[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]


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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.

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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?

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    [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?

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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