Av ia t io n REGULATION
IN THEU n it e d States
David Heffernan I Brent Connor
/H \AMERICAN BAR ASSOCIATION
Defending Liberty Pursuing Justice
Contents
A Note from the Editors xxiii
The Forum on Air & Space Law xxv
Introduction xxviiJ e ffre y N. S hane
I INTERNATIONAL REGULATION i
1 The Chicago Convention 3
M ark W. A tw ood
I. In troduc tion 3
II. Overview 3
III. H istory of the Chicago Convention 5
IV. Analysis of the Chicago Convention 7
A. Provisions Related to Sovereignty 7
B. Provisions Related to U n i fo rm ity and N ond isc r im ina t ion 16
V. Conclus ion 18
A ppend ix A: The Freedoms of the A ir 19
2 In te rn ation al Air Service Agreem ents 23
Aqsa M ahm ud
I. H is tor ica l An teceden ts and General P r inc ip les 23
II. Provisions in A ir Services Agreements 27
A. Grant o f Traffic R ights 27
B. Capacity 29
C. Fair C om pe t i t ion 29
D. Pr ic ing 30
v
vi C o n t e n t s
E. Safe ty and Secur ity 32
F. User Charges 32
G. C onsu lta t ion and D ispute Reso lution 33
H. Negot ia t ion Procedures 35
III. M u lt i la te ra l Ag reem ent on the L ibera liza t ion of In te rna tiona l A ir
Transporta tion (MALIAT) and the U .S .-EU A ir Transport Agreem ent
(U .S .-EU ATA) 36
A. MALIAT 36
B. U .S .-EU ATA 37
3 In te rn atio n a l Air Safety Regulation 41
M ic h a e l Jen n ison
I. ICAO, In te rna tiona l Safety Rule Maker 42
II. How ICAO Makes the Rules 42
III. The Role of ICAO’s A ir Navigation Com m iss ion 43
IV. Nationa l Avia tion Safety Rules 44
V. The FAA as an Exem plar of Nationa l Rules 45
VI. European A ir Safety Regula tion , a Process of Gradual
Centra l iza t ion 46
V I I . Regional Av ia tion Safety Regula tion 47
VIII . Sources of Regula tory D isharm ony 48
IX. B ila tera l Av ia tion Safety Regu la t ion— H arm on iza t ion and
Reciprocal Reliance 48
X. C om pliance 49
XI. The Role o f the FAA’s IASA Program in B u i ld in g C om p liance w ith
SARPs 50
XII. ICAO's Universal Safety Oversight A u d i t Program (USOAP) 51
XIII. CAA Overs ight of Foreign Carriers 52
XIV. IASA and USOAP Results 52
XV. In te rna tiona l A ir Transport Association (IATA) Operat iona l Safety
A u d i t ( IOSA) Program 53
XVI. Conclus ion 53
4 The In te rn ation al Air Transport Association 55
M ich a e l G ill and A ug us te H o c k in g
I. In t roduc t ion 55
II. Orig in 56
III. Governance and M em bersh ip 57
C o n te n ts vii
IV. M ission and Roles 59
A. Standard Se tt ing 59
B. Industry F inancia l Services and D is tr ibu t ion 60
C. Advocacy 61
D. Com m erc ia l Ac t iv i t ies 63
V. IATA in the United States 63
A. The Orig ins of Tar if f Coord ination 63
B. In te rnationa l R ate-m aking in a Regulated System, 1 9 4 6 to1 9 7 8 64
C. Deregulation, In te rnationa l L ibera liza tion , and IATA after
1 9 7 8 65
D. A n t i t rus t Im m u n ity and IATA 66
E. S truc tu re and Operation of the Modern Traffic Conferences 70
F. The Legal Aspects of Contemporary Standard S e tt ing w ithDOT 72
VI. Conclus ion 7 5
II U.S. DEPARTMENT OF TRANSPORTATION 77
5 DOT’S Role, History, and S tatutory Authority 79Peter D. Irv ine
I. In troduc tion 7 9
II. DOT’S Role 79
III. DOT’S FIistory 82
IV. DOT’S S ta tu to ry Au thor i ty 85
A. Aviation Policy (4 9 U.S.C. Section 4 0 1 0 1 ) 87
B. U n fa ir and Deceptive Practices (4 9 U.S.C. Section 4 1 7 1 2 ) 88
C. A ir Carrier L icens ing (49 U.S.C. Sections 4 1 1 0 1 - 4 1 1 1 1 ) 89
D. Collect ion of Aviation Data (49 U.S.C. Sections 3 2 9 and
4 1 7 0 8 ) 92
E. Review of Commercia l Agreements (4 9 U.S.C. Sections
4 1 3 0 8 - 4 1 3 0 9 , 4 1 7 2 0 ) 94
F. In te rnationa l A ir Service Agreements and Traffic R ights (49
U.S.C. Section 4 0 1 0 5 ) 96
G. Slots and Slo t Exemptions (4 9 U.S.C. Section 4 1 7 1 8 ) 98
H. Consumer Protection (4 9 U.S.C. Sections 4 1 7 1 2 , 4 2 3 0 1 -
4 2 3 0 3 ) 99
viii C o n te n ts
I. Sm a ll and Rural C om m u n ity A ir Service (4 9 U.S.C. Sections
4 1 7 3 1 - 4 1 7 4 3 ) 100
J. Taxes, Fees, and P reem ption (4 9 U.S.C. Sections 4 7 1 2 9 ,
4 0 1 1 6 , 4 1 7 1 3 ) 101
6 Licensing R equirem ents fo r U.S. and Foreign Air C arrie rs 103
Evelyn D. Sahr and Drew M. Derco
I. Foreign Carrier L icens ing Concerns 103
II. O ther DOT Regula tory R equ irem en ts 108
III. E nhanc ing A ir l in e Passenger Pro tec t ions 109
IV. Part 3 8 2 109
V. DOT Report ing R equ irem en ts 110
VI. Federal Av ia tion A d m in is t ra t io n 110
V II.T ranspo rta t ion Secur ity A d m in is t ra t io n 111
VIII . Custom s and Border Pro tect ion (CBP) 112
IX. Ongoing C om pliance O b l iga t ions 114
A. Fees 114
B. Incom e and T icke t Taxes 115
C. Report ing and T ra in ing R equ irem en ts 115
D. O ther R equ irem en ts 116
X. L icens ing Procedures fo r U.S. Carriers 116
7 Regulation of In d irec t Air C arriers and Charters 123
Brent Connor and Jason Tutrone
I. Ind irec t A ir Carriers 123
A. Econom ic Regula tion o f U.S. Ind irec t A ir Carriers 123
B. Econom ic Regula tion of Foreign Ind irec t A ir Carriers 125
C. The Transporta tion Secur ity A d m in is t ra t io n ’s Regula tion of
In d irec t A ir Carriers 128
D. A cc re d ita t ion by the In te rna tiona l A ir Transport Assoc ia tion 133
II. Charters 134
A. Charter Rules fo r D irect A ir Carriers 135
B. Rules for P ub l ic Charters 139
C. Specia l C ons idera t ions fo r A ir Charter Brokers 141
8 Regulation of A irline T icket D istributionD avid A. S chw arte
I. In troduc t ion
143
143
C ontents ix
II. The Foundationa l Rule for A ir l ine Price Advert is ing: 14 C.F.R.
Section 3 9 9 . 8 4 146
III. DOT Rules Regarding Taxes and Fees and Carrier- imposed
Surcharges 147
IV. Rule Governing Advert is ing of R ound-tr ip Fares w ith Each-way
Am oun ts 149
V. “ Free” M ust Really Mean Free 150
VI. Round Airfares Up, Not Down 151
V II .S oc ia l Media A ir fare Ads M ust Com ply w ith DOT Regula tions 152
VIII. D isclosure Requ irem ents fo r Codeshare F lights 152IX. The 2 4 -h o u r Reservation Hold Rule 153
X. Restr ic t ions on Post-purchase Anc il la ry Fee Increases 155
XI. DOT Guidance Regarding Non-neutra l Displays of A ir l ine F lights
and Fares 155
XII. D isclosure by T icket Agent Websites When Pa rt ic ipa t ing Carriers
Offer No Service 157
9 Codesharing and Airline Alliances 159
Anita Mosner
I. In troduc tion and H istor ica l Perspective 159
II. S truc tu re of Codesharing Arrangements 161
III. Regulation of Codesharing 163
A. DOT Polic ies Governing Codesharing Arrangements between
U.S. Carriers 163
B. DOT Rules and Procedures Governing Codesharing
Arrangements Involv ing a Foreign Carrier 164
C. Disclosure Requirem ents A pp l icab le to All Forms of
Codesharing 168
IV. Practical and Com petit ive S ign if icance of Codesharing 170
A. Codesharing and “ Fly A m e r ica ” 172
B. L im ita t io n s of Codesharing Arrangements 174
C. A n t i t ru s t Concerns 174
V. A ir l ine A l l iances 175
VI. Conclus ion 177
X C o n tents
10 A irline Alliances and Antitrust Im m unity 179
David Heffernan and Reese Davidson
i. A l l iances A l low A ir l ines to Develop Global Networks, and ATI
A llows A ir l ines to M ax im ize Cooperation th rough In te rna tiona l
A l l iance Agreem ents 180
II. DOT Has S ta tu to ry Au tho r i ty to Approve and Im m un ize
In te rna tiona l A l l iance Agreements 181
A. C om pe t i t ive E ffects Analys is under 4 9 U.S.C. Section
4 1 3 0 9 (b ) 183
B. Pub lic Benefits Analys is under 4 9 U.S.C. Section 4 1 3 0 8 ( b ) 184
C. C ond it ions and Remedies 185
III. ATI Is a C rit ica l Part of DOT’s Overall In te rna t iona l Av ia tion Policy
185IV. H istory and Evolution of DOT’s ATI Policy 186
V. Most (bu t Not A ll) Econom ic S tud ies Show That Im m un ized
A l l iances Generate S ubstan tia l Benefits for Consum ers 188
VI. ATI C r i t ic ism and Support 190
VII. Conclus ion 191
11 Nondiscrim ination on the Basis of D isability in Air Travel 193Evelyn D. Sahr and Drew M. Derco
I. A p p l icab i l i ty , C onfl ic ts of Law, and Equ iva len t A lte rna tive
D ete rm ina t ions 194
A. C on f l ic t-o f-Law Waivers 194
B. Equ iva len t A lte rna t ive Request 1 9 5
II. N on d isc r im ina t io n and Access to Services 196
A. General P roh ib i t ions on Advance N ot ice and Check-in
Requ irem en ts 196
B. M ed ica l Cert i f ica tes 197
III. A ccess ib i l i ty of A irpo rt Fac i l i t ies and A irc ra f t 199
A. A irpo rt A ccess ib i l i ty R equ irem en ts 199
B. A irc ra f t A ccess ib i l i ty R equ irem en ts 200
C. Seat ing A cco m m o da t ion s 201
IV. Board ing, Deplan ing, and C onnec t ing Ass istance 203
V. Service A n im a ls 205
VI. Stowage and Transporta tion of Assistive Devices 206
VII. In fo rm at ion and Services fo r Passengers w ith D isab i l i t ies 208
A. In fo rm at ion for Passengers w ith D isab i l i t ies 208
B. Services Aboard A irc ra f t 209
C ontents x i
VIII. T ra in ing and Recordkeep ing 210
IX. C om p la in ts and Enfo rcem ent Procedures 211
12 DOT Consumer Protection: Regulations and E nforcem ent 215
Amna Arshad, Robert Gorman, Michael Hallock, and Laura Jennings
I. Ju r isd ic t ion 215
A. Aviation Consumer Protection and Civil R ights 215
B. Econom ic Aviation Issues 216
II. Civil R ights 217
A. D isc r im ina t ion 217
B. Secur ity Threats 217
III. Unauthorized Operations 218
A. U.S. A ir Carriers 218
B. Foreign A ir Carriers 219
C. A ir Charter Brokers 220
D. Unauthorized Operations Enfo rcem ent 220
E. Pub lic Charters 221
IV. Consumer Protect ion 223
A. Prepurchase Rules 223
B. Post-purchase Rules 225
C. A t the A irpo rt 226
D. Tarmac Delays 228
E. Baggage Loss 230
F. Customer Service Plans and C om pla in t H and l ing 231
G. The Aviation Disaster Fam ily Assistance Program 231
V. En fo rcem ent Process 233
A. En forcem ent: Au tho r i ty and Procedures 233
B. En fo rcem ent Procedures 234
C. On-site Inspections 236
13 Ownership and Control of U.S. Air Carriers 237
Jennifer Trock and Kenneth P. Quinn
I. Overview 237II. S ta tu to ry U.S. C it izensh ip R equ irem ents 238
III. C it izensh ip D e term ina tions 240
A. D epartm en t Fitness D e term ina tions and C on t inu ing Fitness
Reviews 240
B. S tandards of Review— Totality of the C ircum stances 241
xii C o n te n ts
IV. C it izensh ip Issues 243
A. Corporate S t ruc tu re 243
B. M anagem en t 244
C. Voting In terest and Total Equ ity 245
D. Warrants and O ther Secur it ies 249
E. Debt 250
F. Corporate and F inanc ing D ocum en ts 251
G. O ther Ind ic ia o f Control 253
V. Conclus ion 254
III FEDERAL AVIATION ADMINISTRATION 255
14 FAA’s Role, History, and S tatu tory Authority 257
Gerald F Murphy and Jonathan T. Linde
I. In troduc t ion 257
II. The Federal Av ia tion A c t 259
III. Today’s FAA 260
A. Regula tion of A irm en 260
B. Regula tion of A irc ra f t 262
C. Regula tion of A ir Carriers 263
D. Regula tion of A irpo rts 264
E. A irpo rt Im provem en t Program 264
F. A ir Traffic Control 265
G. Secur ity 267
FI. Regula tion of Noise 268
IV. E n fo rcem en t and Jud ic ia l Review 269
V. New R espons ib i l i t ies 269
A. U nm anned A irc ra f t 269
B. C om m erc ia l Space F l igh t 271
15 FAA C ertification of A irc ra ft and Equipm ent 273
Lisa A. Harig
I. FAA A irc ra f t C er t i f ica t ion Service 273
II. Design and Production Approvals 275
A. Type C ert i f ica t ion 276
B. Technica l S tandard Order 277
C. Parts M an u fa c tu re r Approval 278
III. A irw orth iness C ert i f ica t ion 278
A. S tandard A irw or th iness C ert i f ica te 278
C ontents xiii
B. Specia l A irw orth iness Certif icate 279
IV. C ontinued A irw orth iness Programs 281
A. Quali ty System A u d i t of Production Approval Holders 281
B. Design Approval Holders 281
C. Specia l A irworth iness In fo rm at ion B u l le t in s 282
D. A irworth iness Directives 282
V. In te rnationa l Considerations 283
A. Va lidation of Foreign TC/STC 283
B. TSO Approval 283
C. Export Certif icate of A irworth iness 283
D. Mandatory C on t inu ing A irworth iness In fo rm at ion 284
16 The FAA’s C ertification and Regulatory Schem e fo r U.S. and Foreign AirC arriers 285
Rebecca MacPherson
I. Background 286
II. Regulation of U.S. A ir Carriers 287
III. Regulation of Foreign A ir Carriers 288
IV. Operat ions Spec if ica t ions 290
V. Im pos it ion of A irworth iness Requirem ents on A ir Carriers 292
VI. Econom ic Regula tions 293
A. Econom ic Au thor i ty 293
B. S lo t-con tro l led A irports 294
17 FAA Regulation of Airports 297
E. Tazewell Ellett, William L. Elder,
Patrick R. Rizzi, and Kathy M. Miljanic
I. The FAA’s Roles in A irpo rt Regulation 297
A. S ta tu to ry Basis 297
B. The FAA as Certif ier of A irports 298
C. The FAA as Promulgator of A irpo rt Safety-Related Regulations,
Standards, and Polic ies 298
D. The FAA as A ud ito r and Inspector of A irports and A irport
Operat ions 299
E. The FAA as Enforcer of A irpo rt Regulatory Requ irem ents 299
F. The FAA as Funder of A irports 300
G. The FAA as Enforcer of Federal A irpo rt Grant Assurances and
Related Federal A irpo rt Ob ligat ions 301
H. The FAA’s Categorization of A irports 301
xiv C o n t e n t s
II. The FAA’s C ert i f ica t ion and Regula tion of Certa in A irpo rts under
14 C.F.R. Part 1 3 9 302
A. Scope of A irpo rt C ert i f ica t ion 302
B. Regula tion of A irpo rt S tandards and Operat ions at C ert i f ica ted
A irpo rts 304
III. O ther FAA Regula tion of A irpo rts 307
A. Part 1 5 0 : A irpo rt Noise C o m p a t ib i l i ty P lann ing 307
B. Part 1 5 3 : A irpo rt Operat ions R equ irem en ts 308
C. Part 1 5 7 : N ot ice of C ons truc t ion , A lte ra t ion , Ac t iva t ion , and
Deactivat ion of A irpo rts 308
D. Part 1 6 1 : Not ice and Approval of A irpo rt Noise and Access
R es tr ic t ions 309
E. Part 1 7 0 : Es tab l ishm en t and D iscon t inuance Crite r ia fo r A ir
Traffic Control Service and Navigation Fac i l i t ies 312
F. Part 1 7 1 : Nonfedera l Navigation Fac i l i t ies 312
IV. A irpo rt Im provem en t Program (AIP) Fund ing and Related Federal
O b liga t ions 312
A. FAA A irpo rt Grant Fund ing 313
B. Federal A irpo rt Grant Assurances 315
V. The FAA’s Policy on the Use of A irpo rt Revenue 317
A. S ta tu to ry Bases 317
B. Policy R equ irem en ts 317
C. A ir l in e Service Incen tives vs. Subs id ies 320
VI. A irpo rt-re la ted D isputes— Part 16 C om p la in ts and Proceedings 321
A. Background 321
B. Part 16 C om p la in ts 322
C. D irec to r ’s D e te rm ina t ions 323
D. Flearings 324
E. Appea ling the Hearing O ff ice r ’s In i t ia l Decis ion 325
F. Consent Orders 326
G. Jud ic ia l Review 326
H. Ex Parte C om m un ica t ion s 326
V I I .A i rp o r t P r iva t iza tion 326
A. D if fe ren t Approaches to A irpo rt P r iva t iza tion 326
B. FAA’s A irpo rt P r ivat iza tion P ilo t Program 329
18 Federal Regulation of Airspace and Air TrafficNaveen C. Rao
I. Metes and Bounds of U.S. A irspace
333
334
C ontents XV
II. O perat ing Rules as A irspace Regula tions 337
III. Regula tion of S truc tu res on the Surface 340
IV. The Boundary between Federal and Local Regulation 341
V. The Field of A ir Traffic Control 342
VI. Regulation of Privately Operated A ir Traffic Control Fac i l i t ies and Services 345
V II.N ex tG en 346
19 Federal Regulation of A irport Fees 349Roy Goldberg
I. Federal S ta tu to ry Provisions 350
II. DOT Rates and Charges Policy 351
III. Federal A irpo rt Fee Cases 353
20 Federal Regulation of Business Aviation 365
Eileen M. Gleimer, Gerald F. Murphy, and Steven J. Seiden
I. In troduc tion 365
II. Part 91 Versus Part 135 366
III. Com pensation 367
A. Generally 367
B. Fully A lloca ted Cost R e im bursem ent 368
C. L im ited Cost R e im bursem ent 370
D. “ Fore ign” Civil A irc ra f t 371
IV. M anagem ent Arrangements 372
V. Fractional Ownership Programs 373
21 Registration and P erfection Requirem ents fo r Civil A irc ra ft in the UnitedStates 375
Will van Egmond
I. A irc ra f t Registration 375
A. A irc ra f t Defin it ion and Owner of A irc ra f t 375
II. Registration D ocum enta t ion 378
A. B i l ls of Sale 378
B. A irc ra f t Registration App l ica t ions 378
III. C it izensh ip of Registered Owner 380
A. S ta tu to ry Basis 380
B. Ind iv idua ls 380
C. Partnersh ips and Co-ownerships 380
D. U.S. C itizen Corporations 380
X V i C on ten ts
E. N onc it izen U.S. Corporations 382
F. Trusts 382
IV. Reg is tra tion Renewal 383
V. Civil Pena lt ies fo r V io la t ions o f the Transporta tion Code 384
VI. A irc ra f t F inanc ing and the Convention on In te rna tiona l In terests
and M ob ile E q u ip m e n t 384
V II .C o l la te ra l E l ig ib i l i ty w ith Respect to the FAA A irc ra f t Registry and
In te rna tiona l Registry 385
A. A irc ra f t 385
B. Engines 386
C. Propellers 386
D. Subsequen t ly Ins ta lled E q u ip m e n t 386
22 The FAA’s In te rn ation al Aviation Safety Assessm ent P rogram 389
Roncevert D. Almond
I. In i t ia t in g an IASA Assessment 390
A. In te rna tiona l Legal Process 390
B. Foreign A ir Carrier Operat ions to the Un ited States 391
II. Stages of the IASA Process 394
A. D ip lom a t ic Note 394
B. In -coun try Assessm ent 395
C. Assessor’s Q uest ionna ire 395
D. Assessm ent Report 396
E. Final D iscuss ions 396
F. Categorization 397
III. Im pac t of IASA Category Ratings 397
A. Category 1 Rating 397
B. Category 2 Rating 398
C. H e ightened S u rve i l lance L is t 400
D. Codesharing 400
E. R e la t ionsh ip to O ther Safe ty A u d i t Programs 401
IV. Conclus ion 402
23 FAA Legal Enforcem ent Actions 405
James Aloysius Barry
I. FAA Invest iga t ions 406
II. Legal En fo rcem en t A c t ions 408
A. C ert i f ica te A c t ions 4 08
B. Civil Penalty A c t ions 411
Contents XVÜ
II I. Sanct ion Gu idance 416
IV NATIONAL TRANSPORTATION SAFETY BOARD 419
24 Aviation Accident Investigations 421
Gary L. H a lb e rt
I. In troduc t ion 421
II. Organization 422
III. Investigat ion Au tho r i ty 423
IV. Invest igat ion Process 425
V. Launch of Go Team 425
VI. Parties to the Investigat ion 426
VII. D isclosures by Parties 428
VIII. Fac t- f ind ing Phase 428
IX. Pub lic Investigative Hearing 430
X. W itnesses 432
XI. Technica l Review 433
X II .S u b m iss ion 434
XIII. Board M eeting 434
XIV. Conclus ion 434
25 NTSB Adjudication of Airm en and Air Agency Appeals 437K ath leen A. Yodice
I. In troduc t ion 437
II. FAA En fo rcem ent Act ion 438
III. Emergency Appeals 439
IV. Non-em ergency Appeals 440
V. Proceedings before an A U 441
VI. Appeals to the NTSB 444
VII. Appeals to Federal Court 445
VIII. Equal Access to Just ice Act 445
IX. Petit ions fo r Review of a Certif icate Denial 448
V U.S. DEPARTMENT OF HOMELAND SECURITY 449
26 Transportation Security Adm inistrationMardi Ruth Thompson and Amy Steiner
I. In troduct ion
451
451
X V ii i C on ten ts
II. S ta tu to ry A u th o r i ty 452
A. In trod uc t io n 452
B. Major A u th o r i t ie s 452
III. Regula tions, Secur ity Programs, and Secur ity D irectives 454
A. R egula t ions 454
B. Secur ity Programs 455
C. Secur ity D irectives 456
D. Orders 456
E. Emergency Regula tion or Secur ity D irective under 4 9 U.S.C.
Section 1 1 4 ( l ) (2 ) 457
F. U.S. and Foreign A irc ra f t Operators 457
G. A irpo rt Operators 460
H. A irpo rt Categories 4 60
IV. Civil En fo rcem en t of Regula tions 462
A. In troduc t ion 462
B. C om pliance and E n fo rcem en t Ph ilosophy 462
C. A d m in is t ra t ive Invest igat ions 463
D. Steps in Progressive E n fo rcem en t 463
E. Sensit ive Secur ity In fo rm at ion (SSI) in E n fo rcem en t A c t ions 465
V. Avia tion Passenger Screen ing 465
A. In t roduc t ion 465
B. R espons ib i l i t ies of Persons 465
C. Fourth A m e n d m e n t P r inc ip les App l ied to TSA ’s Secur ity
Operat ions 466
D. Specia l Needs or A d m in is t ra t ive Search D octr ine 467
E. Inc iden ta l Discovery of Contraband dur ing
Secur ity Screen ing 468
VI. L it iga t ion 469
A. In t roduc t ion 469
B. Jud ic ia l Review of TSA Orders— 4 9 U.S.C. Section 4 6 1 1 0 469
C. Sens it ive Secur ity In fo rm at ion (SSI) in L it iga t ion 469
D. D isc losure of In fo rm at ion in L it iga t ion in W h ich TSA Is Not a
Party— Touhy Regula t ions 471
E. Service of S um m ons and C om p la in ts 471
F. Federal Tort C la im s Ac t 471
V II .S e n s it ive Secur ity In fo rm at ion 472
A. In t roduc t ion 472
B. In fo rm at ion th a t C onsti tu tes SSI 472
C. Who May Flave Access to SSI 473
C o n te n ts xix
D. Referring Requests fo r SSI to TSA 474
E. R espons ib i l i ty to Protect, Mark, and Destroy SSI 474
F. SSI in TSA Civil En fo rcem ent L it iga t ion 475
G. SSI in Civil L it iga t ion Where TSA Is Not a Party 476
H. SSI in C rim ina l Cases Where TSA Is Not a Party 476
27 U.S. Customs and Border Protection 479
B ryan Luby and B rian Volsky
I. In troduc t ion 479
II. CBP History 479
III. Passenger In fo rm at ion Regula tions— APIS and PNR 481
A. Vo luntary APIS and PNR 481
B. Post-9 /11 Requ irem ents 482
IV. CBP Legal Au thor i t ies fo r A ir Cargo Secur ity 484
V. In te rnationa l and Land ing R ights A irpo rts 486A. In te rnationa l A irports 486
B. Land ing R ights and User Fee A irpo rts 487VI. Penalties 4 8 7
VII.C onc lus ion 488
VI U.S. DEPARTMENT OF JUSTICE 489
28 Antitrust Law and Aviation 491Roger Fones
I. Agreements in Restra in t of Trade 491
A. Horizonta l Agreements 492
B. Vertical Agreements 498
C. In te r lock ing D irectorates— Section 8 499
II. M onopoliza t ion and A t tem p ted M onopoliza t ion 500
A. Predatory Pric ing and Capacity 500
B. Exclusive Dealing and Tying 502
C. Loyalty D iscounts and Bund led P r ic ing 503
D. Monopoly “ Leveraging” 503
E. Refusals to Deal 504
III. C rim ina l En fo rcem ent 506
IV. Private L it iga t ion 507
V. Im m u n it ie s and Preemption 508
A. S ta tu to ry Im m u n ity (DOT) 508
XX C on ten ts
B. Noerr Im m u n ity 509
C. Preem ption 509
29 A irline M ergers and Acquisitions 5 1 1James Dick and Roger Fones
I. Review of A ir l in e Mergers and A cq u is i t io ns before 1 9 8 9 511
II. H ar t-S co tt-R od ino Premerger N o t i f ica t ion R equ irem en ts 513
III. The U.S. D epar tm en t of Ju s t ic e ’s C om pe ti t ive Analys is 515
A. Relevant M arkets in the A ir l ine Industry 516
B. C oncen tra t ion 518
C. C om pe ti t ive E ffects 519D. Entry 519
E. E ff ic ienc ies 520
F. Fa i l ing F irms and Assets 520IV. Major Transactions Reviewed by the U.S. D epartm en t of Jus t ice 521
A. U n ited A ir l ines and US Airways ( 2 0 0 0 - 2 0 0 1 ) 521
B. Am erican A ir l ines and TWA (2 0 0 1 ) 522
C. Am erica West A ir l ines and US Airways (2 0 0 5 ) 522
D. Delta A ir Lines and N orthwest A ir l ines ( 2 0 0 8 ) 523
E. U n ited A ir l ines and C on tinen ta l A ir l ines ( 2 0 1 0 ) 523
F. Southw est A ir l ines and AirTran Airways (2 0 1 1 ) 524
G. Am erican A ir l ines and US Airways ( 2 0 1 3 - 2 0 1 4 ) 524
V. Partia l A cq u is i t io ns 526
A. N orthwest A ir l ines and C on tinen ta l A ir l ines 526
B. Delta A ir L ines and Virgin A t la n t ic Airways 527
30 G overnm ent E n forcem ent of Antitrust Laws in Aviation 529
Roger Fones
I. D epa rtm en t of Jus t ice Organization and S truc tu re 529
II. Civil En fo rcem en t Procedures 530
A. Merger Invest igat ions 530
B. Civil C onduc t Invest igat ions 531
C. Merger and Civil C onduc t Remedies 534
D. Tunney A c t 535
E. Ju dg m e n t E n fo rcem en t 536
III. C r im ina l En fo rcem en t Procedures 536
A. Grand Jury Invest igat ions 536
B. W itness Im m u n ity 539
C. DOJ’s Len iency Po licy 540
C ontents XX i
IV. O ther DOJ A c t iv i t ie s 542
A. Business Review Letters 542
B. C om pe tit ion Advocacy 542
C. Pa r t ic ipa t ion in Private Su its 542
V. State A n t i t ru s t En fo rcem ent 542
A. State En fo rcem ent of Federal A n t i t ru s t Laws 543
B. State En fo rcem ent of State A n t i t rus t Laws 543
VI. Foreign En fo rcem ent of C om petit ion Laws 545
A. Cartel En fo rcem ent 545
B. Merger Control 546
VII OTHER REGULATORY ISSUES 547
31 Congressional Oversight of Aviation 549Jeffrey R. Sural
I. In troduc tion 549
II. Congressional Oversight 550
A. A u thor iz ing C om m ittees 550
B. Appropr ia to rs 551
III. Key Pub lic Laws 554
A. The FAA Modern iza tion and Reform Act (the Act) 554
B. A irpo rt and Airway Trust Fund 555
C. Avia tion and Transportation Security Act 555
IV. Exercis ing Oversight 555
A. Hearings 556
B. Power of the Purse 557
C. N om ina t ion C onfirm ations 558
D. Reports 559
E. Invest igat ions: Com m ittee , GAO, and IG 559
V. Conclus ion 560
Append ix A: C om pila t ion of Key S ta tu tes 561
Append ix B: S ign if ican t Aviation Laws Passed by Congress 563
32 Federal P reem ption of State Aviation Regulation 565
Robert S. Span
I. Basic P r inc ip les of Preemption 566
II. Federal Control over Aviation 567
III. ADA Preemption 569
IV. Aviation Safety Preemption 575
xxii C o n t e n t s
V. Local R es tr ic t ions on Noise
VI. Conclus ion
33 The Railway Labor ActElizabeth Ginsburg and Arthur Luby
I. In troduc t ionII. H istory of the Railway Labor Ac t
III . Passage of the Railway Labor Ac t
IV. Coverage of th e A ir l ine Industry
V. Union Secur ity and Dues C heckoff
VI. 2 0 1 2 A m e nd m e n ts to the Railway Labor Act
V I I .T h e Role of the Nationa l M ed ia t ion Board
V III . The S ta tus Quo O b ligat ion
IX. Emergency Boards
34 Environm ental Regulation of AviationRenee Martin-Nagle
I. In troduc t ionII. Nationa l Env ironm enta l Policy Ac t of 1 9 6 9 (NEPA)
III. NEPA and FAA Order 1 0 5 0 . I E
IV. Noise
V. AirVI. Hazardous Mater ia ls , Substances, and Wastes
VI I. Water
VIII. W ild l i fe
IX. M isce l laneous
X. Global E fforts Regard ing Em issions
XI. Conc lus ion
Table of Cases
576
577
579
579
580
583
585
586
586
588
589
593
597
597
598
599
602
603
6 05
607
6 09
610
611
612
613
Index 623