((a)) ** .—**

((1)) Except as provided in subsection (d) of this section, the transportation of passengers or property by CRAF-eligible aircraft in interstate air transportation obtained by the Secretary of Defense or the Secretary of a military department through a contract for airlift service in the United States may be provided only by an air carrier that—

((A)) has aircraft in the civil reserve air fleet or offers to place the aircraft in that fleet; and

((B)) holds a certificate issued under .

((2)) The Secretary of Transportation shall act as expeditiously as possible on an application for a certificate under to provide airlift service.

((b)) ** .—** Except as provided in subsection (d), the transportation of passengers or property by CRAF-eligible aircraft between a place in the United States and a place outside the United States obtained by the Secretary of Defense or the Secretary of a military department through a contract for airlift service shall be provided by an air carrier referred to in subsection (a).

((c)) ** .—** The transportation of passengers or property by CRAF-eligible aircraft between two places outside the United States obtained by the Secretary of Defense or the Secretary of a military department through a contract for airlift service shall be provided by an air carrier referred to in subsection (a) whenever transportation by such an air carrier is reasonably available.

((d)) ** .—** Subject to subsection (e), when the Secretary of Defense decides that no air carrier holding a certificate under is capable of providing, and willing to provide, the airlift service, the Secretary of Defense may make a contract to provide the service with an air carrier not having a certificate.

((e)) ** .—** Not later than 60 days after the end of each fiscal year, the Secretary shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report that—

((1)) identifies each contract for airlift services awarded in the preceding fiscal year to a provider that does not meet the requirements set forth in subparagraphs (A) and (B) of subsection (a)(1); and

((2)) for each such contract—

((A)) specifies the dollar value of the award; and

((B)) provides a detailed explanation of the reasons for the award.

((f)) ** .—** In this section, “CRAF-eligible aircraft” means aircraft of a type the Secretary of Defense has determined to be eligible to participate in the civil reserve air fleet.