[Federal Register Volume 62, Number 30 (Thursday, February 13, 1997)]
[Rules and Regulations]
[Pages 6715-6719]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3576]
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DEPARTMENT OF TRANSPORTATION
Office of the Secretary
14 CFR Parts 217 and 241
[Docket No. OST-96-1049]
RIN 2105-AC34
International Data Submissions by Large Air Carriers (Form 41
Schedules T-100, T-100(f), and P-1.2)
AGENCY: Office of the Secretary, (DOT).
ACTION: Final rule.
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SUMMARY: This rule reduces the period of confidential treatment of
international nonstop segment and on-flight market data from three
years to immediately following the Department's determination that the
data base is complete, but no sooner than six months after the date of
the data. It also requires collection of aircraft capacity data from
foreign air carriers and rescinds the requirement that Group III (large
U.S.) air carriers specify passenger enplanements, passengers
transported, and seating capacity by cabin configuration. At the same
time, the Department defers a final decision on changes to Schedule P-
1.2--Statement of Operations. The issues pertinent to that schedule
will be addressed in a supplementary notice of proposed rulemaking that
will be completed soon.
In order to provide the reporting air carriers with additional time
to make changes to their systems, we have established a period of
several months between the effective date and compliance dates.
DATES: Effective date. This rule shall become effective on March 17,
1997.
Compliance dates: The compliance date for foreign air carriers to
report the additional capacity data is July 1, 1997. The compliance
date of the new reduced level of reporting for large U.S. Group III air
carriers is July 1, 1997.
FOR FURTHER INFORMATION CONTACT: John Harman, Office of Aviation
Analysis, or John Schmidt, Office of Aviation and International
Economics, Office of the Assistant Secretary for Aviation and
International Affairs, Office of the Secretary, U.S. Department of
Transportation, 400 Seventh St. SW., Washington, DC 20590 at (202) 366-
1059 or 366-5420, respectively.
SUPPLEMENTARY INFORMATION:
Background
On February 15, 1996, the Department of Transportation published a
notice of proposed rulemaking (NPRM) [61 FR 5963] to make the changes
summarized above. We also distributed over 500 copies of the notice to
the aviation community. This rulemaking action was taken on the
Department's initiative in order to make data available for planning
and efficient resource allocation purposes, to ensure the accuracy of
the data that are used by the Department in administering its program
responsibilities, and to eliminate collection of data that are no
longer needed for regulatory purposes.
We received comments from five U.S. air carriers: American Airlines
(American), Federal Express Corporation (FedEx), Trans World Airlines
(TWA), United Air Lines (United), and USAir; one foreign air carrier,
Alia--the Royal Jordanian Airline (Royal Jordanian); the Airports
Council International--North America (ACI-NA) whose member airports
handle approximately 90% of the passenger traffic in the United States;
and the Air Line Pilots Association (ALPA), the bargaining
representative of more than 44,000 pilots of 38 airlines. Most
commenters supported the rulemaking.
Discussion of Comments
(1) Confidentiality of International T-100 Data
American, TWA, United, USAir, ACI-NA, and ALPA strongly supported
reducing the period of confidentiality from three years to immediately
following the Department's determination that the data base is
complete, but no sooner than six months after the date of the data. In
fact, American said that the data should be published as soon as the
Department determines that the data base is complete and that there is
little reason to impose an arbitrary requirement withholding release
for a minimum of six months. United urged that the rule provide by its
terms that the release date will be six months after submission and
that any release beyond that date be the exception and not the rule.
While that carrier appreciated that all data, both U.S. and foreign
carrier, should be released at the same time and that database
preparation delays may occur, it would prefer to have a fixed date for
release rather than an open-ended one. With respect to American's
suggestion, the Department did not initially propose to release
international T-100 data in less than six months in deference to
perceived carrier concerns that the data might be used for day-to-day
competitive purposes and also because it expected that receipt, edit,
and publication of the data from a large number of foreign carriers
would take about six months. As regards United's view that we specify
only a six month release date, while we fully expect to be in a
position to make the data public
[[Page 6716]]
within that time frame, there may be circumstances where a slightly
longer period of time may be required. We have, therefore, decided to
retain our proposed language stating that we will release the data
following a determination by the Department that the database is
complete, but no sooner than six months after the date of the data.
Royal Jordanian argued that the Department should seriously
reexamine its proposal to amend the confidentiality afforded detailed
nonstop segment and on-flight market data reported by foreign carriers
under the T-100 program, and upon review, should maintain the current
three-year confidentiality period for such data. Royal Jordanian
proposed that, in the event the Department does not re-think this
proposal in its entirety, it should at least maintain the three-year
confidentiality period for traffic data in single-carrier markets.
Royal Jordanian relied on the Department's analysis in the 1988
rulemaking for support of its statement. In commenting that there are
no compelling reasons to modify the current protections of
confidentiality on T-100 data, Royal Jordanian argued that ``I-92
reports contain accurate data about the origin and destination traffic
in specific international city-pair markets, which provides perfectly
useful information for purposes of route planning and market
analysis.''
In response, we note that the I-92 data are not origin-destination
data at all, but rather a count of the number of passengers onboard any
flight segment arriving in or departing from the United States. As
Royal Jordanian, itself, remarked, T-100 data is more comprehensive.
More specifically, T-100 data include onboard data for non-stop
segments operated into and out of the United States by both foreign and
U.S. carriers as well as similar data for U.S. carrier flight segments
operated beyond the foreign gateway. Moreover, they also include on-
flight market data (similar to origin-destination data in that they
tally the passengers traveling between any two points on that flight)
for those flights operating into and out of the U.S. In addition, T-100
data include capacity and operational data for these flights such as
seats, departures, aircraft type, and block hours. T-100 reports
include U.S.-Canadian traffic whereas 1-92 reports do not. Finally, T-
100 incorporates both freight and passenger information whereas I-92
gives only the passenger cabin count. Because T-100 data are taken from
airline records, there are other system data available to validate any
questionable numbers. This provides a basis for expecting a high level
of reliability. These advantages combined with the fact that Royal
Jordanian has not documented any irrevocable harm would lead us to make
the T-100 data available, as proposed, to planners, analysts, and other
users.
FedEx (an all-cargo carrier) stated that the three-year rule should
not be changed because the data collected are so specific and sensitive
that they should not be revealed prematurely. It further argued that
the data are only of use to the government, and the need for them is
declining as the U.S. becomes more successful in obtaining open-skies
agreements. With respect to FedEx's suggestion that the data collected
are unnecessarily specific, the Department notes that international
routes are still awarded on a city-to-city basis and are frequently
limited-entry and that airports are planned and constructed at specific
cities. With respect to FedEx's assertion that the data are sensitive,
the discussion in the notice of proposed rulemaking recognized that the
availability of data could be expected to change the nature of the
marketplace and, in fact, make it more efficient and competitive. FedEx
has not, however, documented its assertion that the more timely
availability of data to all would create an unfair competitive
advantage. In addition, FedEx did not rebut the carriers' or
communities' needs for current market data to support negotiating
positions and requests for route awards. ACI-NA and United described
the airports' and carriers' needs for these data.
FedEx also stated that the three-year rule should not be changed
because the data are so flawed and subject to so many differing
interpretations that an earlier release may actually damage the
interests that the Department is trying to promote. FedEx asserted
that, while the T-100 system gathers detailed information on U.S.
carriers' activities in foreign markets, much of the foreign carrier
activity that is in direct competition with the U.S. carriers is not
reported. It said that the T-100 system should not undercut the U.S.
position at negotiations because of the lop-sided reporting structure,
but should be used primarily for internal U.S. analysis, recognizing
its shortcomings. All these comments apparently refer to the fact that
U.S. carriers report all international market and segment records,
while foreign carriers only report those market and segment records
that have a U.S. point. In order that U.S. air carriers not be placed
at a competitive disadvantage because of data disclosure
incompatibility, the Department, in its notice of proposed rulemaking,
proposed to continue to restrict availability of nonstop segment and
on-flight market data for segments involving no U.S. points for three
years. For example, individual U.S. carrier data between two foreign
airports would be held confidential for three years. (On this same
subject, American Airlines argued for expanded reporting by foreign
carriers, including disclosure of `behind' and `beyond' totals for
reportable `on-flight' traffic.) With respect to FedEx's concerns about
flawed data, the timely use and scrutiny of these data by industry
practitioners, once they are removed from the veil of confidentiality,
can be expected to have a positive effect on the quality of data filed.
(2) Reporting of Capacity Data by Foreign Air Carriers
ACI-NA, TWA, United, and USAir explicitly supported the collection
of minimal capacity data from foreign carriers and no commenter
objected to the collection of these data. Significantly, Royal
Jordanian, the only foreign carrier to comment, did not oppose the
collection. As discussed under (4) Other Subjects, American suggested
that we require expanded reporting by foreign carriers including
disclosure of ``behind'' and ``beyond'' totals for reportable on-flight
traffic. (Foreign carriers currently do file ``beyond'' U.S. data if
the market includes a U.S. point. For example, Japan Airlines reports
Los Angeles-Sao Paulo operations.) In supporting our proposal, TWA
stated that it is not unreasonable to require two additional data items
from foreign carriers and that, even with the new items, the burden
placed on foreign carriers will be no worse than the burden placed on
U.S. carriers by foreign governments. Similarly, United emphasized the
fact that our proposal removes a discriminatory aspect of the previous
rule that imposed a greater burden on U.S. carriers than on their
foreign competitors. Total capacity, both U.S. and foreign, is
important to analyze adequacy of service in a given market. We will,
therefore, adopt the proposal that foreign carriers report both
available seats and available payload weight.
(3) Reduction of Data Reporting by Class of Service by U.S. Carriers
Only United and USAir explicitly supported the reduction of data
reporting by class of service by U.S. carriers. As mentioned above,
American argued for expanded reporting by foreign carriers, saying that
little cost is incurred by complying with the existing
[[Page 6717]]
requirement to report passenger traffic and revenue by class of service
while the reprogramming of data processing systems would impose an
immediate burden. TWA did not believe that the Department's proposal
would reduce reporting burden and did believe that it would deprive
both the Department and the carriers of important information. The
carrier suggested either requiring foreign carriers to report class of
service information, restricting availability of the data only to those
U.S. carriers that report it, or, in the extreme, collecting it and
releasing it after six months despite foreign carriers' failure to
provide similar information.
We are adopting our proposal to reduce the amount of data currently
reported by the large Group III U.S. carriers by no longer requiring
these carriers to report data by cabin configuration. In the NPRM, the
Department stated that the proposal to reduce the number of data items
would reduce the reporting burden on U.S. air carriers while providing
for data comparability among all reporting carriers. Although American
considered it unfortunate that we proposed to eliminate this level of
detail and TWA stated that these data were very important, we find that
the resulting comparability in reported data among all competing U.S.
and foreign carriers with regard to this specific database outweighs
the concerns raised by American and TWA. Moreover, since we find that
the earlier release of data will be procompetitive, it is important, at
the same time, to ensure that no carriers are adversely affected by a
continuing requirement to report more detailed data than their
competitors.
With regard to the Department's statement in the NPRM that the
proposal to reduce the number of data items would reduce the reporting
burden on U.S. air carriers, we have revised our position and we now
acknowledge that American and TWA correctly pointed out that the
proposal may produce an initial reporting burden. These carriers'
comments have led us to assume that the reduction of the number of data
elements may require some changes to computer programs that extract,
process, and format the data for submission to the Department. We
recognize that the impact of these changes will vary among airlines.
However, no commenters (including American and TWA) submitted data that
would help us to assess this burden. Our initial presumption is that
changes to programs that involve relatively simple functions, such as
data extraction and formatting, would not impose a significant burden.
However, even if the required changes were significant, they would be
one-time changes that would affect only the initial implementation.
Over the long term, the reduced reporting requirements should lessen
the total burden.
(4) Other Subjects
The commenters raised a number of other issues not directly
relating to proposals made in the NPRM. These issues go beyond the
scope of the current rulemaking, although there may be merit to some of
them. With these issues in mind, we will continue to assess the quality
of T-100 data received and ways to improve them. However, no action is
being taken on the following subjects in this rulemaking.
FedEx asserted that the international air cargo data collected
through the T-100 system is so severely flawed and unfair to U.S.
carriers that the system should be abandoned. It suggested that the
Department should seriously consider extending the exemption for cargo
that presently covers domestic operations to the international sector.
FedEx was specifically concerned about the reporting and publication of
U.S. carrier Fifth Freedom data when similar data from foreign carriers
is not collected or published. (American reflected this same concern
when it requested expanded reporting by foreign carriers, including
disclosure of ``behind'' and ``beyond'' totals for reportable ``on-
flight'' data.) FedEx pointed out a similar data incompatibility that
arises among vendors of international freight services when one company
carries the freight on its own flights for the entire trip while
another company (for example) carries the freight on its own flight(s)
on the domestic part of the trip, but serves only as a freight
forwarder, shipping its cargo on another carrier's flight(s), on the
foreign part of the trip. FedEx also complained that the T-100 system
only shows on-flight movements, so that any change in flight numbers
results in either a double-counting problem (for U.S. carriers that
transfer freight) or a gap in data (for freight moved off of a foreign
carrier's flight originating in the U.S. onto a flight the does not
touch the U.S.). The carrier noted that the on-flight market data only
show where traffic is enplaned and deplaned, rather than its true
origin. American urged the Department to require the same level of
reporting from the foreign airlines as we require from U.S. carriers.
Specifically, American suggested that we require expanded reporting by
foreign carriers to disclose information on the ``behind'' and
``beyond'' totals for reportable on-flight traffic. Alternatively,
American suggested that we create an enhanced origin and destination
survey in which both U.S. and foreign carriers would be required to
submit comparable data.
On another issue, ACI-NA urged the Department to require that
commuter carriers operating aircraft with 19 or more seats file
international data. They pointed out that no data are currently
available on commuter services in transborder Canadian and Mexican
markets and in U.S.-Caribbean markets, which are growing in importance.
The Department recognizes the importance of these markets and the lack
of available data. However, since the scope of this rulemaking applies
only to large air carriers, the Department cannot apply these
requirements to the commuter airline industry in this proceeding.
Nevertheless, we will continue to monitor the need for and value of the
data and will propose the necessary changes to reporting requirements
that are needed to meet our analytical goals.
ACI-NA also urged the Department to add a requirement that airlines
provide data on the citizen/alien breakout of their passengers. In
support, they pointed out that the nationality data is key to
calculating some of the direct and indirect benefits from foreign
tourists and business travelers. They noted the precarious financial
situation involving programs at the Department of Commerce, where the
I-92 data showing passenger nationality are now produced, might have an
impact on the currently available data. The timing of this rulemaking
and the lack of resolution with regard to the future of the I-92 data,
makes it impractical to consider the nationality issue as part of this
rulemaking. Depending upon further developments with I-92 data, we may
need to reconsider the matter.
TWA noted that the Department has not finalized its proposal of
October 23, 1995, that U.S. carriers that are code sharing with foreign
carriers be required to report both for the ticketing and operating
carriers for code share traffic in their Origin and Destination
reports. TWA urged the Department to act expeditiously to implement the
new reporting requirements. This is beyond the scope of this
rulemaking.
Regulatory Analyses and Notices
Executive Order 12866 and DOT Regulatory Policies and Procedures
This final rule is not considered a significant regulatory action
under section 3(f) of Executive Order 12866, and therefore it was not
reviewed by the
[[Page 6718]]
Office of Management and Budget. The Department has placed a regulatory
evaluation that examines the estimated costs and effects of the rule in
the docket.
The rule is not considered significant under the regulatory
policies and procedures of the Department of Transportation (44 FR
11034), because it does not change Departmental policy concerning
aviation information collection.
The economic impact of this regulation is insignificant. The change
in confidentiality restriction has no impact at all on the reporting
burden of the carriers. For large Group III U.S. air carriers, the
changes in requirements for reporting passenger and capacity data will
result in an initial burden for programming changes, but these changes
are minor and involve one-time costs. Over the long term, these changes
will reduce the reporting burden for these air carriers by
approximately 96 hours annually.
On the other hand, the foreign air carriers will incur an initial
and annual increase in reporting burden. However, the Department does
not believe that the increased reporting burden will be significant or
onerous because this regulation adds only two capacity data items,
which are readily available from the carriers'' computerized data files
or other easily accessible reference documents. In order to quantify
broadly the increased burden, the Department assumed that each of the
176 foreign air carriers would submit two new data items each month and
that the process of collecting and transmitting the data would take no
more than one hour each month. The resulting hourly burden would not
exceed 12 hours on an annual basis for any foreign air carrier, and the
resulting total hourly burden on an annual basis for all the foreign
air carriers as a group would be 2,112 hours. For all air carriers,
this would be a net burden of 2,016 hours annually or $20,966 based on
an estimated industry salary rate of about $10.40 an hour. (See 60 FR
61478, November 30, 1995.)
The benefits to the public, the industry, and the Department of
accurate capacity data reported on a reliable and consistent basis,
although unquantifiable, outweigh the limited increase in reporting
burden and the small increase in cost.
Executive Order 12612
This rule has been analyzed in accordance with the principles and
criteria contained in Executive Order 12612 (``Federalism'') and DOT
has determined the proposed rule does not have sufficient federalism
implications to warrant the preparation of a Federalism Assessment.
Regulatory Flexibility Act
I certify this rule will not have a significant economic impact on
a substantial number of small entities. The amendments would affect
only large U.S. certificated air carriers and foreign air carriers with
large certificated carriers defined as air carriers holding a
certificate issued under 49 U.S.C. 41102, as amended, and that operate
aircraft designed to have a maximum passenger capacity of more than 60
seats or a maximum payload capacity of more than 18,000 pounds or that
conduct international operations.
Paperwork Reduction Act
The reporting and recordkeeping requirement associated with this
rule is being sent to the Office of Management and Budget for approval
in accordance with The Paperwork Reduction Act of 1995 (PL 104-113)
under OMB NO: 2139-0040, formerly OMB NO: 2138-0040; Administration:
Office of the Secretary; Title: T-100 International Data; Need for
Information: Passenger and Capacity Information for Aviation Planning
and Regulation; Proposed Use of Information: Electronic Dissemination
to Transportation Planners and Analysts; Frequency: Monthly; Burden
Estimate: 2,016 annual hours; Average Burden Hours per Respondent: 12
annual hours; Estimated Number of Respondents: 8 Air Carriers and 176
Foreign Air Carriers; For Further Information Contact: IRM Strategies
Division, M-32, Office of the Secretary of Transportation, 400 Seventh
Street, SW., Washington, DC 20590-0001, (202) 366-4735. Persons are not
required to respond to a collection of information unless it displays a
currently valid OMB control number. This final rule contains
information collection requirements that have been approved under OMB
No. 2138-0040 and that expire on October 31, 1997.
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 number 2105-AC34 contained in
the heading of this document can be used to cross reference this action
with the Unified Agenda.
List of Subjects in 14 CFR Parts 217 and 241
Air carriers, Reporting and recordkeeping requirements.
Accordingly, the Department of Transportation amends 14 CFR Chapter
II as follows:
PART 217--[AMENDED]
1. The authority for part 217 continues to read as follows:
Authority: 49 U.S.C. 329 and chapters 401, 413, 417.
2. In Sec. 217.5, paragraphs (b)(12) and (b)(13) are added to read
as follows:
Sec. 217.5 Data collected (data elements).
* * * * *
(b) * * *
(12) Available capacity-payload (Code 270). The available capacity
is collected in kilograms. This figure shall reflect the available load
(see load, available in 14 CFR part 241 Section 03) or total available
capacity for passengers, mail and freight applicable to the aircraft
with which each flight stage is performed.
(13) Available seats (Code 310). The number of seats available for
sale. This figure reflects the actual number of seats available,
excluding those blocked for safety or operational reasons. Report the
total available seats in item 310.
PART 241--[AMENDED]
1. The authority for part 241 continues to read as follows:
Authority: 49 U.S.C. 329 and chapters 401, 411, 417.
2. In Sec. 19-5 paragraphs (c) (7), (8), and (18) are revised to
read as follows:
* * * * *
Section 19 * * *
Sec. 19-5 Air Transport Traffic and Capacity Elements
* * * * *
(c) * * *
(7) 110 Revenue passengers enplaned. The total number of revenue
passengers enplaned at the origin point of a flight, boarding the
flight for the first time; an unduplicated count of passengers in a
market. Under the T-100 system of reporting, these enplaned passengers
are the sum of the passengers in the individual on-flight markets.
Report only the total revenue passengers enplaned in item 110. For all
air carriers and all entities, item 110 revenue passengers enplaned is
reported on Form 41 Schedule T-100 in column C-1, as follows:
[[Page 6719]]
------------------------------------------------------------------------
All carrier groups and
Col. entities
------------------------------------------------------------------------
C-1.................... 110.............. Revenue passengers enplaned.
------------------------------------------------------------------------
(8) 130 Revenue passengers transported. The total number of revenue
passengers transported over single flight stage, including those
already on board the aircraft from a previous flight stage. Report only
the total revenue passengers transported in item 130. For all air
carriers and all entities, item 130 revenue passengers transported is
reported on Form 41 Schedule T-100 in Column B-7, as follows:
------------------------------------------------------------------------
All carrier groups and
Col. entities
------------------------------------------------------------------------
B-7.................... 130.............. Revenue passengers
transported.
------------------------------------------------------------------------
* * * * *
(18) 310 Available seats. The number of seats available for sale.
This figure reflects the actual number of seats available, excluding
those blocked for safety or operational reasons. Report the total
available seats in item 310. For all air carriers and all entities,
item 310 available seats, total is reported on Form 41 Schedule T-100
in column B-4, as follows.
------------------------------------------------------------------------
All carrier groups and
Col. entities
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B-4.................... 310.............. Available seats, total.
------------------------------------------------------------------------
* * * * *
3. In Section 19-6 paragraph (b) introductory text is revised to
read as follows:
Section 19-6 Public Disclosure of Traffic Data
* * * * *
(b) Detailed international on-flight market and nonstop segment
data in Schedule T-100 and Schedule T-100(f) reports shall be publicly
available immediately following the Department's determination that the
database is complete, but no earlier than six months after the date of
the data. Data for on-flight markets and nonstop segments involving no
U.S. points shall not be made publicly available for three years.
Industry and carrier summary data may be made public before the end of
six months or the end of three years, as applicable, provided there are
three or more carriers in the summary data disclosed. The Department
may, at any time, publish international summary statistics without
carrier detail. Further, the Department may release nonstop segment and
on-flight market detail data by carrier before the end of the
confidentiality periods as follows:
* * * * *
Issued in Washington, DC on February 6, 1997.
Charles A. Hunnicutt,
Assistant Secretary for Aviation and International Affairs.
[FR Doc. 97-3576 Filed 2-12-97; 8:45 am]
BILLING CODE 4910-62-P
