Amends the Federal transportation code to prohibit the Under Secretary of Transportation for Security from imposing passenger and air carrier security fees during the two-year period beginning on the date of enactment of this Act. Requires the the Secretary of Homeland Security (Secretary), during such moratorium, to reimburse the costs of providing civil aviation security services.
Directs the Secretary to reimburse air carriers for all screening and related activities that they perform or are responsible for performing after November 19, 2001, including: (1) the screening of catering supplies; (2) checking of documents at security checkpoints; (3) screening of passengers; and (4) screening of persons with access to aircraft.
Requires the Secretary to reimburse air carriers also for: (1) the provision, after November 19, 2001, of space and facilities used to perform screening functions and other space used by the Transportation Security Administration; and (2) the cost of fortifying cockpit doors after that date in accordance with specified law.
Revises the authority of the Under Secretary of Transportation for Security to require air carriers to provide flight seating for on-duty and off-duty Federal air marshals. Repeals the authority to require the carriers to provide such seating at no cost to the marshall or the U.S. Government. Requires the Under Secretary to provide for payment at the Federal Government airfare rate available for the flight at the time of booking.
Requires (currently authorizes) the Secretary of Transportation to provide insurance and reinsurance against loss or damage arising out of any risk from the operation of an American aircraft or foreign-flag aircraft. Requires the Secretary of Transportation to extend through December 31, 2007, the termination date of certain insurance policies the Department of Transportation issued to air carriers as of a certain date on no less favorable terms to the air carrier than existed on June 19, 2002.
Repeals the December 31, 2003, termination of, thus extending indefinitely, the incident coverage period (beginning on or after September 22, 2001) for which the Secretary of Transportation may certify that an air carrier was a victim of an act of terrorism for purposes of limited air carrier liability for third party claims arising out of such acts.
Repeals the December 31, 2004, termination date for the authority of the Secretary of Transportation to provide aviation insurance and reinsurance.