[Federal Register Volume 64, Number 13 (Thursday, January 21, 1999)]
[Proposed Rules]
[Pages 3229-3250]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1233]
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DEPARTMENT OF TRANSPORTATION
Office of the Secretary
14 CFR Part 389
[Docket No. OST-99-5003; Notice No. 99-1]
RIN 2105-AC47
Fees and Charges for Special Services
AGENCY: Office of the Secretary, DOT.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Department is proposing to revise 14 CFR Part 389 to bring
the fees we charge to beneficiaries of certain economic, aviation-
related licensing services in line with the costs incurred to provide
those services. We also are proposing to remove or update obsolete
provisions and organizational references included in the existing
regulations.
DATES: Comments should be received no later than March 22, 1999.
ADDRESSES: Five (5) copies of any comments should be sent to Department
of Transportation Dockets, Room PL-401, 400 7th Street, SW.,
Washington, DC 20590-0002, and should refer to this docket.
Acknowledgment of comments requires you to include a stamped, self-
addressed postcard that the Docket clerk will time and date-stamp, and
return.
FOR FURTHER INFORMATION CONTACT: Mr. James H. New or Mr. John D.
Miller, Office of Planning and Special Projects, X-60, Department of
Transportation, at the address above. Telephone (202) 366-4868.
SUPPLEMENTARY INFORMATION: Part 389 of Title 14 of the Code of Federal
Regulations--Fees and Charges for Special Services--describes certain
special services related to aviation economic proceedings that the
Department provides to the public, and sets forth the fees and charges
applicable to those services. This regulation has not been
comprehensively updated since January 1983, when economic regulation of
interstate and foreign air transportation was overseen by the Civil
Aeronautics Board. Congress ``sunset'' the Board in January 1985, at
which time the Board's residual functions were transferred to the
Office of the Secretary, DOT. Today, some of the services identified in
Part 389 are no longer provided, while several other services are
provided but are not included. Further, most of the service processing
fees prescribed in section 389.25(a) are not sufficient to recover our
processing costs, while the prescribed fee in a few instances is too
high. Because of these conditions, the General Accounting Office has
[[Page 3230]]
recommended that the Department update the rule to reflect the services
that we currently provide and to ensure that our fees are commensurate
with the actual costs of providing those services. (GAO/RCED-96-8.)
Consequently, we have undertaken an analysis of the special
services the Department provides in aviation economic proceedings, the
fees currently in force for those services, and revisions that are
needed for us to continue to provide services to the extent
commensurate with our actual costs. A revised schedule of fees based on
the results of our analysis is set forth in this proposed rule.
Additionally, the rule would remove or update obsolete provisions and
organizational references sprinkled throughout Part 389 and replace
references to the Federal Aviation Act with references to Subtitle VII
of Title 49 of the United States Code (Transportation).
Major Changes
The Department is proposing a major reorganization of the
processing fee schedule contained in existing section 389.25(a). Of the
50 fee items listed in the schedule, we are proposing to eliminate 10
and to retain or revise the remaining 40. We also are proposing various
new items, resulting in a net change from 50 to 76 schedule items. All
items considered, there are 55 fee increases, 6 fee decreases, 9
instances in which the fee is unchanged and 6 instances in which an
item is reserved for future use.
Under the proposed fee schedule, prospective or incumbent U.S. air
carriers that apply for new or modified interstate certificate
authority involving the use of ``small'' aircraft, defined as aircraft
with 60 seats or less or with a maximum payload capacity of 18,000
pounds or less, are grouped with U.S. commuter air carriers with regard
to the processing of initial applications for economic operating
authority, amendments to initial applications, and/or applications for
various exemptions or waivers from our regulations. Under the current
schedule, the fees levied for these special services to U.S.
certificated air carriers operating small aircraft are the same as the
fees for U.S. certificated air carriers operating aircraft with more
than 60 seats. Our analysis has determined that the costs to process
applications involving the former are substantially lower than the
costs for the latter, yet are similar to the processing costs for U.S.
commuter air carrier authorizations.
We are also proposing a new, incremental fee in the case of
applications for various international air service rights when the
Department must conduct a comparative proceeding to distribute those
rights among multiple applicants. This comparative process entails
significantly higher costs to the Department than those incurred when a
comparative proceeding is not necessary.
Additionally, except in the case of a treaty or an agreement, we
are proposing to eliminate existing section 389.24, which authorizes
the waiver of processing fees for foreign air carriers under certain
circumstances. Currently, 235 foreign air carriers that have been
granted U.S. economic operating authority qualify for this waiver, and
the annual costs we incur to process service applications from such
carriers amount to $248,000. We have concluded that it is neither
necessary nor appropriate for the U.S. government to continue to absorb
these costs.
User Fee Authority and Implementation
Our revised user charges are proposed under the authority of Title
V of the Independent Offices Appropriations Act of 1952 (``IOAA''; 31
U.S.C. 9701). The IOAA provides that the head of a government agency
may prescribe regulations, subject to policies prescribed by the
President, establishing the charge for a service or ``thing of value''
provided by the agency. The statute states that each service or thing
of value provided by an agency should be self-sustaining to the extent
possible, and that each charge imposed to that end shall be fair and
shall be based on (1) the costs to the government, (2) the value of the
service or thing to the recipient, (3) public policy or interest
served, and (4) and other relevant factors.
During the 1970's and early 1980's the IOAA was subjected to a
series of judicial rulings to resolve issues of interpretation.
Consequently, the principles of user charge implementation under the
statute are well settled, and are embodied in the current version of
Office of Management and Budget Circular A-25 (``User Charges,'' July
8, 1993). This Circular prescribes federal policy and guidelines for
executive-branch and independent agencies to assess fees for government
services and sets forth the procedures by which those agencies are to
implement user fees. The principles and procedures enunciated in OMB
Circular A-25 and relevant to this proposed rule are as follows
(emphasis supplied by DOT):
1. It is the policy of the federal government to assess a user
charge against each identifiable recipient for special benefits derived
from federal activities beyond those received by the general public.
When a service (or privilege) provides special benefits to an
identifiable recipient beyond those that accrue to the general public,
a charge will be imposed to recover the full cost to the federal
government for providing the special benefit.
2. A special benefit will be considered to accrue and a user charge
will be imposed when, for example, a government service (a) enables the
beneficiary to obtain more immediate or substantial gains or values
(which may or may not be measurable in monetary terms) than those that
accrue to the general public (e.g., receiving a patent, insurance, or
guarantee provision, or a license to carry on a specific activity or
business or various kinds of public land use); (b) provides business
stability or contributes to public confidence in the business activity
of the beneficiary (e.g., insuring deposits in commercial banks); or
(c) is performed at the request of or for the convenience of the
recipient, and is beyond the services regularly received by other
members of the same industry or group or by the general public (e.g.,
receiving a passport, visa, airman's certificate, or a Custom's
inspection after regular duty hours).
3. User charges will be sufficient to recover the full cost to the
federal government of providing the service, resource, or good when the
government is acting in its capacity as sovereign. Full cost includes
all direct and indirect costs to any part of the federal government of
providing a good, resource, or service. These costs include, but are
not limited to, an appropriate share of direct and indirect personnel
costs, including salaries and fringe benefits such as medical insurance
and retirement; physical overhead, consulting, and other indirect costs
including material and supply costs, utilities, insurance, travel, and
rents or imputed rents on land, buildings, and equipment; management
and supervisory costs; and the costs of enforcement, collection,
research, establishment of standards, and regulation.
4. No charge should be made for a service when the identification
of the specific beneficiary is obscure, and the service can be
considered primarily as benefiting broadly the general public. However,
when the public obtains benefits as a necessary consequence of an
agency's provision of special benefits to an identifiable recipient
(i.e., the public benefits are not independent of, but merely
incidental to, the special benefits), an agency need not allocate any
costs to the public and should seek to recover from the identifiable
recipient
[[Page 3231]]
the full cost to the federal government of providing the special
benefit.
5. Each agency will identify the services and activities covered by
this Circular, determine the extent of the special benefits provided,
and apply the principles specified [herein] in determining cost. Full
cost shall be determined or estimated from the best available records
of the agency, and new cost accounting systems need not be established
solely for this purpose.
Special Services Provided
The Secretary of Transportation is responsible, under Title 49 of
the United States Code (``Transportation''), Subtitle VII (``Aviation
Programs''), for the economic regulation of interstate and foreign air
transportation. The Department's rules and regulations implementing the
requirements of Subtitle VII are contained in Title 14 of the Code of
Federal Regulations, Parts 200-399. In general, nearly all of the
special services provided by the Department in the course of economic
regulation involve the authority of a U.S. or a foreign air carrier to
conduct revenue-producing interstate or foreign air transportation
under the requirements of Subtitle VII and our implementing
regulations.
Within the Office of the Secretary, the provision of special
services is carried out under delegated authority by the Office of the
Assistant Secretary for Aviation and International Affairs and the
Office of the General Counsel. Both offices in turn are organized by
sub-office and/or division, where the day-to-day processing of
applications for special services takes place. The touchstone of the
user charges set forth in this proposed rule is the direct labor time
expended by these offices to process applications for aviation services
on behalf of specific, identifiable recipients accorded a special
benefit as a consequence of those services. Staff of both offices also
spend time on policy development, analyses and other aspects of
economic regulation that are not directly related to the provision of
special benefits to identifiable recipients. That labor time is
excluded from the scope of this rulemaking.
With respect to processing of applications for special services,
the principal offices under the Assistant Secretary are the Office of
International Aviation and the Office of Aviation Analysis. A third
office, the Office of Aviation and International Economics, although
primarily engaged in policy analysis, occasionally provides direct
analytical support for applications requesting special services.
The Office of International Aviation receives, processes, and acts
on or recommends the disposition of U.S. and foreign air carrier
applications for economic authority to operate between the United
States and foreign points. It also determines the disposition of all
tariff filings by U.S. and foreign airlines. Within this office, the
Pricing and Multilateral Affairs division reviews international fares
and rates filed by U.S. and foreign air carriers to determine whether
the proposed prices are consistent with public interest standards,
Department rules and policy, and applicable international agreements.
This division also reviews inter-carrier agreements, primarily fare and
rate agreements filed by the International Air Transport Association,
to determine whether they should be approved and given antitrust
immunity. Division analysts also support licensing services provided by
the U.S. Air Carrier Licensing division and the Foreign Air Carrier
Licensing division. The former processes requests by U.S. airlines for
authority to serve specific foreign markets and applications for
transfer of international authority among U.S. air carriers. The latter
handles all foreign air carrier applications (excepting Canadian air
taxi registrations) for the authority to operate to the United States,
including applications for foreign air carrier permits, exemptions,
statements of authorization for charter, code-share and wet-lease
operations, and related matters. In addition to these divisions,
geographic aviation specialists for Europe, Asia-Pacific-Africa, and
Western Hemisphere occasionally provide direct labor support for
applications requesting special services.
Within the Office of Aviation Analysis, the provision of special
services primarily involves the Air Carrier Fitness division and the
Special Authorities division. Air Carrier Fitness evaluates the fitness
of applicants for U.S. certificated and U.S. commuter air carrier
operating authority, monitors the continuing fitness of certificated
and commuter air carriers, evaluates requests for transfer of
certificate or commuter authority, and processes applications for name
changes or trade names, as well as applications for various exemptions
and waivers from the Department's regulations. The Special Authorities
division reviews charter prospectuses filed by tour operators, requests
for waivers from charter regulations, and applications for operating
authority from Canadian air taxi operators, foreign air freight
forwarders, and overseas military personnel charter operators. On
occasion, the Essential Air Service and Domestic Analysis division or
the Economic and Financial Analysis division also expend direct labor
time on processing applications for certain special services, such as
requests for a change in mail rates or an exemption from the airport
slot restrictions imposed by the High Density Rule.
Four offices of the Department's General Counsel are involved in
the provision of special aviation services: Environmental, Civil Rights
and General Law; International Law; Litigation; and Aviation
Enforcement and Proceedings. Their chief responsibility is to ensure
that proposed decisions on applications for special services are in
compliance with applicable laws, regulations and international
agreements. These offices also expend direct labor time when issues
such as citizenship, bankruptcy, confidentiality or potential
litigation arise in the course of processing applications.
Development of Fees
The following procedures were used to develop the user fees
proposed in revised section 389.24(a) of the rule:
In accordance with the principles and procedures of OMB Circular A-
25, we first examined the activities conducted by the Department to
carry out economic regulation of interstate and foreign air
transportation in order to identify those services that provide a
special benefit to a specific, identifiable recipient. Where the
beneficiary is obscure, or the nature of the benefit is indeterminate,
or the beneficiary is primarily the public generally, the activity was
excluded from further consideration. An example is an action by the
Department to suspend or revoke an air carrier's economic authority to
conduct interstate or foreign air transportation. Such action is taken
primarily for the benefit of the public generally.
For those services identified as providing a special benefit to a
specific identifiable recipient, the smallest practical unit for
assigning a fee was determined in nearly all cases to be the
application document submitted to the Department requesting a special
service (a license, an exemption, a waiver, etc.). There are two
exceptions: for certain substantive changes to an initial application
for economic operating authority, the smallest practical unit is an
``amendment,'' and for certain requests involving antitrust immunity,
the smallest practical unit is a ``resolution.''
We then analyzed the work flows and direct labor hours to process
applications for special services. This
[[Page 3232]]
analysis was based on (1) the knowledge and expertise of office and
division supervisors, all of whom have many years of experience
overseeing the processing of aviation service requests, and (2) data on
the actual direct labor hours incurred to process a sample of 611
service applications completed during the period March 1997 through
July 1998.
The results of the work-flow cost analysis were then applied to
calculate direct labor costs, which are based on pay rates in effect as
of February 1998 and include a standard allowance for fringe benefits
(personal and sick leave, medical insurance, etc.) that is based on a
government-wide average published by OMB (Circular A-76, Handbook,
March 1996).
In addition to direct labor, indirect (overhead) costs of the
Office of the Assistant Secretary were distributed to service
applications based on rates applied at three levels: office-level
supervision, office-level general and administrative, and general
management and support. The overhead rates are based on actual costs
for the fiscal year ending September 30, 1997, and exclude overhead
items unrelated to the delivery of special services. In making overhead
distributions, the rates were applied to actual direct labor costs. For
certain overhead costs, such as office space, it was necessary to make
a per capita allocation in order to derive a distribution rate. For the
Office of the General Counsel, a single overhead rate was applied to
the direct labor hours incurred.
Finally, fee amounts were assigned to individual special service
items in accordance with these criteria:
If direct labor time data were available for a particular service,
the fee was determined by dividing total direct and indirect costs by
the number of applications completed. For administrative convenience
and ease of payment, values below $100 are rounded to the nearest
dollar and those above $100 are rounded to the nearest ten dollars.
If direct labor data were not available (i.e., no applications for
the special service were completed during the cost-collection period),
the fee was assigned based on the staff's analysis of the work flow to
process an application for the special service.
If no direct labor data were available and the work-flow analysis
identified no reason to assume costs have changed, the existing fee was
retained.
If no cost data were available, the work-flow analysis identified
no other basis to assign a fee, and no extant fee pertained, the
service item was reserved in expectation of a future fee determination.
Appendix A of this Notice contains a summary of our fee
calculations and an item-by-item justification of our proposed fee
amounts, including the legal basis for the services provided to
specific identifiable recipients, the nature of the special benefits
accorded to those recipients, and the basis for the fee amounts
proposed. In addition, we are placing in the docket a Supplement
(``Service Job Costs'') to this Notice that (1) illustrates in detail
how direct labor time was reported, how job costs were calculated, and
how overhead rates were derived; and (2) lists the 611 applications for
special services and their costs included in our work-flow cost
analysis. The Department would like to have comment on whether any fee
items have been overlooked or whether others should be deleted, in view
of the methods used to calculate fees, as explained in this Notice and
its Supplement.
U.S. Air Carriers Operating Small Aircraft
As noted earlier, our proposed fee schedule makes a distinction
between the processing fees applicable to U.S. certificated air
carriers (or applicants for certificate authority) that operate small
as compared to large aircraft in interstate air transportation, and
groups the former with the processing fees applicable to authorizations
involving commuter air carrier operations. Our basis for making this
distinction is the significantly lower processing costs associated with
applications involving small aircraft, as explained in detail in
Appendix A, items 9 through 12 and items 24 through 34. The Department
would like to receive comments on the reasonableness and fairness of
grouping small-aircraft certificated air carriers with commuter air
carriers for purposes of processing fees.
Additional Fee for Comparative Proceedings
We also invite comments on the reasonableness and fairness of our
proposed incremental user charge for applications for international air
service rights when a comparative proceeding is required to distribute
those rights among multiple applicants. Again, the basis for this
proposed fee is the additional cost incurred to conduct a comparative
proceeding, as explained in detail in Appendix A, items 52 through 57.
Elimination of Waiver of Foreign Air Carrier Processing Fees
Current section 389.24 provides that a foreign air carrier, or such
carriers, if from the same country, acting jointly, may apply for a
waiver of the requirements to pay processing fees, based on reciprocity
for U.S. air carriers contained in the requirement of their home
governments, or as provided in a treaty or agreement with the United
States. Further, once a waiver has been granted for a specific country,
no further waiver applications need be filed for that country.
To date, 76 countries and the 12-nation Air Afrique Consortium have
been granted interim or final waivers from the requirement to pay all
or some of the processing fees contained in current section 389.25.
These waivers in all cases are based on reciprocity: a foreign carrier
is relieved from the Department's processing fees only if the aviation
authority of its home country does likewise for U.S. carriers. However,
none of the waivers we have granted are required by treaty or other
formal agreement with the U.S. government and all are revocable at the
Department's discretion. Eliminating the waiver provision and revoking
existing waivers means that once this proposed rule takes effect, all
foreign air carriers would be required to pay the applicable fee
contained in revised section 389.24. We recognize that this action
could spur the governments of foreign nations whose carriers have
benefitted from U.S. fee waivers to reciprocate by revoking the fee
relief they have granted to U.S. carriers and requiring U.S. carriers
to pay processing fees in the future. The Department would like to
receive comments on its proposed elimination of the foreign air carrier
waiver provision.
Our reason for proposing to eliminate the foreign air carrier
waiver provision is its cost to the Department. In fiscal year 1997,
the Foreign Air Carrier Licensing Division received 1,163 applications
from foreign carriers requesting various forms of operating authority.
Of the total received, 710 applications, or 61 percent, were covered by
fee waivers. We estimate that the processing of these applications
entails approximately 2,300 labor hours at a total cost to the
Department of $248,000.
Regulatory Analyses and Notices
Executive Order 12866 (Regulatory Planning and Review)
The Department has analyzed the economic and other effects of the
proposed revisions and has determined
[[Page 3233]]
that they are not ``significant'' within the meaning of Executive Order
12866. The revisions will not have an annual effect on the economy of
$100 million or more or adversely affect in a material way the economy,
a sector of the economy, productivity, competition, jobs, the
environment, public health or safety, or State, local, or tribal
governments or communities. The revisions will not create a serious
inconsistency or otherwise interfere with an action taken or planned by
another agency, and will not materially alter the budgetary impact of
entitlements, grants, user fees, or loan programs or the rights and
obligations of recipients thereof. Nor do they raise any novel legal or
policy issues arising out of legal mandates, the President's
priorities, or the principles set forth in Executive Order 12866.
DOT Regulatory Policies and Procedures
The proposed revisions are not significant under the Department's
Regulatory Policies and Procedures, dated February 26, 1979, because
they do not involve important Departmental policies; rather, they are
being made solely for the purposes of updating the fees charged to the
beneficiaries of special aviation-related services provided by the
Department to help offset the costs of providing the services, and of
eliminating obsolete requirements and correcting out-of-date references
in the rule.
Executive Order 12612 (Federalism)
This proposal has been analyzed in accordance with the principles
and criteria contained in Executive Order 12612 (``Federalism''), and
the Department has determined the proposed rule does not have
sufficient federalism implications to warrant the preparation of a
Federalism Assessment.
Regulatory Flexibility Analysis
I certify that this proposed rule will not have a significant
economic impact on a substantial number of small entities. The proposed
changes would result in a net increase in the processing fees
applicable to small entities. The new fee schedule, however, would not
have a significant economic impact on small entities and would not
affect a substantial number of small entities.
The Small Business Administration suggests that, for aircraft
services, ``small'' represents impacted businesses with 1,500 or fewer
employees. For purposes of this rulemaking, small entities are defined
as certificated air carriers, commuter air carriers, air taxis, and air
charter operators that (1) have 1,500 or fewer employees and/or (2)
operate aircraft with 60 seats or less or 18,000 pounds maximum payload
or less. Departmental records show that 106 certificated air carriers,
49 commuter air carriers, approximately 2,800 active air taxis
operators, and approximately 250 charter operators meet this definition
of a small entity.
Many of these small entities would be unaffected by the changes to
the fee schedule. The actual economic impact on any individual small
entity, however, would depend on the number and type of filings
submitted to implement particular operational decisions. The survey of
applications from March 1997 to July 1998 used to calculate the new
fees indicated that only a small portion of small entities filed
applications for aviation economic proceedings. Moreover, air taxis,
the single largest class of small entities, are exempt from certain
regulatory requirements, including the requirement to obtain
certificated authority. Several of the fees that we propose to increase
are related to certificated authority. Thus, unless they choose to
obtain certificates, the largest class of small entities would not be
affected by most of the proposed fee increases.
Of those small entities that would be affected, most would
experience only modest fee increases because most items for which the
survey of applications suggest that relatively large numbers of
applications are filed would have only modest fee increases. For
instance, the fee for Schedule Item 34, Application for approval of
amendment to commuter air carrier registration under 14 CFR Part 298,
would increase from $0 to $5.
National Environmental Policy Act
The Department has also assessed the proposed revisions for the
purpose of the National Environmental Policy Act. The revisions will
not have any significant impact on the quality of the human
environment.
Paperwork Reduction Act
This rule does not impose any collection of information
requirements requiring review under the Paperwork Reduction Act of
1995. The proposed rule contains no new reporting, recordkeeping, or
compliance requirements, but only sets forth the processing fees
applicable to existing regulatory requirements.
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 in
April and October of each year. The RIN contained in the heading of
this document can be used to cross reference this action with the
Unified Agenda.
Lists of Subjects in 14 CFR Part 389
Administrative practice and procedure, Reporting and recordkeeping
requirements.
Proposed Rule
For the reasons set forth above, it is proposed that Title 14,
Chapter II of the Code of Federal Regulations be amended as follows:
PART 389--[REVISED]
1. Part 389 is revised to read as follows:
PART 389--FEES AND CHARGES FOR SPECIAL SERVICES
Subpart A--General Provisions
Sec.
389.1 Policy and scope.
Subpart B--Fees Related to the Availability of Public Records and
Documents
389.10 Public disclosure of information.
Subpart C--Filing and Processing License Fees
389.20 Applicability of subpart.
389.21 Payment of fees.
389.22 Failure to make proper payment.
389.23 Application for waiver or modification of fees.
389.24 Schedule of processing fees.
389.25 Special rules for tariff page filings.
389.26 Refund of fees.
Authority: 31 U.S.C. 9701, 49 U.S.C. Chapters 401, 461.
Subpart A--General Provisions
Sec. 389.1 Policy and scope.
Pursuant to the provisions of 31 U.S.C. 9701 as implemented by
Office of Management and Budget Circular A-25, revised July 8, 1993,
the Department sets forth in this part the special aviation-related
services made available by the Department and prescribes the fees to be
paid for these and various other services.
Subpart B--Fees Related to the Availability of Public Records and
Documents
Sec. 389.10 Public disclosure of information.
Part 7 of the Office of Secretary regulations, Public Availability
of Information, governs the availability of records and documents of
the Department to the public. (49 CFR part 7)
[[Page 3234]]
Subpart C--Filing and Processing License Fees
Sec. 389.20 Applicability of subpart.
(a) This subpart applies to the filing of certain documents and
records with the Department by non-government parties, and prescribes
fees for their processing.
(b) For the purpose of this subpart, record means those electronic
tariff records submitted to the Department under subpart W of part 221
of this chapter, and contains that set of information which describes
one (1) tariff fare, or that set of information which describes one (1)
related element associated with such tariff fare. For purposes of this
subpart, the term document and record also includes those filings made
electronically under process set at the DOT Dockets website.
(c) For the purpose of this subpart, small aircraft means aircraft
with 60 seats or less or with a maximum payload capacity of 18,000
pounds or less.
Sec. 389.21 Payment of fees.
(a) Any paper document or record for which a filing fee is required
by Sec. 389.24 shall be accompanied by either:
(1) A check, draft, or postal money order, payable to the
Department of Transportation, in the amount prescribed in this part, or
(2) A request for waiver or modification of the filing fee.
(b) The filing fee required by Sec. 389.24, Item 57, concerning
carrier/gateway selection from among multiple applicants, shall be
payable upon submission of an applicant's first filing subsequent to
the Department's notice that a comparative proceeding is necessary.
(c) Except for tariff records filed under Sec. 221.500 of this
title, documents and records filed electronically under process set at
the DOT Dockets website shall be accompanied by a certification that
the filing fee for that document has been or will be paid in accordance
with procedures set at the DOT Dockets website.
(d) Where a document relating to a single transaction or matter
seeks multiple authorities or relief and therefore would otherwise be
subject to more than one filing fee, only the highest fee shall be
required. Where a document relating to more than one transaction or
matter seeks multiple authorities or relief, the required filing fee
shall be determined by combining the highest fees for each transaction
or matter. For purposes of this paragraph, a specific number of
charters or inclusive tours described in one application will be
regarded as a single transaction or matter.
(e) No fee shall be returned after the document has been filed with
the Department, except as provided in Secs. 389.23 and 389.26.
Sec. 389.22 Failure to make proper payment.
(a)(1) Except as provided in Sec. 389.23, documents (except tariff
publications) which are not accompanied by filing fees shall be
returned to the filing party, and such documents shall not be
considered as filed by the Department.
(2) Except as provided in Sec. 389.23, records which are not
accompanied by the appropriate filing fees shall be retained and
considered filed with the Department. The Department will notify the
filer concerning the nonpayment or underpayment of the filing fees, and
will also notify the filer that the records will not be processed until
the fees are paid.
(3) Except as provided in Sec. 389.23, documents and records filed
electronically not accompanied by the required certification in
Sec. 389.21(b) shall not be processed. In addition, electronic filers
not making payment in accordance with the procedures set at the DOT
Dockets website shall be notified that unless payment is made within 10
days from such notification, the document or record shall be deemed to
have been dismissed or withdrawn.
(b) The filing fee tendered by a filing party shall be accepted by
the Department office to which payment is made, subject to post audit
by the Chief, Accounting Division, Office of Budget and Policy, Federal
Transit Administration, and notification to the filing party within 30
days of any additional amount due. Not more than 5 days after receipt
of the notification, the determination of the Chief, Accounting
Division, may be appealed to the Chief Financial Officer, who has been
delegated authority by the Department to decide such appeals. The
filing party may submit to the Department a petition for review of the
Chief Financial Officer's decision pursuant to Sec. 385.30 of this
chapter, and proceedings thereon will be governed by subpart C of part
385 of this chapter.
(c)(1) The amount found due by the Chief, Accounting Division,
shall be paid within 10 days of notification except that:
(i) If that decision is appealed to the Chief Financial Officer,
the amount due shall be paid within 10 days after the Chief Financial
Officer notifies the filing party that he has affirmed or modified the
decision of the Chief, Accounting Division; and
(ii) If the decision of the Chief Financial Officer is appealed to
the Department, the amount due shall be paid within 10 days after the
Department notifies the filing party that it has affirmed or modified
the staff decision.
(2) If the amount due is not paid, the document (except a tariff
publication) shall be returned to the filing party along with the fee
tendered, and such document shall be deemed to have been dismissed or
withdrawn.
Sec. 389.23 Application for waiver or modification of fees.
(a) Applications may be filed asking for waiver or modification of
any fee paid under this subpart. Each applicant shall set forth the
reasons why a waiver or modification should be granted, and by what
legal authority.
(b) Applications asking for a waiver or modification of fees shall
be sent to the Director, Office of International Aviation, or Director,
Office of Aviation Analysis, as appropriate, and shall accompany the
document filed. Applicants may appeal the decision of the appropriate
Director to the Assistant Secretary for Aviation and International
Affairs under Sec. 385.30 of this chapter. When no petition for review
is filed with the Assistant Secretary, or when the Assistant Secretary
reviews the appropriate Director's decision, if the amount found due is
not paid within 10 days after receipt of notification of the final
determination, the document shall be returned to the filing party.
(Approved by the Office of Management and Budget under control
number 3024-0071)
Sec. 389.24 Schedule of processing fees.
(a) Application--filing fees.
Code and application document $Fee \1\
Initial Authority--U.S. Certificated Air Carriers (large
aircraft):
1 Interstate scheduled only........................... 7,030
2 Interstate charter only............................. 7,030
3 All-cargo only...................................... 7,030
4 Foreign scheduled only.............................. 7,200
[[Page 3235]]
5 Foreign charter only................................ 7,100
6 Interstate and foreign scheduled.................... 7,360
7 Interstate and foreign charter...................... 7,270
8 Amendment to initial application, items 1-7
inclusive............................................. \2\ 1,760
Initial Authority--U.S. Commuter Air Carriers and U.S.
Certificated Air Carriers (small aircraft):
9 Interstate scheduled only........................... 3,050
10 Foreign scheduled only.............................. 3,150
11 Interstate and foreign scheduled.................... 3,310
12 Amendment to initial application, items 9-11
inclusive............................................. \2\ 760
Exemptions, Waivers, Transfers--U.S. Certificated Air
Carriers (large aircraft):
13 Pendente Lite Exemption............................. 1,900
14 Waiver to advertise, take reservations, issue
tickets or receive payments before effective authority
is issued............................................. 1,900
15 Waiver of revocation-for-dormancy rule.............. 1,370
16 Notice of intent to resume service when resumption
is 30 days or more after cessation of service......... 4,750
17 Notice of intent to resume service when resumption
is less than 30 days after cessation of service....... 1,370
18 Removal of restriction on authority not involving a
change from small to large aircraft................... 1,650
19 Removal of restriction on authority when a change
from small to large aircraft is involved.............. 4,750
20 Change name/trade name with reissuance of
certificate........................................... 500
21 Trade name registration............................. 240
22 Transfer of certificate: New ownership and/or
management............................................ 7,730
23 Certificate transfer: Intra-corporate reorganization 650
Exemptions, Waivers, Transfers, Amendments--U.S. Commuter
Air Carriers and U.S. Certificated Carriers (small
aircraft):
24 Pendente Lite Exemption............................. 280
25 Waiver to advertise, take reservations, issue
tickets or receive payments before effective authority
is issued............................................. 280
26 Waiver of revocation-for-dormancy rule.............. 280
27 [RESERVED.]......................................... ...........
28 Notice of intent to resume service.................. 280
29 [RESERVED.]......................................... ...........
30 Change name/trade name with reissuance of
certificate........................................... 250
31 Trade name registration............................. 65
32 Transfer of certificate or commuter authority: New
ownership and/or management........................... 4,070
33 [RESERVED.]......................................... ...........
34 Amendment to commuter registration.................. 5
Authority for Charter, Air Taxis, Foreign Tour and Foreign
Freight Forwarder Operations:
35 Public charter prospectus........................... 15
36 Waiver of public charter regulations................ 15
37 Foreign tour operator registration.................. 16
38 U.S. air taxi registration.......................... 15
39 Canadian charter air taxi registration.............. 15
40 Foreign air freight forwarder authority............. 19
41 Amendment to authorization, items 35-40 inclusive... 5
Authorizations, Amendments, Exemptions, Waivers--Foreign
Air Carriers:
42 Foreign air carrier permit, initial or renewal...... 1,550
43 Exemption--More than 10 flights..................... 400
44 Amendment to application, item 42 or 43............. 215
45 Exemption--10 or fewer flights...................... 120
46 Special authorization, part 375..................... 110
47 Foreign aircraft permit, part 375................... 180
48 Charter statement of authorization.................. 350
49 Special authority, part 216......................... 410
50 Emergency cabotage.................................. 330
51 Approval of foreign carrier schedule change per
bilateral agreement................................... 90
International Route Authority, Exemptions, Frequencies,
Charter Allocations:
52 New, renewal or amendment of certificate authority,
carrier selection not required........................ 650
53 New, renewal or amendment of exemption authority,
carrier selection not required........................ 480
54 New allocation of frequencies in limited-entry
markets, carrier selection not required............... 630
55 Renewal or frequency allocation in limited-entry
markets, carrier selection not required............... 230
56 Charter allocations for aviation operations into
foreign countries, carrier selection not required..... 180
57 Additional charge if carrier/gateway selection is
required, items 52-56 inclusive....................... \3\ 3,490
58 Route or frequency transfer......................... 4,990
Code-Share, Wet-Lease, Transborder and Intermodal
Authorizations:
59 Statement of code-share authorization............... 1,100
60 Statement of wet-lease authorization................ 300
61 [RESERVED.]
62 Approval under Part 222 for foreign carriers to
transport international cargo from a U.S. gateway
point to an interior U.S. point via trucking, per
bilateral agreement................................... 290
Regulation of Tariffs and Rates:
63 IATA Resolutions, To and/or from U.S................ \4\ 84
64 IATA Resolutions, Foreign-to-foreign................ \4\ 5
65 IATA Resolutions, Technical change.................. 15
66 Exemption to carry traffic not otherwise authorized
under tariff in effect................................ 53
67 Permission to file tariffs on less than statutory
notice................................................ 40
68 Approval of waiver/modification of tariff
regulations........................................... 12
69 Provide certified copies of tariffs upon request.... 240
[[Page 3236]]
Other Exemptions and Authorizations:
70 Slot exemption at slot-controlled airport........... 4,340
71 Confidential treatment of documents................. 380
72 Approval of agreements/antitrust immunity........... 1,080
73 [RESERVED.]
74 [RESERVED.]
75 Service mail rate petition.......................... 420
76 Overseas military personnel charter authority....... 665
\1\ Fee is per application except as noted. If application involves
multiple items, highest fee applies.
\2\ Per amendment.
\3\ Payable upon submission of first filing subsequent to DOT notice
that a comparative proceeding is necessary.
\4\ Per resolution.
(b) Electronic tariff filing fees. The filing fee for one (1) or
more transactions proposed in any existing record, or for any new or
canceled records, shall be 5 cents per record; Provided: That no fee
shall be assessed for those records submitted to the Department
pursuant to Sec. 221.500(b)(1) of this chapter.
Sec. 389.25 Special rules for tariff page filings.
(a) Tariffs issued by carriers. The filing fee for tariff pages
filed by U.S. air carriers will be charged even if the tariff includes
matters involving participating foreign air carriers. It will also be
charged if the tariff is issued by a foreign air carrier and includes
matters involving participating U.S. air carriers. The fee will not be
charged for a blank loose-leaf page unless it cancels matters in the
preceding issue of the page.
(b) Tariffs issued by publishing agents. (1) If the tariff is
issued for one or more air carriers exclusively, the fee will be
charged for each page.
(2) If the tariff is issued for one or more air carriers and one or
more foreign air carriers, the fee will be charged for each page,
except for those pages that the issuing agent states contain only:
(i) Matters pertaining exclusively to foreign air carriers that
have been granted a waiver, or
(ii) Changes in matters pertaining to foreign air carriers that
have been granted a waiver and that are included on the same page with
other matters that are reissued without change.
(3) The fee will not be charged for a blank loose-leaf page unless
it cancels matters in the preceding page.
(4) No fee will be charged when two pages are published back-to-
back, one page is not subject to the fee under paragraph (b)(2) of this
section, and the page on the reverse is issued without substantive
change.
(5) The fee will be charged for two loose-leaf pages containing a
correction number check sheet unless all other pages of the tariff are
exempt from the fee.
Sec. 389.26 Refund of fee.
(a) Any fee charged under this part may be refunded in full or in
part upon request if the document for which it is charged is withdrawn
before final action is taken. Such requests shall be filed in
accordance with Sec. 389.23.
(b) Any person may file an application for refund of a fee paid
since April 28, 1977, on the grounds that such fee exceeded the
Department's cost in providing the service. The application shall be
filed with the Chief, Accounting Division, Office of Budget and Policy,
Federal Transit Administration, and shall contain: the amount paid, the
date paid, and the category of service.
(Approved by the Office of Management and Budget under control
number 3024-0071) Issued in Washington DC, on January 13, 1999.
Charles A. Hunnicutt,
Assistant Secretary for Aviation and International Affairs.
Note: The following appendix will not appear in the Code of
Federal Regulations.
BILLING CODE 4910-62-P
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[GRAPHIC] [TIFF OMITTED] TP21JA99.000
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[GRAPHIC] [TIFF OMITTED] TP21JA99.001
BILLING CODE 4910-62-C
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Justifications of Proposed User Fees
The following sections set forth the legal authority for the
special services included in our proposed fee schedule, the nature of
the special benefits those services provide to identifiable private
recipients, and our rationale for the fee amounts we propose. As
described earlier, proposed amounts are based on our analysis of the
work processes and costs required to deliver special services to
specific identifiable recipients, direct-labor time and cost data on
special services for a sample of more than 600 applications that we
completed during the period March 1997-July 1998, and the related
indirect (overhead) costs distributable to the processing of those
applications. When available, applications cost data are applied to
compute the proposed fee, defined as the total cost incurred for a
specific service divided by the total number of applications completed.
If no cost data are available for a particular service (i.e., no
applications for that service were completed during the cost-collection
period), and we have no other analytic basis to justify a change, the
current fee is retained. If a particular type of service has neither
current cost data nor an extant fee, no fee is proposed and a schedule
item is reserved. In accordance with federal user-charge policy (OMB
Circular A-25, par. 8), we intend to continue cost collection and
analysis as needed to revisit the fee schedule at least biennially and
to revise or update fee items as warranted by changes in our costs or
the special services we provide.
Initial Authority--U.S. Certificated Air Carriers (Large Aircraft):
Schedule Items 1-8
Our analysis of the processes involved to perform certification
services determined that there is a significant difference in
processing costs between those prospective air carriers whose
applications entail the operation of ``large'' aircraft (more than 60
seats or more than 18,000 pounds maximum payload) and those whose
applications involve ``small'' aircraft (60 seats or less or 18,000
pounds maximum payload or less). Accordingly, although the statutory
basis and nature of special benefits are identical in both instances,
we are proposing separate certification categories and fees based on
aircraft size, with schedule items 1-8 applied to applications
involving large aircraft.
Schedule Item 1. Initial application for certificate authorizing
interstate scheduled air transportation under 49 U.S.C. 41102(a)(1).
Section 41101(a)(1) of Title 49 of the United States Code (``the
Statute'') provides that an air carrier may engage in interstate
scheduled air transportation of persons, property, or mail only if it
has been issued a certificate by the Department of Transportation.
Section 41102(b)(1) of the Statute requires the Department to find such
an air carrier ``fit, willing, and able'' to provide the air
transportation to be authorized by the certificate, and to find that
the carrier is a U.S. citizen as defined in section 40102(a)(15) of the
Statute. A fee for processing an application for this authority is
warranted because the applicant is seeking the special benefit of the
Department's authorization to conduct revenue-producing interstate
scheduled air transportation.
Schedule Item 2. Initial application for certificate authorizing
interstate charter air transportation under 49 U.S.C. 41102(a)(3).
Section 41101(a)(2) of the Statute provides that an air carrier may
engage in interstate charter air transportation of persons, property,
or mail only if it has been issued a certificate by the Department.
Section 41102(b)(2) requires the Department to find the carrier fit,
willing, and able to provide the air transportation to be authorized by
the certificate, and to find that the carrier is a U.S. citizen as
defined in section 40102(a)(15). A fee for processing an application
for this authority is justified since the applicant is seeking the
special benefit of the Department's authorization to conduct revenue-
producing interstate charter air transportation.
Schedule Item 3. Initial application for certificate authorizing
interstate all-cargo transportation under 49 U.S.C. 41103. Section
41103 of the Statute provides that the Department may issue to a U.S.
citizen an all-cargo air transportation certificate authorizing it to
engage in [interstate] all-cargo air transportation. This section
requires the Department to find the carrier fit, willing, and able to
provide the air transportation to be authorized. A fee for processing
an application for all-cargo authority is warranted since the applicant
is seeking the special benefit of the Department's authorization to
conduct revenue-producing all-cargo air transportation.
Our analysis of the work flow and time required to process the
foregoing applications determined that the resources expended are
essentially the same for each type of initial application. For this
reason, we are proposing the identical fee for each type, based on the
following cost data:
Direct Labor............................................... $22,650.80
Overhead................................................... 15,530.44
------------
Total Cost................................................. 35,136.24
============
Applications processed..................................... 5
Cost per application....................................... 7,027.25
Proposed fee, Items 1-3: per application................... $7,030.00
Our analysis also found that there are measurable differences in
processing costs depending on whether an applicant requests initial
authority to provide (1) Foreign scheduled compared with interstate
scheduled service; (2) foreign charter compared with interstate charter
service; (3) both interstate and foreign scheduled service; and (4)
both interstate and foreign charter service. Accordingly, we are
proposing a different fee for each type as explained below.
Schedule Item 4. Initial application for certificate authorizing
foreign scheduled air transportation under 49 U.S.C. 41102(a)(1).
Section 41101(a)(1) of the Statute provides that an air carrier may
engage in foreign scheduled air transportation of persons, property, or
mail only if it has been issued a certificate by the Department.
Section 41102(b)(1) of the Statute requires the Department to find the
carrier fit, willing, and able to provide the air transportation to be
authorized by the certificate, and to find that the carrier is a U.S.
citizen as defined in section 40102(a)(15) of the Statute. Further,
under section 41102(b)(2), the Department is required to find that the
proposed foreign air transportation is consistent with the public
convenience and necessity and, under section 41102(d), to submit each
decision authorizing an application to engage in foreign air
transportation to the President for approval in accordance with section
41307. A fee for processing an application under these provisions of
the Statute is warranted since the applicant is seeking the special
benefit of the Department's authorization to conduct revenue-producing
foreign scheduled air transportation.
We did not process any applications under this schedule item during
the cost-collection period. However, our analysis determined that
foreign scheduled requires greater processing time than foreign charter
(see cost data below) because of the need to evaluate compliance with
extant bilateral agreements and to prepare the requisite implementing
language for the Department's final order authorizing the requested
operations. The proposed fee is therefore derived as follows:
Cost per application, Foreign Charter, Item 5 (see below).. $7,100.89
Additional processing cost (1.06 hrs. at $90.28 per hr.)... 95.70
------------
[[Page 3240]]
Cost per application....................................... 7,196.59
============
Proposed fee, Item 4: per application...................... 7,200.00
Schedule Item 5. Initial application for certificate authorizing
foreign charter air transportation under 49 U.S.C. 41102. Section
41101(a)(2) of the Statute provides that an air carrier may engage in
foreign charter air transportation only if it has been issued a
certificate by the Department, while section 41102(b)(2) requires the
Department to find such an air carrier fit, willing, and able to
provide the air transportation to be authorized by the certificate, and
to find that the carrier is a U.S. citizen as defined in section
40102(a)(15). Further, under section 41102(b)(2), the Department is
required to find that the proposed foreign air transportation is
consistent with the public convenience and necessity and, under section
41102(d), to submit each decision authorizing an application to engage
in foreign air transportation to the President for approval in
accordance with section 41307. A fee for processing an application
under these provisions of the Statute is warranted since the applicant
is seeking the special benefit of the Department's authorization to
conduct revenue-producing foreign charter air transportation.
The proposed fee for this service is determined as follows:
Direct Labor............................................... $18,275.10
Overhead................................................... 10,128.44
------------
Total Cost................................................. 28,403.54
============
Applications processed..................................... 4
Cost per application....................................... 7,100.89
Proposed fee, Item 5: per application...................... 7,100.00
Schedule Item 6. Initial application for certificate authorizing
interstate scheduled air transportation under 49 U.S.C. 41102(a)(1) AND
foreign scheduled air transportation under 49 U.S.C. 41102(a)(1).
Although the basic evaluation process is the same for dual and single-
authority applications, the former entails a marginally greater amount
of time (2 hours) to analyze the additional service proposal and to
process a second authorization. Thus, the proposed fee for this
schedule item is derived as follows:
Cost per application, Foreign Scheduled only, Item 4....... $7,196.59
Additional processing cost (2 hrs. at $83.25 per hr.)...... 166.50
------------
Cost per application....................................... 7,363.09
============
Proposed fee, Item 6: per application...................... 7,360.00
Schedule Item 7. Initial application for certificate authorizing
interstate charter air transportation under 49 U.S.C. 41102(a)(3) AND
foreign charter air transportation under 49 U.S.C. 41102. As with item
6, item 7 involves marginally greater time for processing a second
authority. The proposed fee is derived in a similar fashion thusly:
Cost per application, Foreign Charter only, Item 5......... $7,100.89
Additional processing cost (2 hrs. at $83.25 per hr.)...... 166.50
------------
Cost per application....................................... 7,267.39
============
Proposed fee, Item 7: per application...................... 7,270.00
Schedule Item 8. Amendment to initial application, schedule items
1-7 inclusive. Under section 302.5 of its procedural regulations, the
Department requires that if an applicant for certificate authority or
for all-cargo authority modifies its application substantially, it must
file an amendment to the application. An amendment may involve a
substantial change to one of the four major elements--ownership/
citizenship, management, finances, or compliance disposition--examined
by the Department as predicates to approval of the requested
authorization, and necessitates significant additional processing
effort. A fee for processing such amendments is warranted since the
applicant is seeking the special benefit of the Department's
consideration of a major change to one or more of the basic elements
affecting the applicant's qualifications to conduct revenue-producing
air transportation.
Our work-flow analysis determined that each of the four basic
elements of a fitness evaluation entails a comparable amount of
processing time. Accordingly, the proposed fee for an amendment \1\ to
an initial application is set at 25 percent of the basic application
fee, as follows:
---------------------------------------------------------------------------
\1\ We traditionally have made a distinction between amendments
and ``supplements.'' As noted above, an amendment involves a
substantive change by the applicant to one of the four basic
elements of its initial application--ownership/citizenship,
management, finances, or compliance disposition. A supplement, by
contrast, involves additional details or elaborative material on the
basic elements rather than a substantive change, and is normally
submitted at the Department's request rather than the applicant's
initiative. We have never imposed a fee for supplements and do not
propose to begin doing so now.
Initial application cost, Items 1-3........................ $7,027.25
x 25% additional cost =.................................. 1,756.81
============
Proposed fee, Item 8: per amendment........................ 1,760.00
Initial Authority--U.S. Commuter Air Carriers and U.S. Certificated Air
Carriers (Small Aircraft): Schedule Items 9-13
As discussed earlier, we are proposing a separate certification
category for applications involving aircraft of 60 seats or less or a
maximum payload of 18,000 pounds or less because those applications
entail significantly lower processing costs. We also have determined
that the time to process applications for commuter authority is
essentially the same as that for interstate scheduled service involving
small aircraft, and therefore are proposing to combine the two
authorities under a single schedule item. The statutory basis and
nature of special benefit for commuter authority are presented below.
Those for certificated authority involving small aircraft are the same
as presented earlier for authorizations involving large aircraft.
Schedule Item 9. Initial application for (1) scheduled passenger
air service (``commuter'') authority under 49 U.S.C. 41738, or (2)
certificate authorizing interstate scheduled air transportation under
49 U.S.C. 41102(a)(1), small aircraft.
Commuter authority. Section 40109(c) authorizes the Department to
exempt any person or class of persons from certain provisions of the
Statute, such as the requirement to obtain a certificate under section
41101(a). In addition, section 40109(f) provides that an air carrier is
exempt from the requirement to obtain a certificate under section
41101(a) if it operates small aircraft and complies with the
Department's liability insurance regulations and other requirements.
Further, section 41738 of the Statute provides that before an air
carrier may provide scheduled air transportation to an eligible place
(as defined in section 41736), it must be found to be a U.S. citizen
and to be fit, willing, and able to perform the service. A fee for
processing an application for this commuter air carrier authority is
warranted since the applicant is seeking the special benefit of the
Department's authorization to conduct revenue-producing scheduled air
transportation to an eligible place.
Certificate authorizing interstate scheduled air transportation
under 49 U.S.C. 41102(a)(1), small aircraft. See justification of
schedule item 1, supra. Our proposed fee for schedule item 9 is based
on the following cost data:
Direct Labor............................................... $15,735.90
Overhead................................................... 8,675.60
------------
Total Cost................................................. 24,411.50
============
Applications processed..................................... 8
[[Page 3241]]
Cost per application....................................... 3,051.44
Proposed fee, Items 9, 10: per application................. 3,050.00
Schedule Item 10. Initial application for certificate authorizing
foreign scheduled air transportation under 49 U.S.C. 41102(a)(1), small
aircraft. See justification of schedule item 4, supra.
As in the case of foreign scheduled certificated authority
involving large aircraft, there is an incremental cost arising from the
need to evaluate compliance with bilateral agreements and to prepare
implementing language. Our proposed fee is calculated as follows:
Cost per application, Interstate Scheduled only, Item 9.... $3,051.44
Additional processing cost (1.06 hrs. at $90.28 per hr.)... 95.70
------------
Cost per application....................................... 3,147.14
============
Proposed fee, Item 10: per application..................... 3,150.00
Schedule Item 11. Initial application for certificate authorizing
interstate scheduled air transportation under 49 U.S.C. 41102(a)(1) AND
foreign scheduled air transportation under 49 U.S.C. 41102(a)(1), small
aircraft. An application seeking both interstate and foreign scheduled
authority likewise requires marginally greater cost to process dual
authorizations. Our proposed fee:
Cost per application, Foreign Scheduled only, Item 10...... $3,147.14
Additional processing cost (2 hrs. at $83.25 per hr.)...... 166.50
------------
Cost per application....................................... 3,313.64
============
Proposed fee, Item 11: per application..................... 3,310.00
Schedule Item 12. Amendment to initial application, schedule items
9-12 inclusive. Finally, as with applications involving large aircraft,
an amendment to an initial application for commuter authority or
certificated authority involving small aircraft typically entails a
substantial change in one of the basic elements evaluated by the
Department (ownership/citizenship, management, finances or compliance
disposition), and requires approximately one-fourth as much time to
process as the initial submission. Our proposed fee is therefore:
Initial application cost, Item 9........................... $3,051.44
x 25% additional cost =.................................. 762.86
============
Proposed fee, Item 12: per amendment....................... 760.00
Exemptions, Waivers, Transfers--U.S. Certificated Air Carriers, Large
Aircraft: Schedule Items 13-23
Schedule Item 13. Application for an exemption from the provisions
of 49 U.S.C. 41102 or 41103 in order to conduct air transportation
operations before the authority for such operations has been granted
(pendente lite exemption). Section 40109(c) of the Statute provides
that the Department may grant an air carrier applicant an exemption to
engage in air transportation operations without first having obtained a
certificate in accordance with section 41102 or section 41103. The
Department must determine that a grant of such authority is in the
public interest, analyze the qualifications of the applicant, and
assess certain consumer protection actions the applicant is required to
take in order to be granted a pendente lite exemption. A processing fee
for this exemption is justified since the applicant is seeking the
special benefit of the Department's authorization to conduct revenue-
producing air transportation before it has obtained the required
certificate authority.
Schedule Item 14. Application for a waiver of the provisions of 14
CFR 201.5 in order to advertise, take reservations, issue tickets, or
receive payments before the underlying operating authority is granted.
Section 201.5 of Title 14 of the Code of Federal Regulations (``the
regulations'') provides that an applicant for air carrier certificate
authority may not advertise or take reservations for its proposed air
service until its application has been approved by the Department, and
that the applicant may not issue tickets or receive payments for its
proposed air service until its authority has become effective. Section
40109(c) of the Statute, however, authorizes the Department to grant
exemptions or waivers from the regulations. Before granting a waiver,
the Department must determine that a grant of such authority is in the
public interest, analyze the applicant's qualifications, and assess
certain consumer protection actions the applicant is required to take.
A fee for processing this application for a waiver is justified since
the applicant is seeking the special benefit of the Department's
authorization to conduct revenue-producing air transportation before it
has obtained the underlying authority for those operations.
Our analysis of the services of schedule items 13 and 14 determined
that both entail essentially the same amount of processing time. Our
proposed fee is therefore the same for each item and is based on the
following cost data:
Direct Labor............................................... $4,926.53
Overhead................................................... 2,686.07
------------
Total Cost................................................. 7,612.60
============
Applications processed..................................... 4
Cost per application....................................... 1,903.15
Proposed fee, Items 13, 14: per application................ 1,900.00
Schedule Item 15. Application by a certificated air carrier for a
waiver of the revocation-for-dormancy provisions of 14 CFR 204.7.
Section 204.7 of the Department's regulations provides that if a
carrier has been awarded a certificate under section 41102 or 41103 of
the Statute, but does not institute the air transportation operations
for which it was found fit within one year of the date of its fitness
determination, the carrier's authority may be revoked for reasons of
dormancy. Similarly, if the carrier institutes air transportation
operations but subsequently ceases conducting all of the operations for
which it was found fit, its authority is automatically suspended and
subject to revocation if the carrier does not recommence operations
within one year. If the carrier requires additional time beyond the
one-year period, it must file an application for a waiver of the
revocation-for-dormancy provisions of section 204.7, together with
updated fitness information. A fee for processing an application for a
waiver of the revocation for dormancy rule is warranted because the
Department must assess the carrier's progress in becoming operational
and because the carrier is seeking the special benefit of Departmental
action to avert revocation of its authority to conduct revenue-
producing air transportation operations.
Our proposed fee for this item is determined as follows:
Direct Labor............................................... $3,550.50
Overhead................................................... 1,935.46
------------
Total Cost................................................. 5,485.90
============
Applications processed..................................... 4
Cost per application....................................... 1,371.48
Proposed fee, Item 15: per application..................... 1,370.00
Schedule Item 16. Notice by a certificated air carrier pursuant to
14 CFR 204.7 of its intent to resume air transportation operations
following a cessation of those operations more than 30 days after the
cessation. Section 204.7 of the regulations provides that if a carrier
holding a certificate under section 41102 or 41103 of the Statute
ceases conducting all of the air transportation operations for which it
was found fit, willing, and able, it may
[[Page 3242]]
not resume those operations until its fitness is redetermined by the
Department. Under our rules, if the carrier desires to re-institute air
transportation operations, it must file a notice of intent to do so
along with updated fitness information. A fee for processing a notice
of intent to resume service is justified because the Department must
re-evaluate the carrier's fitness, including any changes (which often
are substantial) that have been made by the carrier since it ceased
operations, and because the carrier is seeking the special benefit of
the Department's authorization to re-engage in revenue-producing air
transportation operations.
Our proposed fee for this item is based on the following:
Direct Labor............................................... $9,220.69
Overhead................................................... 5,030.99
------------
Total Cost................................................. 14,251.58
============
Applications processed..................................... 3
Cost per application....................................... 4,750.56
Proposed fee, Item 16: per application..................... 4,750.00
Schedule Item 17. Application of notice by a certificated air
carrier pursuant to 14 CFR 204.7 of its intent to resume air
transportation operations following a cessation of those operations
less than 30 days after the cessation. The regulatory basis and nature
of special benefit warranting a user charge for this item are the same
as those for item 16 above. However, the fitness issues associated with
an applicant that has only recently ceased operations normally are less
complex and require less analysis and processing effort because fewer
changes are likely to have been made in the areas requiring a fitness
review. Our work-flow analysis determined that the time required to
process a notice to resume service in less than 30 days is essentially
the same as that for a waiver-of-dormancy application, item 15 above.
We therefore are proposing the same fee for this item, $1,370 per
application.
Schedule Item 18. Application by an air carrier holding a
certificate under 49 U.S.C. 41102 or 41103 for the removal of a
restriction on its certificate authority when the removal does not
involve a change from small to large aircraft. An air carrier may apply
to have the Department lift a restriction contained in the Terms,
Conditions, and Limitations attached to its certificate. Such an
application requires the Department to conduct a continuing fitness
review under section 41110(e) of the Statute to determine that the
carrier will remain fit, willing, and able if the restriction is
removed. Since the applicant is seeking the special benefit of being
granted broader revenue-producing authority by the Department, a
processing fee is warranted. Our proposed fee is determined as follows:
Direct Labor............................................... $2,136.26
Overhead................................................... 1,169.68
------------
Total Cost................................................. 3,305.94
============
Applications processed..................................... 2
Cost per application....................................... 1,652.97
Proposed fee, Item 18: per application..................... 1,650.00
Schedule Item 19. Application by an air carrier holding a
certificate under 49 U.S.C. 41102 or 41103 for the removal of a
restriction on its certificate authority when the removal does involve
a change from small to large aircraft. The statutory basis and nature
of special benefit warranting a user charge for this schedule item are
the same as for item 18 above. Application processing costs, however,
are substantially higher because a change from small to large aircraft
has a major impact on the air carrier's management and financial
fitness. Although we did not complete any applications for this
schedule item during the cost-collection period, our work-flow analysis
determined that the process for evaluating a removal of a restriction
involving a change from small to large aircraft is essentially the same
as the evaluation process for a notice to resume service more than 30
days after cessation (item 16, supra). As in the latter case, the
applicant under this schedule item typically undergoes substantial
changes in its management team and financial structure that necessitate
the Department's scrutiny. Thus, the proposed fee for item 19 is the
same as for item 16, $4,750 per application.
Schedule Item 20. Application by a certificated air carrier under
14 CFR Part 215 to register a name or trade name involving the
reissuance of its certificate. Part 215 of the Department's regulations
provides that a carrier holding a certificate under section 41102 or
41103 of the Statute may not hold itself out as a provider of air
transportation service in any name that has not been registered with
the Department. A name-change application requires the Department to
(1) search its records for any other air carriers with the same or a
similar name, (2) advise the applicant accordingly so that it may, in
turn, notify any such similarly named carriers of its intent to
register the name, and (3) reissue the carrier's certificate in the new
name. A fee for this service is warranted since the carrier is seeking
the special benefit of being authorized to engage in revenue-producing
air transportation operations under a different name or trade name than
previously authorized.
Our proposed fee for this schedule item is as follows:
Direct Labor............................................... $656.52
Overhead................................................... 350.23
------------
Total Cost................................................. 1,006.75
============
Applications processed..................................... 2
Cost per application....................................... 503.38
Proposed fee, Item 20: per application..................... 500.00
Schedule Item 21. Application for trade name registration
(certificate reissuance not required). While the legal basis and nature
of special benefit for this item are the same as for item 20 above, the
proposed fee is substantially lower because only a notice of the
registration must be issued, resulting in materially lower processing
costs:
Direct Labor............................................... $473.95
Overhead................................................... 252.98
------------
Total Cost................................................. 726.93
============
Applications processed..................................... 3
Cost per application....................................... 242.31
Proposed fee, Item 21: per application..................... 240.00
Schedule Item 22. Joint application under 49 U.S.C. 41105 for the
transfer of interstate certificate authority. Section 41105 of the
Statute provides that a certificate issued under section 41102 or 41103
of the Statute may be transferred only upon the Department's finding
that the transfer is in the public interest.\2\ Moreover, the
Department must certify to the Congressional committees having
jurisdiction over matters of commerce that the transfer will not have
an adverse effect on the viability of the carriers involved,
competition in the domestic airline industry, or the U.S. trade
position in international air transportation. A fee is warranted for
approval of a certificate transfer because, in addition to these
findings, the Department must determine that the transferee is fit to
conduct the operations authorized by the certificate to be transferred
and, further, because the applicants are seeking the special benefit of
the Department's approval of an action needed by (1) the certificate
transferee to engage in the revenue-producing air transportation
authorized by the certificate and (2) the transferor so that it may
realize any compensation provided for in the transfer agreement.
---------------------------------------------------------------------------
\2\ This transfer of interstate certificate authority is
distinct from the transfer of foreign route/frequency authority. See
item 58, below, for the latter.
---------------------------------------------------------------------------
[[Page 3243]]
Our proposed fee for this item is based on the following:
Direct Labor............................................... $9,973.37
Overhead................................................... 5,482.51
------------
Total Cost................................................. 15,455.88
============
Applications processed..................................... 2
Cost per application....................................... 7,727.94
Proposed fee, Item 22: per application..................... 7,730.00
Schedule Item 23. Application to 49 U.S.C. 41105 involving an
intra-corporate reorganization only (e.g., reincorporation in a
different state with no changes of ownership or management). In
contrast to item 22 above, an air carrier in this instance is
seeking the special benefit of the Department's approval of a
comparatively minor change to the certificated authority that
enables revenue-producing air transportation, and the certificate
transfer triggered by the carrier's intra-corporate reorganization
entails a less extensive fitness review. The proposed fee for item
23 is therefore substantially lower than for item 22, and is based
on the following cost data:
Direct Labor............................................... $1,262.38
Overhead................................................... 676.29
------------
Total Cost................................................. 1,938.67
============
Applications processed..................................... 3
Cost per application....................................... 646.22
Proposed fee, Item 23: per application..................... 650.00
Exemptions, Waivers, Transfers--U.S. Commuter Air Carriers and U.S.
Certificated Air Carriers (Small Aircraft): Schedule Items 24-34
As in the case of initial applications, we are proposing to group
commuter air carriers and certificated air carriers using small
aircraft into a separate category for exemptions, waivers and
transfers. The structure of this category is similar to that of items
13-23 above regarding authorizations involving large aircraft.
Schedule Item 24. Application for an exemption from the provisions
of 49 U.S.C. 41738 or 41102 to conduct scheduled air transportation
operations before the authority for such operations has been granted
(pendente lite exemption). Section 40109(c) of the Statute authorizes
the Department to grant an air carrier applicant an exemption to engage
in air transportation operations without first having obtained a
certificate or commuter authorization. The Department must determine
that a grant of such authority is in the public interest, analyze the
qualifications of the applicant, and assess certain consumer protection
actions the applicant is required to take in order to be granted a
pendente lite exemption. A processing fee for this exemption is
justified since the applicant is seeking the special benefit of the
Department's authorization to conduct revenue-producing air
transportation before it has obtained the required certificate or
commuter authority.
Schedule Item 25. Application for a waiver of the provisions of 14
CFR 201.5 in order to advertise, take reservations, issue tickets, or
receive payments before the underlying operating authority is granted.
Section 201.5 of the Department's regulations provides that an
applicant for commuter air carrier or certificate authority may not
advertise or take reservations for its proposed air service until its
application has been approved by the Department, and that the applicant
may not issue tickets or receive payments for its proposed air service
until its authority has become effective. Section 40109(c) of the
Statute, however, authorizes the Department to grant exemptions or
waivers from the regulations. Before granting a waiver, the Department
must determine that a grant of such authority is in the public
interest, analyze the applicant's qualifications, and assess certain
consumer protection actions the applicant is required to take. A fee
for processing this application for waiver is justified since the
applicant is seeking the special benefit of the Department's
authorization to conduct revenue-producing air transportation before it
has obtained the underlying authority for those operations.
Schedule Item 26. Application for a waiver of the revocation-for-
dormancy provisions of 14 CFR 204.7 Section 204.7 of the Department's
regulations provides that if a carrier has been awarded commuter
authority under section 41738 of the Statute, or certificate authority
under section 41102, but does not institute the air transportation
operations for which it was found fit within one year of the date of
its fitness determination, the carrier's authority may be revoked for
reasons of dormancy. Similarly, if the carrier institutes air
transportation operations but subsequently ceases conducting all of the
operations for which it was found fit, its authority is automatically
suspended and subject to revocation if the carrier does not recommence
operations within one year. If the carrier requires additional time
beyond the one-year period, it must file an application for a waiver of
the revocation-for-dormancy provisions of section 204.7, together with
updated fitness information. A fee for processing an application for a
waiver of the revocation-for-dormancy rule is warranted because the
Department must assess the carrier's progress in becoming operational
and because the carrier is seeking the special benefit of Departmental
action to avert revocation of its authority to conduct revenue-
producing air transportation operations.
No applications under schedule items 25, 26 or 27 were processed
during our cost-collection period, and we have no other basis on which
to propose a change to the fees currently in force or to assume that
fee costs have changed. Accordingly, the current fee of $280 per
Application is retained for each item.
Schedule Item 27. [Reserved.]
Schedule Item 28. Application of notice pursuant to 14 CFR 204.7 of
the intent to resume air transportation operations following a
cessation of those operations. Section 204.7 of the regulations
provides that if a carrier holding commuter authority under section
41738 of the Statute, or a carrier holding certificate authority under
section 41102, ceases conducting all of the air transportation
operations for which it was found fit, willing, and able, it may not
resume those operations until its fitness is redetermined by the
Department. Under our rules, if the carrier desires to re-institute air
transportation operations, it must file a notice of intent to do so
along with updated fitness information. A fee for processing a notice
of intent to resume service is justified because the Department must
re-evaluate the carrier's fitness, including any changes (which often
are substantial) that have been made by the carrier since it ceased
operations, and because the carrier is seeking the special benefit of
the Department's authorization to re-engage in revenue-producing air
transportation operations.
No applications from commuter air carriers or certificated air
carriers operating small aircraft were processed under this item during
our cost-collection period. However, our analysis determined that the
time required to process a notice to resume service is essentially the
same as that for a waiver-of-dormancy application, item 26 above. We
therefore are proposing the same fee for item 28, $280 per Application.
Schedule Item 29. [Reserved.]
Schedule Item 30. Application under 14 CFR Part 215 to register a
name or trade name involving the reissuance of a certificate or
commuter authorization. Part 215 of the Department's regulations
provides that a carrier holding commuter authority under section 41738
of the Statute, or certificate authority under section 41102, may not
hold itself out to the public as a provider of air transportation
service in any name that has not been registered with the Department. A
processing fee
[[Page 3244]]
for a name or trade name registration application requires the
Department to (1) search its records for any other air carriers with
the same or a similar name, (2) advise the applicant accordingly so
that it may, in turn, notify any such similarly named carriers of its
intent to register the name, and (3) reissue the carrier's authority in
the new name. A fee for this service is warranted since the carrier is
seeking the special benefit of being authorized to engage in revenue-
producing commuter or certificated air carrier operations under a
different name or trade name than previously authorized.
Our proposed fee for this item is based on the following:
Direct Labor............................................... $335.72
Overhead................................................... 169.31
------------
Total Cost................................................. 505.03
============
Applications processed..................................... 2
Cost per application....................................... 252.52
Proposed fee, Item 30: per application..................... 250.00
Schedule Item 31. Application under 14 CFR Part 215 and section
298.36 requesting the Department to accept a registration of a name.
This schedule item is akin to item 30 above in terms of its regulatory
basis and nature of special benefit, but is significantly less costly
to process because only a notice of the registration must be issued.
Our proposed fee therefore is lower, and is based on:
Direct Labor............................................... $171.86
Overhead................................................... 88.65
------------
Total Cost................................................. 260.51
============
Applications processed..................................... 4
Cost per application....................................... 65.13
Proposed fee, Item 31: per application..................... 65.00
Schedule Item 32. Joint application under 49 U.S.C. 41105 for the
transfer of certificate or commuter air carrier authority. Section
41105 of the Statute provides that a certificate authority issued under
section 41102 of the Statute or a commuter authority issued under
section 41738 may be transferred only upon the Department's approval
that the transfer is in the public interest.\3\ Moreover, the
Department must certify to the Congressional committees having
jurisdiction over matters of commerce that the transfer will not have
an adverse effect on the viability of the carriers involved,
competition in the domestic airline industry, or the U.S. trade
position in international air transportation. A fee is warranted for
approval of a certificate or commuter authorization transfer because,
in addition to these findings, the Department must determine that the
transferee is fit to conduct the operations authorized by the
certificate or commuter authority to be transferred and the applicants
are seeking the special benefit of the Department's approval of an
action needed by (1) the transferee to engage in the revenue-producing
air transportation authorized and (2) the transferor so that it may
realize any compensation provided for in the transfer agreement.
---------------------------------------------------------------------------
\3\ This transfer of interstate certificate or commuter
authority is distinct from the transfer of foreign route/frequency
authority. See item 58, below, for the latter.
---------------------------------------------------------------------------
Our proposed fee for this item is based on the following:
Direct Labor............................................... $7,916.28
Overhead................................................... 4,287.70
------------
Total Cost................................................. 12,203.98
============
Applications processed..................................... 3
Cost per application....................................... 4,067.99
Proposed fee, Item 32: per application..................... 4,070.00
Schedule Item 33. [Reserved.]
Schedule Item 34. Application for approval of amendment to commuter
air carrier registration under 14 CFR Part 298. Section 298.23 of the
Department's regulations requires a commuter air carrier to submit an
amendment to its registration form (OST Form 4507) within 30 days of
undergoing any change (e.g., in location, operations conducted, or
aircraft fleet) that would make obsolete the information currently on
file with the Department. A processing fee for the filing of an amended
OST Form 4507 is warranted since the carrier is seeking the special
benefit of the Department's approval of changes it has undergone to
continue to engage in revenue-producing commuter operations.
Our proposed fee for this schedule item is based on:
Direct Labor............................................... $87.25
Overhead................................................... 48.75
------------
Total Cost................................................. 136.00
============
Applications processed..................................... 25
Cost per application....................................... 5.44
Proposed fee, Item 34: per application..................... 5.00
Authority for Charter, Air Taxi, Foreign Tour and Foreign Freight
Forwarder Operations: Schedule Items 35-41
Schedule Item 35. Application for acceptance of a public charter
prospectus. Section 41104 of the Statute provides that the Department
may prescribe a regulation restricting the marketability, flexibility,
accessibility or variety of charter air transportation provided under a
certificate or order issued under section 41102 of the Statute, but
only to the extent required by the public interest. Parts 380, 207, 208
and 212 of the Department's regulations require the filing of a
prospectus describing the economic and consumer protections that the
applicant must provide to members of the public purchasing its charter
transportation. A processing fee for a public charter prospectus is
warranted since the applicant, a direct air carrier or indirect air
carrier, is seeking the special benefit of the Department's
authorization to conduct revenue-producing air charter service.
The proposed fee for this item is as follows:
Direct Labor............................................... $491.81
Overhead................................................... 304.17
------------
Total Cost................................................. 795.98
============
Applications processed..................................... 52
Cost per application....................................... 15.31
Proposed fee, Item 35: per application..................... 15.00
Schedule Item 36. Application for waiver of charter regulations.
Under section 380.3(e) of the public charter regulations, the
Department can approve an application submitted by a public charter
operator or a direct air carrier for a waiver of the provisions of the
charter regulations, provided that a waiver is found to be in the
public interest. A fee for processing an application for this waiver is
justified since the applicant is seeking the special benefit of the
Department's consent to be relieved of certain filing or other
requirements in the conduct of revenue-producing charter operations.
No applications under this schedule item were processed during the
cost-collection period. However, we have concluded that the current fee
of $39 is too high in light of our proposed fees for charter-type
authorizations generally (items 35, 37-40). For this reason, we are
proposing to reduce the fee from $39 to $15 per application.
Schedule Item 37. Application for approval of foreign charter
operator registration. Under section 380.60 of the public charter
regulations, foreign charter operators desiring to organize public
charter group transportation originating in the United States must
register with, and obtain approval of, the Department, including a
determination by the Department whether effective reciprocity exists
with the homeland of the applicant. The registration application, which
must describe the ownership of the company, is held for 28 days, during
which time any person may file an objection. A processing fee is
warranted since the
[[Page 3245]]
applicant is seeking the special benefit of the Department's approval
to advertise, organize, provide, sell and/or offer U.S.-originating
public charters.
The proposed fee for this item is as follows:
Direct Labor............................................... $30.90
Overhead................................................... 17.25
------------
Total Cost................................................. 48.15
============
Applications processed..................................... 3
Cost per application....................................... 16.05
Proposed fee, Item 37: per application..................... 16.00
Schedule Item 38. Application for U.S. air taxi registration. Under
part 298 of the Department's regulations, any company proposing to
operate small aircraft (60 seats or less than or 18,000-pounds payload
or less) in on-demand air service must first register with the
Department and file evidence of effective liability insurance coverage
meeting the requirements of Part 205. Acceptance of the registration
relieves theses operators from certain provisions and requirements of
Subtitle VII of the Statute, including the requirement to obtain a
certificate under section 41102. Since the applicant seeks the special
benefit of the Department's approval to conduct revenue-producing air
taxi operations, a processing fee is warranted.
In October 1997, the responsibility for processing applications for
air taxi registrations was transferred from the Office of the Secretary
to the Federal Aviation Administration. As a consequence, no data on
the cost to process applications under this schedule item were
collected. Nevertheless, we are proposing that the same fee established
below for Canadian charter air taxi registrations--$15 per
Application--also apply to applications for U.S. air taxi registration.
The registration requirements and process involved in both types of
applications are quite similar, with the exception that applications
for U.S. air taxi registration, unlike those for Canadian charter air
taxis, are not required to be held by the Department for a public-
comment period of 28 days. The cost to the Department of this
``holding'' requirement is not material, however, since few, if any,
objections are filed.
Schedule Item 39. Application for Canadian charter air taxi
registration. Under Part 294 of the Department's regulations, a
Canadian charter air taxi operator seeking authority to operate between
Canada and the United States must file a registration request with the
Department accompanied by evidence of effective liability insurance
coverage. The regulation exempts these operators from certain
provisions of Subtitle VII of the Statute and establishes rules
applicable to their operations in the United States. Because the
applicant seeks the special benefit of the Department's authorization
to operate small aircraft across the Canadian border into the United
States for revenue-generating purposes, a processing fee is justified.
Our proposed fee for this item:
Direct Labor............................................... $137.20
Overhead................................................... 76.59
------------
Total Cost................................................. 213.79
============
Applications processed..................................... 14
Cost per application....................................... 15.27
Proposed fee, Item 39: per application..................... 15.00
Schedule Item 40. Application for approval of foreign air freight
forwarder registration. Under Part 297 of the Department's regulations,
a foreign air freight forwarder must file and receive approval to
engage indirectly in interstate or foreign air transportation of
property. Acceptance of the application also relieves carriers from
certain provisions of Subtitle VII of the Statute. If the registration
is approved, the applicant is permitted to arrange for the
transportation of property from the point of origin to the point of
destination using the services of direct air carriers. The processing
fee is warranted since the applicant is seeking the special benefit of
the Department's approval of its registration to engage in revenue-
producing activity.
Our proposed fee for this schedule item is as follows:
Direct Labor............................................... $11.95
Overhead................................................... 6.67
------------
Total Cost................................................. 28.62
============
Applications processed..................................... 1
Cost per application....................................... 18.62
Proposed fee, Item 40: per application..................... 19.00
Schedule Item 41. Application for amendment to registration, items
36-40 inclusive. Under section 380.25 (c) and (d) of the Department's
regulations, a public charter operator may request that an amendment be
made to its original prospectus to add or cancel flights, or to change
flight dates, origin or destination points, or the direct air carrier,
securer or depository bank. Further, under section 380.65, a foreign
charter operator must notify the Department of any change in its
operations or ownership and amend its registration accordingly.
Likewise, under sections 294.22 and 298.23, a Canadian charter air taxi
and U.S. air tax operator, respectively, must notify the Department of
changes in the information contained in its registration and, under
section 297.94, a foreign air freight forwarder must file and have
approved changes to its registration. A processing fee for these
various types of amendments is warranted since, in each instance, the
operator is seeking the special benefit of the Department's approval of
changes to the authority enabling the operator to continue to engage in
revenue-producing operations.
Our analysis of these various types of amendment applications
determined that they entail essentially the same processes.
Accordingly, we are proposing that the same fee be applied to each type
based on the following cost data:
Direct Labor............................................... $99.21
Overhead................................................... 55.37
------------
Total Cost................................................. 154.58
============
Applications processed..................................... 30
Cost per amendment......................................... 5.15
Proposed fee, Item 41: per application..................... 5.00
Authorizations, Amendments, Exemptions--Foreign Air Carriers: Schedule
Items 42-51
Schedule Item 42. Application for an initial, or for renewal of a
previously authorized, foreign air carrier permit under 49 U.S.C.
41301. Section 41301 of the Statute requires a foreign air carrier to
have a permit from the Department to engage in air transportation
operations to a point or points in the United States or its
possessions. Section 41302 of the Statute requires the Department to
find such a foreign air carrier fit, willing, and able to provide the
foreign air transportation to be authorized by the permit, and to find
that it has been designated by the government of its country to provide
the foreign air transportation under an agreement with the United
States Government, or that the foreign air transportation to be
provided under the permit will be in the public interest. A fee for
processing an application permit is warranted since the foreign air
carrier is seeking the special benefit of the Department's
authorization to conduct revenue-producing air transportation service
to a U.S. point.
A foreign air carrier permit may be issued for a specified term
that will require renewal, which normally involves a re-determination
of carrier fitness and a processing effort comparable to that for an
initial authorization. Because an applicant for renewal seeks the
special benefit of continuing its authority to conduct
[[Page 3246]]
revenue operations in foreign air transportation, a processing fee is
warranted.
Our proposed fee for an initial permit or for renewal of a
previously authorized permit is based on the following:
Direct Labor............................................... $860.56
Overhead................................................... 688.71
------------
Total Cost................................................. 1,549.27
============
Applications processed..................................... 1
Cost per application....................................... 1,549.27
Proposed fee, Item 42: per application..................... 1,550.00
Schedule Item 43. Application by foreign air carrier for exemption
from the provisions of 49 U.S.C. 41301. Section 40109(c) of the Statute
provides that the Department may grant a foreign air carrier applicant
an exemption to conduct (more than 10) flights to a U.S. point or
points without its first having obtained a foreign air carrier permit
as required by section 41301. A processing fee for an application for
this exemption is justified because the foreign air carrier is seeking
the special benefit of the Department's temporary authorization to
conduct revenue-producing air transportation to a U.S. point in
circumstances where obtaining a foreign air carrier permit would take
too long or otherwise be inappropriate.
Our proposed fee for this item is based on the following:
Direct Labor............................................... $660.85
Overhead................................................... 528.86
------------
Total Cost................................................. 1,189.71
============
Applications processed..................................... 3
Cost per application....................................... 396.57
Proposed fee, Item 43: per Application..................... 400.00
Schedule Item 44. Amendment by a foreign air carrier of either its
application for a permit or its application for an exemption to conduct
more than 10 flights. If an applicant for a foreign air carrier permit
under section 41301 or for an exemption under section 40109(c) of the
Statute modifies its application substantially, it must file an
amendment to such application. Such amendments trigger significant
additional processing time, and a fee to cover processing costs is
warranted since the applicant receives the special benefit of
additional or different authority for revenue-producing operations,
while saving the time and expense that a new application would entail.
No applications under this schedule item were processed during the
cost-collection period, and we have no other basis to propose a change
in the current fee or to assume that fee costs have changed.
Accordingly, the current fee of $215 per Application is retained.
Schedule Item 45. Application by foreign air carrier for an
exemption from the provisions of 49 U.S.C. 41301 to conduct ten or
fewer flights. Section 40109(c) of the Statute provides that the
Department may grant a foreign air carrier an exemption from the need
to obtain a foreign air carrier permit as required by section 41301 of
the Statute in order to conduct flights to a U.S. point or points.
Department rules (14 CFR 302.401 et seq.) provide for simplified
application procedures for certain exemptions of 10 or fewer flights. A
fee for processing such an exemption application is justified because
the foreign air carrier is seeking the special benefit of the
Department's authorization to temporarily conduct revenue-producing air
transportation to a U.S. point and to defer the time and financial
expenditures required to obtain a foreign air carrier permit.
Our proposed fee for this item is based on the following:
Direct Labor............................................... $69.09
Overhead................................................... 55.29
------------
Total Cost................................................. 124.38
============
Applications processed..................................... 1
Cost per application....................................... 124.38
Proposed fee, Item 45: per Application..................... 120.00
Schedule Item 46. Application for a special authorization under 14
CFR Part 375. Section 41703 of the Statute and section 375.70 of the
regulations provide that the Department may authorize particular
flights that are not within an applicant's other authority and not
appropriately the subject of an exemption under 49 U.S.C. 40109. The
Department must determine that the proposed operations are fully
consistent with the applicable law, that the applicant's homeland
grants a similar privilege with respect to U.S. operators, and that the
proposed operation is in the U.S. public interest. A fee in connection
with an application for such a special authorization is warranted
because the applicant is seeking the special benefit of permission to
engage in an air operation of value that is not otherwise authorized.
Our proposed fee for this item is based on the following:
Direct Labor............................................... $62.34
Overhead................................................... 48.89
------------
Total Cost................................................. 112.23
============
Applications processed..................................... 1
Cost per application....................................... 112.23
Proposed fee, Item 46: per Application..................... 110.00
Schedule Item 47. Application for a foreign aircraft permit under
14 CFR Part 375. Section 41703 of the Statute and section 375.40 of the
Department's regulations state that commercial air operations utilizing
foreign civil aircraft may be undertaken in the U.S. only if a permit
issued by the Department is carried aboard the aircraft. A fee to
offset the costs of processing a permit application is warranted since
the applicant is seeking the special benefit of the Department's
authorization to operate a foreign aircraft in air commerce in the
United States.
Our proposed fee for this item is based on the following:
Direct Labor............................................... $609.84
Overhead................................................... 488.06
------------
Total Cost................................................. 1,097.90
============
Applications processed..................................... 6
Cost per application....................................... 182.98
Proposed fee, Item 47: per Application..................... 180.00
Schedule Item 48. Application for foreign carrier charter statement
of authorization under 14 CFR Part 212. Foreign air carrier permits
issued under 49 U.S.C. 41302 require that charter flights must be
conducted in accordance with 14 C.F.R. Part 212. Part 212 provides that
certain charters require prior approval in the form of a Statement of
Authorization, which the Department grants if it finds that the
charters will be in the public interest. A fee to defray processing
costs is warranted since the applicant is seeking the special benefit
of authority to conduct revenue-producing operations in foreign air
transportation.
Our proposed fee for this item is based on the following:
Direct Labor............................................... $3,735.21
Overhead................................................... 1,917.79
------------
Total Cost................................................. 6,653.00
============
Applications processed..................................... 19
Cost per application....................................... 350.16
Proposed fee, Item 48: per Application..................... 350.00
Schedule Item 49. Application for special authorization under 14
CFR Part 216. Unless specifically authorized by its section 41302
permit, a foreign air carrier may not commingle traffic moving in
foreign air transportation with traffic not moving in foreign air
transportation unless it has a Special Authorization under Part 216.
This situation arises when a foreign carrier serves between a U.S.
point and a homeland point via an intermediate point. The intermediate-
homeland leg of the flight is called a ``blind sector'' with respect to
U.S. air transportation,
[[Page 3247]]
because local traffic on that segment is not carried to or from the
United States and is not in air transportation as defined in the
Statute. Without the ability to commingle traffic on all flight
segments, a carrier would lose valuable revenue. Thus the applicant for
a Special Authorization to commingle blind-sector traffic seeks a
special benefit, justifying a processing fee.
Our proposed fee for this item is based on the following:
Direct Labor............................................... $477.27
Overhead................................................... 350.05
------------
Total Cost................................................. 827.32
============
Applications processed..................................... 2
Cost per application....................................... 413.66
Proposed fee, Item 49: per application..................... 410.00
Schedule Item 50. Application for emergency cabotage exemption
under 49 U.S.C. 40109(g). Section 41701 of the Statute prohibits
foreign civil aircraft from carrying revenue traffic between two U.S.
points (``cabotage'' traffic) unless an exemption is granted under
section 40109(g), which deals specifically with emergency cabotage.
These applications are addressed separately from other exemptions,
because on the one hand, the authority at issue in a given application
usually is narrower, but on the other hand, the statutory criteria for
a grant are more detailed and specialized, and the compressed timeframe
for consideration requires more intense application of staff resources
than do most exemptions in foreign air transportation. A processing fee
is warranted since applicants for this authority are seeking the
special benefit of performing otherwise prohibited air transportation.
Our proposed fee for this item is based on the following:
Direct Labor............................................... $749.35
Overhead................................................... 583.50
------------
Total Cost................................................. 1,332.85
============
Applications processed..................................... 4
Cost per application....................................... 333.21
Proposed fee, Item 50: per application..................... 330.00
Schedule Item 51. Filing by a foreign air carrier of its proposed
schedule for which approval is required under an international
agreement. Section 40105(b) of the Statute provides that the Department
shall, in carrying out Part A of the Statute, act consistently with
applicable international agreements. Some bilateral aviation agreements
provide that the air carriers of each country file their proposed
schedules for the approval of the other country's aviation authorities.
Air carriers required to file schedules in this way may not perform air
transportation without submitting their schedules for review. A
processing fee for schedule filings is warranted since the air carrier
is seeking the special benefit of the Department's approval of its
proposed schedule for engaging in revenue-producing air transportation.
Our proposed fee for this item is calculated as follows:
Direct Labor............................................... $1,253.03
Overhead................................................... 1,002.61
------------
Total Cost................................................. 2,255.64
============
Filings processed.......................................... 24
Cost per filing............................................ 93.99
Proposed fee, Item 51: per filing application.............. 94.00
U.S. Air Carrier International Route Authority, Exemptions,
Frequencies, and Charter Allocations: Schedule Items 52-58
The various items in this schedule category involve the
authorization of international air service rights. Under the United
States' pro-competitive international aviation policy (60 FR 21841),
the Department routinely grants such rights to all qualified
applicants, except in circumstances when the availability of rights is
artificially constrained. In the absence of constraints, the Department
requires only a simple application and acts to confer authority
expeditiously. When limits apply, however, as in the case of
restrictive bilateral agreements, and when applicants seek more
authority than can be granted, we must conduct a comparative proceeding
to select carriers (and in some cases gateways) for distribution of the
limited rights available. Compared with a non-contested proceeding, a
comparative proceeding typically entails substantially higher
processing costs because each applicant submits a detailed service
proposal with supporting data, which in turn are analyzed by the
Department and by competing applicants. Thereafter, the Department
issues a tentative decision; applicants respond to that decision and to
one another's arguments; and following consideration and analysis of
all pleadings, the Department issues its final decision.
In the interest of cost recovery, we are proposing that each
applicant initially pay the processing fee in effect for the relevant
non-contested air service rights (see items 52-56 below) and, if a
comparative proceeding proves necessary, remit an additional fee to
cover the additional cost (see item 57).
Schedule Item 52. Application for new, amended or renewed
certificate authority, comparative proceeding not required. Section
41101 of the Statute provides that an air carrier may perform air
transportation only if it holds a certificate of public convenience and
necessity authorizing the transportation. A processing fee for
applications under this item is warranted because in each instance of
new certificate authority, amendment to an extant authority, or
certificate renewal, the applicant is seeking the special benefit of
the Department's authorization to commence, change or continue revenue-
producing air transportation service.
The processing cost data collected under this schedule item do not
indicate a need for distinct processing fees among applications for
new, amended or renewed certificate authority. Therefore, we are
proposing a single fee as follows:
Direct Labor............................................... $6,306.10
Overhead................................................... 4,774.50
------------
Total Cost................................................. 11,050.60
============
Applications processed..................................... 17
Cost per application....................................... 650.04
Proposed fee, Item 52: per application..................... 650.00
Schedule Item 53. Application for new, renewal or amendment of
exemption authority, comparative proceeding not required. Section
40109(c) of the Statute provides that an air carrier may obtain an
exemption from section 41101 authorizing it to perform air
transportation without a certificate of public convenience and
necessity. A processing fee for this exemption authority is warranted
since, in each instance of new exemption authority, amended authority,
or exemption renewal, the applicant is seeking the special benefit of
the Department's authorization to commence, change or continue revenue-
producing air transportation without having a certificate of public
convenience and necessity.
As with applications for certificate authority (item 52, supra),
our processing cost data do not indicate a need for distinct fees among
new, amended and renewed exemption authority, and we are proposing the
following single fee:
Direct Labor............................................... $23,626.46
Overhead................................................... 18,036.22
------------
Total Cost................................................. 41,662.68
============
Applications processed..................................... 87
Cost per application....................................... 478.88
Proposed fee, Item 52: per application..................... 480.00
Schedule Item 54. Application for initial allocation of scheduled-
service
[[Page 3248]]
frequencies in limited-entry market, comparative proceeding not
required. Section 40105(b) of the Statute provides that the Department
shall, in carrying out Part A of the Statute, act consistently with
applicable international agreements. Some bilateral aviation agreements
limit the capacity of service, usually expressed in terms of number of
weekly flights or ``frequencies'' of various-sized aircraft that U.S.
air carriers may fly on the authorized routes. The Department must
allocate the available frequencies among applicant U.S. carriers and
establish the extent and duration of those allocations, taking public
interest considerations into account. Because the applicant for
scheduled-service frequencies is seeking the special benefit of the
Department's authorization to conduct revenue-producing air
transportation, a processing fee is warranted.
Our proposed fee for this schedule item is a follows:
Direct Labor............................................... $2,178.93
Overhead................................................... 1,600.09
------------
Total Cost................................................. 3,779.02
============
Applications processed..................................... 6
Cost per application....................................... 629.84
Proposed fee, Item 54: per application..................... 630.00
Schedule Item 55. Application for renewal of allocation of
scheduled-service frequencies in limited-entry market, comparative
proceeding not required. Initial allocations of limited scheduled-
service frequencies (item 54, supra) are made for finite terms,
typically one or two years, because of the need to weigh the effects of
any changes in market conditions. When the need for allocation
persists, limited-term allocations are renewed. Since the applicant for
frequency renewal seeks the special benefit of the Department's
approval to continue revenue-producing air transportation, a processing
fee is warranted. In contrast to the case of certificate or exemption
authority (items 52 and 53, supra), the cost of processing an
application for renewal of a frequency allocation is materially lower
than that for the initial frequency award. Accordingly, the proposed
fee for a renewal application is substantially lower:
Direct Labor............................................... $1,047.80
Overhead................................................... 769.95
------------
Total Cost................................................. 1,817.75
============
Applications processed..................................... 8
Cost per application....................................... 227.22
Proposed fee, Item 55: per application..................... 230.00
Schedule Item 56. Application for allocation of limited charter
flights, comparative proceeding not required. Section 40105(b) provides
that the Department shall, in carrying out Part A of the Statute, act
consistently with applicable international agreements. Some bilateral
aviation agreements limit, usually on a seasonal or annual basis, the
number of charter flights that may be operated. The Department must
allocate the available charters among applicant U.S. carriers before
each charter allocation period, balancing the applicants' expectations
against their historical performance and the need to reserve a portion
of the periodic allocation for emergencies or other unforeseen demand.
During the charter period, carriers must relinquish unused allocations,
and others may apply for additional flights. Since the applicant seeks
the special benefit of the Department's authorization to conduct
revenue-producing charter air transportation, a processing fee is
justified.
Our proposed fee for this schedule item is a follows:
Direct Labor............................................... $596.41
Overhead................................................... 458.14
------------
Total Cost................................................. 1,054.55
============
Applications processed..................................... 6
Cost per application....................................... 175.76
Proposed fee, Item 56: per application..................... 180.00
Schedule Item 57. Additional charge for an application for limited
authorities (Items 52-56 inclusive) when a comparative proceeding is
required. Schedule items 52-56 above apply to various forms of U.S.
carrier authority to serve foreign markets. As we describe earlier,
when applications exceed available rights, it falls to the Department
to conduct a comparative proceeding to determine the distribution of
those rights among applicants, resulting in significant additional
processing costs. It often is not known at the time of initial
application whether selection procedures will be required, because even
when rights are limited, the applications in aggregate may not exceed
the available rights. Therefore, we are proposing that each applicant
initially pay the fee applicable per items 52-56 above, and then remit
an additional fee with its first filing subsequent to the Department's
notice that a comparative proceeding is necessary.
Our proposed additional fee in the event of a comparative
proceeding is established as follows:
----------------------------------------------------------------------------------------------------------------
Cost per
Applications Total cost application
----------------------------------------------------------------------------------------------------------------
Carrier/gateway selection required.............................. 24 $95,266.01 $3,969.42
Selection not required (items 52-56)............................ 124 59,364.60 478.75
-----------------------------------------------
Incremental cost................................................ .............. .............. $3,490.67
===============================================
Proposed fee, Item 57: $3,490 per application
----------------------------------------------------------------------------------------------------------------
Schedule Item 58. Application to transfer foreign route/frequency
authority. Foreign route authority granted to a U.S. air carrier under
49 U.S.C. 41102 or 40109, along with any frequency allocation required
for its exercise, may not be transferred to another air carrier without
the Department's approval. A fee for processing an application for
transfer is warranted since the applicant is seeking the special
benefit of the Department's approval of an action needed by (1) the
transferee to engage in the revenue-producing air transportation under
the authority and (2) the transferor so that it may receive any
compensation provided for in the transfer agreement.
Our proposed fee for this item is calculated as follows:
Direct Labor............................................... $2,993.01
Overhead................................................... 2,061.49
------------
Total Cost................................................. 4,994.50
============
Applications processed..................................... 1
Cost per application....................................... 4,994.50
Proposed fee, Item 58: per application..................... 4,990.00
Code-Share, Wet-Lease, Transborder and Intermodal Authorizations:
Schedule Items 59-62
Schedule Item 59. Application for code-share Statement of
Authorization.
[[Page 3249]]
Schedule Item 60. Application for wet-lease Statement of
Authorization.
U.S. air carrier certificates issued under 49 U.S.C. 41102 and
foreign air carrier permits issued under 49 U.S.C. 41302 require that
code-share/wet-lease flights must be conducted in accordance with Part
212 of our rules. Part 212 provides that certain such arrangements
require specific prior approval in the form of a Statement of
Authorization, which the Department grants if it finds that approval
will be in the public interest. A processing fee is warranted because
the applicant is seeking the special benefit of the Department's
authorization to conduct an additional type of revenue-producing
operations in foreign air transportation.
While code shares and wet leases require the same form of
authorization and involve a similar special benefit, their application
processing costs differ materially. We therefore are proposing
different fees for schedule items 59 and 60, as follows:
Code Share
Direct Labor............................................... $15,820.70
Overhead................................................... 11,594.31
------------
Total Cost................................................. 27,415.01
============
Applications processed..................................... 25
Cost per resolution........................................ 1,096.60
Proposed fee, Item 59: per application..................... 1,100.00
Wet Lease
Direct Labor............................................... 2,679.05
Overhead................................................... 2,084.40
------------
Total Cost................................................. 4,763.45
============
Applications processed..................................... 16
Cost per application....................................... 297.72
Proposed fee, Item 60: per application..................... 300.00
Schedule Item 61. [Reserved.]
Schedule Item 62. Application for Statement of Authorization to
conduct intermodal services provided for in bilateral agreement. Part
222 of the Department's regulations provides that a foreign air
carrier, whose homeland government has executed an agreement with the
United States exchanging air freight intermodal rights, may obtain
authorization to perform such services in the United States by applying
to the Office of International Aviation. (Part 222 also provides that a
foreign air carrier seeking such authority not covered by a bilateral
agreement must apply for an exemption under 49 U.S.C. 40109, in which
instance the application is processed under schedule item 53, exemption
authority, above.) The Department grants an intermodal statement of
authorization if it will be in the public interest. An application
processing fee is warranted because the applicant is seeking the
special benefit of the Department's authorization to conduct revenue-
producing operations in foreign air transportation.
Our proposed fee for this item is calculated as follows:
Direct Labor............................................... $488.35
Overhead................................................... 390.82
------------
Total Cost................................................. 879.17
============
Applications processed..................................... 3
Cost per application....................................... 293.06
Proposed fee, Item 62: per application..................... 290.00
Regulation of Tariffs and Rates: Schedule Items 63-69
Schedule Item 63. Approval of inter-carrier agreement(s), agreement
type To and/or from the U.S.
Schedule Item 64. Approval of inter-carrier agreement(s), agreement
type Foreign-to-foreign.
Schedule Item 65. Approval of inter-carrier agreement(s), Technical
correction. Section 41309 of the Statute provides for the filing of
inter-carrier agreements with the Department for approval and
consequent grant of antitrust immunity. The Department's implementing
regulations (14 CFR Part 303) require carriers seeking approval of an
inter-carrier agreement to submit and have approved by the Department
an application in the manner prescribed by the regulation. A processing
fee for such applications is justified since the applicant is seeking
the special benefit of the Department's approval of immunity from the
antitrust laws of the United States.
Our proposed fees for schedule items 63, 64 and 65, shown below,
reflect differences in their respective processing costs. The fee for
item 63 and 64 is per resolution while that for item 65 is per
application.
To/from U.S.
Direct Labor............................................... $10,502.46
Overhead................................................... 7,722.49
------------
Total Cost................................................. 18,224.95
============
Resolutions processed...................................... 216
Cost per resolution........................................ 84.37
Proposed fee, Item 63: per resolution...................... 84.00
Foreign-to-foreign
Direct Labor............................................... 1,080.05
Overhead................................................... 864.35
------------
Total Cost................................................. 1,944.40
============
Resolutions processed...................................... 417
Cost per resolution........................................ 4.66
Proposed fee, Item 64: per resolution...................... 5.00
Technical correction
Direct Labor............................................... 195.36
Overhead................................................... 156.34
------------
Total Cost................................................. $351.70
============
Applications processed..................................... 23
Cost per application....................................... 15.29
Proposed fee, Item 65: per application..................... 15.00
Schedule Item 66. Application for an exemption under 49 U.S.C.
40109 to carry traffic not otherwise authorized under tariffs in
effect. Under section 41504 of the Statute and section 221.3 of the
Department's regulations, air carriers and foreign air carriers are
required to file tariffs for scheduled foreign air transportation of
persons, and may carry such traffic only for the prices stated in those
tariffs. When a carrier wishes to carry revenue traffic for which it
does not have an effective tariff on file, or wishes to carry such
traffic at a price other than that in its applicable tariff, it must
obtain an exemption from the Department under section 40109 of the
Statute. A processing fee is warranted since the applicant for this
exemption seeks the special benefit of the Department's authorization
to conduct revenue-producing foreign air transportation not otherwise
authorized by a tariff in effect.
No applications under this schedule item were processed during the
cost-collection period, and we have no other basis to propose a
modification of the current fee or to assume that fee costs have
changed. Accordingly, the current fee of $53 per Application is
retained.
Schedule Item 67. Application for permission to file tariffs on
less than statutory notice. Section 41504 of the Statute and section
221.160 of the regulations provide that required tariffs are to be
filed a certain number of days before those tariffs can take effect.
Under Subpart P of the regulations, however, carriers may request
permission to have their tariffs take effect in less than the
statutorily required notice period. A processing fee is warranted since
the applicant for this Special Tariff Permission seeks the special
benefit of the Department's authorization to implement tariffs on
shorter notice than statutorily required.
The basis of our proposed fee for this item is as follows:
Direct Labor............................................... $2,124.07
Overhead................................................... 1,700.04
------------
Total Cost................................................. 3,824.11
============
Applications processed..................................... 95
Cost per application....................................... 40.25
Proposed fee, Item 67: per application..................... 40.00
Schedule Item 68. Application for approval of waiver/modification
of tariff regulations. Section 221.200 of the regulations provides that
air carriers and
[[Page 3250]]
foreign air carriers may apply to the Department for a waiver or
modification of the requirements contained in part 221 (Tariffs). An
application processing fee for such waiver or modification is warranted
since the applicant seeks the special benefit of the Department's
approval for relief from provisions of the requirements regulating
tariffs.
No applications under this schedule item were processed during the
cost-collection period, and we have no other basis to propose a change
in the current fee or to assume that fee costs have changed.
Accordingly, the current fee of $12 per Application is retained.
Schedule Item 69. Application for provision of certified copies of
tariff material upon request (with DOT seal). Section 389.15 of the
regulations provides that certified copies of tariffs filed with the
Department will be provided upon request. Certification of these data
are required in civil cases in order for parties to formally submit air
carrier tariff provisions involving charges and conditions of carriage
in international air transportation officially filed with the
Department. A fee for providing this service is warranted because of
the special benefit to the applicant of having certified copies of
officially filed tariff material for use in legal proceedings.
The basis of our proposed fee is as follows:
Direct Labor............................................... $807.58
Overhead................................................... 646.30
------------
Total Cost................................................. 1,453.88
============
Applications processed..................................... 6
Cost per application....................................... 242.31
Proposed fee, Item 69: per application..................... 240.00
Other Exemptions and Authorizations: Schedule Items 70-76
Schedule Item 70. Application for an exemption for slots at a slot-
controlled airport. Under section 41714 of the Statute, an air carrier
may apply to the Department for an exemption from 14 CFR Part 93,
Subparts K and S (the High Density Rule), in order for the carrier to
increase its number of operations (takeoff or landing ``slots'') at
JFK, La Guardia, and/or O'Hare airports (Reagan National also is slot
controlled, but is excluded from the exemption). Recognizing that air
carriers may be restrained from entering markets as consequence of slot
restrictions, the Congress provided the exemption mechanism as a way to
increase air carrier access at three of the four slot-controlled
airports. A processing fee for a slot exemption application is
justified since the applicant is seeking the special benefit of the
Department's authorization enabling access to takeoff and landing
rights that otherwise would not be available.
Our proposed fee for this item is based on the following:
Direct Labor............................................... $11,155.93
Overhead................................................... 6,211.62
------------
Total Cost................................................. 17,367.55
============
Applications processed..................................... 4
Cost per application....................................... 4,341.89
Proposed fee, Item 70: per application..................... 4,340.00
Schedule Item 71. Motion for confidential treatment of documents.
Section 302.39 of the Department's Procedural Regulations sets forth
the procedures that an applicant or other party must follow in seeking
the Department's concurrence to withhold certain information from
public disclosure in the context of a Departmental proceeding. A
processing fee for this item is justified since the applicant is
seeking the special benefit of the Department's approval to withhold
sensitive information.
Our proposed fee for this item is determined as follows:
Direct Labor............................................... $499.57
Overhead................................................... 253.37
------------
Total Cost................................................. 752.94
============
Applications processed..................................... 2
Cost per application....................................... 376.47
Proposed fee, Item 71: per application..................... 380.00
Schedule Item 72. Application for approval of and antitrust
immunity for inter-carrier agreements. Under sections 41308 and 41309
of the Statute, air carriers and foreign air carriers may seek approval
of antitrust immunity for agreements and activities with common
business objectives. Applicants seek the benefit of this immunity in
order to protect themselves from lawsuits alleging behavior normally
not permitted under the antitrust laws. A processing fee is warranted
since the applicant is seeking the special benefit of the Department's
approval of immunity from antitrust enforcement.
No applications under this schedule item were concluded during the
cost-collection period, and we have no other basis to propose a change
in the current fee or to assume that fee costs have changed.
Accordingly, the current fee of $1,080 per Application is retained.
Schedule Item 73. [Reserved.]
Schedule Item 74. [Reserved.]
Schedule Item 75. Petition for a change in mail rates. Section
41901 of the Statute provides that the United States Postal Service or
a certificated air carrier may file a petition with the Department to
change the mail rates set by the Department to be paid by the Postal
Service to U.S. air carriers for the carriage of U.S. mail between the
United States and foreign countries and/or within the State of Alaska.
A fee for processing a petition is warranted since the petitioner is
seeking the special benefit of the Department's approval to change
existing mail rates.
No applications under this schedule item were processed during the
cost-collection period, and we have no other basis to propose a change
in the current fee or to assume that fee costs have changed.
Accordingly, the current fee of $420 per Application is retained.
Schedule Item 76. Application for overseas military personnel
charter operator authority. Under Part 372 of the Department's
regulations, any U.S. citizen desiring to operate as an overseas
military personnel charter operator may apply to the Department for
operating authority. If granted this authority, the operator is
relieved from provisions of section 41102 of the Statute for the
purpose of enabling the operator to provide overseas military personnel
charters utilizing aircraft chartered from direct air carriers or
foreign air carriers. A processing fee is warranted since the applicant
is seeking the special benefit of the Department's permission to
advertise, organize, provide, sell and/or offer to sell overseas
military personnel charters.
No applications under this schedule item were processed during the
cost-collection period, nor has the Department had occasion to process
any such applications for several years. Absent evidence of a cost
change, the current fee of $665 per Application is retained.
[FR Doc. 99-1233 Filed 1-20-99; 8:45 am]
BILLING CODE 4910-62-P
