[Federal Register Volume 67, Number 11 (Wednesday, January 16, 2002)]
[Notices]
[Pages 2282-2283]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-1158]


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DEPARTMENT OF TRANSPORTATION

Bureau of Transportation Statistics


Agency Information Collection; Activity Under OMB Review; Report 
of Financial and Operating Statistics for Large Certificated Air 
Carriers

AGENCY: Bureau of Transportation Statistics (BTS), DOT.

ACTION: Notice.

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SUMMARY: In compliance with the Paperwork Reduction Act of 1995, Public 
Law 104-13, the Bureau of Transportation Statistics invites the general 
public, industry and other governmental parties to comment on the 
continuing need for and usefulness of the BTS Form 41. Comments are 
requested concerning whether (a) the continuation of Form 41 is 
necessary for DOT to carry out its mission of promoting air 
transportation; (b) BTS accurately estimated the reporting burden; (c) 
there are other ways to enhance the quality, use and clarity of the 
data collected; and (d) there are ways to minimize reporting burden,

[[Page 2283]]

including the use of automated collection techniques or other forms of 
information technology.

DATES: Written comments should be submitted by March 18, 2002.

ADDRESSES: Comments should be directed to: Office of Airline 
Information, K-25, Room 4125, Bureau of Transportation Statistics, 400 
Seventh Street, SW., Washington, DC 20590-0001, fax No. (202) 366-3383 
or e-mail [email protected].
    Comments: Comments should identify the OMB # 2138-0013. Persons 
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 OMB # 2138-0013. The 
postcard will be date/time stamped and returned.

FOR FURTHER INFORMATION CONTACT: Bernie Stankus, Office of Airline 
Information, K-25, Room 4125, Bureau of Transportation Statistics, 400 
Seventh Street, SW., Washington, DC 20590-0001, (202) 366-4387.

SUPPLEMENTARY INFORMATION:
    OMB Approval No.: 2138-0013.
    Title: Report of Financial and Operating Statistics for Large 
Certificated Air Carriers.
    Form No.: BTS Form 41.
    Type Of Review: Extension of a currently approved collection.
    Respondents: Large certificated air carriers.
    Number of Respondents: 75.
    Estimated Time per Response: 4 hours per schedule, an average 
carrier may submit 90 schedules in one year.
    Total Annual Burden: 27,000 hours.
    Needs and Uses: Program uses for Form 41 data are as follows:

Mail Rates

    The Department of Transportation sets and updates the international 
and mainline Alaska mail rates based on carrier aircraft operating 
expense, traffic and operational data. Form 41 cost data, especially 
fuel costs, terminal expenses, and line haul expenses are used in 
arriving at rate levels. DOT revises the established rates based on the 
percentage of unit cost changes in the carriers' operations. These 
updating procedures have resulted in the carriers receiving rates of 
compensation that more closely parallel their costs of providing mail 
service and contribute to the carriers' economic well-being.

Submission of U.S. Carrier Data to ICAO

    As a party to the Convention on International Civil Aviation, the 
United States is obligated to provide the International Civil Aviation 
Organization with financial and statistical data on operations of U.S. 
air carriers. Over 99 percent of the data filed with ICAO is extracted 
from the carriers' Form 41 reports.

Standard Foreign Fare and Rate Levels

    DOT uses Form 41 cost data to calculate the Standard Foreign Fare 
Level (SFFL) for passengers and the Standard Foreign Rate Level (SFRL) 
for freight. Any international fare or rate set below this fare level 
are automatically approved. Separate passenger fare and rate levels are 
established for Canadian, Atlantic, Latin America, and Pacific areas. 
In markets where liberal bilateral or multilateral pricing agreements 
provide for more competitive open market pricing, such agreements may 
take precedence over the SFFL and SFRL.

Carrier Fitness

    Fitness determinations are made for both new entrants and 
established U.S. domestic carriers proposing a substantial change in 
operations. A portion of these applications consists of an operating 
plan for the first year (14 CFR part 204) and an associated projection 
of revenues and expenses. The carrier's operating costs, included in 
these projections, are compared against the cost data in Form 41 for a 
carrier or carriers with the same aircraft type and similar operating 
characteristics. Such a review validates the reasonableness of the 
carrier's operating plan.
    Form 41 reports, particularly balance sheet reports and cash flow 
statements play a major role in the identification of vulnerable 
carriers. Data comparisons are made between current and past periods in 
order to assess the current financial position of the carrier. 
Financial trend lines are extended into the future to analyze the 
continued viability of the carrier. DOT reviews three areas of a 
carrier's operation: (1) The qualifications of its management team, (2) 
its disposition to comply with laws and regulations, and (3) its 
financial posture. DOT must determine whether or not a carrier has 
sufficient financial resources to conduct its operations without 
imposing undue risk on the traveling public. Moreover, once a carrier 
is operating, DOT is required to monitor its continuing fitness.
    Senior DOT officials must be kept fully informed as to all current 
and developing economic issues affecting the airline industry. In 
preparing financial conditions reports or status reports on a 
particular airline, financial and traffic data are analyzed. Briefing 
papers may use the same information.

War Air Service Program (Emergency Preparedness)

    Under the War Air Service Program (WASP), FAA develops an official 
airline guide to establish air carrier boarding priorities in the event 
of a national emergency. The inventory of aircraft available for WASP 
equals the total aircraft fleet operated by certificated air carriers 
less the number of the largest wide-body aircraft that are allocated to 
the Civil Reserve Aircraft Fleet Program. Data on air carrier aircraft 
inventories, plus interim updates of acquisitions and retirements are 
used to assess the air transportation capabilities of the U.S. airline 
industry. This assessment is used in developing plans for emergency 
utilization of U.S. airline industry aircraft and resources in the 
event of a national emergency and/or mobilization.

Air Transportation Safety and System Stabilization Act

    DOT is using Form 41 financial data to establish benchmarks to 
assess the reasonableness of air carrier claims under the Stabilization 
Act.

Donald W. Bright,
Assistant Director, Airline Information, Bureau of Transportation 
Statistics.
[FR Doc. 02-1158 Filed 1-15-02; 8:45 am]
BILLING CODE 4910-FE-P