Reporting Ancillary Airline Passenger Revenues, 41726-41731 [2011-17652]
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Federal Register / Vol. 76, No. 136 / Friday, July 15, 2011 / Proposed Rules
under the criteria of the Regulatory
Flexibility Act.
The FAA’s authority to issue rules
regarding aviation safety is found in
Title 49 of the U.S. Code. Subtitle 1,
Section 106, describes the authority for
the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more
detail the scope of the agency’s
authority. This rulemaking is
promulgated under the authority
described in Subtitle VII, part A, subpart
I, Section 40103. Under that section, the
FAA is charged with prescribing
regulations to assign the use of the
airspace necessary to ensure the safety
of aircraft and the efficient use of
airspace. This regulation is within the
scope of that authority as it creates
additional controlled airspace at Frank
Wiley Field, Miles City, MT.
List of Subjects in 14 CFR Part 71
Airspace, Incorporation by reference,
Navigation (air).
The Proposed Amendment
Accordingly, pursuant to the
authority delegated to me, the Federal
Aviation Administration proposes to
amend 14 CFR part 71 as follows:
Paragraph 6005 Class E airspace areas
extending upward from 700 feet or more
above the surface of the earth.
*
*
*
*
*
ANM MT E5 Miles City, MT [Modified]
Miles City, Frank Wiley Field, MT
(Lat. 46°25′41″ N., long. 105°53′11″ W.)
That airspace extending upward from 700
feet above the surface within a 7.4-mile
radius of Frank Wiley Field, and within 3.1
miles each side of the 047° bearing from
Frank Wiley Field extending from the 7.4mile radius to 15.5 miles northeast of the
airport, and within 3.5 miles each side of the
226° bearing from Frank Wiley Field,
extending from the 7.4-mile radius to 15
miles southwest of the airport, and within 4.5
miles each side of the 253° bearing from
Frank Wiley Field, extending from the 7.4mile radius to 12 miles west of the airport;
that airspace extending upward from 1,200
feet above the surface within a 34.5-mile
radius of Frank Wiley Field.
Issued in Seattle, Washington, on July 7,
2011.
John Warner,
Manager, Operations Support Group, Western
Service Center.
[FR Doc. 2011–17850 Filed 7–14–11; 8:45 am]
BILLING CODE 4910–13–P
PART 71—DESIGNATION OF CLASS A,
B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND
REPORTING POINTS
DEPARTMENT OF TRANSPORTATION
1. The authority citation for 14 CFR
part 71 continues to read as follows:
14 CFR Parts 234 and 241
Authority: 49 U.S.C. 106(g), 40103, 40113,
40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959–
1963 Comp., p. 389.
RIN 2139–AA13
§ 71.1
[Amended]
2. The incorporation by reference in
14 CFR part 71.1 of the Federal Aviation
Administration Order 7400.9U,
Airspace Designations and Reporting
Points, dated August 18, 2010, and
effective September 15, 2010 is
amended as follows:
Paragraph 6002 Class E airspace
Designated as Surface Areas.
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*
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ANM MT E2 Miles City, MT [Modified]
Miles City, Frank Wiley Field, MT
(Lat. 46°25′41″ N., long. 105°53′11″ W.)
Within a 4.9-mile radius of Frank Wiley
Field, and within 3 miles each side of the
226° bearing of Frank Wiley Field extending
from the 4.9-mile radius to 10.8 miles
southwest of the airport, and within 3 miles
each side of the 253° bearing of Frank Wiley
Field extending from the 4.9-mile radius to
9.4 miles west of the airport. This Class E
airspace area is effective during the specific
dates and times established in advance by a
Notice to Airmen. The effective date and time
will thereafter be continuously published in
the Airport/Facility Directory.
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Office of the Secretary
[Docket No. RITA 2011–0001]
Reporting Ancillary Airline Passenger
Revenues
Office of the Secretary, DOT.
Notice of Proposed Rulemaking.
AGENCY:
ACTION:
The U.S. Department of
Transportation (DOT or the Department)
is proposing to collect revenue
information in a more detailed manner
regarding airline imposed fees from
those air carriers meeting the definition
of a large certificated air carrier. Many
air carriers have adopted a la carte
pricing with separate fees for such
things as checked baggage, carry-on
baggage, meals, on-board entertainment,
internet connections, pillows, blankets,
advance or upgraded seating, telephone
reservations, early boarding, canceled or
changed reservations, transportation of
unaccompanied minors, pet
transportation, third-party services such
as hotel rooms, car rentals, and pick-up
and delivery services, et cetera. The
Department wants to make airline
pricing more transparent to consumers
and airline analysts. This action is in
response to a Departmental initiative
SUMMARY:
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and responds to recommendations of
the Government Accountability Office.
Also, the Department is proposing to
change the way it computes mishandled
baggage rates from mishandled baggage
reports per unit of domestic
enplanements to mishandled bags per
unit of checked bags. Fees for checked
baggage have changed consumer
behavior regarding the number of bags
they check, skewing mishandled
baggage rates. Finally, the Department is
proposing to fill a data gap by collecting
separate statistics for mishandled
wheelchairs and scooters used by
passengers with disabilities.
DATES: All comments must be received
by September 13, 2011. Late filed
comments will be considered to the
extent practicable.
ADDRESSES: You may submit comments
to Docket RITA 2011–0001 by any of the
following methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov. Follow the
online instructions for submitting
comments.
• Mail: Docket Management Facility:
U.S. Department of Transportation, 1200
New Jersey Avenue, SE., West Building
Ground Floor, Room W12–140,
Washington, DC 20590–0001.
• Hand Delivery or Courier: U.S.
Department of Transportation, 1200
New Jersey Avenue, SE., West Building
Ground Floor, Room W12–140, between
9 a.m. and 5 p.m. ET, Monday through
Friday, except Federal holidays.
• Fax: 202–493–2251.
DOT will post all comments received,
without change, to https://
www.regulations.gov, including any
personal information provided. If DOT
acknowledgement of comments is
desired, please include a pre-addressed,
stamped postcard on which the docket
number appears. We will date the
postcard and mail it to you.
Docket: To read background
documents or comments received, go to
https://www.regulations.gov at any time
or to Docket Management Facility, U.S.
Department of Transportation, 1200
New Jersey Avenue, SE., Washington,
DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
FOR FURTHER INFORMATION CONTACT:
Bernie Stankus, Office of Airline
Information, RTS–42, Bureau of
Transportation Statistics, Research and
Innovative Technology Administration,
1200 New Jersey Avenue, SE.,
Washington, DC 20590–0001,
Telephone Number (202) 366–4387, Fax
Number (202) 366–3383 or E-MAIL
bernard.stankus@dot.gov.
SUPPLEMENTARY INFORMATION:
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Background
Ancillary Revenues
Ancillary airline revenues have
increased from 2005 through 2009 and
continued their increase in 2010. At the
same time, actual passenger ticket
revenues have shown a slight decrease.
The following numbers were taken from
the Bureau of Transportation Statistics’
Transtats Web site (https://
2005
(in millions)
Revenue source
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Passenger Revenues ......................................................................................................
Transport Related Revenues ...........................................................................................
Baggage ...........................................................................................................................
Cancellation Charges ......................................................................................................
Miscellaneous ..................................................................................................................
In July 2010, the Government
Accountability Office (GAO) issued a
report titled GAO–10–785, Commercial
Aviation—Consumers Could Benefit
from Better Information about AirlineImposed Fees and Refundability of
Government Imposed Taxes and Fees.
This report found that it is difficult to
determine the total amount of fees that
airlines are collecting from passengers.
‘‘Currently revenues from fees other
than baggage fees and reservation
change and cancellation fees are
reported in miscellaneous and other
accounts that also include revenues
from non-fee sources.’’ (See page 34 of
the GAO report.) Thus, policymakers
and regulators lack the necessary
detailed data to determine total
revenues from airline imposed fees and
the fees’ impact on the industry. GAO
recommended that DOT collect data on
all the optional fees paid by passengers
that relate to their trip in an identifiable
format.
DOT is proposing a stand-alone
reporting form to capture ancillary
revenues. In order not to disrupt the
various programs used by airline
analysts to compute airline yields and
passenger revenues, the Department’s
proposal will not change the current
reporting of the other Form 41 financial
reports. DOT proposes to define
ancillary revenues as those charges paid
by airline passengers that are not
included in the standard ticket fare.
Generally, all mandatory charges
necessary for air transportation are
included in the ticket price, but fees for
optional services are not. Treasury
regulations and IRS guidance provide
that revenue from many airline-imposed
fees for airline services are generally not
subject to the 7.5 percent excise tax,
including fees for checked baggage,
early boarding, phone reservations, and
on-board meals. On the other hand,
amounts paid for other airline imposed
fees that are required as a condition of
receiving domestic air transportation,
such as some reservation change and
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cancellation fees, fuel surcharges and
peak travel day charges, are subject to
the 7.5 percent excise tax in accordance
with IRS guidance and applicable
regulations (see page 21 GAO–10–785,
July 2010). The Airline Tariff Publishing
Company (ATPCO), the world leader in
the collection and distribution of airline
fare and fare-related data, has over two
hundred sub codes for the items that the
Department is proposing to define as
ancillary airline revenues. The
Department is not proposing to require
the detailed breakout of all the charges
identified by ATPCO, but is using the
ATPCO list of charges as a reference in
developing the new reporting form—
Report of Ancillary Passenger Revenues.
The Department is proposing to collect
the following data on optional charges
in that report:
1. Booking Fees, including fees for
telephone reservations
2. Priority Check-In and Security
Screening
3. Baggage
First Checked Bag
Second Checked Bag
Excess Baggage (i.e., third checked
bag or more)
Overweight/Oversized Baggage/Sports
Equipment
Carry-On Baggage
4. In-Flight Medical Equipment
5. In-Flight Entertainment/Internet
Access
6. Sleep Sets
7. In-Flight Food/Non Alcoholic Drinks
8. Alcoholic Drinks
9. Pets
10. Seating Assignments
11. Reservation Cancellation and
Change Fees
12. Charges for Lost Tickets
13. Unaccompanied Minor/Passenger
Assistance Fee
14. Frequent Flyer Points/Points
Acceleration
15. Commissions on Travel Packages—
Hotel/Car Rental/etc.
16. Travel Insurance
17. Duty-Free and Retail Sales
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www.transtats.bts.gov/
Fields.asp?Table_ID=295 for Schedule
P–1.2 Statement of Operations for large
certificated airlines with over $20
million in annual operating revenues.
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2009
(in millions)
$93,633
28,729
342
841
2,216
Percent change
$91,503
31,007
2,789
2,373
5,107
¥2.28
7.93
715.50
182.16
130.46
18. One-Time Access to Lounges
19. Other
DOT proposes that carriers that
submit the quarterly Form 41, Schedule
P–1.2 Statement of Operations would
also submit a new quarterly Form 41, P–
9 Schedule Statement of Ancillary
Revenues. Carriers that submit the
Semiannual Form 41, Schedule P–1.1
Statement of Operations would also
submit a new semiannual Form 41,
Schedule P–9.1 Statement of Ancillary
Revenues. The new Reports of Ancillary
Revenues will be designed to show the
ancillary revenues received by the
reporting carriers from their passengers.
For instance, in a code-share
arrangement, Carrier A markets the
service and pays Carrier B a
predetermined fee for operating a flight
segment. Carrier A charges a $25 fee for
each checked bag. The baggage fees
collected from passengers by Carrier B
are held for Carrier A. Carrier A would
include these baggage fees in its Report
of Ancillary Revenues.
The Department is requesting public
comment on which items should be
specifically identified as ancillary
revenues, and the projected reporting
burden for submitting a report of
ancillary revenues in terms of costs and
hours of reporting burden. Further, the
Department requests public comment on
how to best capture reporting of all
ancillary fees. Should the Department
include specific fee categories in the
regulatory text? Or, specify in the
regulatory text that ‘‘all ancillary fees’’
must be reported, with accompanying
guidance on the reporting format and
fee categories? How could the
Department ensure that the fees
categorized as ‘‘other’’ fees are most
informative to the Department and to
the consumer?
Mishandled Baggage Reports
The Department believes that the
current matrix for comparing airline
mishandled baggage performance is
outdated. Airline passengers would
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have better information to compare
airline services if the matrix for
mishandled baggage were changed to
the number of the actual mishandled
bags per unit of checked bags rather
than the number of Mishandled Baggage
Reports (MBRs) filed by passengers per
unit domestic scheduled-service
passengers. Passenger behavior was
altered regarding the unit of bags
checked when many air carriers began
charging passengers for each bag that
they check. The GAO reported that the
introduction of baggage fees resulted in
a decline of 40 to 50% in the number
of checked bags with a corresponding
40% decline in the number of MBRs per
1,000 passengers (see page 25 of GAO–
10–785, July 2010). Also, the ratio
between checked bags and the number
of passengers can vary greatly
depending on the fees carriers charge.
Moreover, there is not a direct
relationship between the number of
MBRs and the number of lost, stolen,
delayed, damaged and pilfered bags
because a single MBR could be
submitted by a family with multiple
mishandled bags. The proposed matrix
would better inform passengers of their
chances to retrieve their checked
baggage and belongings in an acceptable
and timely manner.
The Department is also interested in
capturing data about the number of the
mishandled wheelchairs/scooters per
unit of wheelchairs/scooters transported
in aircraft cargo. Many air travelers who
use wheelchairs are reluctant to travel
by air because of concern that the return
of their wheelchairs or scooters will be
delayed, or the wheelchair/scooter will
be damaged or lost. However, we do not
know the magnitude of the problem.
The proposed data collection for
mishandled wheelchairs/scooters is
crucial to understanding the magnitude
of the problem as this data is not
available to us through other means. It
is very important that passengers with
mobility disabilities arrive at their
destination with their wheelchair/
scooter in good working order. Without
these devices, they will have great
difficulty in exiting the airport or may
be confined to their hotel or place of
visit. We invite interested persons to
comment on this proposal. Should the
rule be expanded to require data not
only about wheelchairs and scooters
transported in the aircraft cargo
compartment but about all wheelchairs
and scooters regardless of whether the
devices are transported in the cabin or
in the cargo compartment? Should the
rule also apply to other mobility devices
such as walkers? The Department plans
to publish the data it receives from the
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carriers which would increase public
awareness of the issue, provide
passengers with disabilities a means by
which to compare the overall
mishandled wheelchair/scooter rates by
carrier and create an added incentive for
air carriers to treat these mobility
devises with greater care.
consumers with better data for
comparing air carrier service
performance. Also, airline passengers
will likely be better informed about the
existence of ancillary fees. This NPRM
provides the public an opportunity to
express their views and needs.
Statutory and Executive Order Reviews
Benefits
A. Executive Order 12866 (Regulatory
Planning and Review), DOT Regulatory
Policies and Procedures, and Executive
Order 13563) (Improving Regulation and
Regulatory Review)
This action has been determined to be
significant under Executive Order 12866
and the Department of Transportation’s
Regulatory Policies and Procedures
because of the substantial public and
Congressional interest. It has been
reviewed by the Office of Management
and Budget in accordance with
Executive Order 12866 (Regulatory
Planning and Review) and Executive
Order 13563 (Improving Regulation and
Regulatory Review) and is consistent
with the requirements in both orders.
Executive Order 13563 reaffirms the
principles of Executive Order 12866 and
seeks to create a regulatory process that
‘‘strikes the right balance’’ between
what is needed to protect health,
welfare, safety, and the environment
and what is needed to foster economic
growth, job creation, and
competitiveness.
The Department is seeking public
comment on the estimated costs and
benefits of its proposal. To this end, the
Department is seeking an open exchange
of information between Department
officials, transportation experts,
industry representatives and members
of the public. The Department believes
this participation will lead to a better
and more informed decision. We
encourage those air carriers who would
be covered by this proposal to provide
comments to the Docket explaining the
potential impact on their business
operations. We are committed to
selecting the least burdensome method
to achieve the regulatory goals described
above. By requesting public comments,
we are hopeful that additional
alternatives will be proposed which
then can be reviewed by the
Department’s decisionmakers. We
believe this process will provide the
Department the maximum regulatory
flexibility.
The regulatory evaluation finds that
the benefits of the proposal appear to
exceed its costs considering nonquantifiable benefits, such as providing
data on fees that impact the Airport and
Airway Trust Fund, and providing
The ancillary revenue data collection
would supply the Federal Aviation
Administration (FAA) and Government
Accountability Office (GAO) with
information to assess the potential
impact of these fees on the Airport and
Airway Trust Fund. In the last few
years, some carriers have adopted a la
carte pricing for optional services.
Airlines have also developed new
services with separate charges such as
in-flight wireless internet access, onetime admission to airport lounges,
accelerated frequent flyer miles, etc.
Airlines have been able to lower airfares
while increasing overall revenues with
the a la carte pricing and new services.
At the same time, revenues to the
Airport and Airway Trust Fund have
slightly decreased.
A report of ancillary revenues should
assist DOT and the Justice Department
in evaluating the impact of proposed
mergers and acquisitions. Presently, it is
difficult, if not impossible, to determine
the average total cost of air travel to
consumers. Ancillary charges often are
omitted from the total costs of tickets
reported in the Passenger OriginDestination Survey.
There is a range of bills in Congress
that would impose taxes on various
airline services. Because of the current
Department of Transportation reporting
requirements, GAO has been unable to
accurately forecast the amount of
revenues that these taxes would
generate.
The change in the matrix to
mishandled bags per unit of checked
bags would give consumers more
reliable information on the air carriers’
performance regarding the treatment of
baggage within their control. Under the
current system, there is no direct
relationship between the number of
mishandled bags and the number of
checked bags. Carriers report the
number of MBRs that they receive from
passengers. A mishandled baggage
report may be filed for one bag or
multiple bags. The denominator in the
current matrix is enplaned passengers.
A passenger may opt to travel with only
carry-on baggage or may check multiple
bags.
With the institution of baggage fees,
the number of checked bags at some
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Cost/Benefit Analysis
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carriers has declined by 40 to 50
percent. There has been a corresponding
40 percent decline (i.e., improvement)
in the industry mishandled baggage
rates. A large part of the improvement
in the mishandled baggage rate appears
to be related to the decrease in checked
baggage, although the current matrix
hides this fact. The proposed matrix
would have a direct correlation between
mishandled baggage and checked
baggage. Separate breakout of
mishandled wheelchairs/scooters would
assist passengers with mobility
disabilities in selecting air carriers with
high probabilities in meeting their
special needs.
Finally, there is a gap in the
Department’s data regarding the
mishandling of wheelchairs and
scooters. The proposed data will
provide information to passenger with
disabilities on which air carriers best
meet their special needs.
The Department has not quantified
the benefits of the ancillary revenue
data collection, the change in the matrix
to mishandled bags per unit of checked
bags, or the data collection regarding
mishandling of wheelchairs and
requests comments on potential
methods for quantifying benefits for any
of these proposals, if possible.
Costs
The Department estimates that the
one time programming cost to the
industry would be just over $150,000 to
report ancillary revenues to the
Department. The approximately 77 air
carriers would each incur about 40
hours of programming costs to capture
the items that are considered ancillary
revenues. The recurrent annual industry
cost for submitting the new report is
estimated at $100,000 or $700 per
medium regional carrier and $1,400 for
other Form 41 reporters.
The cost to the 18 air carriers that
would have to collect data on checked
and mishandled baggage is estimated to
be approximately $180,000 or $10,000
per carrier. Most of the cost would be
associated with developing a system for
counting the number of gate-checked
bags that are not scanned by the carrier
when the passenger checks in for the
flight. The Department also believes that
the cost of the requirement to collect
data on damage, delay or loss of
wheelchairs or scooters transported in
the aircraft cargo would be minimal for
carriers, since we believe most carriers
as a matter of good business practice
already gather and maintain this
information for their own purposes.
The Department seeks public
comment on whether these cost
estimates are accurate, and the extent to
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which air carriers gather and maintain
this information for their own purposes.
B. Paperwork Reduction Act
Ancillary Revenues
This proposed action would increase
the reporting burden on air carriers.
DOT estimates a one-time programming
effort of 40 hours per certificated air
carrier to retrieve the required breakout
of the reportable ancillary revenues
from its accounting systems. After the
programming effort is completed, there
will be a recurrent reporting burden of
approximately 10 hours per carrier to
produce and submit each ancillary
revenue report. Presently, there are 66
air carriers that would submit quarterly
reports and 11 air carriers that would
submit semiannual reports. Thus, the
total first-year reporting burden would
be 5,940 hours:
3,080 programming hours (77 carriers ×
40 programming hours)
2,640 hours for quarterly submissions
(66 carriers × 4 quarterly reports ×
10 hours)
220 hours for semiannual submissions
(11 carriers × 2 semiannual reports
× 10 hours
The proposed reporting form to
collect ancillary data would become a
part of Form 41 financial data which is
collected under the OMB number 2138–
0013. The Department requests
comments on the estimates of first year
reporting burden.
Mishandled Baggage Reports
BTS anticipates a one-time
reprogramming effort in changing the
matrix from MBRs per 1,000 enplaned
passengers to the number of mishandled
bags per unit of checked bags. Most
reporting carriers have these data in
their systems or have the ability to
gather the information. DOT estimates a
range from 1 hour to 80 hours with an
average of 20 hours per carrier to
implement this proposed change. Total
burden is estimated to be 360 hours for
the 18 reporting air carriers.
The Department encourages air
carriers to comment on these cost
estimates.
C. Regulatory Flexibility Act
The Regulatory Flexibility Act
generally requires an agency to prepare
a regulatory flexibility analysis of any
rule subject to notice-and-comment
rulemaking requirements under the
Administrative Procedure Act or any
other statute unless the agency certifies
that the rule will not have a significant
economic impact on a substantial
number of small entities.
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I certify that, if adopted, this rule will
not have a significant economic impact
on a substantial number of small
entities. The Department has defined
small entities as those carriers that
operate strictly small aircraft (60 seats or
less aircraft). This rule will impact only
those carriers that operate large aircraft
or have annual domestic passenger
revenues of over $600 million dollars.
The cost estimate to implement this rule
is between $2,500 and $12,500 per
carrier.
D. Executive Order 12612
This rule has been analyzed in
accordance with the principles and
criteria in Executive Order 12612
(‘‘Federalism’’) and the Department has
determined that this proposed rule does
not have sufficient federalism
implications to warrant the preparation
of a Federalism Assessment.
E. Trade Agreements Act
This act prohibits agencies from
setting standards that create
unnecessary obstacles to foreign
commerce of the United States. The
Department believes this proposed rule
will not impact foreign commerce.
F. Unfunded Mandates Reform Act of
1995
This Act requires agencies to prepare
written assessment of costs, benefits,
and other effects of a proposed rule that
include a Federal mandate likely to
result in the expenditure by State, local,
or tribal government. This proposed rule
imposes no expenditures on State, local,
or tribal government. The estimated cost
to the airline industry from this
proposed rule would account for 0.0002
percent of total industry operating
revenues.
G. Regulation Identifier Number
A regulation identifier number (RIN)
is assigned to each regulatory action
listed in the Unified Agenda of Federal
Regulations. The Regulatory Information
Service Center publishes the Unified
Agenda each April and October. The
RIN Number 2139–AA13 contained in
the heading of this document can be
used to cross reference this action with
the Unified Agenda.
List of Subjects in 14 CFR Parts 234 and
241
Air Carriers, Reporting, On-time
statistics, Mishandled baggage, and
Uniform system of accounts.
Accordingly, the Department of
Transportation proposes to amend 14
CFR Chapter II as follows:
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PART 234—[AMENDED]
1. The authority citation for Part 234
is revised to read as follows:
Authority: 49 U.S.C. 329 and chapters
41101 and 41701.
2. Section 234.6 is revised to read as
follows:
§ 234.6
Baggage-handling statistics.
Each reporting carrier shall report
monthly to the Department on a
domestic system basis, excluding
charter flights, the total number of
checked bags, including gate checked
baggage, the number of wheelchairs and
scooters transported in the aircraft cargo
compartment, the total number of
mishandled checked bags, including
gate checked baggage, and the number
of mishandled wheelchairs and scooters
that were carried in the cargo
compartment. The information shall be
submitted to the Department within 15
days of the end of the month to which
the information applies and must be
submitted with the transmittal
accompanying the data for on-time
performance in the form and manner set
forth in accounting and reporting
directives issued by the Director, Office
of Airline Information.
PART 241—[AMENDED]
3. The authority citation for part 241
continues to read as follows:
Authority: 49 U.S.C. 329 and chapters
41101, 41708, and 41709.
4. In part 241, the table titled ‘‘List of
Schedules in BTS Form 41’’ in Section
22(a) is amended by adding entries for
Schedule P–9, and P–9.1 to read as
follows:
Section 22 General Reporting
Instructions.
(a) * * *
LIST OF SCHEDULES IN BTS FORM 41
Applicability by carrier group
Schedule number
Title
Frequency
I
*
P–9 ............................
P–9.1 .........................
*
*
*
*
Statement of Ancillary Revenues ..................................................... Q ..............
Statement of Ancillary Revenues ..................................................... SA ............
*
*
*
5. In part 241, the table titled ‘‘Due
Dates of Schedules in BTS Form 41
Report’’ in Section 22(a) is amended by
*
II
*
(1) ............
(2) ............
x ...............
na ............
*
revising the entries for ‘‘February 10’’,
‘‘May 10’’, ‘‘August 10’’ and ‘‘November
10’’ to read as follows:
III
*
x
na
*
*
Section 22 General Reporting
Instructions.
(b) * * *
DUE DATES OF SCHEDULES IN BTS FORM 41 REPORT
Traffic and capacity data on
schedule number
Dues dates 1
Financial data on schedule number
February 10 ...............................................
A, B–1, B–1.1, B–7, B–12, P–1.1, P–1.2, P–2, P–5.1, P–5.2, P–6, P–
7, P–9, P–9.1, P–10.
*
*
May 10 2 .....................................................
*
*
*
*
A, B–1, B–7, B–12, P1.2, P–2, P–5.1, P–5.2, P–6, P–7, P–9, P–9.1.
*
*
*
August 10 ...................................................
*
*
*
*
A, B–1, B1.1, B7, B–12, P–1.1, P1.2, P–2, P–5.1, P–5.2, P–6, P–7,
P–9, P–9.1.
*
*
*
November 10 .............................................
*
*
*
A, B–1, B7, B–12, P1.2, P–2, P–5.1, P–5.2, P–6, P–7, P–9, P–9.1.
*
*
*
*
*
*
*
*
*
1 Due
Dates falling on Saturday, Sunday or national holiday will become effective the first following work day.
due dates on Form 41 schedules B and P are extended to March 30 if preliminary schedules are filed at the Department buy February 10.
2 Reporting
emcdonald on DSK2BSOYB1PROD with PROPOSALS
*
*
*
*
*
6. In part 241, Section 24 is amended
by adding Schedules P–9 and P–9.1 to
read as follows:
Section 24 Profit and Loss Elements
*
*
*
VerDate Mar<15>2010
*
*
17:11 Jul 14, 2011
Jkt 223001
Schedule P–9 Statement of Ancillary
Revenues
(a) Section 24 Profit and Loss Elements
P–9
Statement of Ancillary Revenues
(a) This schedule shall be filed
quarterly by all Group II and Group III
air carriers and by Group I air carriers
that have annual operating revenues of
$20 million or more.
(b) Data reported on this schedule
shall be for ancillary revenues as
PO 00000
Frm 00006
Fmt 4702
Sfmt 4702
defined as those charges paid by airline
passengers that are not included in the
passenger revenues.
(c) Carriers shall submit the data
using a comma separated value format
as follows:
(1) Carrier code;
(2) Period end date (yyyymmdd);
(3) Booking Fees (includes fees for
telephone reservations, paper tickets,
delivery);
(4) Priority Check-In and Security
Screening;
E:\FR\FM\15JYP1.SGM
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Federal Register / Vol. 76, No. 136 / Friday, July 15, 2011 / Proposed Rules
(5) First Checked Bag;
(6) Second Checked Bag;
(7) Excess Baggage (i.e., third checked
bag or more);
(8) Overweight/Oversized Baggage/
Sports Equipment;
(9) Carry-On Baggage;
(10) In-Flight Medical Equipment;
(11) In-Flight Entertainment/Internet
Access;
(12) Sleep Sets;
(13) In-Flight Food/Non Alcoholic
Drinks;
(14) Alcoholic Drinks;
(15) Pets;
(16) Seating Assignments;
(17) Reservation Cancellation and
Change Fees;
(18) Charges for Lost Tickets;
(19) Unaccompanied Minor/Passenger
Assistance Fee;
(20) Frequent Flyer Points/Points
Acceleration (includes fees for
purchasing travel with points or fees for
purchases with points close to departure
dates; Points Acceleration are fees for
increased frequent flyer point
accumulation);
(21) Commissions on Travel
Packages—Hotel/Car Rental/etc.;
(22) Commissions on Travel
Insurance;
(23) Duty-Free and Retail Sales;
(24) One-Time Access to Lounges; and
(25) Other.
emcdonald on DSK2BSOYB1PROD with PROPOSALS
P–9.1
Statement of Ancillary Revenues
(a) This scheduled shall be filed
semiannually by Group I air carriers
with annual operating revenues below
$20 million.
(b) Data reported on this schedule
shall be for ancillary revenues as
defined as those charges paid by airline
passengers that are not included in the
passenger revenues.
(c) Carriers shall submit the data
using a comma separated value format
as follows:
(1) Carrier code;
(2) Period end date (yyyymmdd);
(3) Booking Fees (includes fees for
telephone reservations, paper tickets,
delivery);
(4) Priority Check-In and Security
Screening;
(5) First Checked Baggage;
(6) Second Checked Baggage;
(7) Excess Baggage (i.e., third checked
baggage or more);
(8) Overweight/Oversized Baggage/
Sports Equipment;
(9) Carry-On Baggage;
(10) In-Flight Medical Equipment;
(11) In-Flight Entertainment/Internet
Access;
(12) Sleep Sets;
(13) In-Flight Food/Non Alcoholic
Drinks;
VerDate Mar<15>2010
16:05 Jul 14, 2011
Jkt 223001
(14) Alcoholic Drinks;
(15) Pets;
(16) Seating Assignments;
(17) Reservation Cancellation and
Change Fees;
(18) Charges for Lost Tickets;
(19) Unaccompanied Minor/Passenger
Assistance Fee;
(20) Frequent Flyer Points/Points
Acceleration (includes fees for
purchasing travel with points or fees for
purchases with points close to departure
dates; Points Acceleration are fees for
increased frequent flyer point
accumulation);
(21) Commissions on Travel
Packages—Hotel/Car Rental/etc.;
(22) Commissions on Travel
Insurance;
(23) Duty-Free and Retail Sales;
(24) One-Time Access to Lounges; and
(25) Other.
*
*
*
*
*
Issued in Washington, DC, on July 7, 2011
under authority delegated by 14 CFR
385.19(a).
Anne Suissa,
Director, Office of Airline Information.
[FR Doc. 2011–17652 Filed 7–14–11; 8:45 am]
BILLING CODE 4910–HY–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 51
[EPA–HQ–OAR–2010–1076; FRL–9439–4]
RIN 2060–AQ97
Air Quality: Widespread Use for
Onboard Refueling Vapor Recovery
and Stage II Waiver
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
The EPA is proposing criteria
for determining whether onboard
refueling vapor recovery (ORVR) is in
widespread use for purposes of
controlling motor vehicle refueling
emissions throughout the motor vehicle
fleet. The EPA is also proposing to
determine the date at which such
widespread use of ORVR will occur.
Once the Administrator has determined
that widespread use has occurred, the
Administrator may waive Clean Air Act
(CAA or Act) statutory requirements for
states to implement Stage II gasoline
vapor recovery systems at gasoline
dispensing facilities in areas classified
‘‘Serious,’’ ‘‘Severe,’’ or ‘‘Extreme’’ for
nonattainment of the ozone national
ambient air quality standard (NAAQS).
Based on the proposed criteria, the EPA
SUMMARY:
PO 00000
Frm 00007
Fmt 4702
Sfmt 4702
41731
is proposing to determine that June 30,
2013, will be the date when
‘‘widespread use’’ will occur and the
Stage II waiver will be effective. This
rulemaking was identified as an
example of examining rules to make
sure they are still achieving the
environmental benefit that was
originally intended.
DATES: Comments must be received on
or before September 13, 2011.
Public Hearing: If anyone contacts us
requesting to speak at a public hearing
on or before August 1, 2011, we will
hold a public hearing. Additional
information about the hearing would be
published in a subsequent Federal
Register notice.
ADDRESSES: Submit your comments,
identified by Docket ID No. EPA–HQ–
OAR–2010–1076, by one of the
following methods:
• https://www.regulations.gov. Follow
the on-line instructions for submitting
comments.
• E-mail: a-and-rdocket@epamail.epa.gov, Attention
Docket ID No. EPA–HQ–OAR–2010–
1076
• Fax: 202–566–1541, Attention
Docket ID No. EPA–HQ–OAR–2010–
1076
• Mail: Air and Radiation Docket and
Information Center, Attention Docket ID
No. EPA–HQ–OAR–2010–1076,
Environmental Protection Agency, 1301
Constitution Ave., NW., Washington,
DC 20460, Mailcode: 6102T. Please
include two copies if possible.
• Hand Delivery: Air and Radiation
Docket and Information Center,
Attention Docket ID No. EPA–HQ–
OAR–2010–1076, Environmental
Protection Agency in the EPA
Headquarters Library, Room Number
3334 in the EPA West Building, located
at 1301 Constitution Avenue, NW.,
Washington, DC. Such deliveries are
only accepted during the Docket’s
normal hours of operation, and special
arrangements should be made for
deliveries of boxed information.
Instructions: Direct your comments to
Docket ID No. EPA–HQ–OAR–2010–
1076. The EPA’s policy is that all
comments received will be included in
the public docket without change and
may be made available online at
https://www.regulations.gov, including
any personal information provided,
unless the comment includes
information claimed to be Confidential
Business Information (CBI) or other
information whose disclosure is
restricted by statute. Do not submit
information that you consider to be CBI
or otherwise protected through https://
www.regulations.gov, or e-mail. The
E:\FR\FM\15JYP1.SGM
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Agencies
[Federal Register Volume 76, Number 136 (Friday, July 15, 2011)]
[Proposed Rules]
[Pages 41726-41731]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-17652]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Office of the Secretary
14 CFR Parts 234 and 241
[Docket No. RITA 2011-0001]
RIN 2139-AA13
Reporting Ancillary Airline Passenger Revenues
AGENCY: Office of the Secretary, DOT.
ACTION: Notice of Proposed Rulemaking.
-----------------------------------------------------------------------
SUMMARY: The U.S. Department of Transportation (DOT or the Department)
is proposing to collect revenue information in a more detailed manner
regarding airline imposed fees from those air carriers meeting the
definition of a large certificated air carrier. Many air carriers have
adopted a la carte pricing with separate fees for such things as
checked baggage, carry-on baggage, meals, on-board entertainment,
internet connections, pillows, blankets, advance or upgraded seating,
telephone reservations, early boarding, canceled or changed
reservations, transportation of unaccompanied minors, pet
transportation, third-party services such as hotel rooms, car rentals,
and pick-up and delivery services, et cetera. The Department wants to
make airline pricing more transparent to consumers and airline
analysts. This action is in response to a Departmental initiative and
responds to recommendations of the Government Accountability Office.
Also, the Department is proposing to change the way it computes
mishandled baggage rates from mishandled baggage reports per unit of
domestic enplanements to mishandled bags per unit of checked bags. Fees
for checked baggage have changed consumer behavior regarding the number
of bags they check, skewing mishandled baggage rates. Finally, the
Department is proposing to fill a data gap by collecting separate
statistics for mishandled wheelchairs and scooters used by passengers
with disabilities.
DATES: All comments must be received by September 13, 2011. Late filed
comments will be considered to the extent practicable.
ADDRESSES: You may submit comments to Docket RITA 2011-0001 by any of
the following methods:
Federal eRulemaking Portal: Go to https://www.regulations.gov. Follow the online instructions for submitting
comments.
Mail: Docket Management Facility: U.S. Department of
Transportation, 1200 New Jersey Avenue, SE., West Building Ground
Floor, Room W12-140, Washington, DC 20590-0001.
Hand Delivery or Courier: U.S. Department of
Transportation, 1200 New Jersey Avenue, SE., West Building Ground
Floor, Room W12-140, between 9 a.m. and 5 p.m. ET, Monday through
Friday, except Federal holidays.
Fax: 202-493-2251.
DOT will post all comments received, without change, to https://www.regulations.gov, including any personal information provided. If
DOT acknowledgement of comments is desired, please include a pre-
addressed, stamped postcard on which the docket number appears. We will
date the postcard and mail it to you.
Docket: To read background documents or comments received, go to
https://www.regulations.gov at any time or to Docket Management
Facility, U.S. Department of Transportation, 1200 New Jersey Avenue,
SE., Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.
FOR FURTHER INFORMATION CONTACT: Bernie Stankus, Office of Airline
Information, RTS-42, Bureau of Transportation Statistics, Research and
Innovative Technology Administration, 1200 New Jersey Avenue, SE.,
Washington, DC 20590-0001, Telephone Number (202) 366-4387, Fax Number
(202) 366-3383 or E-MAIL bernard.stankus@dot.gov.
SUPPLEMENTARY INFORMATION:
[[Page 41727]]
Background
Ancillary Revenues
Ancillary airline revenues have increased from 2005 through 2009
and continued their increase in 2010. At the same time, actual
passenger ticket revenues have shown a slight decrease. The following
numbers were taken from the Bureau of Transportation Statistics'
Transtats Web site (https://www.transtats.bts.gov/Fields.asp?Table_ID=295 for Schedule P-1.2 Statement of Operations for large
certificated airlines with over $20 million in annual operating
revenues.
----------------------------------------------------------------------------------------------------------------
2005 (in 2009 (in
Revenue source millions) millions) Percent change
----------------------------------------------------------------------------------------------------------------
Passenger Revenues........................................ $93,633 $91,503 -2.28
Transport Related Revenues................................ 28,729 31,007 7.93
Baggage................................................... 342 2,789 715.50
Cancellation Charges...................................... 841 2,373 182.16
Miscellaneous............................................. 2,216 5,107 130.46
----------------------------------------------------------------------------------------------------------------
In July 2010, the Government Accountability Office (GAO) issued a
report titled GAO-10-785, Commercial Aviation--Consumers Could Benefit
from Better Information about Airline-Imposed Fees and Refundability of
Government Imposed Taxes and Fees. This report found that it is
difficult to determine the total amount of fees that airlines are
collecting from passengers. ``Currently revenues from fees other than
baggage fees and reservation change and cancellation fees are reported
in miscellaneous and other accounts that also include revenues from
non-fee sources.'' (See page 34 of the GAO report.) Thus, policymakers
and regulators lack the necessary detailed data to determine total
revenues from airline imposed fees and the fees' impact on the
industry. GAO recommended that DOT collect data on all the optional
fees paid by passengers that relate to their trip in an identifiable
format.
DOT is proposing a stand-alone reporting form to capture ancillary
revenues. In order not to disrupt the various programs used by airline
analysts to compute airline yields and passenger revenues, the
Department's proposal will not change the current reporting of the
other Form 41 financial reports. DOT proposes to define ancillary
revenues as those charges paid by airline passengers that are not
included in the standard ticket fare. Generally, all mandatory charges
necessary for air transportation are included in the ticket price, but
fees for optional services are not. Treasury regulations and IRS
guidance provide that revenue from many airline-imposed fees for
airline services are generally not subject to the 7.5 percent excise
tax, including fees for checked baggage, early boarding, phone
reservations, and on-board meals. On the other hand, amounts paid for
other airline imposed fees that are required as a condition of
receiving domestic air transportation, such as some reservation change
and cancellation fees, fuel surcharges and peak travel day charges, are
subject to the 7.5 percent excise tax in accordance with IRS guidance
and applicable regulations (see page 21 GAO-10-785, July 2010). The
Airline Tariff Publishing Company (ATPCO), the world leader in the
collection and distribution of airline fare and fare-related data, has
over two hundred sub codes for the items that the Department is
proposing to define as ancillary airline revenues. The Department is
not proposing to require the detailed breakout of all the charges
identified by ATPCO, but is using the ATPCO list of charges as a
reference in developing the new reporting form--Report of Ancillary
Passenger Revenues. The Department is proposing to collect the
following data on optional charges in that report:
1. Booking Fees, including fees for telephone reservations
2. Priority Check-In and Security Screening
3. Baggage
First Checked Bag
Second Checked Bag
Excess Baggage (i.e., third checked bag or more)
Overweight/Oversized Baggage/Sports Equipment
Carry-On Baggage
4. In-Flight Medical Equipment
5. In-Flight Entertainment/Internet Access
6. Sleep Sets
7. In-Flight Food/Non Alcoholic Drinks
8. Alcoholic Drinks
9. Pets
10. Seating Assignments
11. Reservation Cancellation and Change Fees
12. Charges for Lost Tickets
13. Unaccompanied Minor/Passenger Assistance Fee
14. Frequent Flyer Points/Points Acceleration
15. Commissions on Travel Packages--Hotel/Car Rental/etc.
16. Travel Insurance
17. Duty-Free and Retail Sales
18. One-Time Access to Lounges
19. Other
DOT proposes that carriers that submit the quarterly Form 41,
Schedule P-1.2 Statement of Operations would also submit a new
quarterly Form 41, P-9 Schedule Statement of Ancillary Revenues.
Carriers that submit the Semiannual Form 41, Schedule P-1.1 Statement
of Operations would also submit a new semiannual Form 41, Schedule P-
9.1 Statement of Ancillary Revenues. The new Reports of Ancillary
Revenues will be designed to show the ancillary revenues received by
the reporting carriers from their passengers. For instance, in a code-
share arrangement, Carrier A markets the service and pays Carrier B a
predetermined fee for operating a flight segment. Carrier A charges a
$25 fee for each checked bag. The baggage fees collected from
passengers by Carrier B are held for Carrier A. Carrier A would include
these baggage fees in its Report of Ancillary Revenues.
The Department is requesting public comment on which items should
be specifically identified as ancillary revenues, and the projected
reporting burden for submitting a report of ancillary revenues in terms
of costs and hours of reporting burden. Further, the Department
requests public comment on how to best capture reporting of all
ancillary fees. Should the Department include specific fee categories
in the regulatory text? Or, specify in the regulatory text that ``all
ancillary fees'' must be reported, with accompanying guidance on the
reporting format and fee categories? How could the Department ensure
that the fees categorized as ``other'' fees are most informative to the
Department and to the consumer?
Mishandled Baggage Reports
The Department believes that the current matrix for comparing
airline mishandled baggage performance is outdated. Airline passengers
would
[[Page 41728]]
have better information to compare airline services if the matrix for
mishandled baggage were changed to the number of the actual mishandled
bags per unit of checked bags rather than the number of Mishandled
Baggage Reports (MBRs) filed by passengers per unit domestic scheduled-
service passengers. Passenger behavior was altered regarding the unit
of bags checked when many air carriers began charging passengers for
each bag that they check. The GAO reported that the introduction of
baggage fees resulted in a decline of 40 to 50% in the number of
checked bags with a corresponding 40% decline in the number of MBRs per
1,000 passengers (see page 25 of GAO-10-785, July 2010). Also, the
ratio between checked bags and the number of passengers can vary
greatly depending on the fees carriers charge. Moreover, there is not a
direct relationship between the number of MBRs and the number of lost,
stolen, delayed, damaged and pilfered bags because a single MBR could
be submitted by a family with multiple mishandled bags. The proposed
matrix would better inform passengers of their chances to retrieve
their checked baggage and belongings in an acceptable and timely
manner.
The Department is also interested in capturing data about the
number of the mishandled wheelchairs/scooters per unit of wheelchairs/
scooters transported in aircraft cargo. Many air travelers who use
wheelchairs are reluctant to travel by air because of concern that the
return of their wheelchairs or scooters will be delayed, or the
wheelchair/scooter will be damaged or lost. However, we do not know the
magnitude of the problem. The proposed data collection for mishandled
wheelchairs/scooters is crucial to understanding the magnitude of the
problem as this data is not available to us through other means. It is
very important that passengers with mobility disabilities arrive at
their destination with their wheelchair/scooter in good working order.
Without these devices, they will have great difficulty in exiting the
airport or may be confined to their hotel or place of visit. We invite
interested persons to comment on this proposal. Should the rule be
expanded to require data not only about wheelchairs and scooters
transported in the aircraft cargo compartment but about all wheelchairs
and scooters regardless of whether the devices are transported in the
cabin or in the cargo compartment? Should the rule also apply to other
mobility devices such as walkers? The Department plans to publish the
data it receives from the carriers which would increase public
awareness of the issue, provide passengers with disabilities a means by
which to compare the overall mishandled wheelchair/scooter rates by
carrier and create an added incentive for air carriers to treat these
mobility devises with greater care.
Statutory and Executive Order Reviews
A. Executive Order 12866 (Regulatory Planning and Review), DOT
Regulatory Policies and Procedures, and Executive Order 13563)
(Improving Regulation and Regulatory Review)
This action has been determined to be significant under Executive
Order 12866 and the Department of Transportation's Regulatory Policies
and Procedures because of the substantial public and Congressional
interest. It has been reviewed by the Office of Management and Budget
in accordance with Executive Order 12866 (Regulatory Planning and
Review) and Executive Order 13563 (Improving Regulation and Regulatory
Review) and is consistent with the requirements in both orders.
Executive Order 13563 reaffirms the principles of Executive Order 12866
and seeks to create a regulatory process that ``strikes the right
balance'' between what is needed to protect health, welfare, safety,
and the environment and what is needed to foster economic growth, job
creation, and competitiveness.
The Department is seeking public comment on the estimated costs and
benefits of its proposal. To this end, the Department is seeking an
open exchange of information between Department officials,
transportation experts, industry representatives and members of the
public. The Department believes this participation will lead to a
better and more informed decision. We encourage those air carriers who
would be covered by this proposal to provide comments to the Docket
explaining the potential impact on their business operations. We are
committed to selecting the least burdensome method to achieve the
regulatory goals described above. By requesting public comments, we are
hopeful that additional alternatives will be proposed which then can be
reviewed by the Department's decisionmakers. We believe this process
will provide the Department the maximum regulatory flexibility.
The regulatory evaluation finds that the benefits of the proposal
appear to exceed its costs considering non-quantifiable benefits, such
as providing data on fees that impact the Airport and Airway Trust
Fund, and providing consumers with better data for comparing air
carrier service performance. Also, airline passengers will likely be
better informed about the existence of ancillary fees. This NPRM
provides the public an opportunity to express their views and needs.
Cost/Benefit Analysis
Benefits
The ancillary revenue data collection would supply the Federal
Aviation Administration (FAA) and Government Accountability Office
(GAO) with information to assess the potential impact of these fees on
the Airport and Airway Trust Fund. In the last few years, some carriers
have adopted a la carte pricing for optional services. Airlines have
also developed new services with separate charges such as in-flight
wireless internet access, one-time admission to airport lounges,
accelerated frequent flyer miles, etc. Airlines have been able to lower
airfares while increasing overall revenues with the a la carte pricing
and new services. At the same time, revenues to the Airport and Airway
Trust Fund have slightly decreased.
A report of ancillary revenues should assist DOT and the Justice
Department in evaluating the impact of proposed mergers and
acquisitions. Presently, it is difficult, if not impossible, to
determine the average total cost of air travel to consumers. Ancillary
charges often are omitted from the total costs of tickets reported in
the Passenger Origin-Destination Survey.
There is a range of bills in Congress that would impose taxes on
various airline services. Because of the current Department of
Transportation reporting requirements, GAO has been unable to
accurately forecast the amount of revenues that these taxes would
generate.
The change in the matrix to mishandled bags per unit of checked
bags would give consumers more reliable information on the air
carriers' performance regarding the treatment of baggage within their
control. Under the current system, there is no direct relationship
between the number of mishandled bags and the number of checked bags.
Carriers report the number of MBRs that they receive from passengers. A
mishandled baggage report may be filed for one bag or multiple bags.
The denominator in the current matrix is enplaned passengers. A
passenger may opt to travel with only carry-on baggage or may check
multiple bags.
With the institution of baggage fees, the number of checked bags at
some
[[Page 41729]]
carriers has declined by 40 to 50 percent. There has been a
corresponding 40 percent decline (i.e., improvement) in the industry
mishandled baggage rates. A large part of the improvement in the
mishandled baggage rate appears to be related to the decrease in
checked baggage, although the current matrix hides this fact. The
proposed matrix would have a direct correlation between mishandled
baggage and checked baggage. Separate breakout of mishandled
wheelchairs/scooters would assist passengers with mobility disabilities
in selecting air carriers with high probabilities in meeting their
special needs.
Finally, there is a gap in the Department's data regarding the
mishandling of wheelchairs and scooters. The proposed data will provide
information to passenger with disabilities on which air carriers best
meet their special needs.
The Department has not quantified the benefits of the ancillary
revenue data collection, the change in the matrix to mishandled bags
per unit of checked bags, or the data collection regarding mishandling
of wheelchairs and requests comments on potential methods for
quantifying benefits for any of these proposals, if possible.
Costs
The Department estimates that the one time programming cost to the
industry would be just over $150,000 to report ancillary revenues to
the Department. The approximately 77 air carriers would each incur
about 40 hours of programming costs to capture the items that are
considered ancillary revenues. The recurrent annual industry cost for
submitting the new report is estimated at $100,000 or $700 per medium
regional carrier and $1,400 for other Form 41 reporters.
The cost to the 18 air carriers that would have to collect data on
checked and mishandled baggage is estimated to be approximately
$180,000 or $10,000 per carrier. Most of the cost would be associated
with developing a system for counting the number of gate-checked bags
that are not scanned by the carrier when the passenger checks in for
the flight. The Department also believes that the cost of the
requirement to collect data on damage, delay or loss of wheelchairs or
scooters transported in the aircraft cargo would be minimal for
carriers, since we believe most carriers as a matter of good business
practice already gather and maintain this information for their own
purposes.
The Department seeks public comment on whether these cost estimates
are accurate, and the extent to which air carriers gather and maintain
this information for their own purposes.
B. Paperwork Reduction Act
Ancillary Revenues
This proposed action would increase the reporting burden on air
carriers. DOT estimates a one-time programming effort of 40 hours per
certificated air carrier to retrieve the required breakout of the
reportable ancillary revenues from its accounting systems. After the
programming effort is completed, there will be a recurrent reporting
burden of approximately 10 hours per carrier to produce and submit each
ancillary revenue report. Presently, there are 66 air carriers that
would submit quarterly reports and 11 air carriers that would submit
semiannual reports. Thus, the total first-year reporting burden would
be 5,940 hours:
3,080 programming hours (77 carriers x 40 programming hours)
2,640 hours for quarterly submissions (66 carriers x 4 quarterly
reports x 10 hours)
220 hours for semiannual submissions (11 carriers x 2 semiannual
reports x 10 hours
The proposed reporting form to collect ancillary data would become
a part of Form 41 financial data which is collected under the OMB
number 2138-0013. The Department requests comments on the estimates of
first year reporting burden.
Mishandled Baggage Reports
BTS anticipates a one-time reprogramming effort in changing the
matrix from MBRs per 1,000 enplaned passengers to the number of
mishandled bags per unit of checked bags. Most reporting carriers have
these data in their systems or have the ability to gather the
information. DOT estimates a range from 1 hour to 80 hours with an
average of 20 hours per carrier to implement this proposed change.
Total burden is estimated to be 360 hours for the 18 reporting air
carriers.
The Department encourages air carriers to comment on these cost
estimates.
C. Regulatory Flexibility Act
The Regulatory Flexibility Act generally requires an agency to
prepare a regulatory flexibility analysis of any rule subject to
notice-and-comment rulemaking requirements under the Administrative
Procedure Act or any other statute unless the agency certifies that the
rule will not have a significant economic impact on a substantial
number of small entities.
I certify that, if adopted, this rule will not have a significant
economic impact on a substantial number of small entities. The
Department has defined small entities as those carriers that operate
strictly small aircraft (60 seats or less aircraft). This rule will
impact only those carriers that operate large aircraft or have annual
domestic passenger revenues of over $600 million dollars. The cost
estimate to implement this rule is between $2,500 and $12,500 per
carrier.
D. Executive Order 12612
This rule has been analyzed in accordance with the principles and
criteria in Executive Order 12612 (``Federalism'') and the Department
has determined that this proposed rule does not have sufficient
federalism implications to warrant the preparation of a Federalism
Assessment.
E. Trade Agreements Act
This act prohibits agencies from setting standards that create
unnecessary obstacles to foreign commerce of the United States. The
Department believes this proposed rule will not impact foreign
commerce.
F. Unfunded Mandates Reform Act of 1995
This Act requires agencies to prepare written assessment of costs,
benefits, and other effects of a proposed rule that include a Federal
mandate likely to result in the expenditure by State, local, or tribal
government. This proposed rule imposes no expenditures on State, local,
or tribal government. The estimated cost to the airline industry from
this proposed rule would account for 0.0002 percent of total industry
operating revenues.
G. Regulation Identifier Number
A regulation identifier number (RIN) is assigned to each regulatory
action listed in the Unified Agenda of Federal Regulations. The
Regulatory Information Service Center publishes the Unified Agenda each
April and October. The RIN Number 2139-AA13 contained in the heading of
this document can be used to cross reference this action with the
Unified Agenda.
List of Subjects in 14 CFR Parts 234 and 241
Air Carriers, Reporting, On-time statistics, Mishandled baggage,
and Uniform system of accounts.
Accordingly, the Department of Transportation proposes to amend 14
CFR Chapter II as follows:
[[Page 41730]]
PART 234--[AMENDED]
1. The authority citation for Part 234 is revised to read as
follows:
Authority: 49 U.S.C. 329 and chapters 41101 and 41701.
2. Section 234.6 is revised to read as follows:
Sec. 234.6 Baggage-handling statistics.
Each reporting carrier shall report monthly to the Department on a
domestic system basis, excluding charter flights, the total number of
checked bags, including gate checked baggage, the number of wheelchairs
and scooters transported in the aircraft cargo compartment, the total
number of mishandled checked bags, including gate checked baggage, and
the number of mishandled wheelchairs and scooters that were carried in
the cargo compartment. The information shall be submitted to the
Department within 15 days of the end of the month to which the
information applies and must be submitted with the transmittal
accompanying the data for on-time performance in the form and manner
set forth in accounting and reporting directives issued by the
Director, Office of Airline Information.
PART 241--[AMENDED]
3. The authority citation for part 241 continues to read as
follows:
Authority: 49 U.S.C. 329 and chapters 41101, 41708, and 41709.
4. In part 241, the table titled ``List of Schedules in BTS Form
41'' in Section 22(a) is amended by adding entries for Schedule P-9,
and P-9.1 to read as follows:
Section 22 General Reporting Instructions.
(a) * * *
List of Schedules in BTS Form 41
----------------------------------------------------------------------------------------------------------------
Applicability by carrier group
Schedule number Title Frequency -----------------------------------------------
I II III
----------------------------------------------------------------------------------------------------------------
* * * * * * *
P-9......................... Statement of Q.............. (1)........... x............. x
Ancillary
Revenues.
P-9.1....................... Statement of SA............. (2)........... na............ na
Ancillary
Revenues.
* * * * * * *
----------------------------------------------------------------------------------------------------------------
5. In part 241, the table titled ``Due Dates of Schedules in BTS
Form 41 Report'' in Section 22(a) is amended by revising the entries
for ``February 10'', ``May 10'', ``August 10'' and ``November 10'' to
read as follows:
Section 22 General Reporting Instructions.
(b) * * *
Due Dates of Schedules in BTS Form 41 Report
----------------------------------------------------------------------------------------------------------------
Financial data on schedule Traffic and capacity data on schedule
Dues dates \1\ number number
----------------------------------------------------------------------------------------------------------------
February 10.......................... A, B-1, B-1.1, B-7, B-12, P-
1.1, P-1.2, P-2, P-5.1, P-
5.2, P-6, P-7, P-9, P-9.1, P-
10.
* * * * * * *
May 10 \2\........................... A, B-1, B-7, B-12, P1.2, P-2,
P-5.1, P-5.2, P-6, P-7, P-9,
P-9.1.
* * * * * * *
August 10............................ A, B-1, B1.1, B7, B-12, P-
1.1, P1.2, P-2, P-5.1, P-
5.2, P-6, P-7, P-9, P-9.1.
* * * * * * *
November 10.......................... A, B-1, B7, B-12, P1.2, P-2,
P-5.1, P-5.2, P-6, P-7, P-9,
P-9.1.
* * * * * * *
----------------------------------------------------------------------------------------------------------------
\1\ Due Dates falling on Saturday, Sunday or national holiday will become effective the first following work
day.
\2\ Reporting due dates on Form 41 schedules B and P are extended to March 30 if preliminary schedules are filed
at the Department buy February 10.
* * * * *
6. In part 241, Section 24 is amended by adding Schedules P-9 and
P-9.1 to read as follows:
Section 24 Profit and Loss Elements
* * * * *
Schedule P-9 Statement of Ancillary Revenues
(a) Section 24 Profit and Loss Elements
P-9 Statement of Ancillary Revenues
(a) This schedule shall be filed quarterly by all Group II and
Group III air carriers and by Group I air carriers that have annual
operating revenues of $20 million or more.
(b) Data reported on this schedule shall be for ancillary revenues
as defined as those charges paid by airline passengers that are not
included in the passenger revenues.
(c) Carriers shall submit the data using a comma separated value
format as follows:
(1) Carrier code;
(2) Period end date (yyyymmdd);
(3) Booking Fees (includes fees for telephone reservations, paper
tickets, delivery);
(4) Priority Check-In and Security Screening;
[[Page 41731]]
(5) First Checked Bag;
(6) Second Checked Bag;
(7) Excess Baggage (i.e., third checked bag or more);
(8) Overweight/Oversized Baggage/Sports Equipment;
(9) Carry-On Baggage;
(10) In-Flight Medical Equipment;
(11) In-Flight Entertainment/Internet Access;
(12) Sleep Sets;
(13) In-Flight Food/Non Alcoholic Drinks;
(14) Alcoholic Drinks;
(15) Pets;
(16) Seating Assignments;
(17) Reservation Cancellation and Change Fees;
(18) Charges for Lost Tickets;
(19) Unaccompanied Minor/Passenger Assistance Fee;
(20) Frequent Flyer Points/Points Acceleration (includes fees for
purchasing travel with points or fees for purchases with points close
to departure dates; Points Acceleration are fees for increased frequent
flyer point accumulation);
(21) Commissions on Travel Packages--Hotel/Car Rental/etc.;
(22) Commissions on Travel Insurance;
(23) Duty-Free and Retail Sales;
(24) One-Time Access to Lounges; and
(25) Other.
P-9.1 Statement of Ancillary Revenues
(a) This scheduled shall be filed semiannually by Group I air
carriers with annual operating revenues below $20 million.
(b) Data reported on this schedule shall be for ancillary revenues
as defined as those charges paid by airline passengers that are not
included in the passenger revenues.
(c) Carriers shall submit the data using a comma separated value
format as follows:
(1) Carrier code;
(2) Period end date (yyyymmdd);
(3) Booking Fees (includes fees for telephone reservations, paper
tickets, delivery);
(4) Priority Check-In and Security Screening;
(5) First Checked Baggage;
(6) Second Checked Baggage;
(7) Excess Baggage (i.e., third checked baggage or more);
(8) Overweight/Oversized Baggage/Sports Equipment;
(9) Carry-On Baggage;
(10) In-Flight Medical Equipment;
(11) In-Flight Entertainment/Internet Access;
(12) Sleep Sets;
(13) In-Flight Food/Non Alcoholic Drinks;
(14) Alcoholic Drinks;
(15) Pets;
(16) Seating Assignments;
(17) Reservation Cancellation and Change Fees;
(18) Charges for Lost Tickets;
(19) Unaccompanied Minor/Passenger Assistance Fee;
(20) Frequent Flyer Points/Points Acceleration (includes fees for
purchasing travel with points or fees for purchases with points close
to departure dates; Points Acceleration are fees for increased frequent
flyer point accumulation);
(21) Commissions on Travel Packages--Hotel/Car Rental/etc.;
(22) Commissions on Travel Insurance;
(23) Duty-Free and Retail Sales;
(24) One-Time Access to Lounges; and
(25) Other.
* * * * *
Issued in Washington, DC, on July 7, 2011 under authority
delegated by 14 CFR 385.19(a).
Anne Suissa,
Director, Office of Airline Information.
[FR Doc. 2011-17652 Filed 7-14-11; 8:45 am]
BILLING CODE 4910-HY-P