Air Carriage of International Mail Act

        [Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[S. 3536 Enrolled Bill (ENR)]

S.3536

One Hundred Tenth Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Thursday,
the third day of January, two thousand and eight

An Act

To amend section 5402 of title 39, United States Code, to modify the
authority relating to United States Postal Service air transportation
contracts, and for other purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Air Carriage of International Mail
Act''.

SEC. 2. AIR CARRIAGE OF INTERNATIONAL MAIL.

(a) Contracting Authority.--Section 5402 of title 39, United States
Code, is amended by striking subsections (b) and (c) and inserting the
following:
``(b) International Mail.--
``(1) In general.--
``(A) Except as otherwise provided in this subsection, the
Postal Service may contract for the transportation of mail by
aircraft between any of the points in foreign air
transportation only with certificated air carriers. A contract
may be awarded to a certificated air carrier to transport mail
by air between any of the points in foreign air transportation
that the Secretary of Transportation has authorized the carrier
to serve either directly or through a code-share relationship
with one or more foreign air carriers.
``(B) If the Postal Service has sought offers or proposals
from certificated air carriers to transport mail in foreign air
transportation between points, or pairs of points within a
geographic region or regions, and has not received offers or
proposals that meet Postal Service requirements at a fair and
reasonable price from at least 2 such carriers, the Postal
Service may seek offers or proposals from foreign air carriers.
Where service in foreign air transportation meeting the Postal
Service's requirements is unavailable at a fair and reasonable
price from at least 2 certificated air carriers, either
directly or through a code-share relationship with one or more
foreign air carriers, the Postal Service may contract with
foreign air carriers to provide the service sought if, when the
Postal Service seeks offers or proposals from foreign air
carriers, it also seeks an offer or proposal to provide that
service from any certificated air carrier providing service
between those points, or pairs of points within a geographic
region or regions, on the same terms and conditions that are
being sought from foreign air carriers.
``(C) For purposes of this subsection, the Postal Service
shall use a methodology for determining fair and reasonable
prices for the Postal Service designated region or regions
developed in consultation with, and with the concurrence of,
certificated air carriers representing at least 51 percent of
available ton miles in the markets of interest.
``(D) For purposes of this subsection, ceiling prices
determined pursuant to the methodology used under subparagraph
(C) shall be presumed to be fair and reasonable if they do not
exceed the ceiling prices derived from--
``(i) a weighted average based on market rate data
furnished by the International Air Transport Association or
a subsidiary unit thereof; or
``(ii) if such data are not available from those
sources, such other neutral, regularly updated set of
weighted average market rates as the Postal Service, with
the concurrence of certificated air carriers representing
at least 51 percent of available ton miles in the markets
of interest, may designate.
``(E) If, for purposes of subparagraph (D)(ii), concurrence
cannot be attained, then the most recently available market
rate data described in this subparagraph shall continue to
apply for the relevant market or markets.
``(2) Contract process.--The Postal Service shall contract for
foreign air transportation as set forth in paragraph (1) through an
open procurement process that will provide--
``(A) potential offerors with timely notice of business
opportunities in sufficient detail to allow them to make a
proposal;
``(B) requirements, proposed terms and conditions, and
evaluation criteria to potential offerors; and
``(C) an opportunity for unsuccessful offerors to receive
prompt feedback upon request.
``(3) Emergency or unanticipated conditions; inadequate lift
space.--The Postal Service may enter into contracts to transport
mail by air in foreign air transportation with a certificated air
carrier or a foreign air carrier without complying with the
requirements of paragraphs (b)(1) and (2) if--
``(A) emergency or unanticipated conditions exist that make
it impractical for the Postal Service to comply with such
requirements; or
``(B) its demand for lift exceeds the space available to it
under existing contracts and--
``(i) there is insufficient time available to seek
additional lift using procedures that comply with those
requirements without compromising the Postal Service's
service commitments to its own customers; and
``(ii) the Postal Service first offers any certificated
air carrier holding a contract to carry mail between the
relevant points the opportunity to carry such excess
volumes under the terms of its existing contract.
``(c) Good Faith Effort Required.--The Postal Service and potential
offerors shall put a good-faith effort into resolving disputes
concerning the award of contracts made under subsection (b).''.
(b) Conforming Amendments to Title 49.--
(1) Section 41901(a) is amended by striking ``39.'' and
inserting ``39, and in foreign air transportation under section
5402(b) and (c) of title 39.''.
(2) Section 41901(b)(1) is amended by striking ``in foreign air
transportation or''.
(3) Section 41902 is amended--
(A) by striking ``in foreign air transportation or'' in
subsection (a);
(B) by striking subsection (b) and inserting the following:
``(b) Statements on Places and Schedules.--Every air carrier shall
file with the United States Postal Service a statement showing--
``(1) the places between which the carrier is authorized to
transport mail in Alaska;
``(2) every schedule of aircraft regularly operated by the
carrier between places described in paragraph (1) and every change
in each schedule; and
``(3) for each schedule, the places served by the carrier and
the time of arrival at, and departure from, each such place.'';
(C) by striking ``subsection (b)(3)'' each place it appears
in subsections (c)(1) and (d) and inserting ``subsection
(b)(2)''; and
(D) by striking subsections (e) and (f).
(4) Section 41903 is amended by striking ``in foreign air
transportation or'' each place it appears.
(5) Section 41904 is amended--
(A) by striking ``to or in foreign countries'' in the
section heading;
(B) by striking ``to or in a foreign country'' and
inserting ``between two points outside the United States''; and
(C) by inserting after ``transportation.'' the following:
``Nothing in this section shall affect the authority of the
Postal Service to make arrangements with noncitizens for the
carriage of mail in foreign air transportation under
subsections 5402(b) and (c) of title 39.''.
(6) Section 41910 is amended by striking the first sentence and
inserting ``The United States Postal Service may weigh mail
transported by aircraft between places in Alaska and make
statistical and -administrative computations necessary in the
interest of mail service.''.
(7) Chapter 419 is amended--
(A) by striking sections 41905, 41907, 41908, and 41911;
and
(B) redesignating sections 41906, 41909, 41910, and 49112
as sections 41905, 41906, 41907, and 41908, respectively.
(8) The chapter analysis for chapter 419 is amended by
redesignating the items relating to sections 41906, 41909, 41910,
and 49112 as relating to sections 41905, 41906, 41907, and 41908,
respectively.
(9) Section 101(f) of title 39, United States Code, is amended
by striking ``mail and shall make a fair and equitable distribution
of mail business to carriers providing similar modes of
transportation services to the Postal Service.'' and inserting
``mail.''.
(10) Subsections (b) and (c) of section 3401 of title 39,
United States Code, are amended--
(A) by striking ``at rates fixed and determined by the
Secretary of Transportation in accordance with section 41901 of
title 49'' and inserting ``or, for carriage of mail in foreign
air transportation, other air carriers, air taxi operators or
foreign air carriers as permitted by section 5402 of this
title'';
(B) by striking ``at rates not to exceed those so fixed and
determined for scheduled United States air carriers'';
(C) by striking ``scheduled'' each place it appears and
inserting ``certificated''; and
(D) by striking the last sentence in each such subsection.
(11) Section 5402(a) of title 39, United States Code, is
amended--
(A) by inserting ```foreign air carrier'.'' after
```interstate air transportation','' in paragraph (2);
(B) by redesignating paragraphs (7) through (23) as
paragraphs (8) through (24) and inserting after paragraph (6)
the following:
``(7) the term `certificated air carrier' means an air carrier
that holds a certificate of public convenience and necessity issued
under section 41102(a) of title 49;'';
(C) by redesignating paragraphs (9) through (24), as
redesignated, as paragraphs (10) through (25), respectively,
and inserting after paragraph (8) the following:
``(9) the term `code-share relationship' means a relationship
pursuant to which any certificated air carrier or foreign air
carrier's designation code is used to identify a flight operated by
another air carrier or foreign air carrier;''; and
(D) by inserting ``foreign air carrier,'' after ``terms''
in paragraph (2).
(c) Effective Date.--The amendments made by this section shall take
effect on October 1, 2008.

Speaker of the House of Representatives.

Vice President of the United States and
President of the Senate.