[Code of Federal Regulations]

[Title 14, Volume 4]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 14CFR272.10]



[Page 221-222]

 

                     TITLE 14--AERONAUTICS AND SPACE

 

   CHAPTER II--OFFICE OF THE SECRETARY, DEPARTMENT OF TRANSPORTATION 

                         (AVIATION PROCEEDINGS)

 

PART 272_ESSENTIAL AIR SERVICE TO THE FREELY ASSOCIATED STATES--Table 

of Contents

 

Sec. 272.10  Conditions applicable to carriers serving a subsidized 

market.



    (a) The Department may, after providing an opportunity for comment 

by the carrier or carriers affected, impose service, fare or rate 

conditions on any U.S., Freely Associated State, foreign air carrier, or 

foreign carrier by air as



[[Page 222]]



a precondition to the payment of compensation necessary to maintain 

essential air service, whether or not the affected carrier is itself 

receiving subsidy compensation in the market, if it finds that:

    (1) Essential air service in a Freely Associated State market or 

markets will not be provided in the absence of the payment of 

compensation;

    (2) Specified service, rate or fare conditions are or will be 

necessary or desirable to minimize the required subsidy compensation; 

and

    (3) The imposition of such conditions will not unduly impair the 

service provided in the market.

    (b) To the extent the carrier or carriers upon whom the conditions 

are imposed pursuant to paragraph (a) of this section do not hold a 

certificate, permit, or other authority from the Department that may be 

amended to effectively implement the specified conditions, the 

Department may notify the Government(s) of the Freely Associated States 

concerned that the imposition of such conditions on those carriers by 

those Governments shall be a precondition to the payment of the subsidy 

compensation required to maintain essential air service in the market in 

question.

    (c) The Department may withhold or suspend its provision for the 

payment of subsidy compensation required to maintain essential air 

service unless and until the Freely Associated State(s) concerned take 

the necessary action to impose the specified conditions on the carriers 

referred to in paragraph (b) of this section, and those carriers have 

complied with the specified conditions.

    (d) Any order of the Department imposing conditions, or requiring 

the imposition of conditions, pursuant to this paragraph shall be 

submitted to the President for review not less than 10 days prior to its 

effective date, and shall be subject to stay or disapproval by the 

President.



[Amdt. No. 272-1, 52 FR 5443, Feb. 23, 1987, as amended at 60 FR 43525, 

Aug. 22, 1995]