increased costs’ means a total unit cost increase (but not increases in individual unit costs) of 10 percent or more in relation to the total unit cost reflected in the compensation rate, based on the carrier’s internal audit of its financial statements if such cost increase is incurred for a period of at least 2 consecutive months.’’. (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall take effect 30 days after the date of enactment of this Act.

49 USC 41737 note.

SEC. 403. JOINT PROPOSALS.

Section 41740 is amended by inserting ‘‘, including joint fares,’’ after ‘‘joint proposals’’. SEC. 404. ESSENTIAL AIR SERVICE AUTHORIZATION.

Section 41742 is amended— (1) in subsection (a)(2)— (A) by striking ‘‘$15,000,000’’ and inserting ‘‘$77,000,000’’; and (B) by inserting before the period at the end ‘‘of which not more than $12,000,000 per fiscal year may be used for the marketing incentive program for communities and for State marketing assistance’’; (2) by adding at the end of subsection (a) the following: ‘‘(3) AUTHORIZATION FOR ADDITIONAL EMPLOYEES.—In addition to amounts authorized under paragraphs (1) and (2), there are authorized to be appropriated such sums as may be necessary for the Secretary of Transportation to hire and employ 4 additional employees for the office responsible for carrying out the essential air service program.’’; and

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