[Federal Register Volume 61, Number 32 (Thursday, February 15, 1996)]
[Proposed Rules]
[Pages 5963-5968]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-3374]
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DEPARTMENT OF TRANSPORTATION
14 CFR Parts 217 and 241
[Docket No. OST-96-1049; Notice No. 96-2]
RIN 2105-AC34
Changes to International Data Submissions by Large Air Carriers
(Form 41 Schedules T-100, T-100(f), and P-1.2)
AGENCY: Office of the Secretary, Transportation.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Department of Transportation (DOT or the Department)
proposes to reduce 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
database is complete, but no sooner than six months after the date of
the data. The Department also proposes to collect aircraft capacity
data from foreign air carriers and to rescind the requirement that
Group III (large, U.S.) air carriers specify passenger revenues,
passenger enplanements, passengers transported, and seating capacity by
cabin configuration. This action is 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 data that are no longer needed for
regulatory purposes.
DATES: Comments are due April 15, 1996.
ADDRESSES: Comments should be directed to the Docket Clerk, Docket OST-
96-1049, Room PL 401, Office of Secretary, Department of
Transportation, 400 Seventh Street, SW, Washington, DC 20590. Comments
should identify the regulatory docket number and seven copies should be
submitted. The Department encourages commenters who wish to do so also
to submit comments to the Department through the Internet; our Internet
address is dot__dockets@postmaster.dot.gov.1 Note, however, that
at this time the Department considers only the paper copies filed with
the Docket Clerk to be the official comments. Comments will be
available for inspection at this address from 10:00 a.m. to 5:00 p.m.,
Monday through Friday both before and after the closing date for
comments. Commenters wishing the Department to acknowledge receipt of
their comments must submit with those comments a stamped, self-
addressed postcard on which the following statement is made: Comments
on Docket OST-96-1049. The postcard will be date/time stamped and
returned to the commenter.
\1\ Our X.400 e-mail address is G=DOT/S=dockets/OU1=qmail/O=hq/
p=gov+dot/a=attmail/c=us.
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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:
Program Requirements for and Importance of T-100 Data
The Department uses the traffic and capacity data reported on
Schedules T-100 and T-100(f) to administer its aviation program
responsibilities. In the original NPRM proposing the adoption of the T-
100 data system (52 FR 26500-26502, July 15, 1987), the Department
provided details of the 21 specific program areas that the T-100 data
would support. The Department's responsibility in these program areas
continues today and will continue into the future. Since the emphasis
in this current rulemaking is on international T-100 data, the
Department specifically recognizes the critical importance of accurate
and reliable T-100 data that support evaluations of bilateral
negotiations and international aviation developments. These data are
also necessary in analyzing proposed operating plans in international
air carrier selection cases, in developing international mail rates,
and in establishing regulatory benchmarks for evaluating international
fares and rates and International Air Transport Association agreements.
The availability and reliability of aviation data have recently
taken on increased importance. The Department's U.S. International Air
Transportation Policy Statement issued in April 1995 (60 FR 21841-
21845, May 3, 1995) emphasized ``the importance of sound economic
analysis based on sufficient data in developing policies and strategies
for achieving our overall aviation goals.'' The General Accounting
Office (GAO) also reflected this recent emphasis on aviation data in
its April 1995 Report to Congressional Requesters, entitled
International Aviation, Airline Alliances Produce Benefits, but Effect
on Competition is Uncertain. In its assessment, GAO
[[Page 5964]]
recommended, among other things, that the Secretary of Transportation
``direct the agency's new economic unit to analyze DOT's existing data
* * * to determine if the U.S. airline industry or consumers have been
negatively affected before reapproving all strategic alliances and any
other alliance that the Secretary deems significant.'' Furthermore, in
his July 11, 1995, testimony before the Senate Committee on Commerce,
Science, and Transportation, the Secretary of Transportation reiterated
the importance of quality data when he stated, ``we would emphasize the
importance of sound economic analyses based on the best available data
in developing policies and strategies for achieving our aviation
goals.'' This present rulemaking is one means of achieving the
Department's overall goal of requiring and using accurate, reliable,
and consistent aviation data.
Background
When the Department instituted its Schedule T-100 reporting
requirements for onboard traffic data, it granted a three-year
confidentiality period to foreign carriers' data in order to address
concerns by those carriers about disclosure of sensitive data. In order
not to put U.S. carriers at a competitive disadvantage, the Department
provided a three-year confidentiality period for U.S. carriers'
international traffic data as well. The rule required U.S. air carriers
to report capacity data, however, because of the concerns of foreign
carriers and governments over the possible burden of reporting
requirements, the Department elected not to require capacity data from
foreign carriers, but to rely instead on commercial data sources.
After working with the data for five years, the Department and
other users have found that three-year-old data are not relevant to the
current conditions existing in the rapidly changing world of
international commercial aviation. In addition, the Department has
found the commercially available data on aircraft capacity to be
unreliable for administering its program responsibilities.
Therefore, the Department proposes to narrow the confidentiality
period on international data from three years to immediately following
the Department's determination that the database is complete, but no
earlier than six months. The Department also proposes to require
foreign carriers to report two capacity data items already reported by
U.S. air carriers: total available seats and available payload weight.
The current international data reporting requirements for the largest
(Group III) U.S. air carriers would be reduced by consolidating the
data required into a smaller number of reporting elements.
(Specifically, the reporting of cabin configuration (first, middle, and
coach) data for the data elements of passengers enplaned, passengers
transported, and available seats would be eliminated and a total by
aircraft would be reported for each element. The reporting of
corresponding transport revenue data by First Class and Coach on
Schedule P-1.2, Statement of Operations, would also be eliminated.
These data are not collected from foreign air carriers.)
Confidentiality of International T-100 Data
The Department published its final rule on November 16, 1988 (53 FR
46284), implementing the T-100 reporting system. The rule was effective
January 1, 1990, and adopted a three-year confidentiality period for
detailed nonstop segment and on-flight market data. By a separate final
rule published January 25, 1991 (56 FR 2842), the Department eliminated
the restrictions on disclosure of U.S. carriers' domestic Schedule T-
100 data, making the data immediately available to the public after DOT
validating, editing, and processing. Detailed international T-100 data
submitted by U.S. and foreign air carriers continues to be withheld
from public disclosure for a three-year period.
The Department has, as a matter of policy, consistently favored
public release of information. This accords with the Administration's
policy on dissemination of information. The President in his Freedom of
Information memorandum of October 4, 1993, stated that, ``Each agency
has a responsibility to distribute information on its own initiative
and to enhance public access through the use of electronic information
systems.'' T-100 international data are valuable resources to airline
and airport planners, consumers, academics, and others interested in
the functioning of air transport markets. Exchanges of these types of
data are usually regarded as procompetitive.
With the increasing globalization of the airline industry in the
late 1980's and the 1990's, the public need for these data has grown.
Air travel markets have become more open: large markets now usually
enjoy economic competition among several carriers of various
nationalities. International cross-ownership and cooperative marketing
agreements, including the use of capacity on a given flight by more
than one airline and other code-sharing arrangements, have become
commonplace. Air travel consumer choice in any given market is more and
more determined by service and price competition without regard to the
carriers' nationalities, and less and less by division of markets
through international agreements.
Carriers have stated that they use traffic data extensively for
route studies, passenger traffic forecasts, market share analyses, and
other planning activities. The failure of the Department to release
international traffic data may impede the ability of carriers to enter
new markets and to continue efficient and responsive operations in
existing markets. At least one carrier (Alaska Airlines, Docket 46101)
has stated its belief that the unavailability of traffic data may very
likely result in the misapplication of carrier resources, may decrease
the number of carriers entering new markets, and may decrease the level
of competition among carriers as market decisions are made on imperfect
and incomplete information. The T-100 data are particularly useful
since, with extremely limited exceptions, they cover all passengers and
all carriers in the markets where they are collected, and because their
collection is comparatively economical, efficient, and accurate. There
are relatively few other traffic data available. The Immigration and
Naturalization Service (INS) currently collects information concerning
passengers on international flights into the United States, including
whether they are U.S. citizens or aliens (I-92 report), which has been
made publicly available to planners and analysts. These data are not
comparable with T-100 data either in terms of market coverage,
collection methodology, or reliability. Moreover, there is some concern
on the part of the public that the INS data may no longer be made
available because of budget restrictions.
With globalization of the airline industry, more carriers appear to
be supporting the advantages of greater data availability and fewer
appear to be concerned with the disadvantages of loss of
confidentiality. Some shifts of position came to light in the comments
on the 1991 rulemaking (Docket 46101). More recently, DOT staff
involved in international air negotiations and aviation data collection
have received similar informal comments from carriers that they would
no longer have objections to their international data being released
and would have an interest in using the data for planning.
DOT proposes to reduce the confidentiality period from three years
to immediately following the
[[Page 5965]]
Department's determination that the database is complete, but no
earlier than six months, for detailed international on-flight market
and nonstop segment data in Schedules T-100 (U.S. carriers) and T-
100(f) (foreign carriers). In order that U.S. air carriers not be
placed at a competitive disadvantage because of data disclosure
incomparability, DOT will continue to restrict availability of on-
flight market and nonstop segment data for segments involving no U.S.
points, for three years. (U.S. air carriers report all market and
segment records, while foreign carriers only report those market and
segment records that have a U.S. point.)
In sum, the benefits of changing the period of confidentiality from
three years to six months are considerable. Six-month old data are much
more relevant for planning and analysis than three-year old data. They
also are significantly more useful than data released after one year
since they would enable analysis and planning for the next season's
schedules and operations (i.e., one year after the date of the data).
The impact on the reporting carriers will be minimal. Data released
after six months are not so current as to allow day-to-day competitive
strategies to be undermined. The requirement maintains a level playing
field by reducing the time period for all carriers. Furthermore, the
Department already makes domestic T-100 data immediately available to
the public after DOT processing, and the T-100(f) data would enjoy
greater protection. Because of the number and diversity of the carriers
reporting international T-100 data (over 80 U.S. carriers and 170
foreign carriers), it would take a considerably longer time to edit and
release them to the public even if they were to be made available
immediately.
Reporting of Capacity Data by Foreign Air Carriers
Under the requirements of the final rule previously mentioned, 53
FR 46284, foreign air carriers are not required to report available
seats and available payload weight. Instead, the Department decided
that it would rely upon existing data sources in the private sector to
estimate aircraft capacity data for foreign air carriers. At the time
of issuing the final rule, the Department stated that these procedures
for estimating capacity data would be effective for a trial period and,
if they proved inadequate, the Department would employ ad hoc reporting
requirements or would impose requirements to submit actual capacity
data. As a result of its experience under this trial procedure, the
Department has tentatively determined that the present methods for
estimating capacity data are unreliable and proposes in this rulemaking
to require foreign air carriers to report capacity data.
The Department's determination that the capacity estimates are
unreliable is based, in part, upon the fact that use of the private
sector sources for data on available aircraft seats has resulted in
several instances of constructed load factors in excess of 100 percent
for various foreign carriers, for various time periods, and in various
markets. In constructing capacity figures from private sources, the
Department encountered such problems as aircraft types not being on
file or the same aircraft type for the same carrier having different
capacities based on cabin configuration (first class, business, and
coach, or all coach). In these scenarios, an estimate had to be used,
which may not be close to the carrier's actual operation.2
\2\ For example, suppose a carrier had two seating
configurations for a B-747-400 aircraft (three class configuration
for a total of 350 seats and single class configuration of 425
seats), which means the Department has three choices--the high of
425 seats, the low of 350 seats, or an average of 388 seats. None of
these choices may approximate the carrier's actual operations.
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Furthermore, the calculation of load factors in excess of 100
percent, while a definite indication of inaccurate data, does not
enable the Department to evaluate how inaccurate the data are. DOT has
also, on occasion, found reason to question whether a load factor may
be too low, although it is obvious that the Department cannot reject it
with the same degree of certainty that it would a load factor above 100
percent.
As with seat capacity data, the Department has tentatively decided
that it no longer will depend upon commercially available data with
regard to available payload weight for foreign air carriers to ensure
that its program responsibilities are administered based on the most
accurate data possible. The Department thus is proposing to require
that the foreign air carriers report both available seats and available
payload weight. Since U.S. air carriers now report those data,
requiring foreign air carriers to report them will also further the
Department's effort to achieve data reporting comparability.
Reduction of Capacity Detail Requirement for U.S. Carriers
The Department proposes to relax the current regulation requiring
that Group III U.S. air carriers (those U.S. air carriers with total
annual operating revenues of more than one billion dollars) report
available seats, passenger enplanements, and passengers transported for
each of three cabin configurations--first class cabin, middle class
cabin, and coach class cabin--for all international operations. Thus,
if this regulation is adopted, all carriers would report total
available seats, total passenger enplanements, and total passengers
transported by aircraft type. This action would reduce the reporting
burden on U.S. air carriers while providing for data comparability
among all reporting air carriers.
Form 41 Revenue Passenger Data by Fare Class
Since the Department is proposing not to collect passenger traffic
and capacity data by cabin configuration, it is also proposing to
collect a single passenger revenue figure rather than passenger revenue
for first class and coach service on Form 41 Schedule P-1.2, Statement
of Operations.
Rulemaking Analysis and Notices
Executive Order 12866 and DOT Regulatory Policies and Procedures
This notice of proposed rulemaking is not considered a significant
regulatory action under section 3(f) of Executive Order 12866, and
therefore it was not reviewed by the Office of Management and Budget.
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 not great. The proposed
change in confidentiality restriction has no impact at all on the
reporting burden of the carriers. The proposed changes in requirements
for reporting capacity and revenue data by the eight largest U.S. air
carriers 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 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
[[Page 5966]]
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.
Executive Order 12612
This proposed 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 proposed rule will not have a significant economic
impact on a substantial number of small entities. The proposed
amendments would affect only large U.S. certificated air carriers and
foreign air carriers.
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 44 U.S.C. Chapter 35 under OMB NO: 2139-new,
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: 184 Air Carriers; FOR FURTHER INFORMATION CONTACT:
Copies of the information collection request submitted to OMB may be
obtained from the IRM Strategies Division, M-32, Office of the
Secretary of Transportation, 400 Seventh Street, SW, Washington, DC
20590-0001, (202) 366-4735. Comments on the proposed information
collection request should be submitted to Office of Management and
Budget, Office of Information and Regulatory Affairs, Washington, D.C.,
20503, Attention: Desk Officer for the Department of Transportation. It
is requested that comments sent to OMB also be sent to the Office of
the Secretary Rulemaking Docket for this proposed action.
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, Air Transportation, Foreign Air Carriers.
Proposed Rule
PART 217--[AMENDED]
Accordingly, the Department of Transportation proposes to amend
Chapter II of 14 CFR Part 217 Reporting Traffic Statistics by Foreign
Air Carriers in Civilian Scheduled, Charter, and Non-scheduled
Services, as follows:
1. The authority for Part 217 continues to read as follows:
Authority: 49 U.S.C. 329 and chapters 401, 413, 417.
2. Section 217.5 would be amended by adding paragraphs (b) (12) and
(13) 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]
Accordingly, the Department of Transportation proposes to amend
Chapter II of 14 CFR Part 241 Uniform System of Accounts and Reports
for Large Certificated Air Carriers, as follows:
1. The authority for Part 241 continues to read as follows:
Authority: 49 U.S.C. 329 and chapters 401, 411, 417.
2. Section 19-5(c) (7), (8) and (18) would be revised to read as
follows:
Section 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.
------------------------------------------------------------------------
Col. All carrier groups and entities
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C-1 110 Revenue passengers enplaned.
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(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 carriers and all entities, item 130 revenue passengers transported
is reported on Form 41 Schedule T-100 in column B-7, as follows.
------------------------------------------------------------------------
Col. All carrier groups and entities
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B-7 130 Revenue passengers transported.
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* * * * *
(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.
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Col. All carrier groups and entities
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B-4 310 Available seats, total.
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* * * * *
3. Section 19-6 would be amended by revising paragraph (b)
introductory text to read:
[[Page 5967]]
Section 19-6 Public disclosure of traffic data.
(a) * * *
(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
data base is complete, but no earlier than six months, with the
exception of any data for on-flight markets and nonstop segments
involving no U.S. points, which shall not be made publicly available
for three years. Industry and carrier summary data may be made public
before the end of six months 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:
* * * * *
4. In the appendix to section 241.25, Form 41, Schedule P-1.2,
Statement of Operations, would be revised to read as shown below.
Certain conventions have been used to highlight the proposed revision.
New language is shown inside bold-faced arrows, while language that
would be removed is set off with brackets.
BILLING CODE 4910-62-P
[[Page 5968]]
[GRAPHIC] [TIFF OMITTED] TP15FE96.000
Issued in Washington, DC on January 26, 1996.
Mark L. Gerchick,
Acting Assistant Secretary for Aviation and International Affairs.
[FR Doc. 96-3374 Filed 2-14-96; 8:45 am]
BILLING CODE 4910-62-C
