[Federal Register Volume 64, Number 13 (Thursday, January 21, 1999)]
[Proposed Rules]
[Pages 3229-3250]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1233]


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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

14 CFR Part 389

[Docket No. OST-99-5003; Notice No. 99-1]
RIN 2105-AC47


Fees and Charges for Special Services

AGENCY: Office of the Secretary, DOT.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Department is proposing to revise 14 CFR Part 389 to bring 
the fees we charge to beneficiaries of certain economic, aviation-
related licensing services in line with the costs incurred to provide 
those services. We also are proposing to remove or update obsolete 
provisions and organizational references included in the existing 
regulations.

DATES: Comments should be received no later than March 22, 1999.

ADDRESSES: Five (5) copies of any comments should be sent to Department 
of Transportation Dockets, Room PL-401, 400 7th Street, SW., 
Washington, DC 20590-0002, and should refer to this docket. 
Acknowledgment of comments requires you to include a stamped, self-
addressed postcard that the Docket clerk will time and date-stamp, and 
return.

FOR FURTHER INFORMATION CONTACT: Mr. James H. New or Mr. John D. 
Miller, Office of Planning and Special Projects, X-60, Department of 
Transportation, at the address above. Telephone (202) 366-4868.

SUPPLEMENTARY INFORMATION: Part 389 of Title 14 of the Code of Federal 
Regulations--Fees and Charges for Special Services--describes certain 
special services related to aviation economic proceedings that the 
Department provides to the public, and sets forth the fees and charges 
applicable to those services. This regulation has not been 
comprehensively updated since January 1983, when economic regulation of 
interstate and foreign air transportation was overseen by the Civil 
Aeronautics Board. Congress ``sunset'' the Board in January 1985, at 
which time the Board's residual functions were transferred to the 
Office of the Secretary, DOT. Today, some of the services identified in 
Part 389 are no longer provided, while several other services are 
provided but are not included. Further, most of the service processing 
fees prescribed in section 389.25(a) are not sufficient to recover our 
processing costs, while the prescribed fee in a few instances is too 
high. Because of these conditions, the General Accounting Office has

[[Page 3230]]

recommended that the Department update the rule to reflect the services 
that we currently provide and to ensure that our fees are commensurate 
with the actual costs of providing those services. (GAO/RCED-96-8.)
    Consequently, we have undertaken an analysis of the special 
services the Department provides in aviation economic proceedings, the 
fees currently in force for those services, and revisions that are 
needed for us to continue to provide services to the extent 
commensurate with our actual costs. A revised schedule of fees based on 
the results of our analysis is set forth in this proposed rule. 
Additionally, the rule would remove or update obsolete provisions and 
organizational references sprinkled throughout Part 389 and replace 
references to the Federal Aviation Act with references to Subtitle VII 
of Title 49 of the United States Code (Transportation).

Major Changes

    The Department is proposing a major reorganization of the 
processing fee schedule contained in existing section 389.25(a). Of the 
50 fee items listed in the schedule, we are proposing to eliminate 10 
and to retain or revise the remaining 40. We also are proposing various 
new items, resulting in a net change from 50 to 76 schedule items. All 
items considered, there are 55 fee increases, 6 fee decreases, 9 
instances in which the fee is unchanged and 6 instances in which an 
item is reserved for future use.
    Under the proposed fee schedule, prospective or incumbent U.S. air 
carriers that apply for new or modified interstate certificate 
authority involving the use of ``small'' aircraft, defined as aircraft 
with 60 seats or less or with a maximum payload capacity of 18,000 
pounds or less, are grouped with U.S. commuter air carriers with regard 
to the processing of initial applications for economic operating 
authority, amendments to initial applications, and/or applications for 
various exemptions or waivers from our regulations. Under the current 
schedule, the fees levied for these special services to U.S. 
certificated air carriers operating small aircraft are the same as the 
fees for U.S. certificated air carriers operating aircraft with more 
than 60 seats. Our analysis has determined that the costs to process 
applications involving the former are substantially lower than the 
costs for the latter, yet are similar to the processing costs for U.S. 
commuter air carrier authorizations.
    We are also proposing a new, incremental fee in the case of 
applications for various international air service rights when the 
Department must conduct a comparative proceeding to distribute those 
rights among multiple applicants. This comparative process entails 
significantly higher costs to the Department than those incurred when a 
comparative proceeding is not necessary.
    Additionally, except in the case of a treaty or an agreement, we 
are proposing to eliminate existing section 389.24, which authorizes 
the waiver of processing fees for foreign air carriers under certain 
circumstances. Currently, 235 foreign air carriers that have been 
granted U.S. economic operating authority qualify for this waiver, and 
the annual costs we incur to process service applications from such 
carriers amount to $248,000. We have concluded that it is neither 
necessary nor appropriate for the U.S. government to continue to absorb 
these costs.

User Fee Authority and Implementation

    Our revised user charges are proposed under the authority of Title 
V of the Independent Offices Appropriations Act of 1952 (``IOAA''; 31 
U.S.C. 9701). The IOAA provides that the head of a government agency 
may prescribe regulations, subject to policies prescribed by the 
President, establishing the charge for a service or ``thing of value'' 
provided by the agency. The statute states that each service or thing 
of value provided by an agency should be self-sustaining to the extent 
possible, and that each charge imposed to that end shall be fair and 
shall be based on (1) the costs to the government, (2) the value of the 
service or thing to the recipient, (3) public policy or interest 
served, and (4) and other relevant factors.
    During the 1970's and early 1980's the IOAA was subjected to a 
series of judicial rulings to resolve issues of interpretation. 
Consequently, the principles of user charge implementation under the 
statute are well settled, and are embodied in the current version of 
Office of Management and Budget Circular A-25 (``User Charges,'' July 
8, 1993). This Circular prescribes federal policy and guidelines for 
executive-branch and independent agencies to assess fees for government 
services and sets forth the procedures by which those agencies are to 
implement user fees. The principles and procedures enunciated in OMB 
Circular A-25 and relevant to this proposed rule are as follows 
(emphasis supplied by DOT):
    1. It is the policy of the federal government to assess a user 
charge against each identifiable recipient for special benefits derived 
from federal activities beyond those received by the general public. 
When a service (or privilege) provides special benefits to an 
identifiable recipient beyond those that accrue to the general public, 
a charge will be imposed to recover the full cost to the federal 
government for providing the special benefit.
    2. A special benefit will be considered to accrue and a user charge 
will be imposed when, for example, a government service (a) enables the 
beneficiary to obtain more immediate or substantial gains or values 
(which may or may not be measurable in monetary terms) than those that 
accrue to the general public (e.g., receiving a patent, insurance, or 
guarantee provision, or a license to carry on a specific activity or 
business or various kinds of public land use); (b) provides business 
stability or contributes to public confidence in the business activity 
of the beneficiary (e.g., insuring deposits in commercial banks); or 
(c) is performed at the request of or for the convenience of the 
recipient, and is beyond the services regularly received by other 
members of the same industry or group or by the general public (e.g., 
receiving a passport, visa, airman's certificate, or a Custom's 
inspection after regular duty hours).
    3. User charges will be sufficient to recover the full cost to the 
federal government of providing the service, resource, or good when the 
government is acting in its capacity as sovereign. Full cost includes 
all direct and indirect costs to any part of the federal government of 
providing a good, resource, or service. These costs include, but are 
not limited to, an appropriate share of direct and indirect personnel 
costs, including salaries and fringe benefits such as medical insurance 
and retirement; physical overhead, consulting, and other indirect costs 
including material and supply costs, utilities, insurance, travel, and 
rents or imputed rents on land, buildings, and equipment; management 
and supervisory costs; and the costs of enforcement, collection, 
research, establishment of standards, and regulation.
    4. No charge should be made for a service when the identification 
of the specific beneficiary is obscure, and the service can be 
considered primarily as benefiting broadly the general public. However, 
when the public obtains benefits as a necessary consequence of an 
agency's provision of special benefits to an identifiable recipient 
(i.e., the public benefits are not independent of, but merely 
incidental to, the special benefits), an agency need not allocate any 
costs to the public and should seek to recover from the identifiable 
recipient

[[Page 3231]]

the full cost to the federal government of providing the special 
benefit.
    5. Each agency will identify the services and activities covered by 
this Circular, determine the extent of the special benefits provided, 
and apply the principles specified [herein] in determining cost. Full 
cost shall be determined or estimated from the best available records 
of the agency, and new cost accounting systems need not be established 
solely for this purpose.

Special Services Provided

    The Secretary of Transportation is responsible, under Title 49 of 
the United States Code (``Transportation''), Subtitle VII (``Aviation 
Programs''), for the economic regulation of interstate and foreign air 
transportation. The Department's rules and regulations implementing the 
requirements of Subtitle VII are contained in Title 14 of the Code of 
Federal Regulations, Parts 200-399. In general, nearly all of the 
special services provided by the Department in the course of economic 
regulation involve the authority of a U.S. or a foreign air carrier to 
conduct revenue-producing interstate or foreign air transportation 
under the requirements of Subtitle VII and our implementing 
regulations.
    Within the Office of the Secretary, the provision of special 
services is carried out under delegated authority by the Office of the 
Assistant Secretary for Aviation and International Affairs and the 
Office of the General Counsel. Both offices in turn are organized by 
sub-office and/or division, where the day-to-day processing of 
applications for special services takes place. The touchstone of the 
user charges set forth in this proposed rule is the direct labor time 
expended by these offices to process applications for aviation services 
on behalf of specific, identifiable recipients accorded a special 
benefit as a consequence of those services. Staff of both offices also 
spend time on policy development, analyses and other aspects of 
economic regulation that are not directly related to the provision of 
special benefits to identifiable recipients. That labor time is 
excluded from the scope of this rulemaking.
    With respect to processing of applications for special services, 
the principal offices under the Assistant Secretary are the Office of 
International Aviation and the Office of Aviation Analysis. A third 
office, the Office of Aviation and International Economics, although 
primarily engaged in policy analysis, occasionally provides direct 
analytical support for applications requesting special services.
    The Office of International Aviation receives, processes, and acts 
on or recommends the disposition of U.S. and foreign air carrier 
applications for economic authority to operate between the United 
States and foreign points. It also determines the disposition of all 
tariff filings by U.S. and foreign airlines. Within this office, the 
Pricing and Multilateral Affairs division reviews international fares 
and rates filed by U.S. and foreign air carriers to determine whether 
the proposed prices are consistent with public interest standards, 
Department rules and policy, and applicable international agreements. 
This division also reviews inter-carrier agreements, primarily fare and 
rate agreements filed by the International Air Transport Association, 
to determine whether they should be approved and given antitrust 
immunity. Division analysts also support licensing services provided by 
the U.S. Air Carrier Licensing division and the Foreign Air Carrier 
Licensing division. The former processes requests by U.S. airlines for 
authority to serve specific foreign markets and applications for 
transfer of international authority among U.S. air carriers. The latter 
handles all foreign air carrier applications (excepting Canadian air 
taxi registrations) for the authority to operate to the United States, 
including applications for foreign air carrier permits, exemptions, 
statements of authorization for charter, code-share and wet-lease 
operations, and related matters. In addition to these divisions, 
geographic aviation specialists for Europe, Asia-Pacific-Africa, and 
Western Hemisphere occasionally provide direct labor support for 
applications requesting special services.
    Within the Office of Aviation Analysis, the provision of special 
services primarily involves the Air Carrier Fitness division and the 
Special Authorities division. Air Carrier Fitness evaluates the fitness 
of applicants for U.S. certificated and U.S. commuter air carrier 
operating authority, monitors the continuing fitness of certificated 
and commuter air carriers, evaluates requests for transfer of 
certificate or commuter authority, and processes applications for name 
changes or trade names, as well as applications for various exemptions 
and waivers from the Department's regulations. The Special Authorities 
division reviews charter prospectuses filed by tour operators, requests 
for waivers from charter regulations, and applications for operating 
authority from Canadian air taxi operators, foreign air freight 
forwarders, and overseas military personnel charter operators. On 
occasion, the Essential Air Service and Domestic Analysis division or 
the Economic and Financial Analysis division also expend direct labor 
time on processing applications for certain special services, such as 
requests for a change in mail rates or an exemption from the airport 
slot restrictions imposed by the High Density Rule.
    Four offices of the Department's General Counsel are involved in 
the provision of special aviation services: Environmental, Civil Rights 
and General Law; International Law; Litigation; and Aviation 
Enforcement and Proceedings. Their chief responsibility is to ensure 
that proposed decisions on applications for special services are in 
compliance with applicable laws, regulations and international 
agreements. These offices also expend direct labor time when issues 
such as citizenship, bankruptcy, confidentiality or potential 
litigation arise in the course of processing applications.

Development of Fees

    The following procedures were used to develop the user fees 
proposed in revised section 389.24(a) of the rule:
    In accordance with the principles and procedures of OMB Circular A-
25, we first examined the activities conducted by the Department to 
carry out economic regulation of interstate and foreign air 
transportation in order to identify those services that provide a 
special benefit to a specific, identifiable recipient. Where the 
beneficiary is obscure, or the nature of the benefit is indeterminate, 
or the beneficiary is primarily the public generally, the activity was 
excluded from further consideration. An example is an action by the 
Department to suspend or revoke an air carrier's economic authority to 
conduct interstate or foreign air transportation. Such action is taken 
primarily for the benefit of the public generally.
    For those services identified as providing a special benefit to a 
specific identifiable recipient, the smallest practical unit for 
assigning a fee was determined in nearly all cases to be the 
application document submitted to the Department requesting a special 
service (a license, an exemption, a waiver, etc.). There are two 
exceptions: for certain substantive changes to an initial application 
for economic operating authority, the smallest practical unit is an 
``amendment,'' and for certain requests involving antitrust immunity, 
the smallest practical unit is a ``resolution.''
    We then analyzed the work flows and direct labor hours to process 
applications for special services. This

[[Page 3232]]

analysis was based on (1) the knowledge and expertise of office and 
division supervisors, all of whom have many years of experience 
overseeing the processing of aviation service requests, and (2) data on 
the actual direct labor hours incurred to process a sample of 611 
service applications completed during the period March 1997 through 
July 1998.
    The results of the work-flow cost analysis were then applied to 
calculate direct labor costs, which are based on pay rates in effect as 
of February 1998 and include a standard allowance for fringe benefits 
(personal and sick leave, medical insurance, etc.) that is based on a 
government-wide average published by OMB (Circular A-76, Handbook, 
March 1996).
    In addition to direct labor, indirect (overhead) costs of the 
Office of the Assistant Secretary were distributed to service 
applications based on rates applied at three levels: office-level 
supervision, office-level general and administrative, and general 
management and support. The overhead rates are based on actual costs 
for the fiscal year ending September 30, 1997, and exclude overhead 
items unrelated to the delivery of special services. In making overhead 
distributions, the rates were applied to actual direct labor costs. For 
certain overhead costs, such as office space, it was necessary to make 
a per capita allocation in order to derive a distribution rate. For the 
Office of the General Counsel, a single overhead rate was applied to 
the direct labor hours incurred.
    Finally, fee amounts were assigned to individual special service 
items in accordance with these criteria:
    If direct labor time data were available for a particular service, 
the fee was determined by dividing total direct and indirect costs by 
the number of applications completed. For administrative convenience 
and ease of payment, values below $100 are rounded to the nearest 
dollar and those above $100 are rounded to the nearest ten dollars.
    If direct labor data were not available (i.e., no applications for 
the special service were completed during the cost-collection period), 
the fee was assigned based on the staff's analysis of the work flow to 
process an application for the special service.
    If no direct labor data were available and the work-flow analysis 
identified no reason to assume costs have changed, the existing fee was 
retained.
    If no cost data were available, the work-flow analysis identified 
no other basis to assign a fee, and no extant fee pertained, the 
service item was reserved in expectation of a future fee determination.
    Appendix A of this Notice contains a summary of our fee 
calculations and an item-by-item justification of our proposed fee 
amounts, including the legal basis for the services provided to 
specific identifiable recipients, the nature of the special benefits 
accorded to those recipients, and the basis for the fee amounts 
proposed. In addition, we are placing in the docket a Supplement 
(``Service Job Costs'') to this Notice that (1) illustrates in detail 
how direct labor time was reported, how job costs were calculated, and 
how overhead rates were derived; and (2) lists the 611 applications for 
special services and their costs included in our work-flow cost 
analysis. The Department would like to have comment on whether any fee 
items have been overlooked or whether others should be deleted, in view 
of the methods used to calculate fees, as explained in this Notice and 
its Supplement.

U.S. Air Carriers Operating Small Aircraft

    As noted earlier, our proposed fee schedule makes a distinction 
between the processing fees applicable to U.S. certificated air 
carriers (or applicants for certificate authority) that operate small 
as compared to large aircraft in interstate air transportation, and 
groups the former with the processing fees applicable to authorizations 
involving commuter air carrier operations. Our basis for making this 
distinction is the significantly lower processing costs associated with 
applications involving small aircraft, as explained in detail in 
Appendix A, items 9 through 12 and items 24 through 34. The Department 
would like to receive comments on the reasonableness and fairness of 
grouping small-aircraft certificated air carriers with commuter air 
carriers for purposes of processing fees.

Additional Fee for Comparative Proceedings

    We also invite comments on the reasonableness and fairness of our 
proposed incremental user charge for applications for international air 
service rights when a comparative proceeding is required to distribute 
those rights among multiple applicants. Again, the basis for this 
proposed fee is the additional cost incurred to conduct a comparative 
proceeding, as explained in detail in Appendix A, items 52 through 57.

Elimination of Waiver of Foreign Air Carrier Processing Fees

    Current section 389.24 provides that a foreign air carrier, or such 
carriers, if from the same country, acting jointly, may apply for a 
waiver of the requirements to pay processing fees, based on reciprocity 
for U.S. air carriers contained in the requirement of their home 
governments, or as provided in a treaty or agreement with the United 
States. Further, once a waiver has been granted for a specific country, 
no further waiver applications need be filed for that country.
    To date, 76 countries and the 12-nation Air Afrique Consortium have 
been granted interim or final waivers from the requirement to pay all 
or some of the processing fees contained in current section 389.25. 
These waivers in all cases are based on reciprocity: a foreign carrier 
is relieved from the Department's processing fees only if the aviation 
authority of its home country does likewise for U.S. carriers. However, 
none of the waivers we have granted are required by treaty or other 
formal agreement with the U.S. government and all are revocable at the 
Department's discretion. Eliminating the waiver provision and revoking 
existing waivers means that once this proposed rule takes effect, all 
foreign air carriers would be required to pay the applicable fee 
contained in revised section 389.24. We recognize that this action 
could spur the governments of foreign nations whose carriers have 
benefitted from U.S. fee waivers to reciprocate by revoking the fee 
relief they have granted to U.S. carriers and requiring U.S. carriers 
to pay processing fees in the future. The Department would like to 
receive comments on its proposed elimination of the foreign air carrier 
waiver provision.
    Our reason for proposing to eliminate the foreign air carrier 
waiver provision is its cost to the Department. In fiscal year 1997, 
the Foreign Air Carrier Licensing Division received 1,163 applications 
from foreign carriers requesting various forms of operating authority. 
Of the total received, 710 applications, or 61 percent, were covered by 
fee waivers. We estimate that the processing of these applications 
entails approximately 2,300 labor hours at a total cost to the 
Department of $248,000.

Regulatory Analyses and Notices

Executive Order 12866 (Regulatory Planning and Review)

    The Department has analyzed the economic and other effects of the 
proposed revisions and has determined

[[Page 3233]]

that they are not ``significant'' within the meaning of Executive Order 
12866. The revisions 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. The revisions will not create a serious 
inconsistency or otherwise interfere with an action taken or planned by 
another agency, and will not materially alter the budgetary impact of 
entitlements, grants, user fees, or loan programs or the rights and 
obligations of recipients thereof. Nor do they 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.

DOT Regulatory Policies and Procedures

    The proposed revisions 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 updating the fees charged to the 
beneficiaries of special aviation-related services provided by the 
Department to help offset the costs of providing the services, and of 
eliminating obsolete requirements and correcting out-of-date references 
in the rule.

Executive Order 12612 (Federalism)

    This proposal has been analyzed in accordance with the principles 
and criteria contained in Executive Order 12612 (``Federalism''), and 
the Department has determined the proposed rule does not have 
sufficient federalism implications to warrant the preparation of a 
Federalism Assessment.

Regulatory Flexibility Analysis

    I certify that this proposed rule will not have a significant 
economic impact on a substantial number of small entities. The proposed 
changes would result in a net increase in the processing fees 
applicable to small entities. The new fee schedule, however, would not 
have a significant economic impact on small entities and would not 
affect a substantial number of small entities.
    The Small Business Administration suggests that, for aircraft 
services, ``small'' represents impacted businesses with 1,500 or fewer 
employees. For purposes of this rulemaking, small entities are defined 
as certificated air carriers, commuter air carriers, air taxis, and air 
charter operators that (1) have 1,500 or fewer employees and/or (2) 
operate aircraft with 60 seats or less or 18,000 pounds maximum payload 
or less. Departmental records show that 106 certificated air carriers, 
49 commuter air carriers, approximately 2,800 active air taxis 
operators, and approximately 250 charter operators meet this definition 
of a small entity.
    Many of these small entities would be unaffected by the changes to 
the fee schedule. The actual economic impact on any individual small 
entity, however, would depend on the number and type of filings 
submitted to implement particular operational decisions. The survey of 
applications from March 1997 to July 1998 used to calculate the new 
fees indicated that only a small portion of small entities filed 
applications for aviation economic proceedings. Moreover, air taxis, 
the single largest class of small entities, are exempt from certain 
regulatory requirements, including the requirement to obtain 
certificated authority. Several of the fees that we propose to increase 
are related to certificated authority. Thus, unless they choose to 
obtain certificates, the largest class of small entities would not be 
affected by most of the proposed fee increases.
    Of those small entities that would be affected, most would 
experience only modest fee increases because most items for which the 
survey of applications suggest that relatively large numbers of 
applications are filed would have only modest fee increases. For 
instance, the fee for Schedule Item 34, Application for approval of 
amendment to commuter air carrier registration under 14 CFR Part 298, 
would increase from $0 to $5.

National Environmental Policy Act

    The Department has also assessed the proposed revisions for the 
purpose of the National Environmental Policy Act. The revisions will 
not have any significant impact on the quality of the human 
environment.

Paperwork Reduction Act

    This rule does not impose any collection of information 
requirements requiring review under the Paperwork Reduction Act of 
1995. The proposed rule contains no new reporting, recordkeeping, or 
compliance requirements, but only sets forth the processing fees 
applicable to existing regulatory requirements.

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 contained in the heading of 
this document can be used to cross reference this action with the 
Unified Agenda.

Lists of Subjects in 14 CFR Part 389

    Administrative practice and procedure, Reporting and recordkeeping 
requirements.

Proposed Rule

    For the reasons set forth above, it is proposed that Title 14, 
Chapter II of the Code of Federal Regulations be amended as follows:

PART 389--[REVISED]

    1. Part 389 is revised to read as follows:

PART 389--FEES AND CHARGES FOR SPECIAL SERVICES

Subpart A--General Provisions

Sec.
389.1  Policy and scope.

Subpart B--Fees Related to the Availability of Public Records and 
Documents

389.10  Public disclosure of information.

Subpart C--Filing and Processing License Fees

389.20  Applicability of subpart.
389.21  Payment of fees.
389.22  Failure to make proper payment.
389.23  Application for waiver or modification of fees.
389.24  Schedule of processing fees.
389.25  Special rules for tariff page filings.
389.26  Refund of fees.

    Authority: 31 U.S.C. 9701, 49 U.S.C. Chapters 401, 461.

Subpart A--General Provisions


Sec. 389.1  Policy and scope.

    Pursuant to the provisions of 31 U.S.C. 9701 as implemented by 
Office of Management and Budget Circular A-25, revised July 8, 1993, 
the Department sets forth in this part the special aviation-related 
services made available by the Department and prescribes the fees to be 
paid for these and various other services.

Subpart B--Fees Related to the Availability of Public Records and 
Documents


Sec. 389.10  Public disclosure of information.

    Part 7 of the Office of Secretary regulations, Public Availability 
of Information, governs the availability of records and documents of 
the Department to the public. (49 CFR part 7)

[[Page 3234]]

Subpart C--Filing and Processing License Fees


Sec. 389.20  Applicability of subpart.

    (a) This subpart applies to the filing of certain documents and 
records with the Department by non-government parties, and prescribes 
fees for their processing.
    (b) For the purpose of this subpart, record means those electronic 
tariff records submitted to the Department under subpart W of part 221 
of this chapter, and contains that set of information which describes 
one (1) tariff fare, or that set of information which describes one (1) 
related element associated with such tariff fare. For purposes of this 
subpart, the term document and record also includes those filings made 
electronically under process set at the DOT Dockets website.
    (c) For the purpose of this subpart, small aircraft means aircraft 
with 60 seats or less or with a maximum payload capacity of 18,000 
pounds or less.


Sec. 389.21  Payment of fees.

    (a) Any paper document or record for which a filing fee is required 
by Sec. 389.24 shall be accompanied by either:
    (1) A check, draft, or postal money order, payable to the 
Department of Transportation, in the amount prescribed in this part, or
    (2) A request for waiver or modification of the filing fee.
    (b) The filing fee required by Sec. 389.24, Item 57, concerning 
carrier/gateway selection from among multiple applicants, shall be 
payable upon submission of an applicant's first filing subsequent to 
the Department's notice that a comparative proceeding is necessary.
    (c) Except for tariff records filed under Sec. 221.500 of this 
title, documents and records filed electronically under process set at 
the DOT Dockets website shall be accompanied by a certification that 
the filing fee for that document has been or will be paid in accordance 
with procedures set at the DOT Dockets website.
    (d) Where a document relating to a single transaction or matter 
seeks multiple authorities or relief and therefore would otherwise be 
subject to more than one filing fee, only the highest fee shall be 
required. Where a document relating to more than one transaction or 
matter seeks multiple authorities or relief, the required filing fee 
shall be determined by combining the highest fees for each transaction 
or matter. For purposes of this paragraph, a specific number of 
charters or inclusive tours described in one application will be 
regarded as a single transaction or matter.
    (e) No fee shall be returned after the document has been filed with 
the Department, except as provided in Secs. 389.23 and 389.26.


Sec. 389.22  Failure to make proper payment.

    (a)(1) Except as provided in Sec. 389.23, documents (except tariff 
publications) which are not accompanied by filing fees shall be 
returned to the filing party, and such documents shall not be 
considered as filed by the Department.
    (2) Except as provided in Sec. 389.23, records which are not 
accompanied by the appropriate filing fees shall be retained and 
considered filed with the Department. The Department will notify the 
filer concerning the nonpayment or underpayment of the filing fees, and 
will also notify the filer that the records will not be processed until 
the fees are paid.
    (3) Except as provided in Sec. 389.23, documents and records filed 
electronically not accompanied by the required certification in 
Sec. 389.21(b) shall not be processed. In addition, electronic filers 
not making payment in accordance with the procedures set at the DOT 
Dockets website shall be notified that unless payment is made within 10 
days from such notification, the document or record shall be deemed to 
have been dismissed or withdrawn.
    (b) The filing fee tendered by a filing party shall be accepted by 
the Department office to which payment is made, subject to post audit 
by the Chief, Accounting Division, Office of Budget and Policy, Federal 
Transit Administration, and notification to the filing party within 30 
days of any additional amount due. Not more than 5 days after receipt 
of the notification, the determination of the Chief, Accounting 
Division, may be appealed to the Chief Financial Officer, who has been 
delegated authority by the Department to decide such appeals. The 
filing party may submit to the Department a petition for review of the 
Chief Financial Officer's decision pursuant to Sec. 385.30 of this 
chapter, and proceedings thereon will be governed by subpart C of part 
385 of this chapter.
    (c)(1) The amount found due by the Chief, Accounting Division, 
shall be paid within 10 days of notification except that:
    (i) If that decision is appealed to the Chief Financial Officer, 
the amount due shall be paid within 10 days after the Chief Financial 
Officer notifies the filing party that he has affirmed or modified the 
decision of the Chief, Accounting Division; and
    (ii) If the decision of the Chief Financial Officer is appealed to 
the Department, the amount due shall be paid within 10 days after the 
Department notifies the filing party that it has affirmed or modified 
the staff decision.
    (2) If the amount due is not paid, the document (except a tariff 
publication) shall be returned to the filing party along with the fee 
tendered, and such document shall be deemed to have been dismissed or 
withdrawn.


Sec. 389.23  Application for waiver or modification of fees.

    (a) Applications may be filed asking for waiver or modification of 
any fee paid under this subpart. Each applicant shall set forth the 
reasons why a waiver or modification should be granted, and by what 
legal authority.
    (b) Applications asking for a waiver or modification of fees shall 
be sent to the Director, Office of International Aviation, or Director, 
Office of Aviation Analysis, as appropriate, and shall accompany the 
document filed. Applicants may appeal the decision of the appropriate 
Director to the Assistant Secretary for Aviation and International 
Affairs under Sec. 385.30 of this chapter. When no petition for review 
is filed with the Assistant Secretary, or when the Assistant Secretary 
reviews the appropriate Director's decision, if the amount found due is 
not paid within 10 days after receipt of notification of the final 
determination, the document shall be returned to the filing party.

(Approved by the Office of Management and Budget under control 
number 3024-0071)


Sec. 389.24  Schedule of processing fees.

    (a) Application--filing fees.

 
               Code and application document                   $Fee \1\
 
Initial Authority--U.S. Certificated Air Carriers (large
 aircraft):
     1 Interstate scheduled only...........................        7,030
     2 Interstate charter only.............................        7,030
     3 All-cargo only......................................        7,030
     4 Foreign scheduled only..............................        7,200

[[Page 3235]]

 
     5 Foreign charter only................................        7,100
     6 Interstate and foreign scheduled....................        7,360
     7 Interstate and foreign charter......................        7,270
     8 Amendment to initial application, items 1-7
     inclusive.............................................    \2\ 1,760
Initial Authority--U.S. Commuter Air Carriers and U.S.
 Certificated Air Carriers (small aircraft):
     9 Interstate scheduled only...........................        3,050
    10 Foreign scheduled only..............................        3,150
    11 Interstate and foreign scheduled....................        3,310
    12 Amendment to initial application, items 9-11
     inclusive.............................................      \2\ 760
Exemptions, Waivers, Transfers--U.S. Certificated Air
 Carriers (large aircraft):
    13 Pendente Lite Exemption.............................        1,900
    14 Waiver to advertise, take reservations, issue
     tickets or receive payments before effective authority
     is issued.............................................        1,900
    15 Waiver of revocation-for-dormancy rule..............        1,370
    16 Notice of intent to resume service when resumption
     is 30 days or more after cessation of service.........        4,750
    17 Notice of intent to resume service when resumption
     is less than 30 days after cessation of service.......        1,370
    18 Removal of restriction on authority not involving a
     change from small to large aircraft...................        1,650
    19 Removal of restriction on authority when a change
     from small to large aircraft is involved..............        4,750
    20 Change name/trade name with reissuance of
     certificate...........................................          500
    21 Trade name registration.............................          240
    22 Transfer of certificate: New ownership and/or
     management............................................        7,730
    23 Certificate transfer: Intra-corporate reorganization          650
Exemptions, Waivers, Transfers, Amendments--U.S. Commuter
 Air Carriers and U.S. Certificated Carriers (small
 aircraft):
    24 Pendente Lite Exemption.............................          280
    25 Waiver to advertise, take reservations, issue
     tickets or receive payments before effective authority
     is issued.............................................          280
    26 Waiver of revocation-for-dormancy rule..............          280
    27 [RESERVED.].........................................  ...........
    28 Notice of intent to resume service..................          280
    29 [RESERVED.].........................................  ...........
    30 Change name/trade name with reissuance of
     certificate...........................................          250
    31 Trade name registration.............................           65
    32 Transfer of certificate or commuter authority: New
     ownership and/or management...........................        4,070
    33 [RESERVED.].........................................  ...........
    34 Amendment to commuter registration..................            5
Authority for Charter, Air Taxis, Foreign Tour and Foreign
 Freight Forwarder Operations:
    35 Public charter prospectus...........................           15
    36 Waiver of public charter regulations................           15
    37 Foreign tour operator registration..................           16
    38 U.S. air taxi registration..........................           15
    39 Canadian charter air taxi registration..............           15
    40 Foreign air freight forwarder authority.............           19
    41 Amendment to authorization, items 35-40 inclusive...            5
Authorizations, Amendments, Exemptions, Waivers--Foreign
 Air Carriers:
    42 Foreign air carrier permit, initial or renewal......        1,550
    43 Exemption--More than 10 flights.....................          400
    44 Amendment to application, item 42 or 43.............          215
    45 Exemption--10 or fewer flights......................          120
    46 Special authorization, part 375.....................          110
    47 Foreign aircraft permit, part 375...................          180
    48 Charter statement of authorization..................          350
    49 Special authority, part 216.........................          410
    50 Emergency cabotage..................................          330
    51 Approval of foreign carrier schedule change per
     bilateral agreement...................................           90
International Route Authority, Exemptions, Frequencies,
 Charter Allocations:
    52 New, renewal or amendment of certificate authority,
     carrier selection not required........................          650
    53 New, renewal or amendment of exemption authority,
     carrier selection not required........................          480
    54 New allocation of frequencies in limited-entry
     markets, carrier selection not required...............          630
    55 Renewal or frequency allocation in limited-entry
     markets, carrier selection not required...............          230
    56 Charter allocations for aviation operations into
     foreign countries, carrier selection not required.....          180
    57 Additional charge if carrier/gateway selection is
     required, items 52-56 inclusive.......................    \3\ 3,490
    58 Route or frequency transfer.........................        4,990
Code-Share, Wet-Lease, Transborder and Intermodal
 Authorizations:
    59 Statement of code-share authorization...............        1,100
    60 Statement of wet-lease authorization................          300
     61 [RESERVED.]
    62 Approval under Part 222 for foreign carriers to
     transport international cargo from a U.S. gateway
     point to an interior U.S. point via trucking, per
     bilateral agreement...................................          290
Regulation of Tariffs and Rates:
    63 IATA Resolutions, To and/or from U.S................       \4\ 84
    64 IATA Resolutions, Foreign-to-foreign................        \4\ 5
    65 IATA Resolutions, Technical change..................           15
    66 Exemption to carry traffic not otherwise authorized
     under tariff in effect................................           53
    67 Permission to file tariffs on less than statutory
     notice................................................           40
    68 Approval of waiver/modification of tariff
     regulations...........................................           12
    69 Provide certified copies of tariffs upon request....          240

[[Page 3236]]

 
Other Exemptions and Authorizations:
    70 Slot exemption at slot-controlled airport...........        4,340
    71 Confidential treatment of documents.................          380
    72 Approval of agreements/antitrust immunity...........        1,080
    73 [RESERVED.]
    74 [RESERVED.]
    75 Service mail rate petition..........................          420
    76 Overseas military personnel charter authority.......         665
 
\1\ Fee is per application except as noted. If application involves
  multiple items, highest fee applies.
\2\ Per amendment.
\3\ Payable upon submission of first filing subsequent to DOT notice
  that a comparative proceeding is necessary.
\4\ Per resolution.

    (b) Electronic tariff filing fees. The filing fee for one (1) or 
more transactions proposed in any existing record, or for any new or 
canceled records, shall be 5 cents per record; Provided: That no fee 
shall be assessed for those records submitted to the Department 
pursuant to Sec. 221.500(b)(1) of this chapter.


Sec. 389.25  Special rules for tariff page filings.

    (a) Tariffs issued by carriers. The filing fee for tariff pages 
filed by U.S. air carriers will be charged even if the tariff includes 
matters involving participating foreign air carriers. It will also be 
charged if the tariff is issued by a foreign air carrier and includes 
matters involving participating U.S. air carriers. The fee will not be 
charged for a blank loose-leaf page unless it cancels matters in the 
preceding issue of the page.
    (b) Tariffs issued by publishing agents. (1) If the tariff is 
issued for one or more air carriers exclusively, the fee will be 
charged for each page.
    (2) If the tariff is issued for one or more air carriers and one or 
more foreign air carriers, the fee will be charged for each page, 
except for those pages that the issuing agent states contain only:
    (i) Matters pertaining exclusively to foreign air carriers that 
have been granted a waiver, or
    (ii) Changes in matters pertaining to foreign air carriers that 
have been granted a waiver and that are included on the same page with 
other matters that are reissued without change.
    (3) The fee will not be charged for a blank loose-leaf page unless 
it cancels matters in the preceding page.
    (4) No fee will be charged when two pages are published back-to-
back, one page is not subject to the fee under paragraph (b)(2) of this 
section, and the page on the reverse is issued without substantive 
change.
    (5) The fee will be charged for two loose-leaf pages containing a 
correction number check sheet unless all other pages of the tariff are 
exempt from the fee.


Sec. 389.26  Refund of fee.

    (a) Any fee charged under this part may be refunded in full or in 
part upon request if the document for which it is charged is withdrawn 
before final action is taken. Such requests shall be filed in 
accordance with Sec. 389.23.
    (b) Any person may file an application for refund of a fee paid 
since April 28, 1977, on the grounds that such fee exceeded the 
Department's cost in providing the service. The application shall be 
filed with the Chief, Accounting Division, Office of Budget and Policy, 
Federal Transit Administration, and shall contain: the amount paid, the 
date paid, and the category of service.

(Approved by the Office of Management and Budget under control 
number 3024-0071) Issued in Washington DC, on January 13, 1999.
Charles A. Hunnicutt,
Assistant Secretary for Aviation and International Affairs.

    Note: The following appendix will not appear in the Code of 
Federal Regulations.
BILLING CODE 4910-62-P

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BILLING CODE 4910-62-C

[[Page 3239]]

Justifications of Proposed User Fees

    The following sections set forth the legal authority for the 
special services included in our proposed fee schedule, the nature of 
the special benefits those services provide to identifiable private 
recipients, and our rationale for the fee amounts we propose. As 
described earlier, proposed amounts are based on our analysis of the 
work processes and costs required to deliver special services to 
specific identifiable recipients, direct-labor time and cost data on 
special services for a sample of more than 600 applications that we 
completed during the period March 1997-July 1998, and the related 
indirect (overhead) costs distributable to the processing of those 
applications. When available, applications cost data are applied to 
compute the proposed fee, defined as the total cost incurred for a 
specific service divided by the total number of applications completed. 
If no cost data are available for a particular service (i.e., no 
applications for that service were completed during the cost-collection 
period), and we have no other analytic basis to justify a change, the 
current fee is retained. If a particular type of service has neither 
current cost data nor an extant fee, no fee is proposed and a schedule 
item is reserved. In accordance with federal user-charge policy (OMB 
Circular A-25, par. 8), we intend to continue cost collection and 
analysis as needed to revisit the fee schedule at least biennially and 
to revise or update fee items as warranted by changes in our costs or 
the special services we provide.

Initial Authority--U.S. Certificated Air Carriers (Large Aircraft): 
Schedule Items 1-8

    Our analysis of the processes involved to perform certification 
services determined that there is a significant difference in 
processing costs between those prospective air carriers whose 
applications entail the operation of ``large'' aircraft (more than 60 
seats or more than 18,000 pounds maximum payload) and those whose 
applications involve ``small'' aircraft (60 seats or less or 18,000 
pounds maximum payload or less). Accordingly, although the statutory 
basis and nature of special benefits are identical in both instances, 
we are proposing separate certification categories and fees based on 
aircraft size, with schedule items 1-8 applied to applications 
involving large aircraft.
    Schedule Item 1. Initial application for certificate authorizing 
interstate scheduled air transportation under 49 U.S.C. 41102(a)(1). 
Section 41101(a)(1) of Title 49 of the United States Code (``the 
Statute'') provides that an air carrier may engage in interstate 
scheduled air transportation of persons, property, or mail only if it 
has been issued a certificate by the Department of Transportation. 
Section 41102(b)(1) of the Statute requires the Department to find such 
an air carrier ``fit, willing, and able'' to provide the air 
transportation to be authorized by the certificate, and to find that 
the carrier is a U.S. citizen as defined in section 40102(a)(15) of the 
Statute. A fee for processing an application for this authority is 
warranted because the applicant is seeking the special benefit of the 
Department's authorization to conduct revenue-producing interstate 
scheduled air transportation.
    Schedule Item 2. Initial application for certificate authorizing 
interstate charter air transportation under 49 U.S.C. 41102(a)(3). 
Section 41101(a)(2) of the Statute provides that an air carrier may 
engage in interstate charter air transportation of persons, property, 
or mail only if it has been issued a certificate by the Department. 
Section 41102(b)(2) requires the Department to find the carrier fit, 
willing, and able to provide the air transportation to be authorized by 
the certificate, and to find that the carrier is a U.S. citizen as 
defined in section 40102(a)(15). A fee for processing an application 
for this authority is justified since the applicant is seeking the 
special benefit of the Department's authorization to conduct revenue-
producing interstate charter air transportation.
    Schedule Item 3. Initial application for certificate authorizing 
interstate all-cargo transportation under 49 U.S.C. 41103. Section 
41103 of the Statute provides that the Department may issue to a U.S. 
citizen an all-cargo air transportation certificate authorizing it to 
engage in [interstate] all-cargo air transportation. This section 
requires the Department to find the carrier fit, willing, and able to 
provide the air transportation to be authorized. A fee for processing 
an application for all-cargo authority is warranted since the applicant 
is seeking the special benefit of the Department's authorization to 
conduct revenue-producing all-cargo air transportation.
    Our analysis of the work flow and time required to process the 
foregoing applications determined that the resources expended are 
essentially the same for each type of initial application. For this 
reason, we are proposing the identical fee for each type, based on the 
following cost data:

Direct Labor...............................................   $22,650.80
Overhead...................................................    15,530.44
                                                            ------------
Total Cost.................................................    35,136.24
                                                            ============
Applications processed.....................................            5
Cost per application.......................................     7,027.25
Proposed fee, Items 1-3: per application...................    $7,030.00
 

    Our analysis also found that there are measurable differences in 
processing costs depending on whether an applicant requests initial 
authority to provide (1) Foreign scheduled compared with interstate 
scheduled service; (2) foreign charter compared with interstate charter 
service; (3) both interstate and foreign scheduled service; and (4) 
both interstate and foreign charter service. Accordingly, we are 
proposing a different fee for each type as explained below.
    Schedule Item 4. Initial application for certificate authorizing 
foreign scheduled air transportation under 49 U.S.C. 41102(a)(1). 
Section 41101(a)(1) of the Statute provides that an air carrier may 
engage in foreign scheduled air transportation of persons, property, or 
mail only if it has been issued a certificate by the Department. 
Section 41102(b)(1) of the Statute requires the Department to find the 
carrier fit, willing, and able to provide the air transportation to be 
authorized by the certificate, and to find that the carrier is a U.S. 
citizen as defined in section 40102(a)(15) of the Statute. Further, 
under section 41102(b)(2), the Department is required to find that the 
proposed foreign air transportation is consistent with the public 
convenience and necessity and, under section 41102(d), to submit each 
decision authorizing an application to engage in foreign air 
transportation to the President for approval in accordance with section 
41307. A fee for processing an application under these provisions of 
the Statute is warranted since the applicant is seeking the special 
benefit of the Department's authorization to conduct revenue-producing 
foreign scheduled air transportation.
    We did not process any applications under this schedule item during 
the cost-collection period. However, our analysis determined that 
foreign scheduled requires greater processing time than foreign charter 
(see cost data below) because of the need to evaluate compliance with 
extant bilateral agreements and to prepare the requisite implementing 
language for the Department's final order authorizing the requested 
operations. The proposed fee is therefore derived as follows:

Cost per application, Foreign Charter, Item 5 (see below)..    $7,100.89
Additional processing cost (1.06 hrs. at $90.28 per hr.)...        95.70
                                                            ------------

[[Page 3240]]

 
Cost per application.......................................     7,196.59
                                                            ============
Proposed fee, Item 4: per application......................     7,200.00
 

    Schedule Item 5. Initial application for certificate authorizing 
foreign charter air transportation under 49 U.S.C. 41102. Section 
41101(a)(2) of the Statute provides that an air carrier may engage in 
foreign charter air transportation only if it has been issued a 
certificate by the Department, while section 41102(b)(2) requires the 
Department to find such an air carrier fit, willing, and able to 
provide the air transportation to be authorized by the certificate, and 
to find that the carrier is a U.S. citizen as defined in section 
40102(a)(15). Further, under section 41102(b)(2), the Department is 
required to find that the proposed foreign air transportation is 
consistent with the public convenience and necessity and, under section 
41102(d), to submit each decision authorizing an application to engage 
in foreign air transportation to the President for approval in 
accordance with section 41307. A fee for processing an application 
under these provisions of the Statute is warranted since the applicant 
is seeking the special benefit of the Department's authorization to 
conduct revenue-producing foreign charter air transportation.
    The proposed fee for this service is determined as follows:

Direct Labor...............................................   $18,275.10
Overhead...................................................    10,128.44
                                                            ------------
Total Cost.................................................    28,403.54
                                                            ============
Applications processed.....................................            4
Cost per application.......................................     7,100.89
Proposed fee, Item 5: per application......................     7,100.00
 

    Schedule Item 6. Initial application for certificate authorizing 
interstate scheduled air transportation under 49 U.S.C. 41102(a)(1) AND 
foreign scheduled air transportation under 49 U.S.C. 41102(a)(1). 
Although the basic evaluation process is the same for dual and single-
authority applications, the former entails a marginally greater amount 
of time (2 hours) to analyze the additional service proposal and to 
process a second authorization. Thus, the proposed fee for this 
schedule item is derived as follows:

Cost per application, Foreign Scheduled only, Item 4.......    $7,196.59
Additional processing cost (2 hrs. at $83.25 per hr.)......       166.50
                                                            ------------
Cost per application.......................................     7,363.09
                                                            ============
Proposed fee, Item 6: per application......................     7,360.00
 

    Schedule Item 7. Initial application for certificate authorizing 
interstate charter air transportation under 49 U.S.C. 41102(a)(3) AND 
foreign charter air transportation under 49 U.S.C. 41102. As with item 
6, item 7 involves marginally greater time for processing a second 
authority. The proposed fee is derived in a similar fashion thusly:

Cost per application, Foreign Charter only, Item 5.........    $7,100.89
Additional processing cost (2 hrs. at $83.25 per hr.)......       166.50
                                                            ------------
Cost per application.......................................     7,267.39
                                                            ============
Proposed fee, Item 7: per application......................     7,270.00
 

    Schedule Item 8. Amendment to initial application, schedule items 
1-7 inclusive. Under section 302.5 of its procedural regulations, the 
Department requires that if an applicant for certificate authority or 
for all-cargo authority modifies its application substantially, it must 
file an amendment to the application. An amendment may involve a 
substantial change to one of the four major elements--ownership/
citizenship, management, finances, or compliance disposition--examined 
by the Department as predicates to approval of the requested 
authorization, and necessitates significant additional processing 
effort. A fee for processing such amendments is warranted since the 
applicant is seeking the special benefit of the Department's 
consideration of a major change to one or more of the basic elements 
affecting the applicant's qualifications to conduct revenue-producing 
air transportation.
    Our work-flow analysis determined that each of the four basic 
elements of a fitness evaluation entails a comparable amount of 
processing time. Accordingly, the proposed fee for an amendment \1\ to 
an initial application is set at 25 percent of the basic application 
fee, as follows:
---------------------------------------------------------------------------

    \1\ We traditionally have made a distinction between amendments 
and ``supplements.'' As noted above, an amendment involves a 
substantive change by the applicant to one of the four basic 
elements of its initial application--ownership/citizenship, 
management, finances, or compliance disposition. A supplement, by 
contrast, involves additional details or elaborative material on the 
basic elements rather than a substantive change, and is normally 
submitted at the Department's request rather than the applicant's 
initiative. We have never imposed a fee for supplements and do not 
propose to begin doing so now.

Initial application cost, Items 1-3........................    $7,027.25
 x  25% additional cost =..................................     1,756.81
                                                            ============
Proposed fee, Item 8: per amendment........................     1,760.00
 

Initial Authority--U.S. Commuter Air Carriers and U.S. Certificated Air 
Carriers (Small Aircraft): Schedule Items 9-13

    As discussed earlier, we are proposing a separate certification 
category for applications involving aircraft of 60 seats or less or a 
maximum payload of 18,000 pounds or less because those applications 
entail significantly lower processing costs. We also have determined 
that the time to process applications for commuter authority is 
essentially the same as that for interstate scheduled service involving 
small aircraft, and therefore are proposing to combine the two 
authorities under a single schedule item. The statutory basis and 
nature of special benefit for commuter authority are presented below. 
Those for certificated authority involving small aircraft are the same 
as presented earlier for authorizations involving large aircraft.
    Schedule Item 9. Initial application for (1) scheduled passenger 
air service (``commuter'') authority under 49 U.S.C. 41738, or (2) 
certificate authorizing interstate scheduled air transportation under 
49 U.S.C. 41102(a)(1), small aircraft.
    Commuter authority. Section 40109(c) authorizes the Department to 
exempt any person or class of persons from certain provisions of the 
Statute, such as the requirement to obtain a certificate under section 
41101(a). In addition, section 40109(f) provides that an air carrier is 
exempt from the requirement to obtain a certificate under section 
41101(a) if it operates small aircraft and complies with the 
Department's liability insurance regulations and other requirements. 
Further, section 41738 of the Statute provides that before an air 
carrier may provide scheduled air transportation to an eligible place 
(as defined in section 41736), it must be found to be a U.S. citizen 
and to be fit, willing, and able to perform the service. A fee for 
processing an application for this commuter air carrier authority is 
warranted since the applicant is seeking the special benefit of the 
Department's authorization to conduct revenue-producing scheduled air 
transportation to an eligible place.
    Certificate authorizing interstate scheduled air transportation 
under 49 U.S.C. 41102(a)(1), small aircraft. See justification of 
schedule item 1, supra. Our proposed fee for schedule item 9 is based 
on the following cost data:

Direct Labor...............................................   $15,735.90
Overhead...................................................     8,675.60
                                                            ------------
Total Cost.................................................    24,411.50
                                                            ============
Applications processed.....................................            8

[[Page 3241]]

 
Cost per application.......................................     3,051.44
Proposed fee, Items 9, 10: per application.................     3,050.00
 

    Schedule Item 10. Initial application for certificate authorizing 
foreign scheduled air transportation under 49 U.S.C. 41102(a)(1), small 
aircraft. See justification of schedule item 4, supra.
    As in the case of foreign scheduled certificated authority 
involving large aircraft, there is an incremental cost arising from the 
need to evaluate compliance with bilateral agreements and to prepare 
implementing language. Our proposed fee is calculated as follows:

Cost per application, Interstate Scheduled only, Item 9....    $3,051.44
Additional processing cost (1.06 hrs. at $90.28 per hr.)...        95.70
                                                            ------------
Cost per application.......................................     3,147.14
                                                            ============
Proposed fee, Item 10: per application.....................     3,150.00
 

    Schedule Item 11. Initial application for certificate authorizing 
interstate scheduled air transportation under 49 U.S.C. 41102(a)(1) AND 
foreign scheduled air transportation under 49 U.S.C. 41102(a)(1), small 
aircraft. An application seeking both interstate and foreign scheduled 
authority likewise requires marginally greater cost to process dual 
authorizations. Our proposed fee:

Cost per application, Foreign Scheduled only, Item 10......    $3,147.14
Additional processing cost (2 hrs. at $83.25 per hr.)......       166.50
                                                            ------------
Cost per application.......................................     3,313.64
                                                            ============
Proposed fee, Item 11: per application.....................     3,310.00
 

    Schedule Item 12. Amendment to initial application, schedule items 
9-12 inclusive. Finally, as with applications involving large aircraft, 
an amendment to an initial application for commuter authority or 
certificated authority involving small aircraft typically entails a 
substantial change in one of the basic elements evaluated by the 
Department (ownership/citizenship, management, finances or compliance 
disposition), and requires approximately one-fourth as much time to 
process as the initial submission. Our proposed fee is therefore:

Initial application cost, Item 9...........................    $3,051.44
 x  25% additional cost =..................................       762.86
                                                            ============
Proposed fee, Item 12: per amendment.......................       760.00
 

Exemptions, Waivers, Transfers--U.S. Certificated Air Carriers, Large 
Aircraft: Schedule Items 13-23

    Schedule Item 13. Application for an exemption from the provisions 
of 49 U.S.C. 41102 or 41103 in order to conduct air transportation 
operations before the authority for such operations has been granted 
(pendente lite exemption). Section 40109(c) of the Statute provides 
that the Department may grant an air carrier applicant an exemption to 
engage in air transportation operations without first having obtained a 
certificate in accordance with section 41102 or section 41103. The 
Department must determine that a grant of such authority is in the 
public interest, analyze the qualifications of the applicant, and 
assess certain consumer protection actions the applicant is required to 
take in order to be granted a pendente lite exemption. A processing fee 
for this exemption is justified since the applicant is seeking the 
special benefit of the Department's authorization to conduct revenue-
producing air transportation before it has obtained the required 
certificate authority.
    Schedule Item 14. Application for a waiver of the provisions of 14 
CFR 201.5 in order to advertise, take reservations, issue tickets, or 
receive payments before the underlying operating authority is granted. 
Section 201.5 of Title 14 of the Code of Federal Regulations (``the 
regulations'') provides that an applicant for air carrier certificate 
authority may not advertise or take reservations for its proposed air 
service until its application has been approved by the Department, and 
that the applicant may not issue tickets or receive payments for its 
proposed air service until its authority has become effective. Section 
40109(c) of the Statute, however, authorizes the Department to grant 
exemptions or waivers from the regulations. Before granting a waiver, 
the Department must determine that a grant of such authority is in the 
public interest, analyze the applicant's qualifications, and assess 
certain consumer protection actions the applicant is required to take. 
A fee for processing this application for a waiver is justified since 
the applicant is seeking the special benefit of the Department's 
authorization to conduct revenue-producing air transportation before it 
has obtained the underlying authority for those operations.
    Our analysis of the services of schedule items 13 and 14 determined 
that both entail essentially the same amount of processing time. Our 
proposed fee is therefore the same for each item and is based on the 
following cost data:

Direct Labor...............................................    $4,926.53
Overhead...................................................     2,686.07
                                                            ------------
Total Cost.................................................     7,612.60
                                                            ============
Applications processed.....................................            4
Cost per application.......................................     1,903.15
Proposed fee, Items 13, 14: per application................     1,900.00
 

    Schedule Item 15. Application by a certificated air carrier for a 
waiver of the revocation-for-dormancy provisions of 14 CFR 204.7. 
Section 204.7 of the Department's regulations provides that if a 
carrier has been awarded a certificate under section 41102 or 41103 of 
the Statute, but does not institute the air transportation operations 
for which it was found fit within one year of the date of its fitness 
determination, the carrier's authority may be revoked for reasons of 
dormancy. Similarly, if the carrier institutes air transportation 
operations but subsequently ceases conducting all of the operations for 
which it was found fit, its authority is automatically suspended and 
subject to revocation if the carrier does not recommence operations 
within one year. If the carrier requires additional time beyond the 
one-year period, it must file an application for a waiver of the 
revocation-for-dormancy provisions of section 204.7, together with 
updated fitness information. A fee for processing an application for a 
waiver of the revocation for dormancy rule is warranted because the 
Department must assess the carrier's progress in becoming operational 
and because the carrier is seeking the special benefit of Departmental 
action to avert revocation of its authority to conduct revenue-
producing air transportation operations.
    Our proposed fee for this item is determined as follows:

Direct Labor...............................................    $3,550.50
Overhead...................................................     1,935.46
                                                            ------------
Total Cost.................................................     5,485.90
                                                            ============
Applications processed.....................................            4
Cost per application.......................................     1,371.48
Proposed fee, Item 15: per application.....................     1,370.00
 

    Schedule Item 16. Notice by a certificated air carrier pursuant to 
14 CFR 204.7 of its intent to resume air transportation operations 
following a cessation of those operations more than 30 days after the 
cessation. Section 204.7 of the regulations provides that if a carrier 
holding a certificate under section 41102 or 41103 of the Statute 
ceases conducting all of the air transportation operations for which it 
was found fit, willing, and able, it may

[[Page 3242]]

not resume those operations until its fitness is redetermined by the 
Department. Under our rules, if the carrier desires to re-institute air 
transportation operations, it must file a notice of intent to do so 
along with updated fitness information. A fee for processing a notice 
of intent to resume service is justified because the Department must 
re-evaluate the carrier's fitness, including any changes (which often 
are substantial) that have been made by the carrier since it ceased 
operations, and because the carrier is seeking the special benefit of 
the Department's authorization to re-engage in revenue-producing air 
transportation operations.
    Our proposed fee for this item is based on the following:

Direct Labor...............................................    $9,220.69
Overhead...................................................     5,030.99
                                                            ------------
Total Cost.................................................    14,251.58
                                                            ============
Applications processed.....................................            3
Cost per application.......................................     4,750.56
Proposed fee, Item 16: per application.....................     4,750.00
 

    Schedule Item 17. Application of notice by a certificated air 
carrier pursuant to 14 CFR 204.7 of its intent to resume air 
transportation operations following a cessation of those operations 
less than 30 days after the cessation. The regulatory basis and nature 
of special benefit warranting a user charge for this item are the same 
as those for item 16 above. However, the fitness issues associated with 
an applicant that has only recently ceased operations normally are less 
complex and require less analysis and processing effort because fewer 
changes are likely to have been made in the areas requiring a fitness 
review. Our work-flow analysis determined that the time required to 
process a notice to resume service in less than 30 days is essentially 
the same as that for a waiver-of-dormancy application, item 15 above. 
We therefore are proposing the same fee for this item, $1,370 per 
application.
    Schedule Item 18. Application by an air carrier holding a 
certificate under 49 U.S.C. 41102 or 41103 for the removal of a 
restriction on its certificate authority when the removal does not 
involve a change from small to large aircraft. An air carrier may apply 
to have the Department lift a restriction contained in the Terms, 
Conditions, and Limitations attached to its certificate. Such an 
application requires the Department to conduct a continuing fitness 
review under section 41110(e) of the Statute to determine that the 
carrier will remain fit, willing, and able if the restriction is 
removed. Since the applicant is seeking the special benefit of being 
granted broader revenue-producing authority by the Department, a 
processing fee is warranted. Our proposed fee is determined as follows:

Direct Labor...............................................    $2,136.26
Overhead...................................................     1,169.68
                                                            ------------
Total Cost.................................................     3,305.94
                                                            ============
Applications processed.....................................            2
Cost per application.......................................     1,652.97
Proposed fee, Item 18: per application.....................     1,650.00
 

    Schedule Item 19. Application by an air carrier holding a 
certificate under 49 U.S.C. 41102 or 41103 for the removal of a 
restriction on its certificate authority when the removal does involve 
a change from small to large aircraft. The statutory basis and nature 
of special benefit warranting a user charge for this schedule item are 
the same as for item 18 above. Application processing costs, however, 
are substantially higher because a change from small to large aircraft 
has a major impact on the air carrier's management and financial 
fitness. Although we did not complete any applications for this 
schedule item during the cost-collection period, our work-flow analysis 
determined that the process for evaluating a removal of a restriction 
involving a change from small to large aircraft is essentially the same 
as the evaluation process for a notice to resume service more than 30 
days after cessation (item 16, supra). As in the latter case, the 
applicant under this schedule item typically undergoes substantial 
changes in its management team and financial structure that necessitate 
the Department's scrutiny. Thus, the proposed fee for item 19 is the 
same as for item 16, $4,750 per application.
    Schedule Item 20. Application by a certificated air carrier under 
14 CFR Part 215 to register a name or trade name involving the 
reissuance of its certificate. Part 215 of the Department's regulations 
provides that a carrier holding a certificate under section 41102 or 
41103 of the Statute may not hold itself out as a provider of air 
transportation service in any name that has not been registered with 
the Department. A name-change application requires the Department to 
(1) search its records for any other air carriers with the same or a 
similar name, (2) advise the applicant accordingly so that it may, in 
turn, notify any such similarly named carriers of its intent to 
register the name, and (3) reissue the carrier's certificate in the new 
name. A fee for this service is warranted since the carrier is seeking 
the special benefit of being authorized to engage in revenue-producing 
air transportation operations under a different name or trade name than 
previously authorized.
    Our proposed fee for this schedule item is as follows:

Direct Labor...............................................      $656.52
Overhead...................................................       350.23
                                                            ------------
Total Cost.................................................     1,006.75
                                                            ============
Applications processed.....................................            2
Cost per application.......................................       503.38
Proposed fee, Item 20: per application.....................       500.00
 

    Schedule Item 21. Application for trade name registration 
(certificate reissuance not required). While the legal basis and nature 
of special benefit for this item are the same as for item 20 above, the 
proposed fee is substantially lower because only a notice of the 
registration must be issued, resulting in materially lower processing 
costs:

Direct Labor...............................................      $473.95
Overhead...................................................       252.98
                                                            ------------
Total Cost.................................................       726.93
                                                            ============
Applications processed.....................................            3
Cost per application.......................................       242.31
Proposed fee, Item 21: per application.....................       240.00
 

    Schedule Item 22. Joint application under 49 U.S.C. 41105 for the 
transfer of interstate certificate authority. Section 41105 of the 
Statute provides that a certificate issued under section 41102 or 41103 
of the Statute may be transferred only upon the Department's finding 
that the transfer is in the public interest.\2\ Moreover, the 
Department must certify to the Congressional committees having 
jurisdiction over matters of commerce that the transfer will not have 
an adverse effect on the viability of the carriers involved, 
competition in the domestic airline industry, or the U.S. trade 
position in international air transportation. A fee is warranted for 
approval of a certificate transfer because, in addition to these 
findings, the Department must determine that the transferee is fit to 
conduct the operations authorized by the certificate to be transferred 
and, further, because the applicants are seeking the special benefit of 
the Department's approval of an action needed by (1) the certificate 
transferee to engage in the revenue-producing air transportation 
authorized by the certificate and (2) the transferor so that it may 
realize any compensation provided for in the transfer agreement.
---------------------------------------------------------------------------

    \2\ This transfer of interstate certificate authority is 
distinct from the transfer of foreign route/frequency authority. See 
item 58, below, for the latter.

---------------------------------------------------------------------------

[[Page 3243]]

    Our proposed fee for this item is based on the following:

Direct Labor...............................................    $9,973.37
Overhead...................................................     5,482.51
                                                            ------------
Total Cost.................................................    15,455.88
                                                            ============
Applications processed.....................................            2
Cost per application.......................................     7,727.94
Proposed fee, Item 22: per application.....................     7,730.00
 

    Schedule Item 23. Application to 49 U.S.C. 41105 involving an 
intra-corporate reorganization only (e.g., reincorporation in a 
different state with no changes of ownership or management). In 
contrast to item 22 above, an air carrier in this instance is 
seeking the special benefit of the Department's approval of a 
comparatively minor change to the certificated authority that 
enables revenue-producing air transportation, and the certificate 
transfer triggered by the carrier's intra-corporate reorganization 
entails a less extensive fitness review. The proposed fee for item 
23 is therefore substantially lower than for item 22, and is based 
on the following cost data:

Direct Labor...............................................    $1,262.38
Overhead...................................................       676.29
                                                            ------------
Total Cost.................................................     1,938.67
                                                            ============
Applications processed.....................................            3
Cost per application.......................................       646.22
Proposed fee, Item 23: per application.....................       650.00
 

Exemptions, Waivers, Transfers--U.S. Commuter Air Carriers and U.S. 
Certificated Air Carriers (Small Aircraft): Schedule Items 24-34

    As in the case of initial applications, we are proposing to group 
commuter air carriers and certificated air carriers using small 
aircraft into a separate category for exemptions, waivers and 
transfers. The structure of this category is similar to that of items 
13-23 above regarding authorizations involving large aircraft.
    Schedule Item 24. Application for an exemption from the provisions 
of 49 U.S.C. 41738 or 41102 to conduct scheduled air transportation 
operations before the authority for such operations has been granted 
(pendente lite exemption). Section 40109(c) of the Statute authorizes 
the Department to grant an air carrier applicant an exemption to engage 
in air transportation operations without first having obtained a 
certificate or commuter authorization. The Department must determine 
that a grant of such authority is in the public interest, analyze the 
qualifications of the applicant, and assess certain consumer protection 
actions the applicant is required to take in order to be granted a 
pendente lite exemption. A processing fee for this exemption is 
justified since the applicant is seeking the special benefit of the 
Department's authorization to conduct revenue-producing air 
transportation before it has obtained the required certificate or 
commuter authority.
    Schedule Item 25. Application for a waiver of the provisions of 14 
CFR 201.5 in order to advertise, take reservations, issue tickets, or 
receive payments before the underlying operating authority is granted. 
Section 201.5 of the Department's regulations provides that an 
applicant for commuter air carrier or certificate authority may not 
advertise or take reservations for its proposed air service until its 
application has been approved by the Department, and that the applicant 
may not issue tickets or receive payments for its proposed air service 
until its authority has become effective. Section 40109(c) of the 
Statute, however, authorizes the Department to grant exemptions or 
waivers from the regulations. Before granting a waiver, the Department 
must determine that a grant of such authority is in the public 
interest, analyze the applicant's qualifications, and assess certain 
consumer protection actions the applicant is required to take. A fee 
for processing this application for waiver is justified since the 
applicant is seeking the special benefit of the Department's 
authorization to conduct revenue-producing air transportation before it 
has obtained the underlying authority for those operations.
    Schedule Item 26. Application for a waiver of the revocation-for-
dormancy provisions of 14 CFR 204.7 Section 204.7 of the Department's 
regulations provides that if a carrier has been awarded commuter 
authority under section 41738 of the Statute, or certificate authority 
under section 41102, but does not institute the air transportation 
operations for which it was found fit within one year of the date of 
its fitness determination, the carrier's authority may be revoked for 
reasons of dormancy. Similarly, if the carrier institutes air 
transportation operations but subsequently ceases conducting all of the 
operations for which it was found fit, its authority is automatically 
suspended and subject to revocation if the carrier does not recommence 
operations within one year. If the carrier requires additional time 
beyond the one-year period, it must file an application for a waiver of 
the revocation-for-dormancy provisions of section 204.7, together with 
updated fitness information. A fee for processing an application for a 
waiver of the revocation-for-dormancy rule is warranted because the 
Department must assess the carrier's progress in becoming operational 
and because the carrier is seeking the special benefit of Departmental 
action to avert revocation of its authority to conduct revenue-
producing air transportation operations.
    No applications under schedule items 25, 26 or 27 were processed 
during our cost-collection period, and we have no other basis on which 
to propose a change to the fees currently in force or to assume that 
fee costs have changed. Accordingly, the current fee of $280 per 
Application is retained for each item.
    Schedule Item 27. [Reserved.]
    Schedule Item 28. Application of notice pursuant to 14 CFR 204.7 of 
the intent to resume air transportation operations following a 
cessation of those operations. Section 204.7 of the regulations 
provides that if a carrier holding commuter authority under section 
41738 of the Statute, or a carrier holding certificate authority under 
section 41102, ceases conducting all of the air transportation 
operations for which it was found fit, willing, and able, it may not 
resume those operations until its fitness is redetermined by the 
Department. Under our rules, if the carrier desires to re-institute air 
transportation operations, it must file a notice of intent to do so 
along with updated fitness information. A fee for processing a notice 
of intent to resume service is justified because the Department must 
re-evaluate the carrier's fitness, including any changes (which often 
are substantial) that have been made by the carrier since it ceased 
operations, and because the carrier is seeking the special benefit of 
the Department's authorization to re-engage in revenue-producing air 
transportation operations.
    No applications from commuter air carriers or certificated air 
carriers operating small aircraft were processed under this item during 
our cost-collection period. However, our analysis determined that the 
time required to process a notice to resume service is essentially the 
same as that for a waiver-of-dormancy application, item 26 above. We 
therefore are proposing the same fee for item 28, $280 per Application.
    Schedule Item 29. [Reserved.]
    Schedule Item 30. Application under 14 CFR Part 215 to register a 
name or trade name involving the reissuance of a certificate or 
commuter authorization. Part 215 of the Department's regulations 
provides that a carrier holding commuter authority under section 41738 
of the Statute, or certificate authority under section 41102, may not 
hold itself out to the public as a provider of air transportation 
service in any name that has not been registered with the Department. A 
processing fee

[[Page 3244]]

for a name or trade name registration application requires the 
Department to (1) search its records for any other air carriers with 
the same or a similar name, (2) advise the applicant accordingly so 
that it may, in turn, notify any such similarly named carriers of its 
intent to register the name, and (3) reissue the carrier's authority in 
the new name. A fee for this service is warranted since the carrier is 
seeking the special benefit of being authorized to engage in revenue-
producing commuter or certificated air carrier operations under a 
different name or trade name than previously authorized.
    Our proposed fee for this item is based on the following:

Direct Labor...............................................      $335.72
Overhead...................................................       169.31
                                                            ------------
Total Cost.................................................       505.03
                                                            ============
Applications processed.....................................            2
Cost per application.......................................       252.52
Proposed fee, Item 30: per application.....................       250.00
 

    Schedule Item 31. Application under 14 CFR Part 215 and section 
298.36 requesting the Department to accept a registration of a name. 
This schedule item is akin to item 30 above in terms of its regulatory 
basis and nature of special benefit, but is significantly less costly 
to process because only a notice of the registration must be issued. 
Our proposed fee therefore is lower, and is based on:

Direct Labor...............................................      $171.86
Overhead...................................................        88.65
                                                            ------------
Total Cost.................................................       260.51
                                                            ============
Applications processed.....................................            4
Cost per application.......................................        65.13
Proposed fee, Item 31: per application.....................        65.00
 

    Schedule Item 32. Joint application under 49 U.S.C. 41105 for the 
transfer of certificate or commuter air carrier authority. Section 
41105 of the Statute provides that a certificate authority issued under 
section 41102 of the Statute or a commuter authority issued under 
section 41738 may be transferred only upon the Department's approval 
that the transfer is in the public interest.\3\ Moreover, the 
Department must certify to the Congressional committees having 
jurisdiction over matters of commerce that the transfer will not have 
an adverse effect on the viability of the carriers involved, 
competition in the domestic airline industry, or the U.S. trade 
position in international air transportation. A fee is warranted for 
approval of a certificate or commuter authorization transfer because, 
in addition to these findings, the Department must determine that the 
transferee is fit to conduct the operations authorized by the 
certificate or commuter authority to be transferred and the applicants 
are seeking the special benefit of the Department's approval of an 
action needed by (1) the transferee to engage in the revenue-producing 
air transportation authorized and (2) the transferor so that it may 
realize any compensation provided for in the transfer agreement.
---------------------------------------------------------------------------

    \3\ This transfer of interstate certificate or commuter 
authority is distinct from the transfer of foreign route/frequency 
authority. See item 58, below, for the latter.
---------------------------------------------------------------------------

    Our proposed fee for this item is based on the following:

Direct Labor...............................................    $7,916.28
Overhead...................................................     4,287.70
                                                            ------------
Total Cost.................................................    12,203.98
                                                            ============
Applications processed.....................................            3
Cost per application.......................................     4,067.99
Proposed fee, Item 32: per application.....................     4,070.00
 

    Schedule Item 33. [Reserved.]
    Schedule Item 34. Application for approval of amendment to commuter 
air carrier registration under 14 CFR Part 298. Section 298.23 of the 
Department's regulations requires a commuter air carrier to submit an 
amendment to its registration form (OST Form 4507) within 30 days of 
undergoing any change (e.g., in location, operations conducted, or 
aircraft fleet) that would make obsolete the information currently on 
file with the Department. A processing fee for the filing of an amended 
OST Form 4507 is warranted since the carrier is seeking the special 
benefit of the Department's approval of changes it has undergone to 
continue to engage in revenue-producing commuter operations.
    Our proposed fee for this schedule item is based on:

Direct Labor...............................................       $87.25
Overhead...................................................        48.75
                                                            ------------
Total Cost.................................................       136.00
                                                            ============
Applications processed.....................................           25
Cost per application.......................................         5.44
Proposed fee, Item 34: per application.....................         5.00
 

Authority for Charter, Air Taxi, Foreign Tour and Foreign Freight 
Forwarder Operations: Schedule Items 35-41

    Schedule Item 35. Application for acceptance of a public charter 
prospectus. Section 41104 of the Statute provides that the Department 
may prescribe a regulation restricting the marketability, flexibility, 
accessibility or variety of charter air transportation provided under a 
certificate or order issued under section 41102 of the Statute, but 
only to the extent required by the public interest. Parts 380, 207, 208 
and 212 of the Department's regulations require the filing of a 
prospectus describing the economic and consumer protections that the 
applicant must provide to members of the public purchasing its charter 
transportation. A processing fee for a public charter prospectus is 
warranted since the applicant, a direct air carrier or indirect air 
carrier, is seeking the special benefit of the Department's 
authorization to conduct revenue-producing air charter service.
    The proposed fee for this item is as follows:

Direct Labor...............................................      $491.81
Overhead...................................................       304.17
                                                            ------------
Total Cost.................................................       795.98
                                                            ============
Applications processed.....................................           52
Cost per application.......................................        15.31
Proposed fee, Item 35: per application.....................        15.00
 

    Schedule Item 36. Application for waiver of charter regulations. 
Under section 380.3(e) of the public charter regulations, the 
Department can approve an application submitted by a public charter 
operator or a direct air carrier for a waiver of the provisions of the 
charter regulations, provided that a waiver is found to be in the 
public interest. A fee for processing an application for this waiver is 
justified since the applicant is seeking the special benefit of the 
Department's consent to be relieved of certain filing or other 
requirements in the conduct of revenue-producing charter operations.
    No applications under this schedule item were processed during the 
cost-collection period. However, we have concluded that the current fee 
of $39 is too high in light of our proposed fees for charter-type 
authorizations generally (items 35, 37-40). For this reason, we are 
proposing to reduce the fee from $39 to $15 per application.
    Schedule Item 37. Application for approval of foreign charter 
operator registration. Under section 380.60 of the public charter 
regulations, foreign charter operators desiring to organize public 
charter group transportation originating in the United States must 
register with, and obtain approval of, the Department, including a 
determination by the Department whether effective reciprocity exists 
with the homeland of the applicant. The registration application, which 
must describe the ownership of the company, is held for 28 days, during 
which time any person may file an objection. A processing fee is 
warranted since the

[[Page 3245]]

applicant is seeking the special benefit of the Department's approval 
to advertise, organize, provide, sell and/or offer U.S.-originating 
public charters.
    The proposed fee for this item is as follows:

Direct Labor...............................................       $30.90
Overhead...................................................        17.25
                                                            ------------
Total Cost.................................................        48.15
                                                            ============
Applications processed.....................................            3
Cost per application.......................................        16.05
Proposed fee, Item 37: per application.....................        16.00
 

    Schedule Item 38. Application for U.S. air taxi registration. Under 
part 298 of the Department's regulations, any company proposing to 
operate small aircraft (60 seats or less than or 18,000-pounds payload 
or less) in on-demand air service must first register with the 
Department and file evidence of effective liability insurance coverage 
meeting the requirements of Part 205. Acceptance of the registration 
relieves theses operators from certain provisions and requirements of 
Subtitle VII of the Statute, including the requirement to obtain a 
certificate under section 41102. Since the applicant seeks the special 
benefit of the Department's approval to conduct revenue-producing air 
taxi operations, a processing fee is warranted.
    In October 1997, the responsibility for processing applications for 
air taxi registrations was transferred from the Office of the Secretary 
to the Federal Aviation Administration. As a consequence, no data on 
the cost to process applications under this schedule item were 
collected. Nevertheless, we are proposing that the same fee established 
below for Canadian charter air taxi registrations--$15 per 
Application--also apply to applications for U.S. air taxi registration. 
The registration requirements and process involved in both types of 
applications are quite similar, with the exception that applications 
for U.S. air taxi registration, unlike those for Canadian charter air 
taxis, are not required to be held by the Department for a public-
comment period of 28 days. The cost to the Department of this 
``holding'' requirement is not material, however, since few, if any, 
objections are filed.
    Schedule Item 39. Application for Canadian charter air taxi 
registration. Under Part 294 of the Department's regulations, a 
Canadian charter air taxi operator seeking authority to operate between 
Canada and the United States must file a registration request with the 
Department accompanied by evidence of effective liability insurance 
coverage. The regulation exempts these operators from certain 
provisions of Subtitle VII of the Statute and establishes rules 
applicable to their operations in the United States. Because the 
applicant seeks the special benefit of the Department's authorization 
to operate small aircraft across the Canadian border into the United 
States for revenue-generating purposes, a processing fee is justified.
    Our proposed fee for this item:

Direct Labor...............................................      $137.20
Overhead...................................................        76.59
                                                            ------------
Total Cost.................................................       213.79
                                                            ============
Applications processed.....................................           14
Cost per application.......................................        15.27
Proposed fee, Item 39: per application.....................        15.00
 

    Schedule Item 40. Application for approval of foreign air freight 
forwarder registration. Under Part 297 of the Department's regulations, 
a foreign air freight forwarder must file and receive approval to 
engage indirectly in interstate or foreign air transportation of 
property. Acceptance of the application also relieves carriers from 
certain provisions of Subtitle VII of the Statute. If the registration 
is approved, the applicant is permitted to arrange for the 
transportation of property from the point of origin to the point of 
destination using the services of direct air carriers. The processing 
fee is warranted since the applicant is seeking the special benefit of 
the Department's approval of its registration to engage in revenue-
producing activity.
    Our proposed fee for this schedule item is as follows:

Direct Labor...............................................       $11.95
Overhead...................................................         6.67
                                                            ------------
Total Cost.................................................        28.62
                                                            ============
Applications processed.....................................            1
Cost per application.......................................        18.62
Proposed fee, Item 40: per application.....................        19.00
 

    Schedule Item 41. Application for amendment to registration, items 
36-40 inclusive. Under section 380.25 (c) and (d) of the Department's 
regulations, a public charter operator may request that an amendment be 
made to its original prospectus to add or cancel flights, or to change 
flight dates, origin or destination points, or the direct air carrier, 
securer or depository bank. Further, under section 380.65, a foreign 
charter operator must notify the Department of any change in its 
operations or ownership and amend its registration accordingly. 
Likewise, under sections 294.22 and 298.23, a Canadian charter air taxi 
and U.S. air tax operator, respectively, must notify the Department of 
changes in the information contained in its registration and, under 
section 297.94, a foreign air freight forwarder must file and have 
approved changes to its registration. A processing fee for these 
various types of amendments is warranted since, in each instance, the 
operator is seeking the special benefit of the Department's approval of 
changes to the authority enabling the operator to continue to engage in 
revenue-producing operations.
    Our analysis of these various types of amendment applications 
determined that they entail essentially the same processes. 
Accordingly, we are proposing that the same fee be applied to each type 
based on the following cost data:

Direct Labor...............................................       $99.21
Overhead...................................................        55.37
                                                            ------------
Total Cost.................................................       154.58
                                                            ============
Applications processed.....................................           30
Cost per amendment.........................................         5.15
Proposed fee, Item 41: per application.....................         5.00
 

Authorizations, Amendments, Exemptions--Foreign Air Carriers: Schedule 
Items 42-51

    Schedule Item 42. Application for an initial, or for renewal of a 
previously authorized, foreign air carrier permit under 49 U.S.C. 
41301. Section 41301 of the Statute requires a foreign air carrier to 
have a permit from the Department to engage in air transportation 
operations to a point or points in the United States or its 
possessions. Section 41302 of the Statute requires the Department to 
find such a foreign air carrier fit, willing, and able to provide the 
foreign air transportation to be authorized by the permit, and to find 
that it has been designated by the government of its country to provide 
the foreign air transportation under an agreement with the United 
States Government, or that the foreign air transportation to be 
provided under the permit will be in the public interest. A fee for 
processing an application permit is warranted since the foreign air 
carrier is seeking the special benefit of the Department's 
authorization to conduct revenue-producing air transportation service 
to a U.S. point.
    A foreign air carrier permit may be issued for a specified term 
that will require renewal, which normally involves a re-determination 
of carrier fitness and a processing effort comparable to that for an 
initial authorization. Because an applicant for renewal seeks the 
special benefit of continuing its authority to conduct

[[Page 3246]]

revenue operations in foreign air transportation, a processing fee is 
warranted.
    Our proposed fee for an initial permit or for renewal of a 
previously authorized permit is based on the following:

Direct Labor...............................................      $860.56
Overhead...................................................       688.71
                                                            ------------
Total Cost.................................................     1,549.27
                                                            ============
Applications processed.....................................            1
Cost per application.......................................     1,549.27
Proposed fee, Item 42: per application.....................     1,550.00
 

    Schedule Item 43. Application by foreign air carrier for exemption 
from the provisions of 49 U.S.C. 41301. Section 40109(c) of the Statute 
provides that the Department may grant a foreign air carrier applicant 
an exemption to conduct (more than 10) flights to a U.S. point or 
points without its first having obtained a foreign air carrier permit 
as required by section 41301. A processing fee for an application for 
this exemption is justified because the foreign air carrier is seeking 
the special benefit of the Department's temporary authorization to 
conduct revenue-producing air transportation to a U.S. point in 
circumstances where obtaining a foreign air carrier permit would take 
too long or otherwise be inappropriate.
    Our proposed fee for this item is based on the following:

Direct Labor...............................................      $660.85
Overhead...................................................       528.86
                                                            ------------
Total Cost.................................................     1,189.71
                                                            ============
Applications processed.....................................            3
Cost per application.......................................       396.57
Proposed fee, Item 43: per Application.....................       400.00
 

    Schedule Item 44. Amendment by a foreign air carrier of either its 
application for a permit or its application for an exemption to conduct 
more than 10 flights. If an applicant for a foreign air carrier permit 
under section 41301 or for an exemption under section 40109(c) of the 
Statute modifies its application substantially, it must file an 
amendment to such application. Such amendments trigger significant 
additional processing time, and a fee to cover processing costs is 
warranted since the applicant receives the special benefit of 
additional or different authority for revenue-producing operations, 
while saving the time and expense that a new application would entail.
    No applications under this schedule item were processed during the 
cost-collection period, and we have no other basis to propose a change 
in the current fee or to assume that fee costs have changed. 
Accordingly, the current fee of $215 per Application is retained.
    Schedule Item 45. Application by foreign air carrier for an 
exemption from the provisions of 49 U.S.C. 41301 to conduct ten or 
fewer flights. Section 40109(c) of the Statute provides that the 
Department may grant a foreign air carrier an exemption from the need 
to obtain a foreign air carrier permit as required by section 41301 of 
the Statute in order to conduct flights to a U.S. point or points. 
Department rules (14 CFR 302.401 et seq.) provide for simplified 
application procedures for certain exemptions of 10 or fewer flights. A 
fee for processing such an exemption application is justified because 
the foreign air carrier is seeking the special benefit of the 
Department's authorization to temporarily conduct revenue-producing air 
transportation to a U.S. point and to defer the time and financial 
expenditures required to obtain a foreign air carrier permit.
    Our proposed fee for this item is based on the following:

Direct Labor...............................................       $69.09
Overhead...................................................        55.29
                                                            ------------
Total Cost.................................................       124.38
                                                            ============
Applications processed.....................................            1
Cost per application.......................................       124.38
Proposed fee, Item 45: per Application.....................       120.00
 

    Schedule Item 46. Application for a special authorization under 14 
CFR Part 375. Section 41703 of the Statute and section 375.70 of the 
regulations provide that the Department may authorize particular 
flights that are not within an applicant's other authority and not 
appropriately the subject of an exemption under 49 U.S.C. 40109. The 
Department must determine that the proposed operations are fully 
consistent with the applicable law, that the applicant's homeland 
grants a similar privilege with respect to U.S. operators, and that the 
proposed operation is in the U.S. public interest. A fee in connection 
with an application for such a special authorization is warranted 
because the applicant is seeking the special benefit of permission to 
engage in an air operation of value that is not otherwise authorized.
    Our proposed fee for this item is based on the following:

Direct Labor...............................................       $62.34
Overhead...................................................        48.89
                                                            ------------
Total Cost.................................................       112.23
                                                            ============
Applications processed.....................................            1
Cost per application.......................................       112.23
Proposed fee, Item 46: per Application.....................       110.00
 

    Schedule Item 47. Application for a foreign aircraft permit under 
14 CFR Part 375. Section 41703 of the Statute and section 375.40 of the 
Department's regulations state that commercial air operations utilizing 
foreign civil aircraft may be undertaken in the U.S. only if a permit 
issued by the Department is carried aboard the aircraft. A fee to 
offset the costs of processing a permit application is warranted since 
the applicant is seeking the special benefit of the Department's 
authorization to operate a foreign aircraft in air commerce in the 
United States.
    Our proposed fee for this item is based on the following:

Direct Labor...............................................      $609.84
Overhead...................................................       488.06
                                                            ------------
Total Cost.................................................     1,097.90
                                                            ============
Applications processed.....................................            6
Cost per application.......................................       182.98
Proposed fee, Item 47: per Application.....................       180.00
 

    Schedule Item 48. Application for foreign carrier charter statement 
of authorization under 14 CFR Part 212. Foreign air carrier permits 
issued under 49 U.S.C. 41302 require that charter flights must be 
conducted in accordance with 14 C.F.R. Part 212. Part 212 provides that 
certain charters require prior approval in the form of a Statement of 
Authorization, which the Department grants if it finds that the 
charters will be in the public interest. A fee to defray processing 
costs is warranted since the applicant is seeking the special benefit 
of authority to conduct revenue-producing operations in foreign air 
transportation.
    Our proposed fee for this item is based on the following:

Direct Labor...............................................    $3,735.21
Overhead...................................................     1,917.79
                                                            ------------
Total Cost.................................................     6,653.00
                                                            ============
Applications processed.....................................           19
Cost per application.......................................       350.16
Proposed fee, Item 48: per Application.....................       350.00
 

    Schedule Item 49. Application for special authorization under 14 
CFR Part 216. Unless specifically authorized by its section 41302 
permit, a foreign air carrier may not commingle traffic moving in 
foreign air transportation with traffic not moving in foreign air 
transportation unless it has a Special Authorization under Part 216. 
This situation arises when a foreign carrier serves between a U.S. 
point and a homeland point via an intermediate point. The intermediate-
homeland leg of the flight is called a ``blind sector'' with respect to 
U.S. air transportation,

[[Page 3247]]

because local traffic on that segment is not carried to or from the 
United States and is not in air transportation as defined in the 
Statute. Without the ability to commingle traffic on all flight 
segments, a carrier would lose valuable revenue. Thus the applicant for 
a Special Authorization to commingle blind-sector traffic seeks a 
special benefit, justifying a processing fee.
    Our proposed fee for this item is based on the following:

Direct Labor...............................................      $477.27
Overhead...................................................       350.05
                                                            ------------
Total Cost.................................................       827.32
                                                            ============
Applications processed.....................................            2
Cost per application.......................................       413.66
Proposed fee, Item 49: per application.....................       410.00
 

    Schedule Item 50. Application for emergency cabotage exemption 
under 49 U.S.C. 40109(g). Section 41701 of the Statute prohibits 
foreign civil aircraft from carrying revenue traffic between two U.S. 
points (``cabotage'' traffic) unless an exemption is granted under 
section 40109(g), which deals specifically with emergency cabotage. 
These applications are addressed separately from other exemptions, 
because on the one hand, the authority at issue in a given application 
usually is narrower, but on the other hand, the statutory criteria for 
a grant are more detailed and specialized, and the compressed timeframe 
for consideration requires more intense application of staff resources 
than do most exemptions in foreign air transportation. A processing fee 
is warranted since applicants for this authority are seeking the 
special benefit of performing otherwise prohibited air transportation.
    Our proposed fee for this item is based on the following:

Direct Labor...............................................      $749.35
Overhead...................................................       583.50
                                                            ------------
Total Cost.................................................     1,332.85
                                                            ============
Applications processed.....................................            4
Cost per application.......................................       333.21
Proposed fee, Item 50: per application.....................       330.00
 

    Schedule Item 51. Filing by a foreign air carrier of its proposed 
schedule for which approval is required under an international 
agreement. Section 40105(b) of the Statute provides that the Department 
shall, in carrying out Part A of the Statute, act consistently with 
applicable international agreements. Some bilateral aviation agreements 
provide that the air carriers of each country file their proposed 
schedules for the approval of the other country's aviation authorities. 
Air carriers required to file schedules in this way may not perform air 
transportation without submitting their schedules for review. A 
processing fee for schedule filings is warranted since the air carrier 
is seeking the special benefit of the Department's approval of its 
proposed schedule for engaging in revenue-producing air transportation.
    Our proposed fee for this item is calculated as follows:

Direct Labor...............................................    $1,253.03
Overhead...................................................     1,002.61
                                                            ------------
Total Cost.................................................     2,255.64
                                                            ============
Filings processed..........................................           24
Cost per filing............................................        93.99
Proposed fee, Item 51: per filing application..............        94.00
 

U.S. Air Carrier International Route Authority, Exemptions, 
Frequencies, and Charter Allocations: Schedule Items 52-58

    The various items in this schedule category involve the 
authorization of international air service rights. Under the United 
States' pro-competitive international aviation policy (60 FR 21841), 
the Department routinely grants such rights to all qualified 
applicants, except in circumstances when the availability of rights is 
artificially constrained. In the absence of constraints, the Department 
requires only a simple application and acts to confer authority 
expeditiously. When limits apply, however, as in the case of 
restrictive bilateral agreements, and when applicants seek more 
authority than can be granted, we must conduct a comparative proceeding 
to select carriers (and in some cases gateways) for distribution of the 
limited rights available. Compared with a non-contested proceeding, a 
comparative proceeding typically entails substantially higher 
processing costs because each applicant submits a detailed service 
proposal with supporting data, which in turn are analyzed by the 
Department and by competing applicants. Thereafter, the Department 
issues a tentative decision; applicants respond to that decision and to 
one another's arguments; and following consideration and analysis of 
all pleadings, the Department issues its final decision.
    In the interest of cost recovery, we are proposing that each 
applicant initially pay the processing fee in effect for the relevant 
non-contested air service rights (see items 52-56 below) and, if a 
comparative proceeding proves necessary, remit an additional fee to 
cover the additional cost (see item 57).
    Schedule Item 52. Application for new, amended or renewed 
certificate authority, comparative proceeding not required. Section 
41101 of the Statute provides that an air carrier may perform air 
transportation only if it holds a certificate of public convenience and 
necessity authorizing the transportation. A processing fee for 
applications under this item is warranted because in each instance of 
new certificate authority, amendment to an extant authority, or 
certificate renewal, the applicant is seeking the special benefit of 
the Department's authorization to commence, change or continue revenue-
producing air transportation service.
    The processing cost data collected under this schedule item do not 
indicate a need for distinct processing fees among applications for 
new, amended or renewed certificate authority. Therefore, we are 
proposing a single fee as follows:

Direct Labor...............................................    $6,306.10
Overhead...................................................     4,774.50
                                                            ------------
Total Cost.................................................    11,050.60
                                                            ============
Applications processed.....................................           17
Cost per application.......................................       650.04
Proposed fee, Item 52: per application.....................       650.00
 

    Schedule Item 53. Application for new, renewal or amendment of 
exemption authority, comparative proceeding not required. Section 
40109(c) of the Statute provides that an air carrier may obtain an 
exemption from section 41101 authorizing it to perform air 
transportation without a certificate of public convenience and 
necessity. A processing fee for this exemption authority is warranted 
since, in each instance of new exemption authority, amended authority, 
or exemption renewal, the applicant is seeking the special benefit of 
the Department's authorization to commence, change or continue revenue-
producing air transportation without having a certificate of public 
convenience and necessity.
    As with applications for certificate authority (item 52, supra), 
our processing cost data do not indicate a need for distinct fees among 
new, amended and renewed exemption authority, and we are proposing the 
following single fee:

Direct Labor...............................................   $23,626.46
Overhead...................................................    18,036.22
                                                            ------------
Total Cost.................................................    41,662.68
                                                            ============
Applications processed.....................................           87
Cost per application.......................................       478.88
Proposed fee, Item 52: per application.....................       480.00
 

    Schedule Item 54. Application for initial allocation of scheduled-
service

[[Page 3248]]

frequencies in limited-entry market, comparative proceeding not 
required. Section 40105(b) of the Statute provides that the Department 
shall, in carrying out Part A of the Statute, act consistently with 
applicable international agreements. Some bilateral aviation agreements 
limit the capacity of service, usually expressed in terms of number of 
weekly flights or ``frequencies'' of various-sized aircraft that U.S. 
air carriers may fly on the authorized routes. The Department must 
allocate the available frequencies among applicant U.S. carriers and 
establish the extent and duration of those allocations, taking public 
interest considerations into account. Because the applicant for 
scheduled-service frequencies is seeking the special benefit of the 
Department's authorization to conduct revenue-producing air 
transportation, a processing fee is warranted.
    Our proposed fee for this schedule item is a follows:

Direct Labor...............................................    $2,178.93
Overhead...................................................     1,600.09
                                                            ------------
Total Cost.................................................     3,779.02
                                                            ============
Applications processed.....................................            6
Cost per application.......................................       629.84
Proposed fee, Item 54: per application.....................       630.00
 

    Schedule Item 55. Application for renewal of allocation of 
scheduled-service frequencies in limited-entry market, comparative 
proceeding not required. Initial allocations of limited scheduled-
service frequencies (item 54, supra) are made for finite terms, 
typically one or two years, because of the need to weigh the effects of 
any changes in market conditions. When the need for allocation 
persists, limited-term allocations are renewed. Since the applicant for 
frequency renewal seeks the special benefit of the Department's 
approval to continue revenue-producing air transportation, a processing 
fee is warranted. In contrast to the case of certificate or exemption 
authority (items 52 and 53, supra), the cost of processing an 
application for renewal of a frequency allocation is materially lower 
than that for the initial frequency award. Accordingly, the proposed 
fee for a renewal application is substantially lower:

Direct Labor...............................................    $1,047.80
Overhead...................................................       769.95
                                                            ------------
Total Cost.................................................     1,817.75
                                                            ============
Applications processed.....................................            8
Cost per application.......................................       227.22
Proposed fee, Item 55: per application.....................       230.00
 

    Schedule Item 56. Application for allocation of limited charter 
flights, comparative proceeding not required. Section 40105(b) provides 
that the Department shall, in carrying out Part A of the Statute, act 
consistently with applicable international agreements. Some bilateral 
aviation agreements limit, usually on a seasonal or annual basis, the 
number of charter flights that may be operated. The Department must 
allocate the available charters among applicant U.S. carriers before 
each charter allocation period, balancing the applicants' expectations 
against their historical performance and the need to reserve a portion 
of the periodic allocation for emergencies or other unforeseen demand. 
During the charter period, carriers must relinquish unused allocations, 
and others may apply for additional flights. Since the applicant seeks 
the special benefit of the Department's authorization to conduct 
revenue-producing charter air transportation, a processing fee is 
justified.
    Our proposed fee for this schedule item is a follows:

Direct Labor...............................................      $596.41
Overhead...................................................       458.14
                                                            ------------
Total Cost.................................................     1,054.55
                                                            ============
Applications processed.....................................            6
Cost per application.......................................       175.76
Proposed fee, Item 56: per application.....................       180.00
 

    Schedule Item 57. Additional charge for an application for limited 
authorities (Items 52-56 inclusive) when a comparative proceeding is 
required. Schedule items 52-56 above apply to various forms of U.S. 
carrier authority to serve foreign markets. As we describe earlier, 
when applications exceed available rights, it falls to the Department 
to conduct a comparative proceeding to determine the distribution of 
those rights among applicants, resulting in significant additional 
processing costs. It often is not known at the time of initial 
application whether selection procedures will be required, because even 
when rights are limited, the applications in aggregate may not exceed 
the available rights. Therefore, we are proposing that each applicant 
initially pay the fee applicable per items 52-56 above, and then remit 
an additional fee with its first filing subsequent to the Department's 
notice that a comparative proceeding is necessary.
    Our proposed additional fee in the event of a comparative 
proceeding is established as follows:

----------------------------------------------------------------------------------------------------------------
                                                                                                     Cost per
                                                                   Applications     Total cost      application
----------------------------------------------------------------------------------------------------------------
Carrier/gateway selection required..............................              24      $95,266.01       $3,969.42
Selection not required (items 52-56)............................             124       59,364.60          478.75
                                                                 -----------------------------------------------
Incremental cost................................................  ..............  ..............       $3,490.67
                                                                 ===============================================
Proposed fee, Item 57: $3,490 per application
----------------------------------------------------------------------------------------------------------------

    Schedule Item 58. Application to transfer foreign route/frequency 
authority. Foreign route authority granted to a U.S. air carrier under 
49 U.S.C. 41102 or 40109, along with any frequency allocation required 
for its exercise, may not be transferred to another air carrier without 
the Department's approval. A fee for processing an application for 
transfer is warranted since the applicant is seeking the special 
benefit of the Department's approval of an action needed by (1) the 
transferee to engage in the revenue-producing air transportation under 
the authority and (2) the transferor so that it may receive any 
compensation provided for in the transfer agreement.
    Our proposed fee for this item is calculated as follows:

Direct Labor...............................................    $2,993.01
Overhead...................................................     2,061.49
                                                            ------------
Total Cost.................................................     4,994.50
                                                            ============
Applications processed.....................................            1
Cost per application.......................................     4,994.50
Proposed fee, Item 58: per application.....................     4,990.00
 

Code-Share, Wet-Lease, Transborder and Intermodal Authorizations: 
Schedule Items 59-62

    Schedule Item 59. Application for code-share Statement of 
Authorization.

[[Page 3249]]

    Schedule Item 60. Application for wet-lease Statement of 
Authorization.
    U.S. air carrier certificates issued under 49 U.S.C. 41102 and 
foreign air carrier permits issued under 49 U.S.C. 41302 require that 
code-share/wet-lease flights must be conducted in accordance with Part 
212 of our rules. Part 212 provides that certain such arrangements 
require specific prior approval in the form of a Statement of 
Authorization, which the Department grants if it finds that approval 
will be in the public interest. A processing fee is warranted because 
the applicant is seeking the special benefit of the Department's 
authorization to conduct an additional type of revenue-producing 
operations in foreign air transportation.
    While code shares and wet leases require the same form of 
authorization and involve a similar special benefit, their application 
processing costs differ materially. We therefore are proposing 
different fees for schedule items 59 and 60, as follows:

Code Share
Direct Labor...............................................   $15,820.70
Overhead...................................................    11,594.31
                                                            ------------
Total Cost.................................................    27,415.01
                                                            ============
Applications processed.....................................           25
Cost per resolution........................................     1,096.60
Proposed fee, Item 59: per application.....................     1,100.00
Wet Lease
Direct Labor...............................................     2,679.05
Overhead...................................................     2,084.40
                                                            ------------
Total Cost.................................................     4,763.45
                                                            ============
Applications processed.....................................           16
Cost per application.......................................       297.72
Proposed fee, Item 60: per application.....................       300.00
 

    Schedule Item 61. [Reserved.]
    Schedule Item 62. Application for Statement of Authorization to 
conduct intermodal services provided for in bilateral agreement. Part 
222 of the Department's regulations provides that a foreign air 
carrier, whose homeland government has executed an agreement with the 
United States exchanging air freight intermodal rights, may obtain 
authorization to perform such services in the United States by applying 
to the Office of International Aviation. (Part 222 also provides that a 
foreign air carrier seeking such authority not covered by a bilateral 
agreement must apply for an exemption under 49 U.S.C. 40109, in which 
instance the application is processed under schedule item 53, exemption 
authority, above.) The Department grants an intermodal statement of 
authorization if it will be in the public interest. An application 
processing fee is warranted because the applicant is seeking the 
special benefit of the Department's authorization to conduct revenue-
producing operations in foreign air transportation.
    Our proposed fee for this item is calculated as follows:

Direct Labor...............................................      $488.35
Overhead...................................................       390.82
                                                            ------------
Total Cost.................................................       879.17
                                                            ============
Applications processed.....................................            3
Cost per application.......................................       293.06
Proposed fee, Item 62: per application.....................       290.00
 

Regulation of Tariffs and Rates: Schedule Items 63-69

    Schedule Item 63. Approval of inter-carrier agreement(s), agreement 
type To and/or from the U.S.
    Schedule Item 64. Approval of inter-carrier agreement(s), agreement 
type Foreign-to-foreign.
    Schedule Item 65. Approval of inter-carrier agreement(s), Technical 
correction. Section 41309 of the Statute provides for the filing of 
inter-carrier agreements with the Department for approval and 
consequent grant of antitrust immunity. The Department's implementing 
regulations (14 CFR Part 303) require carriers seeking approval of an 
inter-carrier agreement to submit and have approved by the Department 
an application in the manner prescribed by the regulation. A processing 
fee for such applications is justified since the applicant is seeking 
the special benefit of the Department's approval of immunity from the 
antitrust laws of the United States.
    Our proposed fees for schedule items 63, 64 and 65, shown below, 
reflect differences in their respective processing costs. The fee for 
item 63 and 64 is per resolution while that for item 65 is per 
application.

To/from U.S.
Direct Labor...............................................   $10,502.46
Overhead...................................................     7,722.49
                                                            ------------
Total Cost.................................................    18,224.95
                                                            ============
Resolutions processed......................................          216
Cost per resolution........................................        84.37
Proposed fee, Item 63: per resolution......................        84.00
Foreign-to-foreign
Direct Labor...............................................     1,080.05
Overhead...................................................       864.35
                                                            ------------
Total Cost.................................................     1,944.40
                                                            ============
Resolutions processed......................................          417
Cost per resolution........................................         4.66
Proposed fee, Item 64: per resolution......................         5.00
Technical correction
Direct Labor...............................................       195.36
Overhead...................................................       156.34
                                                            ------------
Total Cost.................................................      $351.70
                                                            ============
Applications processed.....................................           23
Cost per application.......................................        15.29
Proposed fee, Item 65: per application.....................        15.00
 

    Schedule Item 66. Application for an exemption under 49 U.S.C. 
40109 to carry traffic not otherwise authorized under tariffs in 
effect. Under section 41504 of the Statute and section 221.3 of the 
Department's regulations, air carriers and foreign air carriers are 
required to file tariffs for scheduled foreign air transportation of 
persons, and may carry such traffic only for the prices stated in those 
tariffs. When a carrier wishes to carry revenue traffic for which it 
does not have an effective tariff on file, or wishes to carry such 
traffic at a price other than that in its applicable tariff, it must 
obtain an exemption from the Department under section 40109 of the 
Statute. A processing fee is warranted since the applicant for this 
exemption seeks the special benefit of the Department's authorization 
to conduct revenue-producing foreign air transportation not otherwise 
authorized by a tariff in effect.
    No applications under this schedule item were processed during the 
cost-collection period, and we have no other basis to propose a 
modification of the current fee or to assume that fee costs have 
changed. Accordingly, the current fee of $53 per Application is 
retained.
    Schedule Item 67. Application for permission to file tariffs on 
less than statutory notice. Section 41504 of the Statute and section 
221.160 of the regulations provide that required tariffs are to be 
filed a certain number of days before those tariffs can take effect. 
Under Subpart P of the regulations, however, carriers may request 
permission to have their tariffs take effect in less than the 
statutorily required notice period. A processing fee is warranted since 
the applicant for this Special Tariff Permission seeks the special 
benefit of the Department's authorization to implement tariffs on 
shorter notice than statutorily required.
    The basis of our proposed fee for this item is as follows:

Direct Labor...............................................    $2,124.07
Overhead...................................................     1,700.04
                                                            ------------
Total Cost.................................................     3,824.11
                                                            ============
Applications processed.....................................           95
Cost per application.......................................        40.25
Proposed fee, Item 67: per application.....................        40.00
 

    Schedule Item 68. Application for approval of waiver/modification 
of tariff regulations. Section 221.200 of the regulations provides that 
air carriers and

[[Page 3250]]

foreign air carriers may apply to the Department for a waiver or 
modification of the requirements contained in part 221 (Tariffs). An 
application processing fee for such waiver or modification is warranted 
since the applicant seeks the special benefit of the Department's 
approval for relief from provisions of the requirements regulating 
tariffs.
    No applications under this schedule item were processed during the 
cost-collection period, and we have no other basis to propose a change 
in the current fee or to assume that fee costs have changed. 
Accordingly, the current fee of $12 per Application is retained.
    Schedule Item 69. Application for provision of certified copies of 
tariff material upon request (with DOT seal). Section 389.15 of the 
regulations provides that certified copies of tariffs filed with the 
Department will be provided upon request. Certification of these data 
are required in civil cases in order for parties to formally submit air 
carrier tariff provisions involving charges and conditions of carriage 
in international air transportation officially filed with the 
Department. A fee for providing this service is warranted because of 
the special benefit to the applicant of having certified copies of 
officially filed tariff material for use in legal proceedings.
    The basis of our proposed fee is as follows:

Direct Labor...............................................      $807.58
Overhead...................................................       646.30
                                                            ------------
Total Cost.................................................     1,453.88
                                                            ============
Applications processed.....................................            6
Cost per application.......................................       242.31
Proposed fee, Item 69: per application.....................       240.00
 

Other Exemptions and Authorizations: Schedule Items 70-76

    Schedule Item 70. Application for an exemption for slots at a slot-
controlled airport. Under section 41714 of the Statute, an air carrier 
may apply to the Department for an exemption from 14 CFR Part 93, 
Subparts K and S (the High Density Rule), in order for the carrier to 
increase its number of operations (takeoff or landing ``slots'') at 
JFK, La Guardia, and/or O'Hare airports (Reagan National also is slot 
controlled, but is excluded from the exemption). Recognizing that air 
carriers may be restrained from entering markets as consequence of slot 
restrictions, the Congress provided the exemption mechanism as a way to 
increase air carrier access at three of the four slot-controlled 
airports. A processing fee for a slot exemption application is 
justified since the applicant is seeking the special benefit of the 
Department's authorization enabling access to takeoff and landing 
rights that otherwise would not be available.
    Our proposed fee for this item is based on the following:

Direct Labor...............................................   $11,155.93
Overhead...................................................     6,211.62
                                                            ------------
Total Cost.................................................    17,367.55
                                                            ============
Applications processed.....................................            4
Cost per application.......................................     4,341.89
Proposed fee, Item 70: per application.....................     4,340.00
 

    Schedule Item 71. Motion for confidential treatment of documents. 
Section 302.39 of the Department's Procedural Regulations sets forth 
the procedures that an applicant or other party must follow in seeking 
the Department's concurrence to withhold certain information from 
public disclosure in the context of a Departmental proceeding. A 
processing fee for this item is justified since the applicant is 
seeking the special benefit of the Department's approval to withhold 
sensitive information.
    Our proposed fee for this item is determined as follows:

Direct Labor...............................................      $499.57
Overhead...................................................       253.37
                                                            ------------
Total Cost.................................................       752.94
                                                            ============
Applications processed.....................................            2
Cost per application.......................................       376.47
Proposed fee, Item 71: per application.....................       380.00
 

    Schedule Item 72. Application for approval of and antitrust 
immunity for inter-carrier agreements. Under sections 41308 and 41309 
of the Statute, air carriers and foreign air carriers may seek approval 
of antitrust immunity for agreements and activities with common 
business objectives. Applicants seek the benefit of this immunity in 
order to protect themselves from lawsuits alleging behavior normally 
not permitted under the antitrust laws. A processing fee is warranted 
since the applicant is seeking the special benefit of the Department's 
approval of immunity from antitrust enforcement.
    No applications under this schedule item were concluded during the 
cost-collection period, and we have no other basis to propose a change 
in the current fee or to assume that fee costs have changed. 
Accordingly, the current fee of $1,080 per Application is retained.
    Schedule Item 73. [Reserved.]
    Schedule Item 74. [Reserved.]
    Schedule Item 75. Petition for a change in mail rates. Section 
41901 of the Statute provides that the United States Postal Service or 
a certificated air carrier may file a petition with the Department to 
change the mail rates set by the Department to be paid by the Postal 
Service to U.S. air carriers for the carriage of U.S. mail between the 
United States and foreign countries and/or within the State of Alaska. 
A fee for processing a petition is warranted since the petitioner is 
seeking the special benefit of the Department's approval to change 
existing mail rates.
    No applications under this schedule item were processed during the 
cost-collection period, and we have no other basis to propose a change 
in the current fee or to assume that fee costs have changed. 
Accordingly, the current fee of $420 per Application is retained.
    Schedule Item 76. Application for overseas military personnel 
charter operator authority. Under Part 372 of the Department's 
regulations, any U.S. citizen desiring to operate as an overseas 
military personnel charter operator may apply to the Department for 
operating authority. If granted this authority, the operator is 
relieved from provisions of section 41102 of the Statute for the 
purpose of enabling the operator to provide overseas military personnel 
charters utilizing aircraft chartered from direct air carriers or 
foreign air carriers. A processing fee is warranted since the applicant 
is seeking the special benefit of the Department's permission to 
advertise, organize, provide, sell and/or offer to sell overseas 
military personnel charters.
    No applications under this schedule item were processed during the 
cost-collection period, nor has the Department had occasion to process 
any such applications for several years. Absent evidence of a cost 
change, the current fee of $665 per Application is retained.

[FR Doc. 99-1233 Filed 1-20-99; 8:45 am]
BILLING CODE 4910-62-P