[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: 14CFR272.9]



[Page 220-221]

 

                     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. 272.9  Selection of a carrier to provide essential air service 

and payment of compensation.



    (a) If the Department finds that essential air service will not be 

maintained to an eligible Freely Associated State place, the Department 

shall invite applications to provide the service required to maintain 

essential air service to such place.



[[Page 221]]



    (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 Department shall determine 

the compensation necessary, considering all other service to such place 

in accordance with Sec. 272.6(a)(3), to maintain the level of essential 

air service determined by the Department under Sec. 272.5, and the 

times and manner of the payment of such compensation.

    (c) The compensation determined 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 carriers selected by the Department.

    (d) The Department shall continue to specify compensation to be paid 

to a carrier or carriers under this section only as long as the 

Department determines that essential air service will not be provided to 

the Freely Associated State in the absence of the payment of such 

compensation.

    (e) Except as permitted in paragraph (f) of this section, the 

Department shall select a U.S. air carrier or carriers 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 essential air service for 

compensation, only if--

    (1) No U.S. air carrier is available to provide the required 

essential air service; 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 by a U.S. 

air carrier.

    (g) Any order of the Department selecting a Freely Associated State 

Air Carrier to provide such essential air service shall be submitted to 

the President 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) Among the criteria that will be considered by the Department in 

its determination 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 transportation whenever such a system most adequately meets the air 

transportation needs of the Freely Associated 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 will be required to provide the 

proposed essential air service;

    (4) The impact of the proposed service on service provided to other 

Freely Associated State points; and

    (5) The views of the Governments of the Freely Associated States 

concerned.

    (i) The Department may from time to time, on its own motion, or upon 

application of any carrier or government, review and change its 

selection of a carrier to provide essential air service, or its 

determination as to the compensation necessary to provide such essential 

air service.

    (j) All applications or other documents filed or issued in 

proceedings 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 Services Agreement supplemental to the Compact of 

Free Association, and such Government shall be a party to any such 

proceeding. In reaching its determination, the Department will carefully 

consider any views of such Government that have been submitted.



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

Aug. 22, 1995]