[Federal Register Volume 65, Number 163 (Tuesday, August 22, 2000)]
[Proposed Rules]
[Pages 50946-50949]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-21313]


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

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

14 CFR Parts 217, 241 and 298

[Docket No. OST-00-7735]
RIN 2139-AA07


Amendment to the Definitions of Revenue and Nonrevenue Passengers

AGENCY: Office of the Secretary, DOT.

ACTION: Notice of proposed rulemaking.

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

SUMMARY: The Office of the Secretary proposes to revise its definitions 
of revenue passenger and nonrevenue passenger in 14 CFR 241.03 to 
specify that a passenger traveling on a ticket or voucher received as 
compensation for denied boarding or as settlement of a consumer 
complaint is considered to be a revenue passenger. The revised 
definitions will be added to 14 CFR parts 217 and 298. The definitions 
will be in harmony with the definitions of revenue and non revenue 
passenger adopted by the International Civil Aviation Organization 
(ICAO). Harmonizing of DOT's and ICAO's definitions will prevent air 
carriers from being required to keep two sets of traffic enplanement 
statistics--one for reporting to ICAO and one for reporting to DOT. 
This action is taken at DOT's initiative.

DATES: Comments are due October 23, 2000.

ADDRESSES: Comments should be directed to the Docket Clerk, Docket OST-
00-7735, Room PL 401, Office of the Secretary, Department of 
Transportation, 400 Seventh Street, SW., Washington, DC 20590-0001. The 
public can inspect the docket at the Department from 10 AM to 5 PM ET, 
Monday through Friday, except Federal Holidays, or via the internet on 
http://dms.dot.gov.
    Comments should identify the regulatory docket number and be 
submitted in duplicate to the address listed above. Commenters wishing 
the Department to acknowledge receipt of their comments must submit 
with those comments a self-addressed stamped postcard on which the 
following statement is made: Comments on Docket OST-00-7735. The 
postcard will be dated/time stamped and returned to the commenter. All 
comments submitted will be available for examination in the Rules 
Docket both before and after the closing date for comments.

FOR FURTHER INFORMATION CONTACT: Bernard Stankus or Clay Moritz, Office 
of Airline Information, K-25, Bureau of Transportation Statistics, 
Department of Transportation, 400 Seventh Street, SW., Washington, DC, 
20590-0001, (202) 366-4387 or 366-4385, respectively.

SUPPLEMENTARY INFORMATION:

Definition in Title 14 CFR Section 241.03

    Passenger, nonrevenue and passenger, revenue are defined in 14 CFR 
section 241.03 as follows:

    Passenger, nonrevenue. Person receiving air transportation from 
the air carrier for which remuneration is not received by the air 
carrier. Air carrier employees or others receiving air 
transportation against whom token service charges are levied are 
considered nonrevenue passengers. Infants for whom a token fare is 
charged are not counted as passengers.
    Passenger, revenue. Person receiving air transportation from the 
air carrier for which remuneration is received by the air carrier. 
Air carrier employees or others receiving air transportation against 
whom token service charges are levied are considered nonrevenue 
passengers. Infants for whom a token fare is charged are not counted 
as passengers.

[[Page 50947]]

Accounting and Reporting Directive #134

    On January 18, 1990, DOT issued Accounting and Reporting Directive 
#134, to provide detailed guidance on the definition of revenue 
passengers. Specifically, the directive stated that passengers 
traveling on frequent flyer program awards, barter tickets, and 
reduced-fare tickets that cost more than nominal service charges are 
considered to be revenue passengers. Persons receiving transportation 
as compensation after filing a complaint or claim against the air 
carrier, including ticket compensation furnished in compliance with 14 
CFR part 250 Oversales were considered to be nonrevenue passengers. The 
definition of revenue passenger expressly distinguished between token 
service charges, on one hand, and remuneration on the other. Token 
service charges were defined as charges reasonably related to the value 
of meals and beverages furnished enroute or charges designed to offset 
other incidentals or administrative charges, such as those for 
reservation/ticketing expenses, and were not deemed to constitute 
remuneration.

Definition of the International Civil Aviation Organization

    At the ninth meeting of the ICAO Statistics Division, which was 
held in Montreal, Canada, on September 26-27, 1997, the following 
definition of revenue passenger was recommended to the ICAO Council for 
adoption.

    A passenger for whose transportation an air carrier receives 
commercial remuneration. This includes for example, (1) passengers 
traveling under publicly available promotional offers (for example 
two-for-one) or loyalty programs (for example, redemption of 
frequent flyer points); (2) Passengers traveling as compensation for 
denied boarding; (3) Passengers traveling at corporate discounts; 
(4) Passengers traveling on preferential fares (Government, seamen, 
military, youth student, etc.).
    This definition excludes, for example, (1) persons traveling 
free, except those mentioned above (2) persons traveling at a fare 
or discount available only to employees of air carriers or their 
agents or only for travel on the business of the carriers; and (3) 
infants who do not occupy a seat.

    The recommended definition was approved by the ICAO Council at the 
sixth meeting of the 153 Session. The definition became effective on 
January 1, 2000.

Revenue Passengers

    DOT proposes to revise its definition of revenue passenger to 
include the ICAO determination that persons receiving transportation as 
compensation upon filing a complaint or claim against the carrier are 
revenue passengers. This interpretation includes a passenger receiving 
free transportation as compensation in compliance with 14 CFR Part 250 
Oversales. In such cases, the air carrier incurred a liability when it 
issued the ticket or voucher.
    The following types of passengers would be listed as examples of 
revenue passengers: (1) Passengers traveling on publicly available 
tickets; (2) passengers traveling on frequent-flyer awards; (3) 
passengers traveling on barter tickets; (4) infants traveling on 
confirmed-space tickets; (5) passengers traveling as compensation for 
denied boardings or passengers traveling free in response to consumer 
complaints or claims; and (6) passengers traveling on preferential 
fares (Government, seamen, military, youth student, etc.). This list is 
not exhaustive and is provided for illustrative purposes only.

Nonrevenue Passengers

    DOT proposes that the following types of passengers would be listed 
as examples of nonrevenue passengers when traveling free or pursuant to 
token charges: (1) Directors, officers, employees, and others 
authorized by the air carrier operating the aircraft; (2) directors, 
officers, employees, and others authorized by the air carrier or 
another carrier traveling pursuant to a pass interchange agreement; (3) 
travel agents being transported for the purpose of familiarizing 
themselves with the carrier's services; (4) witnesses and attorneys 
attending any legal investigation in which such carrier is involved; 
(5) persons injured in aircraft accidents, and physicians, nurses, and 
others attending such persons; (6) any persons transported with the 
object of providing relief in cases of general epidemic, natural 
disaster, or other catastrophe; (7) any law enforcement official, 
including any person who has the duty of guarding government officials 
who are traveling on official business; (8) guests of an air carrier on 
an inaugural flight or delivery flights of newly-acquired or renovated 
aircraft; (9) security guards who have been assigned the duty to guard 
such aircraft against unlawful seizure, sabotage, or other unlawful 
interference; (10) safety inspectors of the National Transportation 
Safety Board or the FAA in their official duties; (11) postal employees 
on duty in charge of the mails or traveling to or from such duty; (12) 
technical representatives of companies that have been engaged in the 
manufacture, development or testing of a particular type of aircraft or 
aircraft equipment, when the transportation is provided for the purpose 
of in-flight observation and subject to applicable FAA regulations; 
(13) persons engaged in promoting transportation; and (14) other 
authorized persons, when such transportation is undertaken for 
promotional purpose. This list is not exhaustive and is provided for 
illustrative purposes only.

Reporting Burden

    DOT believes that this NPRM is not a revision to an information 
collection for the purposes of the Paperwork Reduction Act. It is not 
adding or removing any data items. Rather, it is changing definitions 
to simplify carrier reporting and preclude the need for affected air 
carriers to maintain two separate systems for identifying revenue and 
nonrevenue passengers for DOT and ICAO reporting. Under Article 67 of 
the 1944 Chicago Convention, the United States, as a party to the 
treaty, is obligated to supply certain individual U.S. air carrier data 
to ICAO, which is an arm of the United Nations. By harmonizing DOT's 
definitions of revenue and nonrevenue passenger with ICAO's 
definitions, DOT will be able to supply ICAO with U.S. air carrier data 
from DOT's own data base. U.S. carriers will not be required to submit 
special traffic reports in order to meet this U.S. treaty obligation. 
Some carriers may, however, have a one-time reprogramming task to treat 
as revenue passengers those passengers traveling on vouchers or tickets 
received in response to consumer complaints or as compensation for 
denied boardings. DOT welcomes comments from any carrier that believes 
it will experience a reporting burden from this proposal.

Rulemaking Analyses and Notices

Executive Order 12866 and DOT Regulatory Policies and Procedures

    DOT does not consider this proposal to be a significant regulatory 
action under section 3(f) of Executive Order 12866. It was not subject 
to review by the Office of Management and Budget.
    DOT does not consider the proposal to be significant under its 
regulatory policies and procedures (44 FR 11034; February 26, 1979). 
The purpose of the rule is to clarify the definitions of revenue 
passenger and nonrevenue passenger. This action will negate the need 
for air carriers to keep two sets of traffic records. One set of 
records for tracking revenue passengers for DOT reporting purposes, and 
a set of records for ICAO reporting. Therefore, the action will have a 
positive economic impact on reporting air carriers.

[[Page 50948]]

Federalism

    DOT analyzed this proposal in accordance with the principles and 
criteria contained in Executive Order 13132 (``Federalism'') and 
determined that the rule does not have sufficient federalism 
implications to warrant consultation with State and local officials.

Regulatory Flexibility Act

    We certify this proposed rule will not have a significant economic 
impact on a substantial number of small entities, as the total cost of 
the rulemaking is insignificant. There are about 100 small air carriers 
that may be impacted by this proposed rule. However, the most 
significant proposed change of the NPRM is the treatment of passengers 
traveling on a ticket or voucher received as compensation for denied 
boarding. The denied boarding regulations are not applicable to small 
air carriers. Therefore, the NPRM should not be a significant impact on 
small air carriers.

Unfunded Mandates

    Under section 201 of the Unfunded Mandates Reform Act (UMRA) (2 
U.S.C. 1531), DOT assessed the effects of this proposed rule on State, 
local and tribal governments, in the aggregate, and the private sector. 
DOT determined that this regulatory action requires no written 
statement under section 202 of the UMRA (2 U.S.C. 1532) because it will 
not result in the expenditure of $100,000,000 in any one year by State, 
local and tribal governments, in the aggregate, or the private sector.

National Environmental Protection Act

    The DOT has analyzed the proposed amendments for the purpose of the 
National Environmental Protection Act. The proposed amendments will not 
have any impact on the quality of human environment.

Regulation Identifier Number

    A regulation identifier number (RIN) is assigned to each regulatory 
action listed in the Unified Agenda of Federal Regulations. The 
Regulatory Information Service Center publishes the Unified Agenda in 
April and October of each year. The RIN number 2139-AA07 contained in 
the heading of this document can be used to cross reference this action 
with the Unified Agenda.

List of Subjects

14 CFR Part 217

    Foreign air carriers, Traffic reports.

14 CFR Part 241

    Air carriers, Uniform system of accounts, Reporting requirements.

14 CFR Part 298

    Air taxis, Reporting requirements.

Proposed Rule

    Accordingly, the Bureau of Transportation Statistics proposes to 
amend 14 CFR parts 217, 241 and 298 as follows:

PART 217--[AMENDED]

    1. The authority citation for part 217 continues to read as 
follows:

    Authority: 49 U.S.C. 329 and chapters 401, 413, 417.

    2. Definitions for revenue passenger and nonrevenue passenger are 
added in alphabetical order to Sec. 217.1 to read as follows:


Sec. 217.1  Definitions.

* * * * *
    Nonrevenue passenger means: a person traveling free or under token 
charges, except those expressly named in the definition of revenue 
passenger; a person traveling at a fare or discount available only to 
employees or authorized persons of air carriers or their agents or only 
for travel on the business of the carriers; and an infant who does not 
occupy a seat. The following passengers are examples of nonrevenue 
passengers when traveling free or pursuant to token charges:
    (1) Directors, officers, employees, and others authorized by the 
air carrier operating the aircraft;
    (2) Directors, officers, employees, and others authorized by the 
air carrier or another carrier traveling pursuant to a pass interchange 
agreement;
    (3) Travel agents being transported for the purpose of 
familiarizing themselves with the carrier's services;
    (4) Witnesses and attorneys attending any legal investigation in 
which such carrier is involved;
    (5) Persons injured in aircraft accidents, and physicians, nurses, 
and others attending such persons;
    (6) Any persons transported with the object of providing relief in 
cases of general epidemic, natural disaster, or other catastrophe;
    (7) Any law enforcement official, including any person who has the 
duty of guarding government officials who are traveling on official 
business;
    (8) Guests of an air carrier on an inaugural flight or delivery 
flights of newly-acquired or renovated aircraft;
    (9) Security guards who have been assigned the duty to guard such 
aircraft against unlawful seizure, sabotage, or other unlawful 
interference;
    (10) Safety inspectors of the National Transportation Safety Board 
or the FAA in their official duties;
    (11) Postal employees on duty in charge of the mails or traveling 
to or from such duty;
    (12) Technical representatives of companies that have been engaged 
in the manufacture, development or testing of a particular type of 
aircraft or aircraft equipment, when the transportation is provided for 
the purpose of in-flight observation and subject to applicable FAA 
regulations;
    (13) Persons engaged in promoting transportation; and
    (14) Other authorized persons, when such transportation is 
undertaken for promotional purpose.
    Revenue passenger means: a passenger for whose transportation an 
air carrier receives commercial remuneration. This includes for 
example:
    (1) Passengers traveling under publicly available tickets including 
promotional offers (for example two-for-one) or loyalty programs (for 
example, redemption of frequent flyer points);
    (2) Passengers traveling on vouchers or tickets issued as 
compensation for denied boarding or in response to consumer complaints 
or claims;
    (3) Passengers traveling at corporate discounts;
    (4) Passengers traveling on preferential fares (Government, seamen, 
military, youth student, etc.);
    (5) Passengers traveling on barter tickets; and
    (6) Infants traveling on confirmed-space tickets.
* * * * *

PART 241--[AMENDED]

    3. The authority citation for part 241 continues to read as 
follows:

    Authority: 49 U.S.C. 329 and chapters 401, 411, 417.
    4. The definitions in part 241 section 03 for nonrevenue passenger 
and revenue passenger are amended to read as follows:

03--Definitions for the Purposes of This System of Accounts and Reports

* * * * *
    Nonrevenue passenger means: a person traveling free or under token 
charges, except those expressly named in the definition of revenue 
passenger; a person traveling at a fare or discount available only to 
employees or authorized persons of air carriers or their agents or only 
for travel on the business of the carriers; and an infant who does not 
occupy a seat. The following passengers are examples of nonrevenue 
passengers when traveling free or pursuant to token charges:

[[Page 50949]]

    (1) Directors, officers, employees, and others authorized by the 
air carrier operating the aircraft;
    (2) Directors, officers, employees, and others authorized by the 
air carrier or another carrier traveling pursuant to a pass interchange 
agreement;
    (3) Travel agents being transported for the purpose of 
familiarizing themselves with the carrier's services;
    (4) Witnesses and attorneys attending any legal investigation in 
which such carrier is involved;
    (5) Persons injured in aircraft accidents, and physicians, nurses, 
and others attending such persons;
    (6) Any persons transported with the object of providing relief in 
cases of general epidemic, natural disaster, or other catastrophe;
    (7) Any law enforcement official, including any person who has the 
duty of guarding government officials who are traveling on official 
business;
    (8) Guests of an air carrier on an inaugural flight or delivery 
flights of newly-acquired or renovated aircraft;
    (9) Security guards who have been assigned the duty to guard such 
aircraft against unlawful seizure, sabotage, or other unlawful 
interference;
    (10) Safety inspectors of the National Transportation Safety Board 
or the FAA in their official duties;
    (11) Postal employees on duty in charge of the mails or traveling 
to or from such duty;
    (12) Technical representatives of companies that have been engaged 
in the manufacture, development or testing of a particular type of 
aircraft or aircraft equipment, when the transportation is provided for 
the purpose of in-flight observation and subject to applicable FAA 
regulations;
    (13) Persons engaged in promoting transportation; and
    (14) Other authorized persons, when such transportation is 
undertaken for promotional purpose.
* * * * *
    Revenue passenger means a passenger for whose transportation an air 
carrier receives commercial remuneration. This includes for example:
    (1) Passengers traveling under publicly available tickets including 
promotional offers (for example two-for-one) or loyalty programs (for 
example, redemption of frequent flyer points);
    (2) Passengers traveling on vouchers or tickets issued as 
compensation for denied boarding or in response to consumer complaints 
or claims;
    (3) Passengers traveling at corporate discounts;
    (4) Passengers traveling on preferential fares (Government, seamen, 
military, youth student, etc.);
    (5) Passengers traveling on barter tickets; and
    (6) Infants traveling on confirmed-space tickets.

PART 298--[AMENDED]

    5. The authority citation for part 298 continues to read as 
follows:

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

    6. The paragraph designations are removed and definitions for 
Nonrevenue passenger and Revenue passenger are added in alphabetical 
order to Sec. 298.2 to read as follows:


Sec. 298.2  Definitions.

* * * * *
    Nonrevenue passenger means a person traveling free or under token 
charges, except those expressly named in the definition of revenue 
passenger; a person traveling at a fare or discount available only to 
employees or authorized persons of air carriers or their agents or only 
for travel on the business of the carriers; and an infant who does not 
occupy a seat. The following passengers are examples of nonrevenue 
passengers when traveling free or pursuant to token charges:
    (1) Directors, officers, employees, and others authorized by the 
air carrier operating the aircraft;
    (2) Directors, officers, employees, and others authorized by the 
air carrier or another carrier traveling pursuant to a pass interchange 
agreement;
    (3) Travel agents being transported for the purpose of 
familiarizing themselves with the carrier's services;
    (4) Witnesses and attorneys attending any legal investigation in 
which such carrier is involved;
    (5) Persons injured in aircraft accidents, and physicians, nurses, 
and others attending such persons;
    (6) Any persons transported with the object of providing relief in 
cases of general epidemic, natural disaster, or other catastrophe;
    (7) Any law enforcement official, including any person who has the 
duty of guarding government officials who are traveling on official 
business;
    (8) Guests of an air carrier on an inaugural flight or delivery 
flights of newly-acquired or renovated aircraft;
    (9) Security guards who have been assigned the duty to guard such 
aircraft against unlawful seizure, sabotage, or other unlawful 
interference;
    (10) Safety inspectors of the National Transportation Safety Board 
or the FAA in their official duties;
    (11) Postal employees on duty in charge of the mails or traveling 
to or from such duty;
    (12) Technical representatives of companies that have been engaged 
in the manufacture, development or testing of a particular type of 
aircraft or aircraft equipment, when the transportation is provided for 
the purpose of in-flight observation and subject to applicable FAA 
regulations;
    (13) Persons engaged in promoting transportation; and
    (14) Other authorized persons, when such transportation is 
undertaken for promotional purpose.
* * * * *
    Revenue passenger means a passenger for whose transportation an air 
carrier receives commercial remuneration. This includes for example:
    (1) Passengers traveling under publicly available tickets including 
promotional offers (for example two-for-one) or loyalty programs (for 
example, redemption of frequent flyer points);
    (2) Passengers traveling on vouchers or tickets issued as 
compensation for denied boarding or in response to consumer complaints 
or claims;
    (3) Passengers traveling at corporate discounts;
    (4) Passengers traveling on preferential fares (Government, seamen, 
military, youth student, etc.);
    (5) Passengers traveling on barter tickets; and
    (6) Infants traveling on confirmed-space tickets.
* * * * *

    Issued in Washington, DC on August 16, 2000.
Susan McDermott,
Deputy Assistant Secretary for Aviation and International Affairs.
Donald W. Bright,
Acting Director, Office of Airline Information.
[FR Doc. 00-21313 Filed 8-21-00; 8:45 am]
BILLING CODE 4910-62-P