[Federal Register Volume 61, Number 85 (Wednesday, May 1, 1996)]
[Rules and Regulations]
[Pages 19164-19166]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-10741]



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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

14 CFR Parts 205 and 323

[Docket No. OST-96-1269]
RIN 2105-AC46


Aircraft Accident Liability Insurance; Terminations, Suspensions, 
and Reductions of Service

AGENCY: Office of the Secretary, Department of Transportation.

ACTION: Final rule.

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SUMMARY: The Department is amending its regulations on aircraft 
accident liability insurance and on terminations, suspensions, and 
reductions of essential air service, to remove or update obsolete 
provisions and organizational and statutory references.

EFFECTIVE DATE: The rule shall become effective on May 31, 1996.

FOR FURTHER INFORMATION CONTACT: Carol A. Woods, Air Carrier Fitness 
Division, X-56, Department of Transportation, 400 Seventh Street, SW., 
Washington, DC 20590, (202) 366-9721.

SUPPLEMENTARY INFORMATION: In his Regulatory Reinvention Initiative

[[Page 19165]]

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and to ``eliminate or revise those that are outdated or otherwise in 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.
    In this rulemaking, parts 205 and 323 are being amended to remove 
or update obsolete provisions and organizational references, and to 
replace references to the Federal Aviation Act with references to 
Subtitle VII of Title 49 of the United States Code (Transportation).

Executive Order 12866 (Regulatory Planning and Review)

    The Department has analyzed the economic and other effects of the 
amendments 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. The rule is considered ``nonsignificant'' under 
Executive Order 12688 and was not reviewed by the Office of Management 
and Budget.

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 issuance of this rule will have no economic impact.

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. 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.

Lists of Subjects

14 CFR Part 205

    Air carriers, Insurance, Reporting and recordkeeping requirements.

14 CFR Part 323

    Administrative practice and procedure, Air carriers, Reporting and 
recordkeeping requirements.

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 205--[AMENDED]

    1. The authority citation for part 205 is revised to read as 
follows:

    Authority: 49 U.S.C. Chapters 401, 411, 413, 417.


Sec. 205.1  [Amended]

    2. In Sec. 205.1, remove the punctuation and word ``, overseas,''.


Sec. 205.4  [Amended]

    3. In Sec. 205.4(c), remove the words ``222 West Seventh Street, 
Box 27'' and add, in their place, the words ``801 B Street, Suite 
506''; remove the number ``99513'' and add, in its place, the number 
``99501-3657''.

PART 323--[AMENDED]

    4. The authority citation for part 323 is revised to read as 
follows:

    Authority: 49 U.S.C. Chapters 401, 411, 417.


Secs. 323.1, 323.3, 323.4, 323.9  [Amended]

    5. In Secs. 323.1, 323.3(a)(2), (a)(4) introductory text, (a)(5), 
(c)(1), (c)(2), (c)(3) introductory text, 323.4(a)(5) introductory 
text, (a)(5)(ii), 323.9(b)(4), (b)(6), and (c), remove the words 
``essential air transportation'' and add, in their place, the words 
``essential air service''.


Secs. 323.1, 323.5  [Amended]

    6. In Secs. 323.1 and 323.5(a)(1), remove the words ``section 419 
of the Act'' and add, in their place, the words ``49 U.S.C. 41731-
41742''.
    7. In Sec. 323.2, the definitions Act, Eligible point, and 
Essential air transportation are removed, the definition Certificated 
carrier is revised, and the definitions Eligible place, Essential air 
service, FAA, and Statute are added in alphabetical order, to read as 
follows:


Sec. 323.2  Definitions.

* * * * *
    Certificated carrier means a direct air carrier holding authority 
to provide air

[[Page 19166]]

transportation granted by the Department of Transportation (``DOT'') or 
the former Civil Aeronautics Board (``CAB'') in the form of a 
certificate of public convenience and necessity under section 41102 of 
the Title 49 of the United States Code (Transportation) (``the 
Statute'') or an all-cargo air transportation certificate to perform 
all-cargo air transportation under section 41103 of the Statute.
    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. (For availability of Department of 
Transportation Orders, see 49 CFR part 7, subpart E and appendix A.)
    Essential air service is that air transportation which the 
Department has found to be essential under Subchapter II of Chapter 417 
of the Statute.
    FAA means the Federal Aviation Administration, U.S. Department of 
Transportation.
* * * * *
    Statute means Subtitle VII of Title 49 of the United States Code 
(Transportation).
* * * * *


Sec. 323.3  [Amended]

    8. In Sec. 323.3(a)(5), remove the words ``section 419(a)(2) or 
section 419(b)(4) of the Act'' and add, in their place, the words 
``section 41731 or section 41733 of the Statute''.


Secs. 323.3, 323.4  [Amended]

    9. In Secs. 323.3(a)(2), (a)(3), (a)(4) introductory text, 
(a)(4)(iii), (a)(5), (c)(1), (c)(2), (c)(3) introductory text, 
(c)(3)(iii), and 323.4(a)(5) introductory text, remove the words ``CAB 
or''.


Secs. 323.3, 323.7  [Amended]

    10. In Secs. 323.3(a)(1), (a)(3), (a)(5), (d), and 323.7(a)(1), 
remove the word ``points'' and add, in its place, the word ``places''.


Secs. 323.3, 323.4, 323.5, 323.7, 323.9, 323.13, 323.14  [Amended]

    11. In Secs. 323.3(a)(1), (a)(2), (a)(3), (a)(4) introductory text, 
(a)(5), (c)(1), (c)(2), (c)(3) introductory text, (d), 323.4(a)(5)(i), 
(a)(5)(ii), (a)(6), 323.5(a)(1) and (a)(2), 323.7(a)(1), 323.9(a), 
(b)(3), (b)(4), 323.13(b)(1), 323.14(a) and (c), remove the word 
``point'' wherever it occurs and add, in its place, the word ``place''.


Sec. 323.6  [Amended]

    11a. In Sec. 323.6(b), remove the word ``point(s)'' and add, in its 
place, the word ``place(s)''.


Sec. 323.9  [Amended]

    11b. In Sec. 323.9(c), remove the word ``point's'' and add, in its 
place, the word ``place's''.


Sec. 323.7  [Amended]

    12. In Sec. 323.7(a)(1), remove the words ``section 401'' wherever 
they occur, and add, in their place, the words ``section 41102''.
    13. Section 323.8 is revised to read as follows:


Sec. 323.8  Exemptions.

    Carriers are exempted from paragraphs (a)(1), (a)(3), and (a)(5) of 
Sec. 323.3 to the extent that those provisions require them to file a 
notice when terminating or suspending the domestic leg of an 
international flight (fill-up service).


Secs. 323.14, 323.15  [Amended]

    14. In Secs. 323.14(d) and 323.15(b), remove the words ``Office of 
Essential Air Service'' and add, in their place, the words ``Office of 
Aviation Analysis''.

    Issued in Washington, DC, on this 15th day of April, 1996.
Charles A. Hunnicutt,
Assistant Secretary for Aviation and International Affairs.
[FR Doc. 96-10741 Filed 4-30-96; 8:45 am]
BILLING CODE 4910-62-P