[Federal Register Volume 67, Number 111 (Monday, June 10, 2002)]
[Notices]
[Pages 39784-39785]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-14360]


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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

[Docket Nos. OST-95-179 and OST-95-623]


Proposed Agency Information Collection; Comment Request; 
Disclosure of Code-Sharing Arrangements and Long-Term Wet Leases

AGENCY: Office of the Secretary (OST), DOT.

ACTION: Notice and request for comments.

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SUMMARY: In accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. 3501 et seq.), this notice announces and requests comments on 
the Department of Transportation's intention to request the extension 
of a previously approved collection that reflects DOT's current 
consumer notification rules and policies to ensure that consumers have 
pertinent information about airline code-sharing arrangements and long-
term wet leases in domestic and international air transportation. The 
information collection requirement in the rule, among other things, (1) 
requires travel agents doing business in the United States, foreign air 
carriers, and U.S. air carriers (a) to give consumers reasonable and 
timely notice if air transportation they are considering purchasing 
will be provided by an airline different from the

[[Page 39785]]

airline holding out the transportation, and (b) to disclose the 
identity of the airline that will actually operate the aircraft; and 
(2) for tickets issued in the United States, requires U.S. and foreign 
air carriers and travel agents to provide written notice of the 
transporting carrier's identity at the time of purchase of air 
transportation involving a code-sharing or long-term wet-lease 
arrangement.

DATES: Comments on this notice must be received on or before August 9, 
2002.

ADDRESSES: Comments on this notice should be directed to the 
Competition and Policy Analysis Division (X-55), Office of Aviation 
Analysis, U.S. Department of Transportation, Room PL-401, Docket Nos. 
OST-95-179 and OST-95-623, 400 Seventh Street, SW., Washington, DC 
20590. Three copies are requested but not required.

FOR FURTHER INFORMATION CONTACT: Jack Schmidt, Office of the Assistant 
Secretary for Aviation and International Affairs, Office of the 
Secretary, U.S. Department of Transportation, 400 Seventh St. SW., 
Washington, DC 20590, (202) 366-5903.

SUPPLEMENTARY INFORMATION:
    Title: Disclosure of Code-sharing Arrangements and Long-term Wet 
Leases.
    OMB Control Number: 2105-0537.
    Type of request: Extension of a previously approved collection.
    Abstract: Code-sharing is the name given to a common airline 
industry marketing practice where, by mutual agreement between 
cooperating carriers, at least one of the airline designator codes used 
on a flight is different from that of the airline operating the 
aircraft. In one version, two or more airlines each use their own 
designator codes on the same aircraft operation. Although only one 
airline operates the flight, each airline in a code-sharing arrangement 
may hold out, market and sell the flight as its own in published 
schedules. Code-sharing also refers to other arrangements where a code 
on a passenger's ticket is not that of the operator of the flight, but 
where the operator does not also hold out the service in its own name. 
Such code-sharing arrangements are common between commuter air carriers 
and their larger affiliates and the number of arrangements between U.S. 
air carriers and foreign air carriers has also been increasing. 
Arrangements falling into this category are similar to leases of 
aircraft and crew (wet leases).
    The Department recognizes the strong preference of air travelers 
for on-line service (service by a single carrier) on connecting flights 
over interline service (service by multiple carriers). Code-sharing 
arrangements are, in part, a marketing response to this demand for on-
line service since these arrangements enable airlines to hold out 
multi-carrier service as on-line service. Often, code-sharing partners 
offer services similar to those available for on-line connections with 
the goal of offering ``seamless'' service (i.e., service where the 
transfers from flight to flight or airline to airline are facilitated). 
For example, they may locate gates near each other to make connections 
more convenient or coordinate baggage handing to give greater assurance 
that baggage will be properly handled.
    Code-sharing arrangements can help airlines operate more 
efficiently because they can reduce costs by providing a joint service 
with one aircraft rather than operating separate services with two 
aircraft. Particularly in thin markets, this efficiency can lead to 
increased price and service options for consumers or enable the use of 
equipment sized appropriately for the market. Therefore, the Department 
recognizes that code-sharing, as well as long-term wet leases, can 
offer significant economic benefits.
    Although code-sharing and wet-lease arrangements can offer 
significant consumer benefits, they can also be misleading unless 
consumers know that the transportation they are considering for 
purchase will not be provided by the airline whose designator code is 
shown on the ticket and unless they know the identity of the airline on 
which they will be flying. The growth in the use of code-sharing, wet-
leasing and similar marketing tools, particularly in international air 
transportation, had given the Department concern about whether the 
then-current disclosure rules (14 CFR 399.88) protected the public 
interest adequately.
    Affected Public: All U.S. air carriers, foreign air carriers, 
computer reservations systems (CRSs), travel agents doing business in 
the United States, and the traveling public.
    Respondents: U.S. air carriers, foreign air carriers, ticket agents 
(including travel agents), and the traveling public.
    Estimated Number of Respondents: 33,898 excluding travelers.
    Estimated Number of Responses per Respondent: An average of 3,009 
phone calls of 15 seconds duration (unweighted average) based on 102 
million phone calls and 33,898 respondents.
    Estimated Total Annual Burden on Respondents: Annual reporting 
burden for this data collection is estimated at 424,994 hours for all 
travel agents and airline ticket agents and 424,994 hours for air 
travelers based on 15 seconds per phone call and an average of 2.1 
phone calls per trip.
    Most of this data collection (third party notification) is 
accomplished through highly automated computerized systems.
    Comments are invited on: (a) Whether this collection of information 
(third party notification) is necessary for the proper performance of 
the functions of the agency, including whether the information will 
have practical utility; (b) the accuracy of the agency's estimate of 
burden of the proposed collection of information; (c) ways to enhance 
the quality, utility, and clarity of the information to be collected; 
and (d) ways to minimize the burden of the collection of information on 
the respondents, including through the use of automated techniques or 
other forms of information technology.

    Issued in Washington, DC, on June 4, 2002.
Randall D. Bennett,
Director, Office of Aviation Analysis.
[FR Doc. 02-14360 Filed 6-7-02; 8:45 am]
BILLING CODE 4910-62-P