A bill to amend the Federal Aviation Act of 1958 to improve air service and provide flexibility in air fares.

[AI summary unavailable — showing source text] Air Service Improvement Act - Amends the Federal Aviation Act of 1958 to direct the Civil Aeronautics Board, in the performance of its duties, to assign the highest priority to safety in air transportation, and to place maximum reliance on competitive market forces while encouraging new air carriers and preventing industry concentration. Stipulates that the Federal Government shall have preemptive rights with regard to interstate air carriers. Directs the Board and the Secretary of Transportation to jointly prepare a report to be submitted to the Congress by January 1, 1980, concerning direct and indirect Federal, State, and local governmental subsidization of United States scheduled air transportation. Establishes time limitations during which the Board must dispense with applications for certificates of public convenience and necessity to engage in air transportation. Authorizes the Board to dismiss an application on its merits without a hearing within 90 days of its filing date. Deems such dismissal a final order for purposes of judicial review. Requires the Board to issue certificates to engage in regular interstate or overseas air transportation, temporary air transportation, …