[Federal Register Volume 63, Number 135 (Wednesday, July 15, 1998)]
[Proposed Rules]
[Pages 38128-38131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-18855]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Office of the Secretary
14 CFR Parts 234, 241, 250, 298, and 374a
[Docket No. OST-98-4043; Notice No. 98-18]
RIN 2105-AC71
Aviation Data Requirements Review and Modernization Program
AGENCY: Office of the Secretary, DOT.
ACTION: Advance notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: The Department on its own initiative is requesting public
comments from reporting carriers and aviation data users on the nature,
scope, source, and means for collecting, processing, and distributing
airline traffic, fare, and financial data. Specifically, the Department
is inviting comments on whether existing airline traffic, fare, and
financial data should be amended, supplemented, or replaced; whether
selected forms and reports should be retained, modified, or eliminated;
whether the Department should require all aviation data to be filed
electronically; and how the aviation data system should be reengineered
to enhance efficiency and to reduce costs for both the Department and
the airline industry.
It is the Department's preliminary position that its current
aviation data systems may not provide sufficiently reliable data in
some areas to ensure that the Department can fully meet its regulatory
and statutory responsibilities, and that its aviation data requirements
should be reviewed and modernized.
The Department may engage one or more contractors to assist it in
its aviation data requirements assessment and in the reengineering of
the Department's aviation data systems.
DATES: Comments must be submitted on or before September 14, 1998.
Reply comments must be submitted on or before October 13, 1998.
ADDRESSES: Comments are to be filed in Room PL-401, Docket OST-98-4043,
U.S. Department of Transportation, 400 7th Street, S.W., Washington,
D.C. 20590. Late filed comments will be considered to the extent
practical. To facilitate consideration of comments, each respondent
should file six copies of its comments.
FOR FURTHER INFORMATION CONTACT: Regis P. Milan, Office of Aviation
Analysis, (202) 366-2344, or David B. Richards, Office of International
Aviation, (202) 366-2432; 400 7th Street, S.W., Washington, D.C. 20590.
SUPPLEMENTARY INFORMATION:
Background
Public Law 98-443 requires the Department of Transportation, under
the authority of the Secretary of Transportation (49 U.S.C. 329(b)(1)),
to collect and disseminate information on civil aeronautics, other than
that collected and disseminated by the National Transportation Safety
Board. In meeting this responsibility, the Department collects traffic
and financial data submitted under 14 CFR Part 241 (Uniform System of
Accounts for Large Certificated Air Carriers) and traffic data
submitted under 14 CFR Part 298 (Exemptions for Air Taxi and Commuter
Air Carriers). The Department also collects certain traffic data from
foreign air carriers for flights to or from the U.S. under 14 CFR Part
217 and Section 25 of 14 CFR Part 241. The Department collects service
quality data from U.S. carriers submitted under 14 CFR Part 234
(Airline Service Quality Performance Reports), and under 14 CFR 250 it
collects information on passengers denied boarding. In addition, under
Part 374a, airlines are required to report information on any
extensions of credit for air transportation services provided to
federal political candidates.
The Department uses these data in a variety of ways, including
monitoring the fitness of individual carriers and the economic health
of the airline industry, assessing the competitiveness of aviation
markets, providing consumers with data to make decisions on air travel,
providing data for forecasting traffic and for airport funding and
traffic control purposes, and providing the basis for policy decisions
on aviation matters, including international aviation negotiations.
The Department maintains two large traffic data bases, one for
domestic and international passenger origin-destination movements,
including ticket price and itinerary, which are submitted by U.S.
carriers only (Section 19-7 of Part 241, the Passenger Origin-
Destination Survey), and another for aircraft flight data submitted by
U.S. and foreign air carriers (Section 25 of Part 241 and Part 217, the
T-100 and T-100(f) segment and on-flight market reports).
The Department collects Form 41 data, which consist of
comprehensive financial and traffic data reported by large and small
air carriers. Form 41 also includes fuel cost and consumption and
aircraft fleet inventory data.
The Department requires air taxi and commuter carriers to report
limited traffic and market data on Form 298C.
The Department also collects data on oversales/denied boardings,
air service quality performance, and extensions of credit by airlines
to federal political candidates.
The Department's aviation databases are used by a number of federal
departments and agencies, Congress, state and local authorities,
airlines, airports, manufacturers, industry associations, consultants,
academics, researchers, financial analysts, investors, and the general
public.
For the most part, the data collected by the Department are based
upon regulatory requirements designed for an economic environment that
has evolved significantly since enactment of the Airline Deregulation
Act in 1978. Many changes in the airline industry have taken place
since these data reporting systems were established. Nearly all
domestic air carriers now operate hub-and-spoke systems, have extensive
code-sharing and other marketing agreements with other carriers, offer
frequent flyer programs, provide ticketless travel, and use integrated
computer reservation systems. This environment represents a marked
change from the linear, point-to-point systems in place 20 years ago,
when the domestic airline industry was deregulated. Internationally,
the last few years have seen the development of global, multi-national
carrier alliances and an increasing number of open-skies and
liberalized-entry agreements with other nations.
Along with these changes, the needs of the Department and other
aviation data users have evolved and expanded, while the collected data
and associated processing systems have changed slowly. However, the
Department has significantly reduced the reporting burden on the
industry by eliminating some Form 41 schedules and line items over the
last 20 years. Nonetheless, the Department intends to reexamine whether
all data items that we now collect remain relevant to today's economic
and regulatory environment.
Request for Comments
We are issuing this advance notice of proposed rulemaking to invite
comments on whether traffic, fare, and
[[Page 38129]]
financial data reporting systems should be retained, amended,
supplemented, or replaced; whether other selected forms and reports
which are less utilized by the Department and other government users
should be retained, compressed, or deleted; and finally, whether the
Department should require all data to be filed by electronic
communication means (e.g., Internet, direct-wire) or on magnetic media
(e.g., tape, disk, cassette).
The Department now collects data from over 400 U.S. and foreign
airlines for certain data collections. These data must be processed,
validated, and edited. We are seeking comments on alternative data and
collection methods to address deficiencies in the structure of these
data systems.
We request comments on whether there are alternate, more reliable
sources of these data, and whether changes to data items may make these
data more useful.
Note: We welcome comments on all aspects of our data systems.
However, for identification, reference, and administrative
convenience, we have specifically numbered particular requests for
comments by section, with an identification number placed after each
request. Please use these identifiers in your response.
A. The T-100 System--Report of Traffic, Capacity, and Statistics
This database provides airport pair traffic and capacity data by
non-stop segment by aircraft type and on-flight market. Schedule T-100
reports are filed by all large certificated air carriers, where large
certificated air carriers are defined as those that conduct operations
using ``large'' aircraft (aircraft with more than 60 seats or 18,000
pounds of payload capacity, 14 CFR Parts 217.3 and 241.25). However,
carriers conducting only domestic charter or all-cargo operations are
not required to file Schedule T-100, with the exception of intra-Alaska
cargo operations (Part 241, Section 19-1(a)). The T-100 system does not
require U.S. and foreign carriers who exclusively operate aircraft with
60 or fewer seats to report T-100 data. Foreign air carriers serving
the U.S. generally have the same reporting requirements as U.S.
carriers, except that they instead file Schedule T-100(f).
The Department last year reviewed its Schedule T-100 and T-100(f)
traffic data systems and determined that the data-confidentiality
restrictions for international service should be shortened to no
earlier than six months after the submission date for the data;
reporting of available seats and payload weight should be added to the
reporting requirements for foreign carriers, similar to that required
for U.S. carriers; and the requirement to report passenger data by
cabin configuration should be eliminated (62 FR 6715-6719, February 13,
1997).
We request that respondents provide specific comments on the
following matters:
[A-1] Is there a continuing need to collect T-100/T-100(f) data?
Explain the usefulness of these data in satisfying your requirements.
[A-2] Is there a way to modify or restructure T-100/T-100(f) data
to make them more functional?
[A3] Are there alternate sources of and/or more efficient modes
for delivery of these data to the Department?
[A-4] Should the Department require T-100/T-100(f) data from
carriers who exclusively operate aircraft with fewer than 60 seats?
[A-5] Should the Department require T-100 data from domestic all-
cargo carriers?
[A-6] If yes to A-4 and/or A-5, what criteria should be used in
setting the data reporting threshold (e.g., aircraft size, air carrier
operations, annual operating revenues, revenue passenger enplanements,
number of flights, some combination of these specified criteria, or
other unspecified criteria)?
[A-7] Are there alternate sources of comparable data available for
smaller carriers or domestic all-cargo carriers?
[A-8] Should the Department amend T-100 and T-100(f) to require
that international data include summary citizenship data (e.g., U.S. or
non-U.S.)?
B. The Origin and Destination Survey of Airline Passenger Traffic
The O&D Survey (Survey) provides U.S. air carrier traffic using a
ten percent sample of ticketed passengers. These data are reported for
the scheduled operations only of large U.S. carriers, except where
certain foreign carriers provide data similar to those required of U.S.
carriers as a condition for approval of, and antitrust immunity for,
carrier alliances (See e.g., Order 96-11-1, November 1, 1996). U.S.
carriers who exclusively operate aircraft with 60 or fewer seats do not
report Survey data for their operations and such data are included in
the Survey only if incidentally reported as part of an itinerary
reported by a large carrier.
The Survey was originally designed in the early 1960s, with fare
data (from the ticket) added in 1979. As with other regulatory
reporting requirements, time and technology have rendered this data
collection methodology virtually obsolete. Nearly all carriers now rely
on computer reservation systems for reservation/ticketing procedures,
and a significant and growing percentage of passengers are traveling
using ``ticketless or electronic'' procedures. Carrier use of the
physical ticket for revenue accounting and control purposes is rapidly
declining.
The processing of the current Survey data is costly both for the
reporting carriers and the Department. Moreover, the Department's
quarterly release of the domestic Survey data has been unacceptably
delayed because of significant carrier submission errors and omissions.
While imposing economic sanctions for filing such poor quality data may
improve their accuracy and timeliness, the fundamental problem is that
this O&D Survey data system is hampered by outmoded and inefficient
transmission, collection, and processing procedures that rely
extensively on paper tickets.
[B-1] Is there a continuing need to collect O&D data? Explain the
usefulness of these data in satisfying your requirements.
[B-2] Is there a way to modify or restructure O&D data to make
them more functional?
[B-3] Are there alternate sources of and/or more efficient modes
for delivery of these data to the Department?
[B-4] Should the Department require O&D data from carriers who
exclusively operate aircraft with fewer than 60 seats?
[B-5] If yes to B-4, what criteria should be used in setting the
data reporting threshold (e.g., aircraft size, air carrier operations,
annual operating revenues, revenue passenger enplanements, number of
flights, some combination of these specified criteria, or other
unspecified criteria)?
[B-6] Should O&D data be collected for U.S. domestic services and
international services of U.S. air carriers only, as is the procedure
under the current Survey, or should foreign air carrier international
O&D data, involving a U.S. point in the flight itinerary, be required
and processed in the Survey?
[B-7] If it is determined that foreign air carrier international
O&D data should be required and processed in the Survey, should those
carriers be required to submit information on the full flight
itineraries or only on those flight segments to/from the U.S., or some
combination thereof?
[B-8] Should there be confidentiality restrictions imposed for
access to international data included in the Survey, and if so, what
should be the degree and duration of such access restrictions?
[[Page 38130]]
[B-9] What should be the time-frame for submission to the
Department--weekly, monthly, or quarterly?
Other Automated Sources of O&D Data
The Department wishes to consider whether there are alternatives to
the current ticket-based O&D System, especially ones that could be
based on existing internal automated data systems maintained by
airlines and/or computer reservation systems (CRSs). As an example,
there is a CRS-based data file called the Transaction Control Number
(TCN) files. In the process of ticketing airline passengers, airlines
and related computer reservation systems electronically record the
majority of transactions in the standard TCN formats for various
accounting, reconciliation, and seat inventory control purposes. Under
a current industry data interchange program, many airlines and CRSs
routinely exchange the TCN data through the Airline Tariff Publishing
Company (ATPCO) electronically on a daily basis. The Department
believes that these TCN data could provide an alternative, less
expensive source of traffic and fare data.
We request that respondents provide specific comments on the
following matters:
[B-10] List and describe alternative data sources, such as TCN,
that could provide the types of comprehensive passenger O&D itinerary
and fare data we are seeking, and the potential advantages and
disadvantages of each source.
[B-11] If the Department decides to use TCN or alternative data as
the basis of a new O&D Survey, should carriers continue to submit data
independently to the Department, or should such data be submitted via a
common exchange (such as a CRS or common exchange point like ATPCO)?
[B-12] Under a new system, should the replacement O&D data be
submitted for ticketed or booked passengers only, or should such data
be held until reconciliation, e.g. until the reservation is actually
used (as evidenced by a coupon lifted at the time of flight) or is
canceled?
[B-13] What are carriers' best cost estimates for the submission
of domestic and international TCN data to the Department via CRS or
ATPCO?
[B-14] What are carriers' best cost estimates for the submission
of data from other potential sources?
[B-15] What are the best cost estimates of carriers who do not use
CRS services or ATPCO for reconciliation or control purposes to file
independent submissions of this type of data to the Department directly
or via an intermediary?
C. Form 41, Uniform System of Accounts and Reports of Financial and
Operating Statistics for Large Certificated Air Carriers
This database provides U.S. air carrier financial data, predicated
on a uniform system of accounts, and selected traffic statistics,
generally termed the Form 41 schedules. A list of such schedules is
shown in 14 CFR Part 241, Section 22. These schedules include the
balance sheet, profit and loss statement, various operating expense
schedules, and summary traffic and capacity schedules.
We request that respondents provide specific comments on the
following matters:
[C-1] Is there a continuing need to collect Form 41 data? Explain
the usefulness of these data in satisfying your requirements.
[C-2] Is there a way to modify restructure Form 41 data to make
them more functional?
[C-3] Are there alternate sources of and/or more efficient modes
for delivery of these data to the Department?
D. Commuter, Part 298, Exemptions for Air Taxi and Commuter Air Carrier
Operations
This rule provides air taxi and commuter air carriers certain
exemptions from traffic and financial data reporting required of large
certificated air carriers. However, less detailed reporting schedules
(Form 298-C) are required, including, for example, the full reporting
of on-line origin-destination passengers instead of the Department's
standard O&D Survey, expense reporting by general category, rather than
by detailed sub-account, and simplified quarterly reporting of traffic
rather than the monthly T-100 schedule.
We request that respondents provide specific comments on the
following matters:
[D-1] Is there a continuing need to collect Form 298-C data?
Explain the usefulness of these data in satisfying your requirements.
[D-2] Is there a way to modify or restructure Form 298-C data to
make them more functional?
[D-3] Are there alternate sources of and/or more efficient modes
for delivery of these data to the Department?
[D-4] Should the Department retain, modify, or eliminate the 60-
seat exemption under Part 298?
[D-5] Air taxi and commuter carriers are asked to indicate their
use of computer reservation systems, with specific attention to the
possible use of TCN data derived from CRS records to replace the
Survey.
E. Part 234, Airline Service Quality Performance Reports
These data are collected from air carriers accounting for at least
one percent of domestic scheduled passenger revenues. This monthly
report includes flight delays, on-time flight performance, enplaned
passengers, and the number of mishandled-baggage reports filed with air
carriers.
We request that respondents provide specific comments on the
following matters:
[E-1] Is there a continuing need to collect Part 234 data? Explain
the usefulness of these data in satisfying your requirements.
[E-2] Is there a way to modify Part 234 data to make them more
functional?
[E-3] Are there alternate sources of and/or more efficient modes
for delivery of these data to the Department?
F. Part 250, Oversales, requires that U.S. and foreign air carriers
report various data on the number of passengers that are denied
boarding, and the total number of boardings, each quarter. Our
reporting requirements were last reviewed in 1995.
We request that respondents provide specific comments on the
following matters:
[F-1] Is there a continuing need to collect Part 250 data? Explain
the usefulness of these data in satisfying your requirements.
[F-2] Is there a way to modify Part 250 data to make them more
functional?
[F-3] Are there alternate sources of and/or more efficient modes
for delivery of these data to the Department?
G. Part 374a, Extension of Credit by Airlines to Federal Political
Candidates, requires air carriers to make monthly reports with respect
to credit for transportation furnished to political candidates, or
persons acting on behalf of candidates, during the period from six
months before nomination or election, until the date of election.
Continuing reports are to be made until a filing indicates that no debt
is owed the carrier.
We request that respondents provide specific comments on the
following matters:
[G-1] Is there a continuing need to collect Part 374a reports?
Explain the usefulness of these data in satisfying your requirements.
[G-2] Is there a way to modify or restructure Part 374a reports to
make them more functional?
[G-3] Are there alternate sources of and/or superior submission
techniques for these reports?
[[Page 38131]]
H. Electronic Filing of Data
The Department currently accepts data submissions either in paper
form or on magnetic disk or tape. Most large carriers submit the bulk
of their data on magnetic media, with large data submissions, such as
the Passenger Origin-Destination Survey and T-100 market reports nearly
universally submitted on tape or cassette. Electronic submission of
data can be processed more quickly, and at lower cost, than similar
data submitted in paper form.
The Department now accepts the official filing of international
fare and fare rules tariffs electronically (See 14 CFR Part 221 and 61
FR 18070-18075, April 24, 1996). Given the Department's limited
resources, it would be impossible to process the volume of tariff data
received if these data were filed in a wholly paper environment.
Similarly, the Department is increasingly burdened by the filing of
required financial and traffic data in paper form.
We request that respondents provide specific comments on the
following matters:
[H-1] All air carriers who supply aviation data to the Department
are requested to comment on their ability to file data electronically
or on magnetic media, i.e., via tape or disk, or over the Internet.
[H-2] If certain large database material now accepted by the
Department in electronic form (e.g., the T-100/T-100(f), Origin-
Destination Survey, and 298-C reports) are submitted on paper, relevant
carrier respondents are requested to indicate why magnetic media are
not employed for their submissions.
Contact Persons
We recognize that formal comments submitted to the Department on
rulemaking matters are usually submitted by corporate counsel. However,
we are seeking comments regarding complex technical issues in
anticipation of a formal rulemaking, in areas which are generally
outside the area of expertise of legal counsel. It would aid in our
evaluation of any technical comments to be able to contact persons with
direct knowledge of technical issues being commented upon. Respondents
are urged to supply the names, telephone numbers, and addresses of
knowledgeable individuals who can be contacted for a more detailed
discussion of any technical matters that the respondent counsel cannot
answer directly. There may be multiple contact persons for any
particular item, or in total. These contact persons should be listed on
the last page of any submitted filing, along with their area(s) of
expertise.
Regulatory Process Matters
Executive Orders 12612 and 12866
The Department has determined that the proposed notice of proposed
rulemaking is not a significant regulatory action under Executive Order
12866. However, the proposed rule may be significant under the
Department's Regulatory Policies and Procedures (44 CFR 11304), because
of substantial industry interest and because it may result in a
reduction in paperwork and filing burden for U.S. carriers. The
Department has also analyzed the proposal in accordance with the
principles and criteria contained in Executive Order 12612
(``Federalism''), and has determined that the rule does not have
sufficient federalism implications to warrant the preparation of a
Federalism Assessment. This rule would not impose unfunded mandates as
defined by the Unfunded Mandates Reform Act of 1995.
Regulatory Flexibility Act
The Regulatory Flexibility Act of 1980, 5 U.S.C. 601 et seq., was
enacted by Congress to ensure that small entities are not unnecessarily
and disproportionately burdened by government regulations. The Act
requires agencies to review proposed regulations that may have a
significant economic impact on a substantial number of small entities.
For purposes of this notice, small entities include air taxis, commuter
air carriers, and smaller U.S. and foreign airlines.
Although we do not believe the existing rule imposes a significant
economic impact on a substantial number of small entities, it does
affect many small entities. For that reason, we specifically seek
public comment on what steps we can take to lessen or eliminate any
burdens it imposes on small entities.
Paperwork Reduction Act
Our current rules contain significant collection-of-information
requirements. Changes we may propose will be subject to the Paperwork
Reduction Act, Public Law No. 96-411, 44 U.S.C. Chapter 35. The revised
rules are expected to result in a net paperwork reduction for the
industry.
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 contained in the heading
of this document can be used to cross reference this action with the
Unified Agenda.
Patrick V. Murphy,
Deputy Assistant Secretary for Aviation International Affairs.
Robert A. Knisely,
Acting Director, Bureau of Transportation Statistics.
[FR Doc. 98-18855 Filed 7-14-98; 8:45 am]
BILLING CODE 4910-62-P