95-20502. Aviation Economic Rules  

  • [Federal Register Volume 60, Number 162 (Tuesday, August 22, 1995)]
    [Rules and Regulations]
    [Pages 43521-43531]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-20502]
    
    
    
    -----------------------------------------------------------------------
    
    DEPARTMENT OF TRANSPORTATION
    Office of the Secretary
    
    14 CFR Parts 200, 201, 203, 204, 206, 215, 232, 271, 272, 291, 294, 
    296, 297, 298, 300, 313, 324, 325, 372, 379, 398, and 399
    
    [Docket No. OST-95-397]
    RIN 2105-AC-27
    
    
    Aviation Economic Rules
    
    AGENCY: Department of Transportation, Office of the Secretary.
    
    ACTION: Final rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: The Department is amending various provisions regarding 
    aviation economic rules in order to eliminate obsolete provisions and 
    correct outdated organizational and statutory references.
    
    EFFECTIVE DATE: The rule shall become effective on September 21, 1995.
    
    FOR FURTHER INFORMATION CONTACT: Carol A. Woods, Air Carrier Fitness 
    Division, X-56, Department of Transportation, 400 Seventh Street, S.W., 
    Washington, DC 20590, (202) 366-9721.
    
    SUPPLEMENTARY INFORMATION: In his Regulatory Reinvention Initiative 
    Memorandum of March 4, 1995, President Clinton directed Federal 
    agencies to conduct a page-by-page review of all of their regulations 
    and to ``eliminate or revise those that are outdated or otherwise in 
    need of reform.'' In response to that directive, the Department has 
    undertaken a review of its aviation economic regulations as contained 
    in 14 CFR Chapter II. This rule is one result of those efforts. 
    Subsequent rulemakings will address other regulations.
        We had conducted a review of a number of our aviation economic 
    regulations in 1992 and eliminated Parts 202, 231, 263, 288 and 292 and 
    revised Parts 200, 201, 203, 204, 206, 232, 291, 294, 296, 297, 298, 
    and 372 at that time (see 57 FR 38761, Aug. 27, 1992, and 57 FR 40097, 
    Sept. 2, 1992). We reexamined the rules we revised in 1992 as part of 
    our current regulatory review and found that they and a number of other 
    regulations (including Parts 215, 271, 272, 300, 313, and 398) now 
    require only minor changes to eliminate obsolete provisions and to 
    correct outdated titles of Department organizations and officials, and 
    definitions and other terminology necessitated by legislative changes, 
    including the revision and recodification of the Federal Aviation Act 
    within Subtitle VII of Title 49 of the United States Code 
    (Transportation) by action of Pub. L. 103-272, enacted July 5, 1994.
        Part 398 is being amended in order to incorporate the service 
    upgrades for ``basic'' essential air service contained in the Airport 
    and Airway Safety and Capacity Expansion Act of 1987 (Pub. L. 100-223, 
    December 30, 1987). In general, the upgrades consist of (a) service 
    with 15-seat or larger aircraft, (b) service with pressurized aircraft 
    in cases where such service is regularly operated at altitudes 
    exceeding 8,000 feet, (c) service to a large or medium hub, (d) service 
    with no more than one intermediate stop, (e) seating capacity based on 
    an average load factor of 60 percent, and (f) a provision that flights 
    be operated at reasonable times, taking into account the needs of 
    passengers with connecting flights. The Department actually implemented 
    the required upgrades during Fiscal Year 1992 when Congress 
    appropriated the necessary program funds. We are now formalizing those 
    requirements in the Department's regulations. Finally, Pub. L. 100-223 
    also contained provisions for a higher level of service called 
    ``enhanced'' essential air service. Because ``enhanced'' service has 
    not been funded or implemented, however, we are not incorporating its 
    provisions within Part 398 at this time.
        In addition, Parts 324 and 379, and several sections in Parts 325 
    and 399 are being eliminated due to obsolescence.
        Part 324 contains procedures for establishing final subsidy rates 
    for air carriers providing temporary, compulsory service at small 
    communities under 49 U.S.C. 41734 in cases where the rates would be 
    applied retroactively--i.e., when the period of compulsory service has 
    already begun or has concluded. Part 324 was established to compensate 
    carriers for losses after the fact. Subsequent revision of the 
    governing statute, however, permits the Department to establish such 
    compensation prospectively under the existing provisions contained in 
    14 CFR Part 271 at the beginning of the period of compulsory service. 
    Because the Department now practices prospective ratemaking routinely, 
    Part 324 is no longer necessary and is being eliminated.
        Part 325 contains general guidelines for the Department's 
    establishment of communities' essential air service determinations 
    under 49 U.S.C. 41733. We are eliminating Sec. 325.7 through 
    Sec. 325.9, which establish a three-member panel and special procedures 
    for handling appeals. That process has become increasingly unwieldy and 
    unresponsive. Without the appeal process, communities can directly seek 
    review of such Department actions under Sec. 302.37--Petitions for 
    Reconsideration or Review by the DOT Decisionmaker. We expect that this 
    change will considerably improve the Department's response time by 
    streamlining the process and removing a bureaucratic layer between 
    communities and the DOT decisionmaker.
        Part 379 was established by the CAB to ensure that no person, on 
    the grounds of race, color or natural origin, would be excluded from 
    participation in, be denied the benefits of, or be otherwise subjected 
    to discrimination under any program or activity receiving federal 
    financial assistance from the CAB. The Civil Aeronautics Board Sunset 
    Act of 1984 (P.L. 98-443) transferred that agency's remaining authority 
    to the Department as of January 1, 1985. The CAB regulations 
    implementing Title VI of the Civil Rights Act of 1964 were virtually 
    identical to those implemented by the Department under 49 CFR Part 21. 
    Under the circumstances, the old CAB regulations are redundant, and 
    Part 379 is being eliminated.
        We are also removing three sections of Part 399 (Secs. 399.20, .38, 
    and .90) that are no longer needed. Section 399.20 is a policy 
    statement issued by the CAB covering procedures for processing 
    applications of long-haul general commodities motor carriers and 
    railroads for authorization to act as air freight forwarders. U.S. 
    companies proposing to operate as air freight forwarders are no longer 
    required to file applications for such authority, in accordance with 
    the blanket exemption granted by Sec. 296.10. Foreign companies 
    proposing to act as air freight forwarders file applications that are 
    processed in accordance with Part 297. Therefore, Sec. 399.20 may be 
    removed. Section 399.38 concerns the establishment of temporary subsidy 
    rates for air carriers serving small communities under 49 U.S.C. 41734 
    in cases where subsidy 
    
    [[Page 43522]]
    payments are deemed necessary for the continuation of service until 
    final rates are estabished at a later date. As a practical matter, the 
    Department now routinely establishes all rates as final. Therefore, 
    section 399.38 is no longer necessary. Section 399.90 states the CAB's 
    policy on making public interest determinations concerning non-
    transport activities of air carriers that received mail transport 
    subsidy under former section 406 of the Federal Aviation Act. Carriers 
    no longer receive subsidy for transporting mail; therefore, the 
    Department no longer makes public interest determinations concerning 
    their non-transport activities. Section 399.90 can thus be eliminated.
        We have also identified certain regulations that require 
    substantive revision (including Parts 205, 207, 208, 212, 302, 323, 
    380, and 385), which will be treated in separate rulemakings in the 
    near future.
    
    Executive Order 12866 (Regulatory Planning and Review)
    
        The Department has analyzed the economic and other effects of the 
    proposed amendment and has determined that they are not ``significant'' 
    within the meaning of Executive Order 12866. The amendment 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. It will not create a serious inconsistency or otherwise 
    interfere with an action taken or planned by another agency, and it 
    will not materially alter the budgetary impact of entitlements, grants, 
    user fees, or loan programs or the rights and obligations of recipients 
    thereof. Nor does it 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. Therefore, a regulatory impact analysis 
    is not required.
    
    DOT Regulatory Policies and Procedures
    
        The amendments 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 eliminating obsolete 
    requirements, correcting out-of-date references, and enhancing the 
    organization of the regulations used by the Department to administer 
    its aviation economic regulatory functions. The Department has also 
    determined that the economic effects of the amendment are so minimal 
    that a full regulatory evaluation is not required.
    Regulatory Flexibility Act
    
        In accordance with the Regulatory Flexibility Act, the Department 
    has evaluated the effects of this action on small entities. For 
    purposes of its aviation economic regulations, Departmental policy 
    categorizes air carriers operating small aircraft (60 seats or less or 
    18,000 pounds maximum payload or less) as small entities for purposes 
    of the Regulatory Flexibility Act. Based upon this evaluation, the 
    Department certifies that the amendment would not have a significant 
    economic impact on a substantial number of small entities.
    
    Executive Order 12612 (Federalism)
    
        These amendments have been analyzed in accordance with the 
    principles and criteria contained in Executive Order 12612. The 
    Department has determined that the amendments do not have sufficient 
    federalism implications to warrant the preparation of a Federalism 
    Assessment. The amendments will not have a substantial direct effect on 
    the States, on the relationship between the national government and the 
    States, or on the distribution of power and responsibilities among the 
    various levels of government.
    
    National Environmental Policy Act
    
        The Department has also analyzed the amendments for the purpose of 
    the National Environmental Policy Act. The amendments will not have any 
    significant impact on the quality of the human environment.
    
    Paperwork Reduction Act
    
        There are no reporting or recordkeeping requirements associated 
    with the amendments.
    
    Notice and Opportunity for Public Comment Unnecessary
    
        Under the Administrative Procedure Act (5 U.S.C. Sec. 553), the 
    Department determines that notice and an opportunity for public comment 
    are impracticable, unnecessary, and contrary to the public interest. 
    The amendments made in this document are ministerial, removing obsolete 
    and redundant material or making minor technical and terminology 
    changes. These changes will have no substantive impact, and the 
    Department would not anticipate receiving meaningful comments on them. 
    Comment is therefore unnecessary, and it would be contrary to the 
    public interest to delay unnecessarily this effort to eliminate or 
    revise outdated rules.
    
    List of Subjects
    
    14 CFR Part 200
    
        Air transportation.
    
    14 CFR Part 201
    
        Air carriers, Reporting and recordkeeping requirements.
    
    14 CFR Part 203
    
        Air carriers, Air transportation, Foreign relations, Insurance, 
    Reporting and recordkeeping requirements.
    
    14 CFR Part 204
    
        Air carriers, Reporting and recordkeeping requirements.
    
    14 CFR Part 206
    
        Air carriers, Emergency medical services, News media.
    
    14 CFR Part 215
    
        Air carriers, Reporting and recordkeeping requirements, Trade names
    
    14 CFR Part 232
    
        Administrative practice and procedure, Air carriers, Postal 
    Service.
    
    14 CFR Part 271
    
        Air carriers, Grant programs--transportation.
    
    14 CFR Part 272
    
        Air carriers, Grant programs--transportation, Pacific Islands Trust 
    Territory.
    
    14 CFR Part 291
    
        Administrative practice and procedure, Air carriers, Reporting and 
    recordkeeping requirements.
    
    14 CFR Part 294
    
        Air taxis, Canada, Charter flights, Reporting and recordkeeping 
    requirements.
    
    14 CFR Parts 296 and 297
    
        Air carriers, Freight forwarders.
    
    14 CFR Part 298
    
        Air taxis, Alaska, Canada, Insurance, Reporting and recordkeeping 
    requirements.
    
    14 CFR Part 300
    
        Administrative practice and procedure, Conflict of interests.
    
    14 CFR Part 313
    
        Air carriers, Energy conservation.
    
    14 CFR Part 324
    
        Administrative practice and procedure, Air carriers, Grant 
    
    [[Page 43523]]
        programs--transportation, Reporting and recordkeeping requirements.
    
    14 CFR Part 325
    
        Administrative practice and procedure, Air transportation, 
    Intergovernmental relations, Reporting and recordkeeping requirements.
    
    14 CFR Part 372
    
        Charter flights, Military air transportation, Reporting and 
    recordkeeping requirements, Surety bonds.
    
    14 CFR Part 379
    
        Administrative practice and procedure, Civil rights.
    
    14 CFR Part 398
    
        Air transportation.
    
    14 CFR Part 399
    
        Administrative practice and procedure, Air carriers, Air rates and 
    fares, Air taxis, Consumer protection, Small businesses.
    
    Final Rule
    
        For the reasons set out in the preamble, Title 14, Chapter II of 
    the Code of Federal Regulations is amended as follows:
    
    PART 200--[AMENDED]
    
        1. The authority citation for part 200 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. Chapters 401, 411, 413, 415, 417, 461.
    
    
    Sec. 200.1  [Amended]
    
        2. In Sec. 200.1 introductory text and in paragraphs (d) and (e), 
    remove the word ``Act'' and add, in its place, the word ``Statute''; 
    add new paragraphs (f) and (g) to read as follows:
    
    
    Sec. 200.1  Terms and definitions.
    
    * * * * *
        (f) Statute when used in this chapter means Subtitle VII of Title 
    49 of the United States Code (Transportation).
        (g) FAA means the Federal Aviation Administration, U.S. Department 
    of Transportation.
    
    PART 201--AIR CARRIER AUTHORITY UNDER SUBTITLE VII OF TITLE 49 OF 
    THE UNITED STATES CODE--[AMENDED]
    
        3. The heading of part 201 is revised to read as set forth above.
        4. The authority citation for part 201 is revised to read as 
    follows:
    
        Authority: 5 U.S.C. 1008; 49 U.S.C. Chapters 401, 411, 413, 415, 
    417.
    
    
    Sec. 201.1  [Amended]
    
        5. In Sec. 201.1(a), remove the words ``section 401 of the Federal 
    Aviation Act and for domestic all-cargo air service certificates under 
    section 418 of the Act, or amendments thereof,'' and add, in their 
    place, the words ``section 41102 of the Statute and for interstate all-
    cargo air transportation certificates under section 41103 of the 
    Statute''.
    
    
    Sec. 201.4  [Amended]
    
        6. In Sec. 201.4(c), remove the words ``and overseas''; remove the 
    words ``section 401'' where they appear twice, and add, in their place, 
    the words ``section 41102 of the Statute''; remove the words ``domestic 
    all-cargo air transportation under section 418'' and add, in their 
    place, the words ``interstate all-cargo air transportation under 
    section 41103 of the Statute''.
    
    
    Sec. 201.6  [Amended]
    
        7. In Sec. 201.6, remove the words ``section 401 or section 418 of 
    the Act'' and add, in their place, the words ``section 41102 or section 
    41103 of the Statute''.
    
    
    Sec. 201.7  [Amended]
    
        8. In Sec. 201.7(a), remove the words ``title IV of the Act'' and 
    add, in its place, the word ``Statute''; remove the words ``section 
    401(g) of the Act'' and add, in their place, the words ``section 41110 
    of the Statute''.
        9. In Sec. 201.7(d), remove the word ``service'' and add, in its 
    place, the word ``transportation''; remove the word ``domestic'' and 
    add, in its place, the word ``interstate''.
        10. In Sec. 201.7(e), remove the words ``Regulatory Analysis 
    Division'' and add, in their place, the words ``Special Authorities 
    Division''.
    
    PART 203--[AMENDED]
    
        11. The authority citation for part 203 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. Chapters 401, 411, 413, 415, 417.
    
    
    Sec. 203.3  [Amended]
    
        12. In Sec. 203.3, remove the words ``Regulatory Analysis 
    Division'' and add, in their place, the words ``Special Authorities 
    Division''.
    
    PART 204--[AMENDED]
    
        13. The authority citation for part 204 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. Chapters 401, 411, 417.
    
    
    Sec. 204.1  [Amended]
    
        14. In Sec. 204.1 remove the word ``point'' and add, in its place, 
    the word ``place''.
        15. and 16. In Sec. 204.2, paragraphs (a), (f), and (i) are 
    removed; paragraphs (e), (k), (l), (m), (n), and (o) are redesignated 
    paragraphs (d), (i), (j), (k), (l), and (m), respectively; paragraphs 
    (b), (c), (d), (g), (h), and (j) are redesignated paragraphs (a), (b), 
    (c), (e), (f), and (g), respectively, and revised and paragraph (h) is 
    added to read as follows:
    
    
    Sec. 204.2  Definitions.
    
    * * * * *
        (a) All-cargo air carrier or section 41103 carrier means an air 
    carrier holding an all-cargo air transportation certificate issued 
    under section 41103 of the Statute authorizing the transportation by 
    aircraft in interstate air transportation of only property or only 
    mail, or both.
        (b) Certificate authority means authority to provide air 
    transportation granted by the Department of Transportation or Civil 
    Aeronautics Board in the form of a certificate of public convenience 
    and necessity under section 41102 of the Statute or an all-cargo air 
    transportation certificate to perform all-cargo air transportation 
    under section 41103 of the Statute. Certificated carriers are those 
    that hold certificate authority.
        (c) Citizen of the United States means:
        (1) An individual who is a citizen of the United States;
        (2) A partnership each of whose partners is an individual who is a 
    citizen of the United States; or
        (3) A corporation or association organized under the laws of the 
    United States or a State, the District of Columbia, or a territory or 
    possession of the United States, of which the president and at least 
    two-thirds of the board of directors and other managing officers are 
    citizens of the United States, and in which at least 75 percent of the 
    voting interest is owned or controlled by persons that are citizens of 
    the United States.
    * * * * *
        (e) Eligible place means a place in the United States that--
        (1) Was an eligible point under section 419 of the Federal Aviation 
    Act of 1958 as in effect before October 1, 1988;
        (2) Received scheduled air transportation at any time between 
    January 1, 1990, and November 4, 1990; and
        (3) Is not listed in Department of Transportation Orders 89-9-37 
    and 89-12-52 as a place ineligible for compensation under Subchapter II 
    of Chapter 417 of the Statute.
        (f) Essential air service is that air transportation which the 
    Department has found to be essential under 
    
    [[Page 43524]]
    Subchapter II of Chapter 417 of the Statute.
        (g) Fit means fit, willing, and able to perform the air 
    transportation in question properly and to conform to the provisions of 
    the Statute and the rules, regulations and requirements issued under 
    the Statute.
        (h) Interstate air transportation means the transportation of 
    passengers or property by aircraft as a common carrier for 
    compensation, or the transportation of mail by aircraft--
        (1) Between a place in--
        (i) A State, territory, or possession of the United States and a 
    place in the District of Columbia or another State, territory, or 
    possession of the United States;
        (ii) Hawaii and another place in Hawaii through the airspace over a 
    place outside Hawaii;
        (iii) The District of Columbia and another place in the District of 
    Columbia; or
        (iv) A territory or possession of the United States and another 
    place in the same territory or possession; and
        (2) When any part of the transportation is by aircraft.
    * * * * *
    
    
    Sec. 204.3  [Amended]
    
        17. In Sec. 204.3(o), remove the word ``Act'' both times it appears 
    and add, in its place, the word ``Statute''.
        18. The heading of Sec. 204.4 is revised to read as follows:
    
    
    Sec. 204.4  Carriers proposing to provide essential air service.
    
    
    Sec. 204.4  [Amended]
    
        19. In Sec. 204.4 introductory text, remove the word 
    ``transportation'' and add, in its place, the word ``service''.
    
    PART 206--[AMENDED]
    
        20. The authority citation for part 206 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. Chapters 401, 415, 417, 419.
    
    
    Sec. 206.1  [Amended]
    
        21. In Sec. 206.1, remove the words ``section 401(a) of the Act'' 
    and add, in their place, the words ``section 41101 of the Statute''; 
    remove the words ``section 403 of the Act'' and add, in their place, 
    the words ``Chapter 415 of the Statute''.
    
    
    Sec. 206.2  [Amended]
    
        22. In Sec. 206.2, remove the words ``the first sentence of section 
    405(b) of the Act'' and add, in their place, the words ``section 
    41902(b) of the Statute''.
    
    
    Sec. 206.3  [Amended]
    
        23. In Sec. 206.3, remove the words ``sections 401(a) and 403 of 
    the Act'' and add, in their place, the words ``section 41101 and 
    Chapter 415 of the Statute''.
    
    
    Sec. 206.4  [Amended]
    
        24. In Sec. 206.4, remove the words ``section 403 of the Act'' and 
    add, in their place, the words ``Chapter 415 of the Statute''.
    
    
    Sec. 206.5  [Amended]
    
        25. In Sec. 206.5(a) introductory text, remove the words ``section 
    401 of the Act'' and add, in their place, the words ``section 41102 of 
    the Statute''; remove the words ``requirements of the Act'' and add, in 
    their place, the words ``requirements of the Statute''; remove the 
    words ``section 407 of the Act'' and add, in their place, the words 
    ``section 41708 of the Statute''.
        26. In Sec. 206.5(b), remove the words ``section 403 or section 
    404(b) of the Act'' and add, in their place, the words ``Chapter 415 or 
    section 41310 of the Statute''.
    
    PART 215--[AMENDED]
    
        27. The authority citation for part 215 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. Chapters 401, 411, 413, 417.
    
    PART 232--[AMENDED]
    
        28. The authority citation for part 232 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. Chapters 401, 419.
    
    
    Sec. 232.1  [Amended]
    
        29. In Sec. 232.1 (a) and (b) introductory text, remove the words 
    ``section 405(b) of the Act'' and add, in their place, the words 
    ``section 41902 of the Statute''.
    
    
    Sec. 232.4  [Amended]
    
        30. In Sec. 232.4 (a) and (b) introductory text, remove the words 
    ``section 405(b) of the Act'' and add, in their place, the words 
    ``section 41902 of the Statute''.
    
    PART 271--[AMENDED]
    
        31. The authority citation for part 271 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. Chapters 401, 417.
    
    
    Secs. 271.3, 271.4, 271.5, 271.6, 271.7, 271.8  [Amended]
    
        32. In Secs. 271.3 introductory text, 271.4(a)(4)(ii), 271.4(b), 
    271.5(a)(2), 271.7(a), 271.8(a) introductory text, and 271.8(a)(3), 
    remove the word ``Board'' and add, in its place, the word 
    ``Department''.
    
    
    Secs. 271.3, 271.4, 271.5, 271.6, 271.8  [Amended]
    
        33. In Secs. 271.3 introductory text, 271.3(c), 271.4(a) 
    introductory text, 271.4(a)(4), 271.5(a) introductory text, 271.6, and 
    271.8(c), remove the word ``transportation'' and add, in its place, the 
    word ``service''.
    
    
    Secs. 271.3, 271.4, 271.5, 271.6, 271.7, 271.8  [Amended]
    
        34. In Secs. 271.3 introductory text, 271.3(a), 271.3(b), 271.3(c), 
    271.3(d), 271.4(a) introductory text, 271.4(a)(2)(i), 271.4(a)(4) 
    introductory test where it appears twice, 271.4(a)(4)(ii), 271.5(a) 
    introductory text, 271.5(a)(1), 271.5(a)(2), 271.6, 271.7(b)(1), 
    271.8(a)(1), 271.8(a)(2), 271.8(a)(4), and 271.8(c), remove the word 
    ``point'' and add, in its place, the word ``place''.
        35. Section 271.1 is revised to read as follows:
    
    
    Sec. 271.1  Purpose.
    
        This part establishes the guidelines required by 49 U.S.C. 41736 to 
    be used by the Department in establishing the fair and reasonable 
    amount of compensation needed to ensure the continuation of essential 
    air service to an eligible place under 49 U.S.C. 41731 and 41734. These 
    guidelines are intended to cover normal carrier selection cases and 
    rate renewal cases, and not necessarily emergency carrier selection 
    cases.
        36. Section 271.2 is revised to read as follows:
    
    
    Sec. 271.2  Definitions.
    
        As used in this part:
        Eligible place means a place in the United States that--
        (1) Was an eligible point under section 419 of the Federal Aviation 
    Act of 1958 as in effect before October 1, 1988;
        (2) Received scheduled air transportation at any time between 
    January 1, 1990, and November 4, 1990; and
        (3) Is not listed in Department of Transportation Orders 89-9-37 
    and 89-12-52 as a place ineligible for compensation under Subchapter II 
    of Chapter 417 of the Statute.
        Essential air service is that air transportation which the 
    Department has found to be essential under Subchapter II of Chapter 417 
    of the Statute.
    
    
    Sec. 271.4  [Amended]
    
        37. In Sec. 271.4(a)(1)(i), remove the word ``historic'' and add, 
    in its place, the word ``historical''.
        38. Paragraph (a)(2)(ii) of Sec. 271.4 is revised to read as 
    follows:
    
    
    Sec. 271.4  Carrier costs.
    
        (a) * * *
        (2) * * *
        (ii) By comparing the carrier's systemwide indirect operating 
    expenses 
    
    [[Page 43525]]
    to those submitted by the carrier for the eligible place; or
    * * * * *
        39. Paragraph (c) of Sec. 271.4 is removed.
    
    
    Sec. 271.6  [Amended]
    
        40. In Sec. 271.6, remove the words ``not more than''.
        41. In Sec. 271.7, the introductory text of paragraph (b) is 
    revised to read as follows:
    
    
    Sec. 271.7  Subsidy payout formula.
    
        (a) * * *
        (b) While a carrier's subsidy rate will not vary even if actual 
    revenues or costs differ from projections, the actual amount of each 
    payment may vary depending on the following factors:
    * * * * *
    
    
    Sec. 271.7  [Amended]
    
        42. In Sec. 271.7(b)(3), remove the words ``Sec. 271.4(c) or''.
        43. In Sec. 271.7, paragraph (c) is removed; paragraph (d) is 
    redesignated paragraph (c).
    
    
    Sec. 271.8  [Amended]
    
        44. In Sec. 271.8(a)(5), correct the word ``othe'' to read 
    ``other''.
    
    
    Sec. 271.9  [Amended]
    
        45. In Sec. 271.9(a)(2), remove the words ``part 379 of this 
    chapter'' and add, in their place, the words ``49 CFR part 21''.
        46. In Sec. 271.9(a)(3), after the number ``1973'' add the 
    punctuation and words ``, 49 CFR part 27,''.
        47. In Sec. 271.9(c), remove the words ``Secs. 379.4 and 382.21'' 
    and add, in their place, the words ``49 CFR parts 20, 21, 27 and 29, 
    and Sec. 382.21''.
    
    PART 272--ESSENTIAL AIR SERVICE TO THE FREELY ASSOCIATED STATES
    
        48. The heading of part 272 is revised to read as set forth above.
    
    PART 272--[AMENDED]
    
        49. The authority citation for part 272 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. Chapters 401, 402, 416, 461, 1102; sec. 
    221(a)(5) of the Compact of Free Association, and paragraph 5 of 
    Article IX of the Federal Programs and Services Agreement in 
    implementation of that Compact (Pub. L. 99-239; Pub. L. 99-658); 
    Pub. L. 101-219.
    
    
    Secs. 272.1-272.10, 272.12  [Amended]
    
        50. In Secs. 272.1 where it occurs the second time, 272.2 where it 
    occurs twice, 272.3 section title, 272.3(a), 272.4, 272.5 section 
    title, 272.5(a), 272.5(b), 272.6 section title, 272.6(a) introductory 
    text, 272.6(b) where it occurs the first time, 272.6(c), 272.7(a)(1), 
    272.7(a)(2) where it occurs twice, 272.8(a) where it occurs three 
    times, 272.8(c), 272.8(d), 272.9 section title, 272.9(a) where it 
    occurs twice, 272.9(b) where it occurs twice, 272.9(c), 272.9(d), 
    272.9(e), 272.9(f) introductory text, 272.9(f)(1), 272.9(f)(2) where it 
    occurs twice, 272.9(g), 272.9(h) introductory text, 272.9(h)(2), 
    272.9(h)(3), 272.9(h)(5)(i) where it occurs twice, 272.10(a) 
    introductory text, 272.10(a)(1), 272.10(b), 272.10(c), and 272.12 first 
    paragraph, remove the word ``transportation'' or ``Transportation'' and 
    add, in its place, the word ``service''.
    
    
    Secs. 272.1-272.3, 272.5-272.9  [Amended]
    
        51. In Secs. 272.1, 272.2 where it occurs twice, 272.3 section 
    title, 272.3(a), 272.3(b) where it occurs twice, and 272.5(a), remove 
    the word ``points'' and add, in its place, the word ``places''; in 
    Secs. 272.6(a) introductory text, 272.7(a) introductory text where it 
    occurs twice, 272.7(a)(1), 272.7(a)(2), 272.8(a) where it occurs five 
    times, 272.8(c) where it occurs twice, 272.8(d), 272.9(a) where it 
    occurs twice, 272.9(b) where it occurs twice, 272.9(c), remove the word 
    ``point'' and add, in its place, the word ``place''.
    
    
    Secs. 272.2, 272.6  [Amended]
    
        52. In Secs. 272.2 and 272.6(b), remove the initial capitalization 
    from the words ``Essential Air''.
        53. The title of Sec. 272.4 is revised to read as follows:
    
    
    Sec. 272.4  Applicability of procedures and policies under 49 U.S.C. 
    41731-42.
    
    
    Sec. 272.4  [Amended]
    
        54. In Sec. 272.4, remove the words ``section 419 of the Federal 
    Aviation Act'' and add, in their place, the words ``49 U.S.C. 41731-
    42.''.
    
    
    Sec. 272.5  [Amended]
    
        55. In Sec. 272.5, paragraph (a) is removed; the paragraph 
    designation ``(b)'' in paragraph (b) is removed; in formerly designated 
    paragraph (b), remove the words ``section 419(f)'' and add, in their 
    place, the words ``49 U.S.C. 41737''; remove the words ``Sec. 325.7 
    (except Secs. 325.7(a)(2) and 325.7(b)(9));''.
    
    
    Sec. 272.8  [Amended]
    
        56. In Sec. 272.8(b), remove the number ``324'' and add, in its 
    place, the number ``271''.
    
    PART 291--CARGO OPERATIONS IN INTERSTATE AIR TRANSPORTATION
    
        57. The heading of part 291 is revised to read as set forth above.
        58. The authority citation for part 291 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. Chapters 401, 411, 415, 417.
    
        59. Section 291.1 is revised to read as follows:
    
    
    Sec. 291.1  Applicability.
    
        This part applies to cargo operations in interstate air 
    transportation by air carriers certificated under section 41102 or 
    41103 of the Statute. It also applies to applicants for an all-cargo 
    air transportation certificate under section 41103 of the Statute.
        60. Section 291.2 is revised to read as follows:
    
    
    Sec. 291.2  Definitions.
    
        All-cargo air transportation means the transportation by aircraft 
    in interstate air transportation of only property or only mail, or 
    both.
        Interstate air transportation means the transportation of 
    passengers or property by aircraft as a common carrier for 
    compensation, or the transportation of mail by aircraft--
        (1) Between a place in--
        (i) A State, territory, or possession of the United States and a 
    place in the District of Columbia or another State, territory, or 
    possession of the United States;
        (ii) Hawaii and another place in Hawaii through the airspace over a 
    place outside Hawaii;
        (iii) The District of Columbia and another place in the District of 
    Columbia; or
        (iv) A territory or possession of the United States and another 
    place in the same territory or possession; and
        (2) When any part of the transportation is by aircraft.
        Section 41102 carrier means an air carrier certificated under 
    section 41102 of the Statute to transport persons, property and mail or 
    property and mail only.
        Section 41103 carrier means an air carrier holding a certificate 
    issued under section 41103 of the Statute to provide all-cargo air 
    transportation.
        61. The title of Subpart B is revised to read as follows:
    
    Subpart B--All-Cargo Air Transportation Certificates
    
        62. The title of Subpart C is revised to read as follows:
    
    Subpart C--General Rules for All-Cargo Air Transportation
    
        63. Section 291.20 is revised to read as follows:
    
    [[Page 43526]]
    
    
    
    Sec. 291.20  Applicability.
    
        The rules in this subpart apply to cargo operations in interstate 
    air transportation performed by air carriers certificated under 
    sections 41102 or 41103 of the Statute. Section 41103 carriers that 
    operate passenger-only or combination aircraft under section 41102, 
    part 298 of this chapter, or other Department authority, must comply 
    with the rules in this subpart in connection with cargo operations in 
    interstate air transportation, whether provided on all-cargo or 
    combination aircraft, operated pursuant to this authority or otherwise. 
    In case a carrier may operate a particular flight under either a 
    section 41102 certificate or a section 41103 certificate, the flight is 
    presumed to be operated under the carrier's section 41103 authority.
    
    
    Sec. 291.22  [Amended]
    
        64. In Sec. 291.22, remove the words ``all-cargo air service in 
    domestic cargo transportation'' and add, in their place, the words 
    ``all-cargo air transportation''.
    
    
    Sec. 291.23  [Amended]
    
        65. In Sec. 291.23(a), remove the words ``domestic cargo'' and add, 
    in their place, the words ``interstate air''; remove the word ``Board'' 
    and add, in its place, the word ``Department''.
        66. In Sec. 291.23(b), remove the words ``domestic cargo'' and add, 
    in their place, the words ``interstate air''.
    
    
    Sec. 291.24  [Amended]
    
        67. In Sec. 291.24, remove the words ``domestic cargo'' where they 
    appear twice, and add, in place of the first occurrence, the words 
    ``cargo operations in interstate air'', and add, in place of the second 
    occurrence, the words ``interstate air''.
        68. The title of Subpart D is revised to read as follows:
    
    Subpart D--Exemptions for Cargo Operations in Interstate Air 
    Transportation
    
    
    Sec. 291.30  [Amended]
    
        69. In Sec. 291.30, remove the words ``domestic cargo'' and add, in 
    their place, the words ``cargo operations in interstate air''.
        70. Section 291.31 is revised to read as follows:
    
    
    Sec. 291.31  Exemptions from the Statute.
    
        (a) Each section 41102 or 41103 air carrier providing cargo 
    operations in interstate air transportation is, with respect to such 
    transportation, exempted from the following portions of the Statute 
    only if and so long as it complies with the provisions of this part and 
    the conditions imposed herein, and to the extent necessary to permit it 
    to conduct cargo operations in interstate air transportation:
        (1) Sections 41310, 41705,
        (2) Chapter 415, and
        (3) Chapter 419 for all-cargo operations under section 41103.
        (b) Each air carrier providing cargo operations in interstate air 
    transportation under section 41103 of the Statute is exempted from the 
    provisions of section 41106(a) of the Statute to the extent necessary 
    to permit it to compete for and operate cargo charters in interstate 
    air transportation for the Department of Defense under contracts of 
    more than 30 days' duration.
        (c) The Department of Defense is exempted from section 41106(a) of 
    the Statute to the extent necessary to permit it to negotiate and enter 
    into contracts of more than 30 days' duration with any section 41103 
    carrier for operation of cargo charters in interstate air 
    transportation.
    
    
    Secs. 291.32, 291.33, 291.34  [Removed]
    
        71. Sections 291.32, 291.33 and 291.34 are removed.
    
    
    Sec. 291.41  [Amended]
    
        72. In Sec. 291.41(a), remove the words ``domestic cargo'' and add, 
    in their place, the words ``cargo operations in interstate air''; 
    remove the words ``section 401'' and add, in their place, the words 
    ``section 41102''.
        73. In Sec. 291.41(b), remove the words ``domestic cargo'' and add, 
    in their place, the words ``cargo operations in interstate air''; 
    remove the words ``section 418'' and add, in their place, the words 
    ``section 41103''.
        74. Section 291.41(c), remove the word ``domestic cargo'' where it 
    appears twice, and add, in their place, the words ``cargo operations in 
    interstate air''; remove the words ``section 418'' and add, in their 
    place, the words ``section 41103''.
        75. The title of Sec. 291.42 is revised to read as follows:
    
    
    Sec. 291.42  Section 41103 financial and statistical reporting.
        76. In Sec. 291.42(a)(1), remove the words ``section 418'' where 
    they appear twice, and add, in their place, the words ``section 
    41103''.
        77. In Sec. 291.42(b) introductory text, remove the words ``section 
    418'' and add, in their place, the words ``section 41103''.
        78. Section 291.50 is revised to read as follows:
    
    
    Sec. 291.50  Enforcement.
    
        In case of any violation of any of the provisions of the Statute, 
    or this part, or any other rule, regulation, or order issued under the 
    Statute, the violator may be subject to a proceeding pursuant to 
    section 46101 of the Statute before the Department, or sections 46106 
    through 46108 of the Statute before a U.S. District Court, as the case 
    may be, to compel compliance therewith; or to civil penalties pursuant 
    to the provisions of section 46301 of the Statute.
    
    PART 294--[AMENDED]
    
        79. The authority citation for part 294 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. Chapters 401, 417.
    
    
    Sec. 294.1  [Amended]
    
        80. In Sec. 294.1, remove the words ``Federal Aviation Act'' and 
    add, in their place, the words ``Subtitle VII of Title 49 of the United 
    States Code (Transportation)''; remove the words ``provisions of the 
    Act'' and add, in their place, the words ``provisions of the Statute''.
    
    
    Sec. 294.2  [Amended]
    
        81. In Sec. 294.2, remove paragraph (a); paragraphs (b) through (j) 
    are redesignated paragraphs (a) through (i).
    
    
    Sec. 294.10  [Amended]
    
        82. In Sec. 294.10 introductory text, remove the word ``Act'' and 
    add, in its place, the word ``Statute''.
        83. In Sec. 294.10(a), remove the words ``Section 402'' and add, in 
    their place, the words ``section 41302''.
        84. In Sec. 294.10(b), remove the words ``Section 404(a)(2)'' and 
    add, in their place, the words ``section 41501''.
        85. In Sec. 294.10(c), remove the words ``Section 404(b)'' and add, 
    in their place, the words ``section 41310''.
    
    
    Secs. 294.20, 294.21, 294.22, 294.40  [Amended]
    
        86. In Secs. 294.20 introductory text, 294.20(b), 294.21(b), 
    294.21(e)(1), 294.22 introductory text, and 294.40, remove the words 
    ``Regulatory Analysis Division'' and add, in their place, the words 
    ``Special Authorities Division''.
    
    
    Sec. 294.30  [Amended]
    
        87. In Sec. 294.30(c), remove the words ``section 402 of the Act''; 
    and add, in their place, the words ``section 41302 of the Statute''; 
    remove the words ``section 416 of the Act'' and add, in their place, 
    the words ``section 41701 of the Statute''; remove the words ``section 
    402'' and add, in their place, the words ``section 41302''.
    
    
    Sec. 294.50  [Amended]
    
        88. In Sec. 294.50(b), remove the words ``section 402'' and add, in 
    their place, the words ``section 41302''. 
    
    [[Page 43527]]
    
    
    
    Sec. 294.70  [Amended]
    
        89. In Sec. 294.70, remove the word ``Act'' the first two times it 
    occurs and add, in its place, the word ``Statute''; remove the words 
    ``sections 1002 and 1007 of the Act before the Department or'' and add, 
    in their place, the words ``section 46101 of the Statute before the 
    Department, or sections 46106 through 46108 of the Statute before''; 
    remove the words ``section 901(a) of the Act'' and add, in their place, 
    the words ``section 46301 of the Statute''; remove the words ``section 
    902(a) of the Act'' and add, in their place, the words ``section 46316 
    of the Statute''.
    
    PART 296--[AMENDED]
    
        90. The authority citation for part 296 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. Chapters 401, 417.
    
    
    Sec. 296.1  [Amended]
    
        91. In Sec. 296.1, remove the words ``Federal Aviation Act'' and 
    add, in their place, the words ``Subtitle VII of Title 49 of the United 
    States Code (Transportation)''.
        92. The title of Sec. 296.10 is revised to read as follows:
    
    
    Sec. 296.10  Exemption from the Statute.
    
    
    Sec. 296.10  [Amended]
    
        93. In Sec. 296.10(a) introductory text, remove the words ``Title 
    IV of the Act'' and add, in their place, the words ``the Statute''.
        94. In Sec. 296.10(a)(1), remove the words ``Subsection 403(b)(2)'' 
    and add, in their place, the words ``Section 41510(b)''; remove the 
    words ``section 403(b)(2)'' and add, in their place, the words 
    ``section 41510(b)''.
        95. In Sec. 296.10(a)(2), remove the words ``Section 404(a)'' and 
    add, in their place, the words ``Section 41702''.
        96. In Sec. 296.10(a)(3), remove the words ``Subsection 404(b)'' 
    and add, in their place, the words ``Section 41310''.
        97. In Sec. 296.10(a)(4), remove the words ``Section 407(a)'' and 
    ``407(e)'' and add, in their place, the words ``Section 41708'' and 
    ``41709'', respectively.
        98. In Sec. 296.10(a)(5), remove the words ``Section 411'' and add, 
    in their place, the words ``Section 41712''.
        99. In Sec. 296.10(a)(6), remove the words ``Section 413'' and add, 
    in their place, the words ``Section 40102(b)''.
        100. In Sec. 296.10(a)(7), remove the words ``Section 415'' and 
    add, in their place, the words ``Section 41711''.
        101. In Sec. 296.10(d), remove the words ``section 403 of the Act'' 
    and add, in their place, the words ``Chapter 415 of the Statute''.
    
    
    Sec. 296.20  [Amended]
    
        102. In Sec. 296.20, remove the word ``Act'' the first two times it 
    occurs and add, in its place, the word ``Statute''; remove the words 
    ``sections 1002 and 1007 of the Act before the Department or'' and add, 
    in their place, the words ``section 46101 of the Statute before the 
    Department, or sections 46106 through 46108 of the Statute before''; 
    remove the words ``section 901(a) of the Act'' and add, in their place, 
    the words ``section 46301 of the Statute''.
    
    PART 297--[AMENDED]
    
        103. The authority citation for part 297 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. Chapters 401, 417.
    
    
    Sec. 297.1  [Amended]
    
        104. In Sec. 297.1, remove the words ``the Act'' and add, in its 
    place, the words ``Subtitle VII of Title 49 of the United States Code 
    (Transportation)''; remove the punctuation and word ``, overseas,''.
    
    
    Sec. 297.2  [Amended]
    
        105. In Sec. 297.2, remove the words ``and overseas''.
        106. The title of Sec. 297.10 is revised to read as follows:
    
    
    Sec. 297.10  Exemption from the Statute.
    
    
    Sec. 297.10  [Amended]
    
        108. In Sec. 297.10(a) introductory text, remove the words ``the 
    Act'' and add, in their place, the words ``the Statute''.
        109. In Sec. 297.10(a)(1), remove the words ``Section 402'' and 
    add, in their place, the words ``Section 41302''.
        110. In Sec. 297.10(a)(2), remove the words ``Section 403(a) and 
    403(b)(1)'' and add, in their place, the words ``Sections 41504 and 
    41510(a)''.
        111. In Sec. 297.10(a)(3), remove the words ``Section 403(b)(2)'' 
    and add, in their place, the words ``Section 41510(b)''.
        112. In Sec. 297.10(a)(4), remove the words ``Subsection 
    404(a)(2)'' and add, in their place, the words ``Section 41501''.
        113. In Sec. 297.10(a)(5), remove the words ``or overseas'' where 
    they appear twice; remove the word ``Act'' and add, in its place, the 
    word ``Statute''.
        114. In Sec. 297.10(a)(6), remove the words ``Subsection 404(b)'' 
    and add, in their place, the words ``Section 41310''.
        115. In Sec. 297.10(b), remove the words ``section 403 of the Act'' 
    and add, in their place, the words ``Chapter 415 of the Statute''.
    
    
    Sec. 297.12  [Amended]
    
        116. In Sec. 297.12(a), remove the words ``section 401, 402, 416, 
    or 418 of the Act'' and add, in their place, the words ``section 41102, 
    41103, 41302, or 41701 of the Statute''.
        117. In Secs. 297.12(b) and 297.12(c), remove the words ``and 
    overseas''.
    
    
    Secs. 297.20, 297.21, 297.24  [Amended]
    
        118. In Secs. 297.20(b) (two occurrences), 297.21, and 297.24(a), 
    remove the words ``Regulatory Analysis Division'', and add, in their 
    place, the words ``Special Authorities Division''.
    
    
    Sec. 297.22  [Amended]
    
        119. In Sec. 297.22(e), remove the words ``section 402 of the Act'' 
    and add, in their place, the words ``section 41302 of the Statute''.
    
    
    Sec. 297.50  [Amended]
    
        120. In Sec. 297.50, remove the word ``Act'' the first two times it 
    occurs and add, in its place, the word ``Statute''; remove the words 
    ``sections 1002 and 1007 of the Act before the Department or'' and add, 
    in their place, the words ``section 46101 of the Statute before the 
    Department, or sections 46106 through 46108 of the Statute before''; 
    remove the words ``section 901(a) of the Act'' and add, in their place, 
    the words ``section 46301 of the Statute''; remove the words ``section 
    902(a) of the Act'' and add, in their place, the words ``section 46316 
    of the Statute''.
    
    PART 298--EXEMPTIONS FOR AIR TAXI AND COMMUTER AIR CARRIER 
    OPERATIONS
    
        121. The heading of part 298 is revised to read as set forth above.
        122. The authority citation for part 298 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. Chapters 401, 411, 417.
    
    
    Sec. 298.1  [Amended]
    
        123. In Sec. 298.1, remove the words ``Title IV of the Federal 
    Aviation Act'' and add, in their place, the words ``Subtitle VII of 
    Title 49 of the United States Code (Transportation)''; before the words 
    ``air transportation'' add the words ``interstate and/or foreign''; 
    remove footnote 1.
        124. In Sec. 298.2, paragraph (a) is removed; paragraphs (b) 
    through (x) are redesignated paragraphs (a) through (w); newly 
    designated paragraphs (b), (d-1), and (d-2), are revised to read as 
    follows:
    
    
    Sec. 298.2  Definitions.
    
    * * * * *
        (b) Air Transportation means interstate air transportation, foreign 
    air transportation, or the transportation of 
    
    [[Page 43528]]
    mail by aircraft as defined by the Statute.\1\
    
        \1\ ``Interstate air transportation'' is defined in section 
    40102(a)(25) as the transportation of passengers or property by 
    aircraft as a common carrier for compensation, or the transportation 
    of mail by aircraft (1) between a place in (i) a State, territory, 
    or possession of the United States and a place in the District of 
    Columbia or another State, territory, or possession of the United 
    States; (ii) Hawaii and another place in Hawaii through the airspace 
    over a place outside Hawaii; (iii) the District of Columbia and 
    another place in the District of Columbia; or (iv) a territory or 
    possession of the United States and another place in the same 
    territory or possession; and (2) when any part of the transportation 
    is by aircraft. NOTE: Operations wholly within the geographic limits 
    of a single State are not considered ``interstate air 
    transportation'' if in those operations the carrier transports no 
    more than a de minimus volume of passengers or property moving as 
    part of a continuous journey to or from a point outside the State.
        ``Foreign air transportation'' is defined in section 
    40102(a)(23) of the Statute as the transportation of passengers or 
    property by aircraft as a common carrier for compensation, or the 
    transportation of mail by aircraft, between a place in the United 
    States and a place outside the United States when any part of the 
    transportation is by aircraft.
        Air transportation also is defined to include ``the 
    transportation of mail by aircraft.'' Section 5402 of the Postal 
    Reorganization Act, 39 U.S.C. 5402, authorizes the carriage of mail 
    by air taxi operators in some circumstances under contract with the 
    Postal Service.
    ---------------------------------------------------------------------------
    
    * * * * *
        (d-1) All-cargo air carrier or section 41103 carrier means an air 
    carrier holding an all-cargo air transportation certificate issued 
    under section 41103 of the Statute authorizing the transportation by 
    aircraft in interstate air transportation of only property or only 
    mail, or both.
        (d-2) Certificated carrier means an air carrier holding a 
    certificate issued under section 41102 of the Statute.
    * * * * *
    
    
    Sec. 298.2  [Amended]
    
        125. In newly designated Sec. 298.2(w), remove the words ``section 
    401 of the Act'' and add, in their place, the words ``section 41102 of 
    the Statute''.
    
    
    Secs. 298.11, 298.13  [Amended]
    
        126. In Secs. 298.11 introductory text and 298.13, remove the words 
    ``Title IV of the Act'' and add, in their place, the words ``the 
    Statute''.
        127. In Sec. 298.11(a), remove the words ``Section 401(a)'' and 
    add, in their place, the words ``Section 41101''.
        128. In Sec. 298.11(b)(1), remove the words ``Section 403'' and 
    add, in their place, the words ``Section 41504''; remove the words 
    ``section 403 of the Act'' and add, in their place, the words ``Chapter 
    415''.
        129. In Sec. 298.11(c) introductory text, remove the words 
    ``Section 404(a)'' and add, in their place, the words ``Section 
    41702''.
        130. In Sec. 298.11(d), remove the words ``Section 404(b)'' and 
    add, in their place, the words ``section 41310''.
        131. In Sec. 298.11(e), remove the words ``Section 405(b)'' and 
    add, in their place, the words ``Section 41902''.
        132. In Sec. 298.11(f), remove the words ``Sections 407(b), (c), 
    and (d)'' and add, in their place, the words ``Section 41708''.
    
    
    Sec. 298.21  [Amended]
    
        133. In Sec. 298.21, paragraph (c)(1) footnote 6 and paragraph 
    (c)(4), remove the words ``Regulatory Analysis Division'' and add, in 
    their place, the words ``Special Authorities Division''.
        134. In Sec. 298.21(d), after the words ``scheduled passenger 
    service'' add the words ``as a commuter air carrier''; remove the word 
    ``point'' and add, in its place, the word ``place''.
    
    
    Sec. 298.36  [Amended]
    
        135. In Sec. 298.36(a), remove the words ``section 604 of the Act'' 
    and add, in their place, the words ``section 44702 of the Statute''.
    
    
    Sec. 298.62  [Amended]
    
        136. In Sec. 298.62(c)(1), remove the words ``section 419 of the 
    Federal Aviation Act'' and add, in their place, the words ``section 
    41732 of the Statute''.
    
    
    Sec. 298.80  [Amended]
    
        137. In Sec. 298.80, remove the word ``Act'' the first two times it 
    occurs, and add, in its place, the word ``Statute''; remove the words 
    ``sections 1002 and 1007 of the Act before the Department or'' and add, 
    in their place, the words ``section 46101 of the Statute before the 
    Department, or sections 46106 through 46108 of the Statute before''; 
    remove the words ``section 901(a) of the Act'' and add, in their place, 
    the words ``section 46301 of the Statute''; remove the words ``section 
    902(a) of the Act'' and add, in their place, the words ``section 46316 
    of the Statute''.
    
    PART 300--[AMENDED]
    
        138. The authority citation for part 300 is revised to read as 
    follows:
    
        Authority: 18 U.S.C. 20(b)(c); 49 U.S.C. Subtitle I and Chapters 
    401, 411, 413, 415, 417, 419, 449, 461, 463.
    
    
    Sec. 300.0  [Amended]
    
        139. In Sec. 300.0, remove the words ``resulting from the transfer 
    of authority under Section 1601(b)(1) of the Federal Aviation Act of 
    1958, as amended by the Civil Aeronautics Board Sunset Act of 1984'' 
    and add, in their place, the words ``involving aviation economic and 
    enforcement proceedings''.
    
    
    Sec. 300.1  [Amended]
    
        140. At the beginning of Sec. 300.1, remove the words ``Under the 
    transfer of authority under section 1601(b)(1) of the Federal Aviation 
    Act of 1958, certain of DOT's functions'' and add, in their place, the 
    words ``Certain of DOT's functions involving aviation economic and 
    enforcement proceedings''.
    
    
    Secs. 300.2, 300.3  [Amended]
    
        141. In Secs. 300.2(c)(8) and 300.3(a)(5), remove the words 
    ``section 419 of the Federal Aviation Act, 49 U.S.C. 1389'' and add, in 
    their place, the words ``49 U.S.C. 41731-42.''.
    
    
    Sec. 300.4  [Amended]
    
        142. In Sec. 300.4(c), remove the words ``sections 401 or 402 of 
    the Act'' and add, in their place, the words ``49 U.S.C. 41102 and 
    41302''.
    
    
    Sec. 300.10  [Amended]
    
        143. In Sec. 300.10, remove the words ``or the Civil Aeronautics 
    Board'' where they appear in the title and in the text of the section.
    
    
    Sec. 300.10a  [Amended]
    
        144. At the beginning of Sec. 300.10a, remove the words ``Due to 
    the transfer of authority under 1601(b)(1) of the Federal Aviation Act 
    of 1958, the'' and add, in their place, the word ``The''.
    
    
    Sec. 300.14  [Amended]
    
        145. In Sec. 300.14, remove the words ``Civil Aeronautics Board 
    members and employees and'' in the title of the section; remove the 
    words ``the Board or'', and ``Board member or Board employee or'' in 
    the text of the section.
        146. Section 300.20(d) is revised to read as follows:
    
    
    Sec. 300.20  Violations.
    
    * * * * *
        (d) In the case of any violation of the provisions of this part, 
    the violator may be subject to civil penalties under the provisions of 
    49 U.S.C. 46301. The violator may also be subject to a proceeding 
    brought under 49 U.S.C. 46101 before the Department, or sections 46106 
    through 46108 of the Statute before a U.S. District Court, as the case 
    may be, to compel compliance with civil penalties which have been 
    imposed.
    
    PART 313--[AMENDED]
    
        147. The authority citation for part 313 is revised to read as 
    follows:
    
        Authority: 42 U.S.C. 6362(b), 49 U.S.C. Chapter 401.
    
    
    Secs. 313.1, 313.2, 313.7  [Amended]
    
        148. In Secs. 313.1(c), 313.2(d) and 313.7(b), remove the word 
    ``EPCA'' and 
    
    [[Page 43529]]
    add, in its place, the words ``42 U.S.C. 6362''.
    
    
    Sec. 313.1  [Amended]
    
        149. In Sec. 313.1(a), remove the words ``The Energy Policy and 
    Conservation Act (42 U.S.C. 6201 et seq., hereinafter ``EPCA'')'' and 
    add, in their place, the words ``Chapter 77 (Energy Conservation) of 
    Title 42 (The Public Health and Welfare);'' remove the words ``section 
    382 of EPCA'' and ``Section 382(b) of EPCA'' and add, in their place, 
    the words ``42 U.S.C. 6362'' and ``42 U.S.C. 6362(b)'', respectively.
        150. In Sec. 313.1(b), remove the words ``Section 204(a) of the 
    Federal Aviation Act of 1958, as amended (hereinafter ``Act'')'' and 
    add, in their place, the words ``Section 40113 of Subtitle VII of Title 
    49 of the United States Code (Transportation) (``the Statute'')''; 
    remove the word ``Act'' at the end of the paragraph, and add, in its 
    place, the word ``Statute''.
    
    
    Sec. 313.2  [Amended]
    
        151. In Sec. 313.2(a), remove the word ``EPCA'' and add, in its 
    place, the words ``Chapter 77 of Title 42''; remove the words ``section 
    102 of the Federal Aviation Act (49 U.S.C. 1302)'' and add, in their 
    place, the words ``section 40101 of the Statute''; remove the word 
    ``Act'' in the last sentence and add, in its place, the word 
    ``Statute''.
        152. In Sec. 313.2(d), remove the word ``Act'' and add, in its 
    place, the word ``Statute''.
        153. In Sec. 313.3, paragraphs (a) and (d) are removed; paragraphs 
    (b), (c), (e), and (f) are redesignated paragraphs (a), (b), (c), and 
    (d); new paragraph (e) is added to read as follows:
    
    
    Sec. 313.3  Definitions.
    
    * * * * *
        (e) Statute means Subtitle VII of Title 49 of the United States 
    Code (Transportation).
        154. Paragraph (b)(1) of Sec. 313.4 is revised to read as follows:
    
    
    Sec. 313.4  Major regulatory actions.
    
    * * * * *
        (b) * * *
        (1) Tariff suspension orders under section 41509 of the Statute, 
    emergency exemptions or temporary exemptions not exceeding 24 months 
    under section 40109 of the Statute and other proceedings in which 
    timely action is of the essence;
    * * * * *
        155. In Sec. 313.4(c)(1), remove the word ``Act'' and add, in its 
    place, the word ``Statute''.
    
    
    Sec. 313.7  [Amended]
    
        156. In Sec. 313.7(a), remove the words ``detailed environmental 
    negative declaration'' and add, in their place, the words ``finding of 
    no significant impact''; remove the words ``Procedural Regulations'' 
    and add, in their place, the word ``procedures''; remove the words 
    ``procedures of DOT's NEPA regulations'' and add, in their place, the 
    words ``DOT's NEPA procedures''.
    
    PART 324--[REMOVED]
    
        157. Part 324 is removed.
    
    PART 325--[AMENDED]
    
        158. The authority citation for part 325 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. Chapters 401, 417.
    
    
    Secs. 325.7, 325.8, 325.9  [Removed]
    
        159. Sections 325.7, 325.8, and 325.9 are removed.
    
    PART 372--[AMENDED]
    
        160. The authority citation for part 372 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. Chapters 401, 411, 413, 417.
    
    
    Sec. 372.1  [Amended]
    
        161. In Sec. 372.1, remove the words ``section 401 of the Act'' and 
    add, in their place, the words ``section 41102 of Title 49 of the 
    United States Code (``the Statute'')''.
    
    
    Sec. 372.2  [Amended]
    
        162. In Sec. 372.2 definition of Overseas military personnel 
    charter operator, remove the words ``section 101(13) of the Federal 
    Aviation Act (49 U.S.C. 1301(13))'' and add, in their place, the words 
    ``section 40102(a)(15) of the Statute''.
        163. In Sec. 372.2, add a definition at the end of the section to 
    read as follows:
    
    
    Sec. 372.2  Definitions.
    
    * * * * *
        Statute when used in this chapter means Subtitle VII of Title 49 of 
    the United States Code (Transportation).
    
    
    Sec. 372.4  [Amended]
    
        164. In Sec. 372.4, remove the word ``Act'' the first two times it 
    occurs, and add, in its place, the word ``Statute''; remove the words 
    ``sections 1002 and 1007 of the Act before the Department or'' and add, 
    in their place, the words ``section 46101 of the Statute before the 
    Department, or sections 46106 through 46108 of the Statute before''; 
    remove the words ``section 901(a) of the Act'' and add, in their place, 
    the words ``section 46301 of the Statute''; remove the words ``section 
    902(a) of the Act'' and add, in their place, the words ``section 46316 
    of the Statute''.
    
    
    Sec. 372.10  [Amended]
    
        165. In Sec. 372.10, remove the words ``section 401 of the Act'' 
    and add, in their place, the words ``section 41102 of the Statute''.
    
    
    Sec. 372.30  [Amended]
    
        166. In Sec. 372.30(a), remove the words ``Regulatory Analysis 
    Division'' and add, in their place, the words ``Special Authorities 
    Division''.
    
    Appendix A to Part 372  [Amended]
    
        167. In the ninth paragraph of Appendix A, which begins with the 
    words ``This bond is effective on . . .'', remove the opening quotation 
    marks and the words ``Regulatory Analysis Division (P-57)'' and add, in 
    their place, the words ``Special Authorities Division (X-57)'' with no 
    quotation marks.
    
    PART 379--[REMOVED]
    
        168. Part 379 is removed.
        169. and 170. Part 398 is revised to read as follows:
    
    PART 398--GUIDELINES FOR INDIVIDUAL DETERMINATIONS OF BASIC 
    ESSENTIAL AIR SERVICE
    
    Sec.
    398.1  Purpose.
    398.2  Number and designation of hubs.
    398.3  Specific airports.
    398.4  Equipment.
    398.5  Frequency of flights.
    398.6  Seat guarantees.
    398.7  Timing of flights.
    398.8  Number of intermediate stops.
    398.9  Load factor standards.
    398.10  Overflights.
    398.11  Funding reductions.
    
        Authority: 49 U.S.C. Chapters 401, 417; Airport and Airway 
    Safety and Capacity Expansion Act of 1987 (Pub. L. 100-223, Dec. 30, 
    1987).
    
    
    Sec. 398.1  Purpose.
    
        The purpose of this part is to establish general guidelines for the 
    determination of basic essential air service for each eligible place 
    under 49 U.S.C. 41731 and 41732. Procedures for the determination of 
    the essential air service level for a place are contained in part 325 
    of this chapter.
    
    
    Sec. 398.2  Number and designation of hubs.
    
        (a) What is a hub? The Department considers hubs as belonging to 
    any one of three classifications:
        (1) A large hub is a place accounting for at least 1.00 percent of 
    the total enplanements in the United States;
        (2) A medium hub is a place accounting for at least 0.25 percent 
    but less than 1.00 percent of the total enplanements in the United 
    States; and 
    
    [[Page 43530]]
    
        (3) A small hub is a place accounting for at least 0.05 percent but 
    less than 0.25 percent of the total enplanements in the United States.
        (b) How many hubs? (1) As a general matter, the Department will 
    require service to one large or medium hub.
        (2) In Alaska or when the nearest large or medium hub is more than 
    400 miles from the eligible place, the Department may instead require 
    service to a small hub or nonhub.
        (3) In some cases, the Department may require service to two hubs, 
    of which at least one will be a large or medium hub. The Department 
    will require service to two hubs if an eligible place has close 
    commercial, geographic, and political ties to both hubs and if there is 
    sufficient traffic from the eligible place to support two round trips a 
    day to both hubs. If traffic is not sufficient, the Department may 
    require one round trip a day to both hubs if the community requests 
    such service.
        (4) In no event will essential air service consist of service to 
    more than two hubs.
        (c) Which hub? (1) In designating hubs, the Department will weigh 
    all of the following factors:
        (i) The extent to which candidate hubs provide access to the 
    national air transportation system;
        (ii) The commercial, geographic, and political ties of candidate 
    hubs to the eligible place;
        (iii) The traffic levels to candidate hubs, as shown by traffic 
    studies and origin and designation data;
        (iv) The distance of candidate hubs from the eligible place; and
        (v) The size of candidate hubs. Large size will be a positive 
    factor, but principally as substantiating the access and community-ties 
    factors.
        (2) For Alaska, rather than requiring service to a hub, the 
    Department may instead require that service from an eligible place be 
    provided to a nearby focal point for traffic which, in turn, has 
    service to a hub.
    
    
    Sec. 398.3  Specific airports.
    
        (a) At an eligible place, essential air service may be specified as 
    service to a particular airport. In the case of hyphenated places, 
    essential air service will be specified as service to more than one 
    airport only if clearly necessary and if the multi-airport service is 
    economically feasible and justified on the basis of traffic levels at 
    those airports.
        (b) At a hub, essential air service is not usually specified as 
    service to a particular airport.
    
    
    Sec. 398.4  Equipment.
    
        (a) Except in Alaska, service will be provided by aircraft offering 
    at least 15 passenger seats, unless:
        (1) Average daily enplanements at the place did not exceed 11 
    passengers for any fiscal year from 1976 through 1986;
        (2) The requirement would necessitate the payment of compensation 
    in a fiscal year for service at the place when compensation would 
    otherwise not be necessary; or
        (3) The affected community agrees in writing to the use of smaller 
    aircraft to provide service at the place.
        (b) The aircraft must have at least two engines and use two pilots, 
    unless scheduled air transportation has not been provided to the place 
    in aircraft with at least two engines and using two pilots for at least 
    60 consecutive operating days at any time since October 31, 1978.
        (c) The aircraft must be pressurized when the service regularly 
    involves flights above 8,000 feet in altitude.
        (d) All aircraft must meet the applicable safety standards of the 
    Federal Aviation Administration.
        (e) The aircraft must be conveniently accessible to passengers by 
    stairs rather than over the wing.
    
    
    Sec. 398.5  Frequency of flights.
    
        (a) Except in Alaska, at least two round trips each weekday and two 
    round trips each weekend.
        (b) In Alaska, a level of service at least equal to that provided 
    in 1976, or two round trips each week, whichever is greater, except 
    that the Department and the appropriate State authority of Alaska may 
    agree to a different level of service after consulting with the 
    affected community.
        (c) An essential air service level may be set at more than that 
    stated in paragraphs (a) and (b) of this section if:
        (1) Historical traffic data and studies of traffic-generating 
    potential for the place indicate that more frequent service is needed 
    to accommodate passengers and accompanying baggage with the aircraft 
    used at that place;
        (2) More flights are needed because the capacity available to the 
    eligible place is being shared with traffic destined for an 
    intermediate stop or for a place beyond the eligible place;
        (3) More flights are needed to accommodate passengers because 
    smaller aircraft are being used at the place;
        (4) More flights are needed in order to ensure adequate connecting 
    opportunities as provided for by Sec. 398.7; or
        (5) For Alaska, the appropriate state agency agrees that more 
    frequent service is needed to accommodate cargo traffic with the 
    aircraft used at the eligible place.
        (d) For eligible places where traffic levels vary substantially 
    with the season, a two-tier level of essential air service may be 
    established with required flight frequencies changing accordingly.
    
    
    Sec. 398.6  Seat guarantees.
    
        (a) The number of seats guaranteed at the eligible place will be 
    sufficient to accommodate the estimated passenger traffic at an average 
    load factor of 60 percent, except that an average load factor of 50 
    percent will be used when service is provided with aircraft having 
    fewer than 15 passenger seats.
        (b) Only under unusual circumstances will an eligible place's 
    essential air service level be set at a number of flights that will 
    accommodate more than 40 passengers a day in each direction (a total of 
    80 inbound and outbound passengers). Generally, 40 passengers can be 
    accommodated by guaranteeing 67 seats a day in each direction (a total 
    of 134 inbound and outbound seats).
        (c) The Department may guarantee an eligible place more than 67 
    seats a day if:
        (1) The number of stops between or beyond the eligible place and 
    the hub results in available aircraft capacity being shared with 
    passengers at those other places;
        (2) The distance between the eligible place and the designated hub 
    requires the use of large aircraft;
        (3) The eligible place has suffered an abrupt and significant 
    reduction in its service that warrants a temporary increase in the 
    maximum guaranteed capacity; or
        (4) Other unusual circumstances warrant guaranteeing the eligible 
    place more than 67 seats a day.
    
    
    Sec. 398.7  Timing of flights.
    
        To qualify as essential air service, flights must depart at 
    reasonable times, considering the needs of passengers with connecting 
    flights at the hub. It is the policy of the Department to consider the 
    reasonableness of the time in view of the purpose for which the local 
    passengers are traveling. If travel is primarily to connect with other 
    flights at the hub, local flight times should be designed to link with 
    those flights. If travel is primarily local (i.e., to and from the 
    hub), there should be at least one morning flight in each direction and 
    one late-afternoon or evening flight in each direction.
    
    
    Sec. 398.8  Number of intermediate stops.
    
        (a) Except in Alaska, no more than one intermediate stop is 
    permitted in 
    
    [[Page 43531]]
    providing essential air service between the eligible place and its hub, 
    unless otherwise agreed to with the community. In cases where an 
    eligible place receives service to two hubs, however, more than one 
    intermediate stop is permitted between that place and its secondary 
    hub.
        (b) In Alaska, more than one intermediate stop is permitted if 
    required by low traffic levels at the eligible place or by the long 
    distance between the eligible place and its hub.
        (c) The Department may specify nonstop service when necessary to 
    make the service viable.
        (d) Where an eligible place normally is an intermediate stop that 
    shares available capacity with another place, it is the policy of the 
    Department either to require additional capacity (more flights or 
    larger aircraft) between the eligible place and its hub or to specify 
    some turnaround operations on that route segment.
    
    
    Sec. 398.9  Load factor standards.
    
        The load factor standards used in this part may be raised for 
    individual eligible places under either of the following circumstances:
        (a) The place is served by the carrier as part of a linear route; 
    or
        (b) It would be in the interest of the community, the carrier, or 
    the general public to raise the load factor standard for that place.
    
    
    Sec. 398.10  Overflights.
    
        The Department considers it a violation of 49 U.S.C. 41732 and the 
    air service guarantees provided under this part for an air carrier 
    providing essential air service to an eligible place to overfly that 
    place, except under one or more of the following circumstances:
        (a) The carrier is not compensated for serving that place and 
    another carrier is providing by its flights the service required by the 
    Department's essential air service determination for that place;
        (b) Circumstances beyond the carrier's control prevent it from 
    landing at the eligible place;
        (c) The flight involved is not in a market where the Department has 
    determined air service to be essential; or
        (d) The eligible place is a place in Alaska for which the 
    Department's essential air service determination permits the 
    overflight.
    
    
    Sec. 398.11  Funding reductions.
    
        (a) If, in any fiscal year, appropriations for payments to air 
    carriers remain at or below the amounts estimated as necessary to 
    maintain subsidy-supported essential air service at the places 
    receiving such service, and Congress provides no statutory direction to 
    the contrary, appropriations shall not be available for essential air 
    service to otherwise eligible places within the 48 contiguous States 
    and Puerto Rico that have a rate of subsidy per passenger in excess of 
    $200.00, or are located:
        (1) Less than 70 highway miles from the nearest large or medium hub 
    airport;
        (2) Less than 55 miles from the nearest small hub airport; or
        (3) Less than 45 highway miles from the nearest nonhub airport that 
    has enplaned, on certificated or commuter carriers, 100 or more 
    passengers per day in the most recent year for which the Department has 
    obtained complete data.
        (b) The rate of subsidy per passenger shall be calculated by 
    dividing the annual subsidy in effect as of July 1 of the prior fiscal 
    year by the total origin-and-destination traffic during the most recent 
    year for which the Department has obtained complete data.
    
    PART 399--[AMENDED]
    
        171. The authority citation for part 399 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. Chapters 401, 411, 413, 415, 417, 419, 461.
    
    
    Sec. 399.20, 399.38, 399.90  [Removed]
    
        172. Sections 399.20, 399.21, 399.38, and 399.90 are removed.
    
    
    Sec. 399.21  [Amended]
    
        173. In Sec. 399.21, remove the words ``section 401 of the Act'' 
    and add, in their place, the words ``section 41102 of Title 49 of the 
    United States Code''.
    
        Issued in Washington DC, on August 14, 1995.
    Mark L. Gerchick,
    Acting Assistant Secretary for Aviation and International Affairs.
    [FR Doc. 95-20502 Filed 8-21-95; 8:45 am]
    BILLING CODE 4910-62-P
    
    

Document Information

Effective Date:
9/21/1995
Published:
08/22/1995
Department:
Transportation Department
Entry Type:
Rule
Action:
Final rule.
Document Number:
95-20502
Dates:
The rule shall become effective on September 21, 1995.
Pages:
43521-43531 (11 pages)
Docket Numbers:
Docket No. OST-95-397
RINs:
2105-AC27
PDF File:
95-20502.pdf
CFR: (81)
14 CFR 200.1
14 CFR 201.1
14 CFR 201.4
14 CFR 201.6
14 CFR 201.7
More ...