[Federal Register Volume 65, Number 47 (Thursday, March 9, 2000)]
[Notices]
[Page 12613]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-5778]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Docket No. FAA-00-7018]


Fees for FAA Services for Certain Flights; Public Availability of 
Letter

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice.

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SUMMARY: The FAA announces the availability to the public of a letter 
to known users of ``overflight'' services concerning the 
reestablishment of certain fees. This letter states that these fees 
will be charged for air traffic control (ATC) and related services 
provided to certain aircraft that fly through U.S.-controlled airspace, 
but neither take off from nor land in the United States.

FOR FURTHER INFORMATION CONTACT: Randy Fiertz (202) 267-7140, Acting 
Director, Office of Performance Management (APF-1), Federal Aviation 
Administration, 800 Independence Avenue, SW., Washington, DC 20591.

SUPPLEMENTARY INFORMATION: The FAA is sending letters to know major 
users and other interested entities about the reestablishment of 
``overflight'' fees. These fees will be charged for ATC and related 
services provided to certain aircraft that fly through U.S.-controlled 
airspace, but neither take off from nor land in the United States. Such 
fees are comely referred to as ``overflight'' fees. The FAA is taking 
this action to give the public notice of the letter being sent to 
affected parties concerning reestablishment of ``overflight'' fees. 
This notice and a copy of the letter below will be available for public 
inspection in the docket at U.S. Department of Transportation Dockets, 
400 Seventh Street SW., Room Plaza 401, Washington, DC 20590, between 
10 a.m. and 5 p.m. weekdays, except Federal holiday. The docket may 
also be examined electronically through the Dockets Management System 
(DMS) at the following Internet address: http://dms.dot.gov/ at any 
time.

    Issued in Washington, DC on March 6, 2000.
Michael E. Chase,
Acting Assistant Chief Counsel for Regulations.

Letter to Users of Certain Overflight ATC Services

Dear ______:

    The Federal Aviation Administration (FAA) will soon announce the 
reestablishment of user fees that will be charged for air traffic 
control (ATC) and related services provided to certain aircraft that 
fly through U.S.-controlled airspace, but neither take off from, nor 
land in, the United States. Such fees are commonly referred to as 
``overflight'' fees.
    The implementation of these fees is required by the Federal 
Aviation Reauthorization Act of 1996 (The Act). The Act states that 
the FAA should establish overflight fees through the publication of 
an Interim Final Rule. Under the Interim Final Rule process, the 
fees will take effect shortly after publication in the Federal 
Register. The FAA will invite public comment on the Interim Final 
Rule. After thorough consideration of the comments received, the FAA 
will make any appropriate changes and then issue a Final Rule.
    You may recall that the FAA published an Overflight Fee Interim 
Final Rule in March 1997. The costs upon which those overflight fees 
were based were determined using FAA's 1995 Cost Allocation Study. 
On January 30, 1998, the U.S. Court of Appeals for the District of 
Columbia set aside the 1997 rule, concluding that the FAA had used 
an incorrect methodology to allocate fixed and common costs. As a 
result of the Court's ruling, the FAA immediately suspended fee 
collections, subsequently refunded the $40 million in fees that had 
then been collected, and withdrew the Interim Final Rule.
    Although the Court of Appeals' ruling effectively terminated the 
1997 overflight fees, the Act remains in effect. To comply with the 
Act and accurately establish the costs of ATC services using the 
best available information, the FAA is developing new overflight 
fees using actual fiscal year 1999 cost data from its new cost 
accounting system. This system has been reviewed carefully by 
accounting and financial professionals, both inside and outside the 
government, to ensure that the ATC enroute and oceanic cost data 
used are the most accurate available.
    The Office of Inspector General of the Department of 
Transportation recently completed an in-depth review of the fiscal 
year 1998 cost accounting data and the flight data used to derive 
the new fees. A copy of the Inspector General's report can be found 
at www.oig.dot.gov.avauds.htm (Report no. FE-2000-024, dated 
December 17, 1999). The report includes recommendations, which the 
FAA has acted upon, including basing the overflight fees on actual 
cost accounting data for fiscal year 1999.
    I hope the above information is useful to you in your planning. 
Our regulatory procedures do not allow me at this time to provide 
further details beyond those contained in this letter. Once the 
Interim Final Rule has been published, however, there will be ample 
opportunity for you to present your views--including a public 
meeting that will be announced when the Interim Final Rule is 
published. I look forward to working with you more closely at that 
time.
    While the Interim Final Rule process is not the customary 
rulemakng approach used by the FAA, it is required by law for this 
particular rulemaking. Nevertheless, I can assure you that all 
comments received will be fully considered by the FAA before the 
Final Rule is issued.

Sincerely,

Donna R. McLean,
Assistant Administrator for Financial Services.

[FR Doc. 00-5778 Filed 3-6-00; 3:13 pm]
BILLING CODE 4910-13-M