49 U.S.C. § 41309 — Cooperative agreements and requests

(a) Filing. An air carrier or foreign air carrier may file with the Secretary of Transportation a true copy — or, if the agreement was spoken, a true and complete written summary — of an agreement (except one about interstate air transportation), or a request to discuss cooperative arrangements, and any change or cancellation of one. This applies to agreements with another air carrier, a foreign carrier, or another carrier. (b) Approval. The Secretary must approve an agreement, request, modification, or cancellation described in subsection (a) if it does not hurt the public interest and does not violate this part. But the Secretary must refuse — or, after periodic review, end approval of — (1) one that substantially reduces or eliminates competition, unless the Secretary finds (A) it is needed to meet a serious transportation need or achieve important public benefits (including international relations and foreign policy), and (B) that need or benefit cannot be met through reasonably available alternatives that are much less anticompetitive; or (2) an agreement (A) between an air carrier that does not directly fly aircraft in foreign air transportation and a carrier covered by subtitle IV, that (B) governs the pay that carrier gets for the transportation. (c) Notice and a chance to respond or get a hearing. (1) When an agreement, request, modification, or cancellation is filed, the Secretary must give the Attorney General and Secretary of State written notice and a chance to comment. On the Secretary's own initiative, or if the Attorney General or Secretary of State asks, the Secretary may hold a hearing to decide whether it fits this part — even if it was approved before. (2) In a hearing applying the subsection (b)(1) standards, the party opposing the agreement must prove it substantially reduces or eliminates competition and that less anticompetitive options exist. The party defending it must prove the transportation need or public benefit. (3) The Secretary must include the subsection (b)(1) findings in any order approving or disapproving the agreement, request, modification, or cancellation.