A bill to provide for the improvement of the Nation's airport and airway system, for the modification of airport and airway user taxes, and for other purposes.

Title I: Airport and Airway Improvement Act of 1979 - Directs the Secretary of Transportation to review and revise the existing national airport system plan to provide for the development of public-use airports in the United States. Stipulates that such plan shall include the type and estimated cost of eligible airport development considered by the Secretary to be necessary to provide a safe and efficient system of public-use airports to anticipate and meet the needs of civil aeronautics, to meet requirements in support of the national defense, and to meet the needs of the postal service.

Directs the Department of Defense to make military airports and airport facilities available for civil use to the extent feasible.

Directs the Secretary, after consultation with the Administrator of the Environmental Protection Agency, to establish a single method for measuring airport generated noise.

Makes airport noise assessment plans and noise impact abatement plans eligible for funding as airport planning projects under this title.

Authorizes the Secretary to make grants from the Airport and Airway Trust Fund for airport development and planning in the form of project-grants or block- grants. Sets forth the aggregate funding level for such grants for fiscal years 1981 through 1985.

Authorizes appropriations out of such fund for fiscal years 1981 through 1985 for: (1) the establishment of air navigation facilities; (2) airport research engineering and development, and demonstration projects; (3) training State and local government employees to carry out the purposes of this Act; (4) costs of services provided under international agreements relating to the joint financing of air navigation services; (5) costs incurred by the Secretary in administering this title; and (6) costs incurred in operating and maintaining the national airspace system in a safe and efficient condition.

Sets forth the method for apportioning the funds made available under this title.

Sets forth conditions which must be met to be eligible to receive funding under this Act.

Directs the Secretary to cooperate with State and local officials in the development of airport plans and programs which are formulated on the basis of overall transportation needs and coordinated with other transportation planning with due consideration to comprehensive long-range land-use and access plans and overall social, economic, environmental, system performance, and energy conservation goals and objectives.

Sets forth procedures for the submission of project-grant and block grant airport development applications and requirements which must be satisfied to approve such applications.

Requires a sponsor of an airport project to hold public hearings where the project-grant application involves the location of an airport, and airport runway, or a major runway extension. Stipulates that such a grant shall not be made unless the Governor of the State in which the project is to be located certifies in writing to the Secretary that there is a reasonable assurance that the project will be located, designed, constructed, and operated so as to comply with applicable air and water quality implementation plans.

Subjects block-grant airport development project applications for States to the same conditions and requirements as those for project-grant applications.

Authorizes the Secretary to approve standards (other than standards for safety of approaches) established by a State for airport development at public-use airports which are not primary airports.

Authorizes the Secretary, in connection with any project under this Act, to require the project sponsor to certify that all of the statutory and administrative requirements imposed by this Act will be complied with.

Stipulates that the United States share of allowable project costs for a project approved under this Act shall not exceed 80 percent of its cost. Establishes lower percentages for such projects under specified circumstances.

Authorizes the Secretary to approve, as allowable costs of an airport development project, terminal development in nonrevenue producing public-use areas which are directly related to the movement of passengers and baggage.

Stipulates that construction work on projects funded under this Act shall be subject to inspection and approval by the Secretary and shall be in accordance with regulations prescribed by the Secretary.

Stipulates that contracts in excess of $2,000 for such construction projects shall include provisions establishing minimum rates of wages to be predetermined by the Secretary of Labor in accordance with the Davis-Bacon Act.

Requires that construction contracts for airport development projects grant employment preferences to Vietnam and disabled veterans.

Directs the Secretary of Transportation, in the event that a public airport project will require the use of Federal lands, to request the head of the Federal agency or department controlling such lands to transfer the necessary property interests to the public agency sponsoring the project or which owns or controls the airport involved. Requires the head of such an agency or department to notify the Secretary within four months of its decision with respect to such a request. Exempts from such requests lands under the administration of the National Park Service, units of the National Wildlife Refuge System or similar areas under the jurisdiction of the Bureau of Sport Fisheries and Wildlife, or within any national forest or Indian reservation.

Sets forth criminal penalties for fraudulent acts committed with respect to projects under this Act.

Sets forth recordkeeping and auditing requirements with respect to projects under this Act.

Sets forth civil penalties for failure to comply with the provisions of this Act or regulations thereunder.

Directs the Secretary to take affirmative action to assure that no person shall, on the grounds of race, creed, color, national origin, or sex, be excluded from participating in any activity conducted with funds received from any grant made under this title.

Repeals the provisions of the Airport and Airway Development Act of 1970 pertaining to airport development projects and funding.

Title II: Airport and Airway Revenue Act of 1979 - Amends the Internal Revenue Code of 1954 to impose a tax of six percent on the sale of new aircraft, new aircraft parts, and new avionics for use in noncommercial aviation.

Stipulates that a lease of such an article shall be considered a sale for purposes of such tax.

Exempts from such tax any article for export or for shipment to a possession of the United States.

Terminates such tax on October 1, 1990.

Imposes a tax of ten percent of the retail sale price of fuel used in noncommercial aviation (previously such tax rate was seven cents on each gallon of such fuel). Terminates such tax on October 1, 1990.

Postpones the reduction of the tax on the transportation of persons and property by air which is scheduled to go into effect on June 30, 1980 until September 30, 1990.

Sets forth the tax on the use of civil aircraft for the period from July 1, 1990, to September 30, 1990.

Amends the Airport and Airway Revenue Act of 1970 to stipulate that funds received from the tax on noncommercial aircraft and avionics established by this Act shall be placed in the Airport and Airway Trust Fund.

Title III: Miscellaneous - Amends the Airport and Airway Development Act of 1970 to set forth restrictions on obligations incurred by the Secretary of Transportation for airport development grants after September 30, 1980.

Amends the Federal Aviation Act of 1958 to stipulate that any landing area or navigation facility which has received Federal funds shall be available for public use on fair and reasonable terms and without discrimination. Sets forth administrative adjudicatory procedures with respect to complaints alleging such discrimination.

Authorizes the Secretary of Transportation to establish a system for limiting the number of aircraft operations reservations at any airport to insure the safety of aircraft, the efficient utilization of navigable airspace, or the control of congestion in the airspace in the vicinity of the airport.